The Chief Executive Officer of the Ghana Investment Promotion Centre, Mr. Yofi Grant, sat down with Marcopolis, an international online publishing company, to share his objectives for 2018 and his vision for the GIPC in the medium term.
Click the following link for the full interview and video report.
The Minister of Finance, Mr Ken Ofori-Atta, has observed that prospects for Ghana issuing a Samurai bond in the medium term looked good, judging from the interaction and reception accorded a Ghanaian delegation on the Non-deal investor road show in Tokyo.
Speaking to journalists in Tokyo at the end of the road show, Mr Ofori-Atta explained that the non-deal road show was not tied to the issuance of a Samurai bond immediately.
“What we sought to do was to build relationships and sensitize the market, as you know, portfolio and asset managers are conservative and may want to have all the necessary assurance in place before – and this takes time”.
Ghana’s Parliament in March gave approval for government to issue its 5th Eurobond which issuance is planned for the second quarter of the year.
Mr Ofori-Atta said going forward; government would work on sustaining and improving macroeconomic indicators to improve Ghana’s credit rating, which is rated by Fitch, Moodys, and Standard and Poors at B, B3, and B- respectively.
Indications are that potential Yen issuers like Ghana should have at least a double B rating by the rating agencies before they can acquire a Japan Bank for International Cooperation (JBIC) guarantee, a pre-requirement for Samurai bonds.
He said it was important at this stage to sensitise the market about prospects in Ghana and look for partnership in the private sector as Ghana is determine to link any future Samurai bond proceeds to specific green projects in energy (solar) transport (Tema Metro rail) and other transformational projects in telecommunication, construction etc.
The Ghanaian delegation, which was in Tokyo for a week’s visit met with several asset and portfolio managers, bankers and investors. They also met government officials to strengthen and chart a new course for bilateral economic and trade relations.
These included meetings with Taro Aso, Vice Prime Minister and Minister for Finance; State Minister for Foreign Affairs, Mr. Masahisa Sato and Mr. Hiroshi Kato, Senior Vice President of JICA.
The weeklong visit ended with an Investment Seminar which attracted over 150 leading Japanese businesses from all over the country as well some companies from Ghana. The seminar was organised by Japan External Trade organisation (JETRO), the Ghana Investment Promotion Centre, and the Ghana Embassy in Tokyo.
Source: graphic.com.gh
Ghana’s Finance Minister, Ken Ofori-Atta last Friday told Japanese businesses that, the current stable macro and political environment is an opportune time for them to launch into the West African region using Ghana as the hub. “We are now combining politically stable environment with fiscal consolidation and macro stability and we would like, therefore, to get our traditional friends to be part of this exciting journey going forward”.
He said the West African sub-region has a population of 350 million, which is expected to reach 500 million in 20 years and a 1.5 trillion GDP, likely to double in 20 years, therefore, Ghana was an ideal centre for investors to pivot to other countries. “The intention is for Ghana to become the regional maritime hub, regional financial services hub, a petroleum hub, and attract all sorts of multinational headquarters into our country”, he explained.
Ken Ofori-Atta said these when he made a pitch for Ghana as an ideal investor destination during a seminar attended by over 150 leading Japanese businesses held in Tokyo at the end of a week-long visit to Japan. The seminar organised by the Ghana investment Promotion Centre, the Ghana Embassy in Tokyo and the Japan External Trade organisation (JETRO) was aimed at exposing Japanese business community to potential investment opportunities in Ghana.
Ghanaian companies and Japanese companies operating in Ghana, as well as the Government delegation led by Ken Ofori-Atta, on a week’s non deal investor road show to Japan were also present. In a presentation, Charles Adu Boahen, Deputy Minister for Finance highlighted investment opportunities in sectors such as financial services, ICT, Fintech, energy, transport and agribusiness etc.
He noted that Fintech was a key growth area where in 2017 alone, there were about 34billion worth of mobile money transactions, which is about 70% of Ghana’s GDP of 45 billion. “It has really become the mode for transactions and transfers and payment, we sort of leap frogged the credit card era and moved straight to mobile payments and mobile money solutions. We have about 10million mobile money customers and 38million mobile subscribers. These are the areas Japanese firms are good at in terms of technology”
The Deputy Minister for Trade, Kingsley Carlos Ahenkorah, spoke on the Ten Point Transformational Agenda, which included the government’s plan for industrialising all 264 districts in the country under the 1D1F programme. He said the among other things, this programme aimed at creating jobs, enhancing resource potential in every district, creating import substitutes and producing products for exports, as well as curbing rural urban migration. The Deputy Trade Minister said the government intend to make these private sector led, saying “it is not a business for government to pump in money, however if you want to secure your investment and require government involvement, government is prepared to take an equity in your business.”
