GIPC reports 15% increase in new business registrations

By Isaac AIDOO, Accra

The Ghana Investment Promotion Centre (GIPC) has reported a 15% increase in new business registrations over the past year, attributed to its active engagements with both foreign and local businesses.

Speaking at the launch of the third quarter Ghana Club 100 CEO Breakfast Meeting and the 21st edition of the Ghana Club 100 Awards in Accra, GIPC CEO Mr. Yofi Grant highlighted the Centre’s efforts in promoting digital infrastructure and innovation, which had led to a 12% growth in the tech sector.

“Our efforts in promoting digital infrastructure and innovation have led to a 12% growth in the tech sector, further diversifying our economic base,” Mr. Grant stated. “It’s an area that I think we would like to see more represented in the Ghana Club 100.”

Mr. Grant reaffirmed GIPC’s commitment to making Ghana an attractive destination for businesses, emphasizing the importance of fostering indigenous businesses in partnership with foreign direct investment.

He noted that GIPC’s efforts had not gone unnoticed, with Ghana being ranked as the most appealing destination for investment in Africa according to Deloitte’s 2022 Africa Investment Attractiveness Index.

In the spirit of partnership, Mr. Grant mentioned that GIPC had strengthened its engagement with both local and foreign-owned businesses through its monitoring and evaluation, aftercare, business development, and diaspora divisions, as well as various flagship events and programs.

The initiatives include countrywide regional sensitization tours designed to assist businesses in capitalising on opportunities arising from increased investment in the regions.

Acknowledging the challenges of doing business in Ghana, Mr. Grant addressed issues such as currency depreciation and high tax burdens, which had been partly addressed in the 2024 Mid-Year Budget Review.

Mr Grant alluded to the World Bank’s 8th Economic Update for Ghana which he noted underscored the importance of maintaining the reform momentum to sustain economic recovery.

The Update said despite the pace of exchange rate depreciation, Ghana’s economic indicators remained on track due to efforts to restore fiscal and debt sustainability, reduce inflation, and strengthen financial stability.

Regarding taxes, Mr. Grant gave the assurance that government had not introduced new taxes in the Mid-Year Budget Review, a positive sign for businesses and individuals concerned with the high tax burden.

He emphasized that GIPC’s goal was to ensure businesses thrive, as successful businesses are essential for tax revenue collection.

Mr Grant alluded to a World Bank report which among others recommended re-establishing fiscal rules, enhancing public financial management, and accelerating revenue mobilization for long-term growth.

The GIPC boss highlighted the need to stimulate consumption to grow the economy, a responsibility shared by the government and the private sector.

“The more investment we have, the more businesses we create. The more businesses we create, the more people can be employed. The more people employed, the more taxes can be paid,” he explained.

The Ghana Club 100 Awards, themed “Partnership for Prosperity,” recognizes and celebrates the top-performing companies in Ghana’s economy.

The companies had demonstrated excellence in their fields and significantly contributed to the country’s growth and development.

Mr. Grant praised the resilience and determination of the Ghanaian business community, acknowledging their role in driving economic growth.

Highlighting a significant development, Mr. Grant noted a surge in Ghanaian investments registering at the GIPC, amounting to $3.5 billion in 2023.

This increase reflects growing confidence among Ghanaian investors in reinvesting back into the economy.

The Ghanaian economy had shown remarkable resilience in the face of global challenges.

The 2024 macroeconomic framework had been revised, with an upward revision of the overall real GDP growth rate from 2.8% to 3.1% and an increase in the non-oil real GDP growth rate from 2.1% to 2.8%.

These positive signals indicate a focus on economic growth despite challenges.

As the GIPC continues to facilitate partnerships and create an enabling environment for businesses to thrive, Mr. Grant remains optimistic about Ghana’s economic future.

“Our role is to facilitate these partnerships by providing the necessary support and creating an enabling environment for businesses to thrive,” he concluded.