investment guide
TopGuide l 2014
Mining in Ghana, which is the world’s second largest producer of gold.
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the years 2013, 2014 and 2015 respectively. These are well above the average annual growth rate of 6.5% since 2000. Given the passing of the new GIPC Act by Parliament, alongside the positive growth projections, it is anticipated that the FDI will significantly increase as we pursue an agenda of being the first destination for FDI on the continent. TR: How does Ghana compare with neighboring countries in terms of its investment climate and receptivness to FDI? MT: Ghana is bordered on the north by Burkina Faso, on the West by Cote d’Ivoire, on the East by Togo and on the south by the Gulf of Guinea. Ghana compares favourably with neighbouring countries in terms of FDI. It moved from the seventh largest recipient of FDI in Africa in 2010 (2011 World Investment Report) to the third largest recipient in 2011, behind Nigeria (2012 World Investment Report). Ranking 16th worldwide in the UNCTAD’s 2012 FDI attraction index, the country accounted for 20% of total FDI in West Africa. The country ranked top for the past five years in the AT Kearney Global service location index (ahead of Nigeria and Senegal). Ghana progressed from 41st to 30th position out of 179 countries and 3rd in Africa on press freedom according to the ‘Reporters Without Borders’ 2013 Press Freedom Index report. The
country, viewed as an icon of democracy in the subregion, has continuously experienced stability. This compares favourably with neighbouring countries and is crucial to our investment drive, since the country provides a safe haven for investments. The country’s economy is growing ahead of the average for the region, with GDP growth at 8% in 2010, 14.4% in 2011, and 7.1% in 2012. Our industrial base is relatively advanced compared with neighbours. However, additional scope exists for value-added processing of agricultural products. While we seek to entrench our position as a preferred investment destination, we do focus on neighbouring countries as part of our promotion efforts. Nigeria, for instance, has proven a critical source of FDI to Ghana, having ranked among the top 10 investor countries over the past five years. TR: How will the change in the law and procedures for investing in Ghana affect its ability to attract investments? MT: The new GIPC Act is focused on allowing the Centre to have a long term view of investments and thereby attract investments that will translate into development by directing these into crucial areas that are strategic to our economy. It is expected that the Act will allow the GIPC to be more efficient, not just in bringing in FDI, but in engendering commercial economic activities from within the shores of the country. TR: What message do you have for investors, particularly those who are at the moment considering putting their money into the country? MT: With much enthusiasm and pleasure, I introduce you to our beautiful country, Ghana, a preferred destination
for investments due to the business-friendly infrastructure which the country is working assiduously to maintain and improve. The country can boast of the following continuous, stable multi-party political environment since 1992; continuous macroeconomic stability; competitive corporate tax rates for the subregion; fast developing financial infrastructure, institutions and services; abundant supply of skilled and trainable labour; proximity to both the European and American markets, among many other investor-friendly characteristics. Due to the country’s encouraging economic performance over the past 10 years, there are positive projections about the future of the economy. The country enjoyed its longest stretch of single-digit inflation, from 2010 to 2011. Overall, inflation averaged 8.8% in 2011. Ghana presents a safe destination for your investments as the law guarantees the equal treatment to all investors, protection against expropriation, free transfer of profits, capital and dividends, etc. The country’s strategic location, as the closest land mark to the centre of the world, offers time advantages, allowing easy access to markets on other continents. Serving as a gateway to the subregion, investors have access to a potential West African market of 290m people with an average GDP growth rate of 5.9% over the past decade. The country has attracted the attention of well-known businesses, investing in all sectors of the economy over the years. This is indicative of the confidence reposed in the country as having a conducive environment for business. I cordially invite you to partner with us for prosperity for all.
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