The Director, Investor Services at the GIPC, Edward B. Ashong-Lartey, gave an overview of the legal and regulatory framework for investors. Some of the incentives include, full repatriation of dividends and net profit attributed to investment and transfer of funds in respect of servicing of foreign loans. Earlier in a welcoming address, Dr. Katsumi Hirano, Executive Vice President of JETRO said Japan/Ghana relationship had been very cordial over the years and urged government to take steps to conclude and sign the Bilateral Investment Treaty to open the way for Japanese companies to comfortably invest in Ghana.
In attendance were the Minister for Roads and Highways, Akwasi Amoako-Atta, Deputy Minister for Finance, Charles Adu Boahen; Deputy Governor of Bank of Ghana, Dr. Maxwell Opoku Afari, Deputy Minister for Health, Kingsley Aboagye Gyedu, Deputy Minister for Information, Kojo Oppong Nkrumah and Deputy Minister for Trade, Carlos Ahenkorah. Also present were officials from the Ghana Embassy led by Mrs. Abigail Kwashi, the Charge d’Affaires and Board Chair of Ghana Infrastructure Investment Fund, Professor Christopher Ameyaw-Akumfi.
Source: gbcghana.com
The first edition of the Ghana Nigeria Business Conference dubbed “Ghangeria Rising” to take place at the Kempinski Gold Coast City Hotel on 28th and 29th March 2018 has been rescheduled to Thursday May 10, 2018.
This first edition will focus on experiences, opportunities and challenges in the agribusiness, banking and finance, oil, power and gas, information, communication and Technology (ICT) sectors.
It will also discuss the initiatives of the Ghanaian and Nigerian governments to address the barriers to trade, business and investment between the two countries and propose pragmatic ways to accelerate them.
The much anticipated event is expected to boost trade and investment between the two countries and their business communities.
Source: GIPC Corporate Affairs
| AGRO-PROCESSING | |
| Name of the company
LifeStar Cocoa Processing Ltd |
Nature of business
Cocoa processing |
| Status/ Intention
Expansion/diversification |
Type of cooperation sought
Equity/ Loan (US$ 1.5 million) |
The project entails the establishment of a modern cocoa processing factory to process cocoa beans (at a production capacity of 500kg/hr of cocoa beans). The final products- cocoa powder, cocoa butter and cocoa liquor- will be exported and sold on the local markets in light of the huge demand for them. The processing facility will have the capacity to process 15000 metric tons annually.
Value addition has been a long-standing national goal in enhancing earnings from the cocoa industry. However, currently over ninety percent of raw premium quality cocoa beans from Ghana are exported with only ten percent available for processing locally. Total installed capacity for processing cocoa is 343,000 metric tons and an additional installed capacity of about 350,000 metric tons is required to reach the country’s projected 50% processing capacity.
Also, the production of cocoa in Ghana is increasing with estimated output of 968,000 metric tons in 2016 compared to 710,000 metric tons in 2009 and 904,000 metric tons in 2010. Ghana also benefits from bilateral preferential market access conditions under the Generalized System of preferences and the African Growth and Opportunity Act (AGOA). Therefore, there is guaranteed supply of raw materials and available market for the output of the company.
The project sponsor presently engaged in the production of cocoa products, buys grinded cocoa powder from the Cocoa Processing Company (CPC). Offices are located in Tema, with the site for the processing plant located at Dodowa, near Adenta, approximately 15 km from Tema.
Source: GIPC, Research & Business Development
The CEO of GIPC, Mr. Yofi Grant has urged potential Indian investors to consider Ghana as their preferred destination for investment in West Africa.According to him, Ghana has limitless investment opportunities with a stable economic and political environment which makes doing business easier.
“It is projected that if things work out as it should, then over the next five years Ghana will achieve 9% average in GDP growth. There are additionally some other amazing things. The government of the day has been able to reduce deficit from 9% GDP to 6.5% and we are on track to achieve single digit inflation”, he stated.
Mr Grant was speaking at an exclusive interactive session with some members of the Ghana delegation at the International Solar Alliance (ISA) Founding Conference and Solar Summit in New Delhi earlier this month.
The principal objective of the conference is to create a collaborative platform for increased deployment of solar energy technologies to enhance energy security and sustainable development, and improve access to energy and opportunity.
The summit which hosted 25 Heads of State and Government saw in attendance president Nana Addo Dankwa Akufo-Addo. It provided a platform for co-operation amongst solar resource-rich countries, with the purpose of realizing the common goals of increasing the use of solar energy in meeting the energy needs of ISA member countries in a safe, convenient, affordable, equitable and sustainable manner.
