The government is to announce new tax incentives by the close of the year to give more liquidity to private sector businesses to expand and create more jobs for the people.

For instance, the government will announce a reduction in the corporate tax rate from 25 per cent to 20 per cent by the end of the year.

The Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mr. Yofi Grant, announced this when he addressed members of the American Chamber of Commerce and Industry (AMCHAM) Ghana in Accra last Friday.

“For this government, the growth of the private sector is our focus because we believe in what it can do to transform the economy and create the needed jobs for the people,” he said.

He said the position of the government on taxes was a good sign to attract more investors into the country and noted that all what was required to facilitate local and foreign investments into the country got to its optimum would be done.

Tax cuts

Among other economic incentives announced in the budget statement and economic policy of the government for the 2017 financial year was the reduction in taxes to ease the high cost of doing business in the country.

Taxes such as the 17.5 per cent Value Added Tax (VAT) on financial services, domestic air tickets and imported medicines have been scrapped, while others such as the one per cent special import levy has been removed.

Also, the excise duty on petroleum, duty on imported spare parts, levies imposed on kayayei, levies imposed on religious institutions and the five per cent VAT on real estate have been abolished under the new government.

Meanwhile, the 17.5 per cent special petroleum tax rate has been reduced to 15 per cent, while the five per cent national electrification scheme levy has also been reduced to three per cent and the five per cent public lighting levy has been reduced to two per cent.

Those, Mr. Grant said, were done to ensure the ease of doing business in the country.

He noted that more would be done to create the environment where the real potential of the private sector would be felt on the economy and in the lives of all.

In the offing

The GIPC boss said the government intended to announce new measures to attract more investors into the country in the manner that would see Ghana as the most attractive investment destination on the continent and in the world.

He said, for instance, that “we are thinking of giving 10-years tax break to companies that relocate their headquarters to the country.”

He explained that the motive was to ensure that such large manufacturing companies would come to the country to employ a chunk of the people while offering them the opportunity to learn and improve their skills.

Mr. Grant said like countries such as Turkey, “we are also considering giving companies and individuals permanent work permit, granting citizenship, among other things, all in a way to expose our readiness to work with investors who intend to leverage the friendly business environment in the country.”

“We are serious about these because we know the value in them and we will work to make it succeed,” he said.

Subsequently, he called on members of the chamber to approach the GIPC with ideas to help change the way of doing business in the country to ensure a win-win situation for all.

Source: graphic.com.gh

The Ghana Investment Promotion Centre (GIPC) has won an award for Best Project in West and Central Africa Region for 2016 at the Annual Investment Meeting (AIM) 2017 in Dubai.

The award was presented to the Chief Executive Officer of the GIPC Mr. Yofi Grant by H.E Sultan Bin Saeed Al Mansoori, UAE Minister of Economy during the Investment Award Gala Dinner held on Sunday 2nd of April 2017 at Armani Hotel in Burj Khalifa, Dubai.

The GIPC, an agency under the Office of the President, won the award for the West and Central Africa Region by showcasing the Rotan Power Project as a model project for the year 2016.

The project was registered by the Centre in 2016 to generate a total of 660MW of thermal power at Aboadze in the Western region of Ghana; at an estimated value of $1,055billion. It is a joint venture owned by Singaporean and Ghanaian partners.

The AIM Investment Awards is a recognition of the best Investment Promotion Agencies (IPAs) attracting the best investment project each year. Successful IPAs are thus awarded for their outstanding work in attracting sizable and beneficial foreign direct investment projects that contribute to the national economic growth and development of their countries. The general requirements for submissions are investment size, trade balance effects, knowledge transfer, technology transfer and innovative processes, sustainability and local linkages.

Last year, the GIPC was adjudged the Best Investment Promotion Agency (IPA) in West and Central Africa for 2015 at the same event.

This year’s event which is being held from April 2-4, 2017 at the Dubai World Trade Centre is the seventh edition of the AIM and was organized under the patronage of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai.

The theme for this year’s award ‘International Investment, Path to Competitiveness & Development’, focuses on how to attract the right kind of international investment that contributes to the competitiveness of national economies. It sheds light on the special role of foreign firms in enhancing a country’s competitiveness which would in turn help them attract more investment.

