Ghana is not bending rules for foreign investors – GIPA CEO

Ghana Investment Promotion Authority (GIPA) CEO Simon Madjie has clarified that Ghana is not loosening regulations to attract foreign investors. Speaking on Joy News’ PM Express Business Edition, Madjie emphasized that the country is leveling the playing field for investment by ensuring businesses adhere to its rules. He stressed that foreign investors must meet all regulatory requirements, as their conduct in Ghana can impact their share prices abroad.

Many international investors are firms listed on foreign stock exchanges, and compliance is crucial for them due to the interconnected nature of their operations. Madjie explained that some firms have established structures that hold them accountable and encourage adherence to the rules.

Addressing the controversy surrounding foreign participation in retail, Madjie clarified that trading and investment are distinct concepts. Trading refers to the exchange of goods and services, while investment involves committing resources to establish a business, create value, and generate returns. He emphasized that the informal retail sector is exclusively reserved for Ghanaians, regardless of the amount of capital brought in by foreign investors.

Madicke acknowledged the challenge of enforcement, calling for better coordination among relevant agencies, particularly those managing markets. He noted that the government’s model markets, which were developed under President John Mahama’s administration, could aid in addressing foreign participation in informal retail. By improving regulation and control of these markets, enforcement could become more manageable.

Madjie also noted that local businesses may occasionally falter, making errors such as VAT or tax collection issues. These problems would be handled through the agency's aftercare system.