Govt asked to enhance fiscal environment to attract investors
THE Senior Trade Commissioner at the Canadian High Commission in Ghana, Andrew Maharaj, has stressed the need for Ghana to enhance its fiscal and regulatory environment to attract foreign investment back to the country.
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He said many funds that once flowed into Ghana were now being diverted to neighbouring countries due to concerns over political and economic uncertainties.
“The key to drawing investments lies in the Ghanaian government’s ability to ensure a sound fiscal environment. Predictability and transparency in the market are essential for investors who are seeking stability. Investors are now diverting their funds to neighbouring countries due to concerns over political and economic instability.
To turn this tide, the government must take deliberate steps to create a stable and enabling fiscal environment that not only appeals to Canadian investors but also reassures them that their investments are secure,” he said.
Mr Maharaj made the call at the fourth CEOs Connect organised by Canada Ghana Chamber of Commerce (CanCham) last Friday in Accra.
The event, on the theme: “Exploring business opportunities for economic growth through joint ventures between Ghanaian and Canadian Businesses”, brought together policy makers, Chief Executive Officers (CEOs) of SMEs, and industry captains to brainstorm, share experiences and strategies, and network.
Investment decline
He expressed concern over the decline in sCanadian investments in recent years, saying “Canada has a lot more to offer, but at times, our presence in Ghana seems lacking. We need to do a better job by encouraging Canadian companies to explore the abundant market opportunities in Ghana.”
He said Canada was working tirelessly to strengthen its economic ties, however, global competition is fierce.
“Other countries are aggressively pursuing investments, and Ghana must position itself as a preferred destination,” he added.
He noted that creating an investor-friendly environment was crucial to reversing the downward trend in Canadian investments, adding that by addressing the issues of fiscal predictability and regulatory reform, government could potentially reclaim lost investment and pave the way for stronger economic ties with Canada in the future.
Import substitution
The CEO of Ghana Investment Promotion Centre (GIPC), Yofi Grant, underscored the need for Ghanaian businesses to adopt growth strategies that capitalise on the country's rich resource base.
He advised local businesses to strategically focus on import substitution to strengthen the nation's economy.
Joint ventures
For her part, the president of the Canada Ghana Chamber of Commerce, Linda Vasnani, emphasised the crucial role of joint ventures in growing the local economy, saying it offered a powerful way to leverage businesses’ respective strengths, and tap into new markets.
She said by working together, businesses could unlock new opportunities, create jobs and contribute to the economic development of Ghana and beyond.
She encouraged businesses to seize the opportunity and connect with each other to stimulate growth.
"Canada is a global trade leader, with a diverse economy, a strong service sector and abundant natural resources.
Its focus on innovation and Research and Development (R&D) attract over $1 trillion in FDI, making it a prime destination for international partnerships,” Ms Vasnani said.