CIRIP Ghana calls for stronger business rescue framework to boost investor confidence

The Chartered Institute of Restructuring and Insolvency Practitioners (CIRIP) Ghana has urged for a more robust business rescue and insolvency framework to safeguard investments and enhance investor confidence as the nation strives for industrialization and private sector expansion. The institute's President, Mr Felix Addo, emphasized the importance of clear and predictable rules for handling business failures during the institute's 20th-anniversary celebration in Accra.

Mr Addo highlighted that effective business restructuring systems contribute to economic resilience, financial stability, and sustainable growth. He pointed out that Ghana's previous legal framework for distressed businesses primarily focused on liquidation, which left viable enterprises facing temporary financial difficulties with limited chances to reorganize and resume productive operations.

The CIRIP Ghana President mentioned that the institute had collaborated with various stakeholders to implement reforms aimed at shifting the national discourse from liquidation toward business rescue, value preservation, restructuring, and economic recovery. The Economic Adviser to President John Dramani Mahama, Mr Seth Emmanuel Terkper, delivered a keynote address on behalf of the President, stressing that effective insolvency systems are crucial for preserving businesses, protecting investments, and maintaining financial stability.

He emphasized that businesses' ability to recover from financial difficulties is vital for investors, as it offers opportunities to preserve value instead of allowing viable enterprises to collapse through premature liquidation. Mr Terkper called for stronger investor protection and confidence-building measures in Ghana's capital market, advocating for policies that safeguard investments and restore trust among market participants.

He stressed that Ghana's financial market development agenda should prioritize investor protection, especially for those affected by financial market disruptions, to encourage greater participation and support long-term capital market growth. Terkper urged continued collaboration among policymakers, regulators, financial institutions, and professional bodies to strengthen Ghana's financial architecture and create a conducive environment for investment and sustainable business growth.