Ghana is not bending rules for foreign investors – GIPA CEO

Ghana Investment Promotion Authority (GIPA) CEO Simon Madjie has stated that Ghana is not easing its regulations to attract foreign investors. In an interview on Joy News’ PM Express Business Edition, Madjie emphasized that the country is leveling the playing field to welcome more partners for its businesses. He reiterated that foreign investors must adhere to all Ghanaian regulations, as their compliance is crucial, since their conduct in the country can impact their stock prices abroad.

Madjie explained that many international investors are listed companies on foreign stock exchanges, and they benefit from structures that ensure accountability and adherence to rules.

Addressing the controversy over foreign participation in retail, Madjie clarified that trade and investment are distinct concepts. Trade involves the exchange of goods and services, while investment entails committing resources to establish a business, create value, and earn returns. He emphasized that the informal retail sector is exclusively reserved for Ghanaians, citing the law that reserves this space for citizens.

Madjie stressed that a foreign investor's financial contribution to Ghana does not grant them access to the informal retail sector.

Madicke pointed out that the challenge lies in enforcement, and he called for better coordination among relevant agencies, especially those managing markets. He highlighted that the government's model markets, constructed during President John Mahama's tenure, could facilitate enforcement. Strengthening regulation and control over these markets would simplify enforcement, according to Madjie.

He acknowledged that local businesses may occasionally falter due to issues like tax collection or VAT compliance, adding that the agency provides an aftercare system to address these concerns.