Parliamentary Select Committee Backs GIPA Reforms To Attract More Investment
The Parliamentary Select Committee on Trade, Industry and Tourism has pledged its support for efforts by the Ghana Investment Promotion Authority (GIPA) to strengthen Ghana’s investment environment and attract more quality investments into the country.
The Committee, led by its Chairman, Hon. Alexander Hottordze Roosevelt, made the commitment during a working visit to GIPA’s headquarters in Accra.
The visit was aimed at gaining a deeper understanding of the Authority’s operations, legal reforms, challenges and strategic direction under Ghana’s new investment regime.
GIPA Chief Executive Officer, Mr Simon Madjie, briefed the Committee on the Authority’s mandate, evolution, operational performance and ongoing reforms.
Mr Madjie traced Ghana’s investment promotion system from the establishment of the Capital Investment Board in the 1960s through the Ghana Investment Code under PNDC Law 116 and the Ghana Investment Promotion Centre Act of 1994, to the enactment of the Ghana Investment Promotion Authority Act, 2023 (Act 1173).
He said the new law has transformed the institution from a centre into an Authority, strengthening both its promotional and regulatory functions.
According to him, Act 1173 focuses on three key areas: promoting investment into Ghana, supporting investment at the regional and district levels, and facilitating Ghanaian investments abroad, particularly within the ECOWAS region and under the African Continental Free Trade Area (AfCFTA).
“Our vision is to provide investors with a seamless one-stop-shop experience, backed by accurate information and high-value facilitation services,” Mr Madjie said.
He said the reforms formed part of efforts to advance the “Ghana is Open for Business” agenda and position the country as a preferred destination for investors.
Mr Madjie also explained that the new law had removed the blanket minimum capital requirements of US$200,000 for joint ventures and US$500,000 for wholly foreign-owned enterprises, except for businesses in the trading sector.
He stressed, however, that the removal of the blanket threshold did not mean foreign investors could operate without adequate capital.
“The absence of a blanket minimum capital requirement does not mean investors can enter with no capital. It simply means we will assess capital adequacy by sector,” he said.
He noted that local content regulations, sector-specific financial requirements and activities reserved for Ghanaians would continue to safeguard local businesses.
He cited sectors including mining, petroleum, power, insurance and fintech as areas where targeted regulations would ensure meaningful Ghanaian participation.
Mr Madjie disclosed that since 1994, GIPA had registered more than 7,160 investment projects with cumulative foreign direct investment exceeding US$62 billion.
He said the Authority was also expanding its regional investment promotion activities through investment roadshows under the Investment Opportunity Mapping Project, documentaries showcasing investment opportunities across the country and the expansion and refurbishment of its regional offices.
The initiatives, he said, were intended to bring investment promotion and facilitation services closer to investors and project locations.
Mr Madjie also appealed to Parliament for support to operationalise the citizenship-by-investment provisions under Act 1173 in collaboration with the Ministry of the Interior.
He said the initiative could attract high-net-worth investors through structured residency and eventual citizenship arrangements.
The GIPA CEO further called for support to develop and enforce regulations on technology transfer to ensure that investment projects generate meaningful skills and knowledge transfer to Ghanaian partners.
He also urged stronger enforcement of sectors reserved for Ghanaians, particularly informal retail trading, taxi services and small-scale pharmaceutical retail.
Responding to the presentation, Hon. Alexander Hottordze Roosevelt acknowledged GIPA’s strategic role in Ghana’s economic transformation and stressed the need to adequately resource the Authority to enable it to perform its expanded mandate.
He pledged the Committee’s support in facilitating constructive engagement to ensure GIPA is empowered to implement the reforms under Act 1173 effectively.
Members of the Committee also commended GIPA for promoting investment opportunities in Ghana and abroad and for the progress made in implementing the new investment framework.
They expressed support for measures aimed at improving the investment climate, strengthening investor confidence and enhancing Ghana’s competitiveness in attracting sustainable and high-quality investments.
-Overseeronline.com
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