GIPC engages Economic, Trade and Commercial Counselors on Ghana’s Investment Environment

The Ghana Investment Promotion Centre organized the 2018 Edition of the Economic Counsellors Dialogue on the 17th of May 2018. The Dialogue, being the fifth in a series organized by the Centre, aimed at bringing together the economic, trade and commercial attaches of various foreign missions located in Ghana, as well as foreign businesses associations and relevant government agencies.

The event held on the theme “Improving the Investor Experience in Ghana: Incentives Regime, Business Licensing and Taxation” had notable speakers in persons of the Deputy Finance Minister- Hon. Kwaku Kwarteng, Mrs Jemima Oware- Registrar General of Ghana, Mr Francis Ashinyo- Assistant Commissioner for Large Tax Payers Office GRA, Mr Emmanuel Asiedu- Senior Tax Partner at KPMG and Chief Executive Officer of the Ghana Investment Promotion Centre- Mr Yofi Grant.

Mr Grant indicated that the dialogues were to educate the Diplomatic Community about the GIPC’s programmes and investment policies so that the information could be passed down to potential and existing investors from their respective countries interested in doing business in Ghana.
“Few of the Missions consistently offer that advice to their nationals who want to invest here, but of course, we at the GIPC want the numbers to increase through the assistance from the various embassies,” he said.

In his opening remarks the Deputy Minister of Finance, Hon. Kwaku Kwarteng, reiterated the government’s commitment to expanding the economy so as to bridge the expenditure and revenue gap. He also stated that the private sector was a catalyst for the development agenda of the country, adding that the existing cooperation between the diplomatic communities would help accelerate inclusive economic growth.

Senior Tax Partner at KPMG Mr Emmanuel Asiedu in his presentation spoke referring to his experience dealing with regulators and tax authorities. He commended the Centre for effective service delivery and quick turnaround time when engaging with investors.

The Registrar General, Mrs Jemima Oware showcased the Business Regulatory Reforms being implemented by the Registrar General’s Department. These included:

• Segregation of final approval of Business Registration: Previously attorneys gave final approval for all registrations; businesses, companies, marriages industrial property as well as administration of estates. All these activities increased their workload resulting in longer processing time for business registration. To support the attorneys, selected company inspectors have been authorized to give final approval for registration of businesses (such as sole proprietorships and subsidiary business names). This has contributed immensely to the turnaround time which is now two to three days for business registration of a company.

• Direct Commencement of business: In the past Incorporation and Commencement Certificates were completed at different times. Presently, Incorporation and Commencement Certificates are issued on the same day for businesses that do not require any license to commence business.

• One Stop Shop (TIN, AMA, SSNIT): A GRA desk has been created within the premises of RGD to facilitate the generation of Tax Identification Number (TIN) which is a prerequisite for business registration. The TIN and registration documents are submitted at one point and clients who do not have TIN can have this generated within a day. Desks for the Accra Metropolitan Assembly (AMA) and Social Security and National Insurance Trust (SSNIT) have also been established within the premises of RGD to issue business permit license and register with these agencies after business registration is completed.

• e-Certificate and e-Shop: the RGD said that the e-portal platform had been introduced for e-registration, the network tax offices hence filing returns can be done in any of the offices in the country. eRegistrar portal is a system designed to provide clients with the ability to transact business online with the Registrar General’s Department.

The Registrar General further stated that RGD’s Business Regulatory Reforms aim to eliminate obstacles impeding the process of starting up a business, economic development and improving Ghana’s performance in the World Bank’s Doing Business ranking.

The forum concluded with a Q&A session for participants to engage speakers and other government agency representatives present.

Source: GIPC, Corporate Affairs

Investor Testimonial- The transparent and efficient process made the decision to invest in Ghana simpler- Agility Distribution Parks

Agility Distribution Parks is a world-class company investing and building capacity for Africa through warehouse parks creation.

Agility’s activities include Funding, developing and operating international standard warehouse parks providing warehouses for both multinational and local SME company’s eliminating their need to invest in expensive non-core assets.