The Ghana Investment Promotion Centre (GIPC) is attending the Conference in partnership with the Ghana Free Zones Board (GFZB). The team has been working to showcase Ghana through an exhibition and a series of meetings organized with high profile businesspeople and companies from the region.

The Chief Executive Officer of the Ghana Investment Promotion Centre, Mr. R. Yofi Grant, has held discussions with senior representatives of the European Investment Bank (EIB) towards the creation of strategic partnerships for the promotion of sustainable investments into Ghana.

The meeting, held in Luxembourg, went very well in cementing an already existing relationship between the EIB and Ghana.

There were constructive discussions about exploiting Ghana’s bauxite, iron ore and manganese deposits as well as integrative infrastructure which have positive implications for West Africa.The meeting further highlighted Ghana positioning itself as the Centre for regionalising business in West Africa by developing our communications, transportation and energy infrastructure.

The EIB expressed interest in partnering the private sector in the One District One Factory policy. Interest was also shown by the EIB in financing possibilities in the sustainable and renewable energy space, and off grid energy and power solutions.

Present at the meeting were Mr. R. Yofi Grant CEO of GIPC, Mr. Diederick Zambian, Head of Division, Country Relations and Public Sector, Sub Saharan Africa, and Mr. Romulo Isaia, Loan Officer, Country Relations and Public Sector, West Africa.

Ghana and Mauritius have signed a treaty, the Double Taxation Avoidance Agreement (DTAA), to avoid or eliminate double taxation of the same income in the two countries. The two countries also set up a permanent joint commission on bilateral cooperation as part of measures to facilitate trade between them.

Additionally, they have agreed to collaborate on an investment promotion and protection agreement to better channel investments into each other’s country, possibly via special investment zones.

The Foreign Affairs and Regional Integration Minister, Ms. Shirley Ayorkor Botchwey, signed the agreement on behalf of Ghana, while the Minister of Foreign Affairs, Regional Integration and International Trade, Mr. Seetanah Lutchmeenaraidoo, signed on behalf of Mauritius.

The DTAA is subject to ratification by Ghana’s Parliament.

The agreements were signed last Saturday at Port Louis, Mauritius, in the lead-up to the celebration of that country’s 49th Independence anniversary on Sunday, March 12, 2017.

Boosting Trade

Speaking at a joint press conference after the signing ceremony, Vice-President Alhaji Dr. Bawumia, who was the special guest for the celebrations, explained that the agreements formed part of Ghana’s quest for greater cooperation with the rest of the world, especially Africa, in order to boost trade.

“We have seen the manifestation of the first fruits of this joint permanent commission with the signing of the historic double taxation agreement between Ghana and Mauritius, and we believe that this will provide a platform to give confidence to investors both in Ghana and Mauritius to undertake investments in our respective countries and not be taxed twice by our respective governments. We believe this is just the beginning of our cooperation,” Dr Bawumia said.

He underscored the need for greater intra-African trade to better improve the lives of Africans.

“Our government believes very strongly there has to be more trade within the African continent and among countries of the South. There has to be more investment, and more cooperation,” he said.

He was excited that the type of cooperation that Ghana sought with Mauritius was being manifested in the area of trying to set up Ghana as an International Financial Services Centre in the West African sub-region.

Investments in Ghana

The Prime Minister of Mauritius, Anerood Jugnauth, disclosed that several framework agreements had also been reviewed, including the setting up of a technology park at Dawa in the Greater Accra Region, and investments in the energy and tourism sectors.

“We have also agreed to pursue consultations on two project proposals submitted by Mauritius, namely, the setting up of solar energy power generation, and a tourism and hospitality project providing for the construction of a coastal resort in Ghana. Cooperation between Ghana’s Public Utility Regulatory Commission (PURC) and Mauritius was also discussed,” the Prime Minister said.

Ghana’s delegation included the Minister of Communication, Mrs. Ursula Owusu-Ekuful, Minister of Business Development, Mr. Mohammed Awal, the Chief Executive Officer (CEO) of the Ghana Investment Promotion Centre, Mr. Reginald Yofi Grant, and other senior government officials.

Source: graphic.com.gh

The Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mr. Yofi Grant, has given a hint of a review of the GIPC Act 2013 (Act 865) which guides investments in the country. The review is to make the country more competitive globally to be able to attract more investments.

At a press briefing on arrival from Mauritius, Mr. Grant said the impact of the review on attracting investments would be significant as it would benefit a lot of Ghanaians. 

