As a premium partner for the 3rd edition of the China Trade Week (CTW) Ghana 2019, the Ghana Investment Promotion Centre (GIPC) organized the Ghana China Investment Forum on 20th June 2019 at the Accra International Conference Centre.
Key speakers and panelists at the event were Mr. Li Wei, Managing Director of Keda Ghana Ceramics Company Limited, Hon. Gifty Ohene-Konadu, National Coordinator of One District One Factory (1D1F) Secretariat, Mr. Kwame Antwi-Agyei, Technical Adviser of One District One Factory (1D1F) Secretariat, Mr. Tang Hong, President for Ghana Chinese Chamber of Commerce, Mr. Chai Zhinjin, Economic and Commercial Counsellor at Embassy of China and Mr. Yofi Grant, CEO of GIPC.
Mr. Yofi Grant, in his welcome address, gave a brief history on the relations between Ghana and China and expressed pleasure on behalf of the GIPC for the opportunity to add its voice and efforts to the China Trade Week. He indicated that through a signed MoU and Cooperation agreement between the GIPC and the China Council for the Promotion of International Trade (CCPIT) two years ago, limitless opportunities have been opened to the Centre and Ghana.
Mr. Grant further revealed that through the Belt and Road Initiative (BRI) China was looking outward and connecting a population of 4.4 Billion people covering over 70 countries through investments and trade. He advised that with China as Ghana’s biggest trade and investment partner, it was paramount that the country positioned itself strategically to take advantage of the BRI.
Touting Ghana’s political stability, favourable macro-economic indicators and growth trajectory, the CEO of GIPC exhibited Ghana as one of the best investment destinations on the continent. He further highlighted the importance of Ghana moving from a raw material exporting economy to one of value addition and industrialization by sighting the chocolate industry as an example. According to Mr. Grant, although Ghana and Cote d’Ivoire are responsible for approximately 67% of global cocoa beans supply annually, both countries together, only receive up to 5.5% of the over US$100 Billion industry value per year, due to very little value addition.
Mr. Antwi-Agyei introduced the 1D1F initiative as government’s strategy to industrialize Ghana’s economy with a bottom-up approach, adding the President’s belief that when rural poverty is realistically addressed and the rural economy transformed into the mainstream economy, there would be enormous benefits to both the populace and the economy.
After explaining the eligibility criteria and indicators that qualify a project to be approved under the initiative, Mr. Antwi-Agyei mentioned some of the many incentives available to 1D1F projects including a 5-year holiday on corporate tax and certain tax exemptions on plants, machinery and equipment or parts.
He further explained that, the Ministry of Finance shall direct Ghana Revenue Authority to undertake assessment, on individual merit, amount of duties to be waived for each specific 1D1F approved factory and submitted to Parliament for consideration and approval in accordance with Article 174(2) of the Constitution. Some of these incentives, he pointed out, overlapped with those advertised by the GIPC and investors would be eligible to enjoy the incentives under both agencies.
Mr. Li Wei – Managing Director, Keda (Ghana) Ceramics Co. Limited commenced by expressing appreciation for Keda having been selected for this showcase and proceeded to give a brief history on the company and its parent group, Sunda International, which is headquartered in Guangzhou, China with branches mainly in Africa and South America, including Ghana, Cote D’Ivoire, Kenya, Tanzania, Senegal etc. According to him, Sunda Ghana has a washing powder factory, a hardware factory, a ceramics tile factory and a baby diapers factory with a total investment of more than USD$100 Million, which represented the heaviest of Sunda’s investments outside China.
As a strategic investor, having invested over US$50 Million, Mr. Li said Keda was enjoying the exemption on import customs duty and VAT of all the equipment, plant and building materials for their factory. He praised the GIPC, Ministry of Trade & Industry, the Western Regional Coordinating Council and local assemblies for their immense support in liaising with relevant stakeholders on Keda’s behalf and facilitating the acquisitions of all the necessary permits.
Mr. Li explained that about 95% of their raw materials are purchased locally in Ghana for the tiles factory and all the products are sold through local agents and distributors (majority of who have been Keda’s partners from the onset), who receive regular technical and capacity building training sessions to ensure the highest of standards in their operations. He revealed that Keda continually creates programs, such as the annual distributor’s conference to reward, advice, and aid their local partners, which have helped strengthen Keda’s partnership and relationship with them.
The Ghana- China Investment Forum was held to promote Ghana-China trade and investment relations.
Source: GIPC