Warehouses from 500m2 upwards, suitable for distribution, storage, processing and light manufacturing. Only 3 months deposit required for a standard unit. The company commenced operations in Ghana in 2016 and went through the following processes to establish offices in Ghana:

  • Feasibility study
  • Company formation
  • Land acquisition
  • Construction tenders
  • Phase 1 development completed and fully let
  • Phase 2 development completed and fully let
  • Phase 3&4 development under construction opening Q4 2108

When asked about the experience of setting up in Ghana, the company indicated that it was a transparent and efficient process that made the decision to invest in Ghana simpler.

“Ghana has a burgeoning economy and political stability. The process and execution of establishing a business in Ghana were clear and simple and we could identify immediate demand from customers for quality warehousing. We are expanding the project faster than budgeted, attracting new customers from both the local SME sector and multinationals. The project has created the essential warehouse infrastructure enabling companies to establish their regional base in Accra.”

From the first meeting on the project, the Ghana Investment Promotion Centre has been very supportive and central to the ease of doing business in Ghana.

Now that we are operational, the relationship remains close and GIPC actively utilizes the availability of warehouses that have been funded and developed by Agility in the Agility Warehouse Park in Tema as an additional way to attract new companies to set up operations in Ghana.

Ghana is a very attractive location for investment in West Africa driven by both the economic growth of Ghana and its ever-increasing role as a central hub within ECOWAS.

Source: Agility Africa

Investor confidence still high as Ghana receives $2billion Eurobond patronage

Ghana raised $2billion in its first ever Eurobond with the longest length of time, comprising ten and thirty-year bonds, meant to improve infrastructure and in turn create jobs. The development represents the first time a sub–Saharan country with a rating of B stable has priced a sovereign Bond at such low costs indicating strong investor confidence.

The country sold $1 billion each of the 10-year notes maturing in 2029 and a 30-year with 2049 maturity at 7.625 percent and 8.625 percent, respectively. Ghana has achieved remarkable macroeconomic stability and growth in this regard.

On the hugely successful issue of the bond, the Finance Ministry explained that the government was seeking to raise 750 million dollars. However, upon completion, the Sovereign bond accrued two billion dollars from investors. The success of the bond among other factors demonstrates the high level of investor confidence in the country.

According to the US-Africa Business Centre in Washington DC, an organization responsible for the Investor Confidence Indicator for Africa (ICIFA), Ghana ranked among the best countries in Africa in terms of convenience of doing business. The report, which is a tool for government and industry leaders is used to make policy and investment decisions that drive economic growth. The report was released to enable investors to decide on countries in which to push in capital for business.

Investor confidence in the upstream petroleum sector has also shot up following Ghana’s recent victory at the International Tribunal for the Laws of the Sea (ITLOS).  This has led to some investors expressing interest in developing the Saltpond oilfields.

The Minister of Energy, Mr Boakye Agyarko, stated that the definite nature of the decision, which favoured Ghana against Cote d’Ivoire over a maritime boundary dispute, had contributed towards whipping up investor confidence and interest in the upstream petroleum sector. Source: Ministry of Energy

Prudent policies by the government in the micro and macroeconomic space is yielding positive results. Month on month inflation has hit single digit, interest rates are on the downward trend with treasury bill rates averaging about 13%. Reduction in electricity tariff, 30% for industrial establishments and about 17% for domestic consumers and fair stability in the exchange rate have further strengthened confidence in the Ghanaian economy.

According to the World Bank, Ghana is one of the fastest growing economies in the world, with projected growth being approximately 8% by end of 2018, above the global average. The government is committed to and continues to work towards building a unique environment for investments to thrive.

Source :G.I.P.C. Corporate Affairs

Multinational companies predict good business opportunities in Ghana

Some multinational companies moving to establish their retail base in Ghana are predicting good business opportunities due to the strategic location of the country. The companies are also citing ease of doing business as a major factor in selecting Ghana to be their main retail market in the West African sub-region.

The latest company that has moved to Ghana to set up its retail hub in the country is Renault Trucks. Speaking to Citi Business News on the decision, the Vice President of Renault Trucks in Africa, Latin America and Asia, Cyril Barille explained that the company wants to penetrate the ECOWAS region through Ghana.