Other members of the delegation include the Ghana High Commission of Ghana to India, HE Mike Ocquaye Jnr.; Deputy Minister of Energy, Mr William Owuraku Aidoo; Minister of Trade and Industry, Mr Alan Kyeremanten, and the President of the Ghana National Chamber of Commerce, Nana Dr. Appiagyei Dankawoso.
At a side meeting, the President of the Ghana Chamber of Commerce, Nana Dr Appiagyei Dankawoso signed a MoU with the PHD Chamber of Commerce and Industry to inaugurate the Indo-Ghana Chamber of Commerce.
Source: GIPC Corporate Affairs
The Head of the Ghana Investment Promotion Centre’s (GIPC) – Legal Division, Mrs. Naa Lamle Orleans-Lindsay, has expressed the Centre’s readiness to work with related stakeholders to ensure compliance of technology transfer (TTA) regulations in the country and also review its structure to ensure efficiency. This was during the Centre’s 1st Quarter ‘Ghana On The Go’ CEOs’ Breakfast Meeting on the theme “Technology Transfer Regime: The Public and Private Sector Convergence”.
“We are willing to work in close collaboration with the Bank of Ghana and the Ghana Revenue Authority to ensure compliance of technology transfer legislations. We are also ready to work in
close collaboration with financial institutions to ensure compliance by companies through GIPC Act 865 and L.I. 1547”, she said.
The event which brought together captains of industry, companies in the Ghana Club 100, and members of the diplomatic community, was organized to provide perspective on best practices for business owners in the drafting, development and implementation of TTA’s.
Under GIPC legislation a technology transfer agreement refers to an agreement with an enterprise which involves:
She said services such as industrial property, technical expertise, knowhow and managerial services were the four general areas under the GIPC law that needed to be registered adding, “So if there is such an agreement between a local company and a foreign company covering any one or more of these services, the company must register such an agreement with the GIPC”.
The law insists that if the services a company needs are available in Ghana, that service cannot be the subject of a TTA, where same is paid for through transfer of money outside the country. The law seeks to encourage local companies to use local services.
“Transfer of fees is a key issue; local companies are converting their revenue to foreign currencies and taking it out of the country, and this has a huge effect on the Ghana cedi. We are talking about millions of dollars here; the average company that comes to the centre makes $3 to $4 million dollars averagely per annum and some are transferring $15 to 20 million yearly under these agreements”, she added.
Mrs. Orleans-Lindsay, however, mentioned that there were some challenges with the registration and implementation of the TTA’s such as the delays in submission to GIPC, constrains to quick review of TTA by the Centre, and the requirement of second regulatory approval for renewal for TTA’s.
Nevertheless, she said, failure to register a TTA with the GIPC was a breach of the GIPC Act 2013, Act 865 and L.I 1547 which was liable to a summary conviction.
Additionally, a company which fails to register its TTA with the GIPC cannot legally transfer fees and charges to the Transferor in relation to technology transferred.
“The GIPC may also suspend, cancel or revoke the registration and advise Bank of Ghana to suspend any remittance and incentives granted to the company among others if you fail to register”, she added.
Speaking to the press at the event, Mr Yofi Grant, Chief Executive Officer of GIPC, explained that under the GIPC’s Technology Transfer Regulation, 1992 (L.I 1547), it is expected that such services and agreements between two companies should be registered and paid for.
The Head of Transfer Pricing Unit of the Ghana Revenue Authority, Mr. Kwame Owusu, also shed light on how some companies were flouting the law.
He encouraged companies to stop flouting the law and register their agreements with the GIPC.
Source: GIPC Corporate Affairs
Forty Four African heads of state and government officials on March 21 2018, signed the framework to establish the African Continental Free Trade Agreement (AfCFTA). The AfCFTA is an agreement advanced by the African Union (AU) that will create the largest free trade area in the world and is one of the flagship projects of the AU Agenda 2063, which is a long-term development program urging for closer African integration by facilitating the flow of goods and people throughout the continent.
It is believed that the AfCFTA if fully implemented, could increase intra-African trade significantly and promote structural transformation by providing a lever to industrial development in African economies. However, is Ghana ready to compete in a single continental market with other African countries?
According to The Washington Post, by 2030, Africa may emerge as a $2.5 trillion potential market for household consumption and $4.2 trillion for business-to-business consumption. The treaty would result in a unified market of over 1. 2 billion people, with a combined gross product of over US$3 trillion the African Union have stated.
Creating one African market will prioritize goods and services invariably leading to the creation of job opportunities.
