GIPC: Ghana is West Africa’s 2nd highest recipient of FDIs

Ghana's investment landscape has been on an upward trajectory, with the Ghana Investment Promotion Center (GIPC) highlighting the country as the second-highest recipient of Foreign Direct Investment (FDI) in West Africa. CEO Yofi Grant reiterated confidence in the Ghanaian economy, attributing the growth to significant economic expansion and stability. The country exceeded growth projections, growing by 4.7% in the first quarter, surpassing the International Monetary Fund's (IMF) estimate of 3%. This growth has instilled confidence in investors, both foreign and domestic, despite the upcoming December elections. The focus on elevating Ghana's global market influence has spurred aggressive investment activities. The GIPC has observed a surge in business registrations, indicating a strong interest in the Ghanaian market. However, concerns have been raised regarding tax harassment and its impact on investor confidence. Several companies have exited the market, citing tax-related issues, including Glovo, Nivea, Game, Jumia Food, among others. To address these challenges, the GIPC has facilitated dialogues between government agencies and businesses to improve tax regulations and promote stability. Yofi Grant emphasized the importance of predictability and stability for businesses, highlighting the need for coherent tax methodologies to support investment growth. The GIPC, alongside global investment promotion agencies, is focusing on investment facilitation and aftercare to enhance the investment landscape. Returning investors and those expanding their investments play a significant role in driving foreign direct investment, necessitating a conducive business environment where predictability and stability are key. The conversation also delved into sustainable development goals (SDGs) and Ghana's commitment to the Paris accord and the African Union (AU) agenda 2063. The collaboration with the United Nations Development Programme (UNDP) on the SDG investor roadmap has been instrumental in guiding investors and identifying opportunities aligned with national and global development objectives. While Africa is actively pursuing SDGs and climate finance, Grant cautioned against overlooking fundamental continent-specific requirements that may not fall under these frameworks. Moreover, discussions around gold production, exports, and dynamics in the cocoa sector remain vital for Ghana's economy, representing significant revenue streams for the country. The Chief Executive Officer of GIPC, Yofi Grant, emphasized the need to address these key sectors to sustain economic growth and capitalize on Ghana's cash cow industries. In conclusion, Ghana's steady rise in foreign investments underscores the country's growing appeal to investors. Despite challenges related to tax issues, the GIPC is committed to fostering a conducive environment for businesses to thrive. With a focus on stability, predictability, and investment facilitation, Ghana aims to solidify its position as a preferred investment destination in West Africa.