FDIs must be socially responsible – GIPC boss

CEO of the Ghana Investment Promotion Centre (GIPC) Mawuena Trebarh believes that foreign direct investments (FDI) can only gain ground for the long-term when investments are socially and environmentally inclined to the country.

“We want to ensure that in attracting and retaining FDI to contribute to our economic development efforts we should be mindful of the fact that these investments are made into companies, organisations and funds with the intention to generate social and environmental impact alongside financial returns,” she said.

Mrs. Trebarh said this at the launch of 2013-2014 Ghana Club 100 Awards in Accra. This year’s Ghana Club 100 awards are under the theme ‘Impact Investments and Sustainable Economic Development”, and the GIPC boss is keen for investors to be socially responsible in their operations.

According to her, it is imperative that “both domestic and international companies know of the innovation and entrepreneurship that the Ghanaian business community is bringing to the table in supporting development.

“It is the form of socially responsible investment where a company is turning a profit while meeting the social needs in an environmentally-sustainable way that I want to encourage in our country. It combines both good corporate governance and social responsibility.

Despite the macro economic instability in the country coupled with high inflation, cedi instability, erratic power cuts and challenges that confronted businesses, she stated that it is worth celebrating them. “I think it is very important that even as we are faced with challenges, we continue taking the time to celebrate with companies that are overcoming those challenges and still supporting development.

“It would be unwise to say that because of the challenges we should not recognise the extra efforts the private sector is putting into supporting development and overcoming those challenges” she said.

The 14th edition of the Ghana Club 100 awards ceremony and publication of the GC 100 magazine is scheduled to take place at the Banquet Hall of the State House on 23rd October, 2015.

The event has been aimed mainly at introducing a system of ranking the top-100 companies in Ghana while encouraging and nurturing the private sector to develop and grow to compete internationally.

The Centre still believes that as Ghana continues to see itself as Africa’s golden gateway to a safe and secure investment destination for investors across the globe, it is necessary to encourage the private sector operators so as to ensure their operations do not appear to be at variance with internationally acceptable practices.

Among the eligibility criteria for the 2013/2014 event is included that for companies with government interest, government share ownership should be less than 50% unless the company is listed on the Ghana Stock Exchange -- and all entrants must be limited liability companies. Also, all entrants must have made profits for the most recent three consecutive-years period, from 2011-2014.

Preceding the GC 100 awards, GIPC in partnership with Homestrings Ltd. will also hold the Invest in Ghana 2015 Conference. The event will serve as a platform for international investors, experts, managers of financial institutions, development partners and donors as well as other key actors and business partners to interact.

It is a turnkey event focusing on Ghana’s investment potential and its development. The conference will take place in Accra on 22-23 October and is expected to bring together over 300 local, regional and international business leaders and investors.