What Ghana Stands To Gain
So what does Ghana stand to gain from the AfCFTA? Some of the benefits Ghana will derive from a free trade market include:
A free trade agreement will also increase Africa’s competitiveness and boost Ghana’s manufacturing sector. It is expected to spur economic growth in Ghana, boost industrialization, and improve infrastructure development and business diversification. The Ministry of Trade and Industry (MOTI) will be the institution responsible for the implementation of the AFCFTA in Ghana. This week, the Ghanaian Parliament has recalled members for an emergency sitting to deliberate over the AFCFTA to for possible rectification.
It will be an enabler to attract foreign direct investment (FDI) into Ghana and the continent as a whole. Ghana has much to gain from the AfCFTA as it might help wean Africa off foreign aid; an initiative that His Excellency Nana Akufo-Addo strongly advocates for in his ‘Ghana Beyond Aid’ campaign.
Source: GIPC Corporate Affairs
The Ghana Investment Promotion Centre (GIPC) has yet again won the award for Best Investment Promotion Agency in West and Central Africa.The award, received at this year’s Annual Investment Meeting (AIM) 2018 Investment Awards Gala Dinner, held on 9th April 2018 at the Burj Khalifa in Dubai, is the third in a row received by the Centre at the annual event. Previous first place awards received by the Centre were in 2016 and 2017.
The GIPC in collaboration with the Ghana Embassy in the UAE (including the Ghana Consulate in Dubai), Dubai Business Chamber, the Ghana Free Zones Authority and the Ghana Gulf Chamber of Commerce and Industry, is currently on an investment promotion mission to the UAE from 6th to 14th April 2018, themed ‘Linking Development And Emerging Markets Through FDI: Partnerships For Inclusive Growth And Sustainable Development’.
The over 30-member private and government sector delegation, led by the CEO of GIPC – Mr. Yofi Grant, attended the Annual Investment Meeting (AIM) 2018.
As part of the itinerary, the delegation on 8th April 2018 met with the executive management and members of the Abu Dhabi Business Chamber in Abu Dhabi. The session which ended with business to business engagements, was highly welcomed and acknowledged as the first time Ghana has initiated such an engagement in Abu Dhabi and with the Chamber.
The week-long mission also involved the delegation holding high level meetings with potential strategic investors and participants in a Ghana Dubai Business Forum organised in collaboration with the Dubai Business Chamber on 12th April 2018.
Mr. Yofi Grant also chaired a high-level panel on Investing in Africa at the AIM 2018 conference.
The Annual Investment Meeting (AIM) 2018 is an initiative from the UAE Ministry of Economy. It is the region’s first Emerging Markets FDI-focused event to offer a perfect blend of trade fair and intellectual features aimed at enriching Institutional, corporate and individual investors attending with a comprehensive set of guidelines for their future investment decisions in high growth regions.
Source: GIPC Corporate Affairs Division
Ghana Investment Promotion Centre (GIPC) has said it is confident of meeting its 2018 target of registering foreign direct inflows to the tune of $10 billion. The amount, when achieved would represent 100 percent more than last year’s target of $5 billion by the Centre. Out of the $5 billion targeted last year the Centre pooled $4.91 billion representing almost 100 percent of the target.
But GIPC’s CEO, Yofi Grant, addressing the media at the 1st quarter edition of the ‘Ghana On the Go’ CEOs Breakfast Meeting for 2018, on the theme, “Technology Transfer Regime in Ghana: The public and private centre convergence,” said investor confidence in the economy is still very high.
“We have met many of those investors who say we need reforms – most of which have begun, the digital addressing system, paperless port project to boost trade, and paperless business registration and still counting. These reforms, we will ensure are done to make Ghana a better place to do business,” he said.
He explained that technology transfer regime, is usually an agreement, backed by law with GIPC as the regulator and is a relationship between an indigenous company and its parent company abroad or external company, where there is a provision of some service from the external company to its local subsidiary in Ghana.
“So at the GIPC, there is the expectation that such services and agreements between the two companies must be registered and paid for, according to GIPC’s technology transfer regulation, 1992 (L.I 1547)” he said.
Mr. Grant however explained that many companies do not comply with such regulations, making the country lose out on monies which are supposed to be paid to the GIPC.
“A check from the GRA indicates a certain ‘big’ company in Ghana, with a powerful external partner has been making losses for the past six years yet they are still in business. Because they get compensated in many other different ways, etc.” he disclosed.
GIPC’s Head of Legal, Mrs. Naa Lamle Orleans-Lindsay, indicated, “It is important to ensure that the regulation is understood and what it is purported to do. The importance is that, many local companies contract these services with their foreign partners, and are charged for services rendered to them by their partners.”
She maintained that such charges, are sometimes so high that there must be a supervisor to check what the local company is paying for.
“That can only happen when such contracts and agreements are registered with the GIPC because in there is also the issue of transfer pricing,” she added.
Source: myjoyonline.com