Businesses must strengthen corporate governance to attract investment – GIPA

Simon Madjie, CEO of the Ghana Investment Promotion Authority (GIPA), has called on Ghanaian businesses to enhance their corporate governance practices, increase financial transparency, and formalize their operations in order to entice both domestic and foreign investment. Madjie emphasized that a business's capacity to attract capital is heavily influenced by the trust they establish with investors, the caliber of their projects, and the strategies they employ to mitigate investment risks.

During his address at the Ghana Economic Forum hosted by the Business and Financial Times (B&FT), Madjie pinpointed trust, bankable projects, and de-risking as the three essential elements required to mobilize capital for businesses. He stressed that without reliable financial records and robust corporate governance structures, businesses would be unable to attract investment.

Madjie urged businesses to move away from informal operational structures and embrace practices that render them more appealing to investors. He also advocated for partnerships and collaboration, asserting that by pooling resources, businesses could surmount capital limitations and expand their operations. "When we work together, we can get the capital that we need.

Your 10, it is my 10; when we put them together, that is close to 50 cedis," Madjie remarked. Additionally, he advocated for policies that foster technology transfer, enhance local capacity, and foster greater involvement of Ghanaian businesses in investment endeavors. Madjie acknowledged the importance of reforms to Ghana's investment laws, notably the Ghana Investment Promotion Authority Bill, which has now been enacted into law.

However, he emphasized that regulatory reforms must be accompanied by alterations in how businesses function and collaborate to facilitate Ghana's ability to attract the necessary capital to stimulate economic growth.