The Minister of Trade and Industry, Mr Haruna Iddrisu, has tasked the newly inaugurated board of the Ghana Investment Promotion Centre (GIPC) to take a critical look at the new GIPC Act to identify areas of concern that need to be addressed.
The 10-member board would then revert to the government and provide advice on the necessary steps to be taken to address issues in the new Act.
At a trade policy review session in Geneva, the Trade and Industry Minister noted that there were concerns on the revised capital requirement for investments into Ghana which some external stakeholders thought were in conflict with the World Trade Organisations� (WTO) conventions.
The GIPC Board comprised Dr Michael Agyekum Addo, Cassiel Ato Forson Edwin, Nii Lante Vanderpuye, Dr Regina O. Adutwum and Mrs Irene Demanyah and Mr Aaron Dickson.
The rest are Mr Millison Narh, Mrs Mawena Trebah, Nana Osei Bonsu and Ms Gwenda Sam.
Per the new Act, a foreigner who wants to go into a joint venture with a Ghanaian has to show evidence of US$200,000. Again, the Ghanaian should not be given less than 10 per cent shares in the company, and for a wholly owned foreign company, evidence of having brought into the country either cash or equipment amounting to at least US$500,000 should be seen.
Unlike the old Act that required foreign investors engaging in trade in the country to bring in goods worth US$300,000 and also employ 10 Ghanaians, under the new Act, they are supposed to bring in goods worth US$1 million and also employ 20 skilled Ghanaians.
The new GIPC Act also makes provision for offences and penalties, which were missing in the old GIPC Act, 468 enacted in 1994.
The inception of the new Act has generated a lot of debate, with the latest being the one Mr Iddrisu spoke of in Geneva. The minister has, therefore, charged the board to review areas of concern and advice the government accordingly.
Mandate of the board
The minister tasked members of the board to embark on what he described as an offensive promotion aimed at driving investments into the country, as Ghana�s investment landscape had improved considerably.
The new board was also given a 45-day ultimatum to establish a one-stop administrative centre to handle investors, reduce bureaucracy in the operations of the centre and contribute to the ease of doing business.
�It must be possible for a company wanting to do business in the country to be able to process its particulars within 24 and 48 hours,� he stressed.
While stressing the need for local content and driving domestic investments, the minister tasked the board to work at promoting both local and foreign investments but not to the neglect of the former.
The minister also tasked the board to review the country�s tax exemption regime and reduce the leakages. He said although tax exemption was to encourage foreign investments into the country, it must be managed properly to ensure that the state does not lose its revenue.
He also urged the board to be forthcoming with the centre�s annual report, conduct due diligence on companies wanting to invest in the country, as well as assist in the job creation drive of the economy.
Chairman�s response
The Chairman of the board, Dr Agyekum Addo, thanked the President for the confidence reposed in the members, and gave the assurance that his team would work to improve investments in the country.
The board, he said, would advocate a long-term investment plan for the centre, with focus on both local and foreign investments.
�It would also work acidulously to reduce bureaucracy by establishing the one-stop administrative centre within the stipulated time,� he added.
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