GHANA wants to see a harmonious and mutually beneficial relationship with its Foreign Direct Investment (FDI) sources, Chief Executive Officer (CEO) of the Ghana Investment Promotion Centre (GIPC), Mr Yofi Grant has indicated.
Mr Grant who was addressing captains of industry and diplomats among other business concerns at the second CEO breakfast meeting in Accra on the theme ‘From Local Content to Local Empowerment through Local Participation,’ touted Ghana’s economic strengths, saying the country’s return to macro-economic stability was on course.
According to him, the GIPC was focused on pursuing investments and forging partnerships that would “inure to our mutual benefits.”
Mr Grant maintained that Ghana had embarked on an aggressive growth plan and “it’s quite clear that once we achieve macro-economic stability, we will see the economy grow significantly.”
Competition for FDIs keener
On some of the challenges militating against the attracting of FDIs, Mr Grant noted that the conflict between Russia and Ukraine had serious repercussions on economies around the world but then that conflict also presented new opportunities,
As a result of the global economic downturn, many businesses were relocating their factories to other destinations in a bid to extract greater value.
GIPC not left out
The GIPC Boss admitted that for entities like the GIPC involved in the investment promotion business, “we’ve been confronted with more challenges than we have ever had.”
According to Mr Grant, scouting for investments had become extremely competitive to the extent that “your location and destination that you market must provide a good and attractive reason, to woo investors to where you are.”
He observed that what had made attracting FDIs more difficult was that the countries that where hitherto the source of FDIs are themselves seeking to attract FDIs.
“As we speak today, some of the biggest recipients of FDIs remain countries that we go to for FDIs and these include China, USA and Germany,” Mr Grant noted.
Africa holds the world’s economy
Although Africa’s share of global FDIs has increased, it is still below 5% which is worrying because the African continent stands as the most important region for global growth.
Africa is a continent that has no less than 40% of the world’s mineral resources, has a huge population of about 1.4 billion , and also currently the largest tariff-free market in the world, thanks to the Africa Continental Free Trade Area (AfCFTA).
In the face of climate change which is affecting global food supplies and security , Africa still stands as the continent that will feed the world.
Senior Country Partner of PwC Ghana, Mr Vish Ashiagbor said research undertaken by his outfit had led to the crafting of the acronym ADAPT which depicted current trends shaping the world economy.
The state of the world after the COVID-19 pandemic had led to increased asymmetry in the world economy, with the poor getting poorer, a lot of unemployment and sovereign debt crisis among others.
There has been significant growth in technological innovation which was responsible for the ongoing disruption.
The age distribution has become a challenge ,with the need to create employment for the significant population of young folks
There is increased tension between big global nations and smaller ones
There is increased lack of trust across the globe. According to Mr Ashiabor, there was increased political mistrust which was at play even in Ghana.
He stressed the need to create beneficial partnerships or synergies between FDIs and local partnerships, saying “we must create partnerships that bring synergies and not friction.”