“Ghana is a very good place to operate a business. The economic infrastructure is here. The peace and political atmosphere is also good. We can reach all over West Africa from here,” he said.

He stated that as part of its business activities, Renault Trucks International team organizes regular visits to the most strategic countries, with the objective to understand better their particularities, characteristics and market dynamics.

“We have local resources that constantly give us insights and do an amazing work. But for us, as managers, going to the field where our business has the biggest potential and getting to meet our customers, see their activities and understand their challenges is the key to improve our offer and services,” he said.

He added that “We are committed to our customers’ success and this is why it is a must to be close to them”. This visit was also organized to thank its partner, SSP, the exclusive Renault Trucks importer in Ghana.

“We don’t only sell trucks. We are engaged in increasing customers’ profits and making their life easier, so they can concentrate on their core business. Our offer includes financing solutions, service contracts, drivers’ training and TCO studies to optimize the cost of operations.

We offer a lot more than the outstanding trucks specially adapted to the African market that we have developed,” he said.

Source: citibusinessnews.com

Ghana’s Budding Aviation Sector – Infrastructure is critical to the development of the aviation sector.

Infrastructure is critical to the development of the aviation sector. Over the years, the government has done some work in assessing the current state of our airports and some improvements have been made at the Kotoka International Airport, Kumasi Airport and the Tamale Airport.

It sought to improve aeronautical facilities like the terminals, taxiways, runways, parking bays and navigational or the guidance systems to improve safety, increase capacity and ensure efficiency in service delivery and on-time performance for airlines that operate out of these airports.

The Kotoka International Airport (KIA) has seen development with the establishment of the new Terminal 3, which aims to ease congestion and expected to help facilitate tourism growth in Ghana. The project began in March 2016, extends over five floors totalling 45,000 sq. meters. The project expands the airport’s total passenger-handling capacity by 5metres and will significantly ease peak-hour congestion at the existing international Terminal 2.

The $274m project being built by Turkish-based MAPA Construction and Trade Company is near completion and has been partly funded by a $ 120m loan facility from the Africa Development Bank. This project serves as a boost for the local economy, generating an estimated 900 temporary jobs during the two-year construction phase, with plans to sustain a further 760 permanent jobs into the future.  The terminal expansion is vital to infrastructure investment at KIA where the private sector will help fulfil the country’s quest to raise Ghana’s profile as a regional hub.

In 2016, KIA opened the 17,000 square meters Ghana Airport Cargo Centre, increasing its cargo handling from 50,000 tons per year to more than 70,000 tons. This facility, Ghana’s first public-private partnership in the aviation industry was developed by a joint venture between Air Ghana and the Ghana Airports Company Limited and is operated by Swiss Port Ghana.

Kumasi is also looking to strengthen its aviation infrastructure with the Ghana Airports Company Limited earlier this year requesting for expression of interest for design review and construction supervision for the Kumasi Airport. The work is part of the second phase of expansion at the site and includes a terminal building and runway extension. The improvements will help attract new international connections through the Ashanti Region.

The infrastructure improvements completed earlier in Kotoka, Kumasi and Tamale Airports are key measures implemented to make travel cheaper for passengers and increase the country’s attractiveness to foreign airlines operating in the region.

In 2016, the government removed a 17.5% value-added tax on domestic air travel. This resulted in a significant increase in domestic passenger air travel growing from 163,322 to 201,851 in May 2017 representing an increment of 24%.

Tourism is expected to be a key beneficiary of airport expansions in Ghana. According to the World Tourism and Tourism Council (WTTC), Ghana’s tourism sector’s total contribution to GDP is expected to increase by 4.2% on average per year to GHC19.9bn by 2028. In 2017, the sector contributed 6.2%. The domestic tourism spending accounts for 60.4% of the sector’s contribution to GDP. The Ghana Tourism Authority has also set a target of attracting 1.5m international tourists to the country this year, up from the estimated 1.2m in 2017.