“We would be reviewing the GIPC law to make ourselves more attractive and competitive on the global investment horizon. The impact would be significant, because we want to attract the biggest companies globally to come to Ghana to do business.”

“When they come, they would create jobs, develop technical competence and our people would also benefit from the value chain. We would then be able to create jobs and wealth in Ghana and have an economy that is stable,” he said.

The GIPC Act has been subjected to scrutiny by stakeholders as it has over the years failed to eliminate the bureaucracies investors have to go through before registering their businesses.

Mr Grant, however, explained that the GIPC would deploy technology to eliminate some of the bureaucratic procedures to ensure efficiency and ease of doing business in Ghana.

Repositioning GIPC

Mr Grant explained that the GIPC would reposition itself as the ‘Chief Marketing Officer’ for Ghana to drive the needed investments into the country.

The GIPC CEO also reiterated the commitment to build local companies to be able to do businesses in other African countries.

He added that: “We are really up to the challenge and GIPC is going to support that development. It is also going to be dynamic in its operations by looking at investment opportunities that could be highlighted to foreign investors. We are looking at having positions in all the regions of Ghana. We will go out and look for those opportunities in those regions, and we will package them to sell to investors in Ghana and out of Ghana.”

He further stated: “I believe that will go a long way to show that we know what we are about when we say we are positioning Ghana as a positive investment destination.”

Investment mission

A trade mission that comprised private sector players was in Mauritius between March 9 and 12, 2017 to engage their peers in Mauritius and to also deepen the growing levels of trade and investment between the two countries.

Mr. Grant said some outcomes of the mission were the signing of the Double Taxation Agreement that would enhance trade and business between the two countries.

A Double Taxation Agreement is an agreement which regulates the tax treatment of income or capital gains in a situation where the same taxpayer is subject to tax in two states with respect to the same income or capital gains.

He added: “There is also the initiation and negotiation of an eventual Investment Promotion and Protection Agreement (IPPA) between Ghana and Mauritius. When successful, the agreement will help to protect the investment of each country’s investors in the other country.”

 Source: www.graphic.com.gh

 

The Vice President, Alhaji Dr. Mahamudu Bawumia, has been selling the Nana Akufo-Addo government’s ‘One District One Factory’ programme to businesses in Mauritius. The ‘One District One Factory’ programme is a public-private partnership for ensuring nationwide spread of industrialization in all 216 districts in Ghana.

The private sector will provide the investment, although government could partner if such an investment of public funds is adjudged prudent and advantageous.

Speaking at a Breakfast Business Meeting hosted by the Mauritius Minister for Foreign Affairs, Regional Integration and International Trade in collaboration with the Board of Investment of Mauritius, Dr. Bawumia emphasized the NPP government’s determination to make the private sector a major player in Ghana’s economy, and called on Mauritian and other businesses to take advantage of the pro-business policies announced in the budget. 

“An industrialization drive is our main agenda, the ‘One-District One Factory’ is the programme to achieve this, and the 216 districts have raw materials and need push up to get value addition to the products” he stated.

“Ghana cannot do it alone; we are in the context of the global economy and need partners; that is why we cherish the South-South cooperation between Ghana and Mauritius so much. We want to take advantage of the close relationship to make a major mark as far as our respective economies are concerned.” 

“The government has made a major commitment to build an economy based on production and not taxation. We have abolished a lot of taxes and levies and going to abolish all import duties on raw materials and machinery imported into Ghana” Dr. Bawumia said.

Hon. Seetanah Lutchmeenaraidoo, Minister for Foreign Affairs, Regional Integration and International Trade for Mauritius, commended Ghana for her commitment to business development, and expressed hope that Ghanaian businesses would also invest in his country.

Mr. Michael Okyere Baafi, Chief Executive Officer of the Ghana Free Zones Board, who was part of a large Ghanaian business delegation at the meeting, was confident that the right building blocks had been put in place for rapid take off. 

“The Ghana government has introduced the appropriate legislation and we are optimistic that we will soon see several Mauritian businesses counted among those taking up the challenge of the One District, One Factory Programme. We at Free Zones Board are ready to partner them and make their businesses successful.”

