The Association of Ghana Industries (AGI) has raised concerns about the government’s plan to abolish the minimum capital requirement for foreign investors, stating that it could have adverse effects on local businesses. While the aim of this decision is to attract more foreign investment, the AGI believes that it could lead to unhealthy competition and weaken the capacity of indigenous enterprises.
During the Czech–Ghana Business Cooperation Seminar in Accra, the Greater Accra Regional Chairman of AGI, Tsonam Akpeloo, emphasized the importance of maintaining the minimum capital requirements. He expressed his apprehension about the potential influx of foreign traders into sectors reserved for citizens, which could directly compete with local businesses.
President John Dramani Mahama recently announced at the Ninth Tokyo International Conference on African Development (TICAD-9) in Yokohama that the government intends to remove the minimum capital requirements for foreign investors under a revised Ghana Investment Promotion Centre (GIPC) Act. This change would allow any investor, regardless of their capital size, to establish a business in Ghana.
However, Mr. Akpeloo urged caution, suggesting that the government should consider implementing an equity law that would require foreign companies to partner with local businesses to qualify for government incentives. Drawing on Nigeria’s experience in the 1970s, he highlighted the benefits of nurturing indigenous businesses through such partnerships.
In terms of the Ghana–Czech partnership, AGI welcomed Czech interest in sectors like agriculture, beverages, and construction. Collaborations in these areas could reduce Ghana’s reliance on imported raw materials and boost the local economy. The CEO of SEDA Africa Group Ltd, Martin Habart, also emphasized the potential for joint ventures in agriculture and water infrastructure, highlighting the Czech Republic’s expertise in these fields.
Overall, the AGI stressed the importance of striking a balance between promoting foreign investment and safeguarding the interests of Ghanaian citizens. By fostering strategic partnerships and implementing supportive policies, the government can create a conducive environment for both local and foreign businesses to thrive.