To reach this goal, additional measures are also being taken to improve connectivity. The government expects to receive the first tranche of a $50m grant from the World Bank in June, to be used to improve road infrastructure and sanitary services in key tourist hotspots. Meanwhile, the Ghana Civil Aviation has outlined plans to construct new airstrips in popular visitor areas to improve connectivity, highlighting Axim, Bolgatanga and Cape Coast as potential locations.

Ghana’s Aviation industry has high rating within the West African sub-region, with the attraction of routes such as the Air France which joined other international carriers, including Delta Airlines, Turkish Airlines, South Airways, British Airways, Emirates Airlines, Middle East Airlines, KLM Royal Dutch, Air Ivoire and America Airlines in 2017.

The Aviation sector continues to present numerous opportunities for the business community to consider, including the proposed launch of a domestic and international airline by 2019.

Source :G.I.P.C. Corporate Affairs

Ken Ofori-Atta Wins African Finance Minister of the Year Award

Ghana’s Finance Minister, Ken Ofori-Atta has been awarded the prestigious African Finance Minister of the year at the Annual African Development Bank (AfDB) Meeting in Busan, South Korea.

The award follows Ghana’s recent macroeconomic performance.

Recognised as Africa’s most results-oriented Finance Minister, Ken Ofori-Atta’s prudent economic management has boosted confidence and optimism in Ghana’s economy – hauling it out of a deeply pessimistic economic outlook from a little over a year ago.

Investor confidence in Ghana has been bolstered with the country’s strong showing in its recent bond issuance, which raised US$ 2.0bn in 10-year and 30-year Eurobonds of $1.0bn each. The bond was four times over-subscribed, registering over US$8bn in offers received. This is the first time a sub-Saharan country with a ‘B-’ has priced a sovereign bond at such levels.

Speaking to the media earlier this year, Ken Ofori-Atta said: “the question that we should ask is how can you inherit a budget deficit of 9.3% of GDP, proceed to reduce taxes, bring down inflation, bring down interest rates, increase economic growth, increase your international reserves, maintain relative exchange rate stability, reduce the debt to GDP ratio and the rate of debt accumulation, pay almost half of arrears inherited, stay current on obligations to statutory funds, restore teacher and nursing training allowances, double the capitation grant, implement free senior high school education and yet still be able to reduce the fiscal deficit from 9.3 per cent to an estimated 5.6 per cent of GDP?”

This year’s Africa Banker Awards marks the event’s 12th edition. It is organised in partnership with the African Development Bank (AfDB) and takes place during the continental bank’s Annual Meetings.

Source: www.graphic.com.gh

BoG Reduces Policy Rate To 17%

The Bank of Ghana (BoG) has reduced the policy rate to 17 percent. This represents a 100 basis points reduction in the policy rate which was at 18 percent.

Today’s announcement comes after the central bank reduced the rate from 20 percent to 18 percent in March this year.

The announcement was made after the Monetary Policy Committee (MPC) of the Bank of Ghana met on Friday [18th May, 2018].

The policy rate is the rate at which the central bank lends to commercial banks for onward lending to their customers.

The Governor of the Bank of Ghana, Dr. Ernest Addison stated at a press conference that the reduction is aimed at achieving lower inflation target.

According to Dr. Addison, “the committee noted that the risks to the inflation outlook are subdued in the forecast horizon. While global and domestic developments do not yet pose a threat to inflation in the near term, recent changes in global financing conditions and its impact on emerging market asset classes requires some vigilance”.

He explained that, the committee consequently, decided to reduce the monetary policy rate by 100 basis points to 17 percent.

Giving some more reasons, Dr. Addison stated that headline and core inflation have broadly trended downwards, indicating easing underlying inflation pressures.

“Additionally, weighted inflation expectations across the sectors have continued to decline. Headline inflation trended within the medium-term target of 8±2 percent and the forecast points to sustained disinflation over the horizon, barring unanticipated shocks,” he said.

 Source: citibusinessnews.com

Prospects of Ghana Issuing Samurai Bond Good – Ken Ofori-Atta

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 Is Open And Ready For Business – Finance Minister

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