Vice President Bawumia was accompanied by Hon Shirley Ayorkor Botchwey, Minister for Foreign Affairs and Regional Integration; Hon Ibrahim Awal, Minister for Business Development; Hon Ursula Owusu-Ekuful, Minister for Communications; Reginald Yofi Grant, Chief Executive Officer of Ghana Investment Promotion Centre (GIPC) and other government officials.

Source: citifmonline.com

UK Foreign Secretary Boris Johnson has revealed that the UK is seeking stronger ties with Ghana to enable firms invest in various sectors of the country. “We hope to have an even deeper friendship going forward and particularly we want to make sure that British firms come here in greater numbers and in greater strengths to invest in Ghana and, if I may say so, take advantage of the fantastic opportunities there are in this country,”

Mr. Boris noted on Wednesday, February 15 after meeting with President Nana Akufo-Addo at the Flagstaff House. He emphasised that the UK holds a common interest with Ghana in terms of foreign policy and security as well as ensuring “stability of the region, which affects us in Europe as much as anybody else”.

He admitted that several Ghanaians had contributed to the success of the UK and congratulated Mr. Akufo-Addo for the victory of the New Patriotic Party (NPP) in the December 7 polls.“As you know, I used to be Mayor of London and in our great city we were fortunate beneficiaries of many Ghanaians who contributed massively to our society .

We have several MPs in the UK of Ghanaian extraction as you may know and it is a huge pleasure to be able to congratulate you personally, on your triumph and to see your government fluidly underway to meet the challenges the people of Ghana want you to meet,” he stated.

In the company of Mr. Johnson was Adam Afriyie, a British with his roots from Ghana who is currently the Member of Parliament (MP) for Windsor and the UK’s Prime Minister’s Trade Envoy to Ghana.

Mr. Boris is also expected to tour award-winning Blue Skies Ghana Limited, meet business leaders and young entrepreneurs supported by the Department for International Development’s ENGINE-Ghana project, and meet with Rising Black Stars, highlighting both countries’ extensive cultural ties.

Source: peacefmonline.com

Ghana should be able to rake in foreign investments to the tune of GH¢5 billion per annum, the Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mr Yofi Grant, has said.

“We are going to undertake a comprehensive rebranding because we want to rake in investments to the tune of GH¢5 billion and above in a year and not GH¢5 billion in four years. This we will do by making sure the bride called Ghana is looking beautiful, attractive and respective.”

In an interview with the Daily Graphic about his plans to revive the image of the Centre as a focal point that will attract investment into the country, he said: “Many countries in the world such as India, Malaysia and even Cameroon are putting themselves to the international market through branding and we will do same because we have what it takes to achieve that and more.”

What to drive the investment

“In a country that is on the move to be among those in the ‘first world’ you need to look at the global business environment first then you look at the low hanging fruit,” he said, and noted that the GIPC would critically focus on services, technology and agriculture which he described as some of the low hanging fruits.

Mr Grant said: “We need to create a domestic market first and look to the foreign market next.”

He further stressed the need for a bigger airport, saying, “If you want to be most attractive in West Africa, we need a sizeable airport to attract people.”

“We also need an attitudinal change. This will involve education, PR and marketing, so I am going to use a lot of technology out there to sell Ghana through the creation of a more vibrant and engaging website and portals that people can access easily with all the information they require,” he said.

Transformation

Determined to make a difference, Mr Grant said: “I also want to make GIPC a place where everyone wants to serve, a place where people will be happy to work, so I need smart people to work with, as well as a new building, because the old building does not inspire the great things we want to do.

The office of the GIPC is presently located within the Ministries enclave in a bare dilapidated structure which does not inspire confidence.

In 2002, the headquarters of the Centre was moved to a new office located within the premises of the Gulf House in Accra. However, in 2009, the headquarters was brought back to its former place within the Ministries area.

Road shows

Mr Grant said the Centre would undertake several road shows to woo investors into the country, saying, “We will go to the developed countries; but the most important thing is how to attract investors to help build our country.”

“So we will go to our traditional partners through the road shows to encourage them to come and invest in our country with the aim of learning from them when they come so we can also develop some skills,” he said.

Mr Grant said the Centre would also consider private equity which seemed to be the way many were thinking.

He said the Centre would again look at intra-African trade which, “I believe, is very critical.”

“For us, one of the greatest things about the interventions we want to bring is to create jobs through the building of factories and for all of these, the private sector is going to drive it. So, we are going to learn from countries that have done it before,” he said.

Source: graphic.com.gh

The President of the Republic, Nana Addo Dankwa Akufo-Addo, has indicated to investors that Ghana is open for business, assuring of the creation of a conducive business environment which will ensure that businesses flourish, thereby creating prosperity for the Ghanaian people.

The President made this known on Friday, February 10, 2017, when the Chairman of the Al Serkal Group, Mr. Eisa Bin Nasser Alserkal, together with a delegation of investors from the United Arab Emirates, paid a courtesy call on him at the presidency. 

In the presence of the Minister for Trade and Industry, Alan Kyerematen, President Akufo-Addo noted that the topmost priority of his government is to create jobs for the people of Ghana, and, thereby return the country onto the path of progress and prosperity.

The President told the delegation that the industrialization of the economy, with the aim of moving the country away from being dependent on raw material exports to an economy of value-added activities, and the revival of Ghanaian agriculture will be his focus.

It is for this reason, the President indicated, that his government is determined to partner with investors and the private sector to set up strategic industries, with the aim of helping create jobs for the youth.

These strategic industries, he revealed, include an iron and steel industry, which will exploit Ghana’s iron ore deposits at OpponManso and Sheini, near Tamale, and facilitate the manufacture of machine parts and equipment.

Additionally, President Akufo-Addo indicated that his government, in partnership with the private sector, aims to establish an integrated aluminium industry, which will exploit the country’s bauxite deposits at Kyebi and Nyinahin; and also petrochemical industries from our oil and gas deposits from the Jubilee, TEN and Sankofa fields.

On his part, Mr. Eisa Bin Nasser Alserkal, told President Akufo-Addo that the decision to invest in Ghana stemmed from his company’s belief that Ghana offered the right opportunities for investors in Africa, and they, in turn, will help develop the country.

Al Serkal is a business conglomerate based in Dubai, with a bouquet of companies in the fields of healthcare, manufacturing, petrochemicals, commercial and residential real estate, banking, mobile telephony and construction services.

Source: Peacefmonline.com

Mr. Joe Ghartey, the Minister-designate for Railway Development, has observed that railway development was linked to economic development of a country and, therefore, the expansion of the railway sector would attract more investors into the country. 

He admitted that financing the sector was a major challenge and was happy that the President had shown commitment towards this cause by creating the sector. 

He said some investors had shown interest in investing in Ghana’s railway industry and expressed optimism that the needed resources would be provided to revamp the sector.

He maintained that Ghana’s economic development would be enhanced, if a reliable railway industry was established

Mr Ghartey, the Member of Parliament for Essikadu-Ketan in the Western Region, said this on Thursday when he appeared before Parliament’s Appointments Committee for vetting.

According to him, the railway industry would help the country to transport agricultural produce and mineral resources easily from the hinterlands to the market centres to boost the economy.

The Minister-designate assured that the Government would create a favourable business environment for investors to operate.

Mr Ghartey noted that the railway sector was a potential avenue where government could raise revenues, saying, ‘‘the trains are walking adverts so banks and other businesses could advertise their products on them’’.

He observed that along the rail lines, there could be shops, cashpoints and all sorts of businesses around them and said when he was given the nod, he would work towards achieving these goals.

“We are looking at all the complementary industries that have developed as a result of the railway. In Japan for instance, they have created the rail lines and built cities around the rail,” he pointed out.

With regards to how the government would expand the railway infrastructure from Accra to Paga in the Upper East Region, Mr. Ghartey indicated that works had begun to raise funds required to expand the railway to the north.

According to him, government intended to revive the railway industry by partnering with the private sector to cover substantial portions of the country.

“There are people who are willing to come and do the slippers in Ghana. The slippers are what they put between the tracks to keep it stable,” he said.

He stated that due to the government’s pro-business policies, investors had shown tremendous interest in partnering government.

Minister-designate for Railway Development said although the Akufo-Addo led administration had enormous infrastructure projects to go into, rail development was essential. 

‘‘We have to create the legal institutional framework that will give us the finance and luckily for us, the president is fully committed to this agenda,’’.

‘‘The Finance Minister is also fully backing this agenda and so we have to be able to present what is called ‘‘bankable projects’’ to the president so that he gives his blessing so that the Finance Minister takes us forward,’’ he emphasised.

Source: www.thefinderonline.com