Investors protest against sections of new GIPC Bill

Foreign investors in the country are protesting the government’s decision for them to cede 30 percent of their businesses to Ghanaians under the revised Ghana Investment Promotion Center Bill currently before parliament.

The Chairman of the Trade and Industry Committee, Alhaji Amadu Sorogo, has claimed.

The revised GIPC bill partly seeks to empower Ghanaian owned businesses whilst restricting foreigners into the retail sector.

Capital equity has now been increased from 300 thousand to one million dollars.

Trade and Industry Minister, Haruna Iddrisu, who moved the motion for the bill in Parliament said investors will, however, be guaranteed incentives.

He said the legislation was necessitated by some “significant economic and investment development” and believed the law will address these “short comings in order to position Ghana, as not just the destination to do business but the hub for business for West Africa.”

It will also enable the government to respond to the growing drive of unemployment and create opportunities for its citizens, he affirmed.

Emphasizing the need for the country to protect indigenous businesses, Haruna Iddrisu stated that businesses such as hair dressing and printing of scratch cards would be reserved for Ghanaians.

Foreign Direct Investment (FDI) accounts for 11 percent of global gross domestic product and some are asking if the agitation by some foreign companies operating in the country will affect the country’s drive for foreign direct investment.

But Chairman of the Trade and Industry committee, Alhaji Amadu Sorogo, in an interview with Joy News’ assured that the House will adopt the best approach in debating on the bill.

He is hopeful the bill will open up investment opportunities to both local and foreign investors.

Alhaji Sorogo also debunked claims that the bill will scare away investors, but remarked that no law will satisfy everybody 100 per cent.

President of the Ghana Union of Traders Association, George Ofori, has also told Joy News they are “very happy” about the proposed measures to protect Ghanaians in the retail sector.

He, however, observed that “monitoring and supervision” could be a militating factor against the successful implementation of the law.

He also rejected claims that the increase in the capital equity to one million is on a high side. He said they had initially suggested one and a half or two million dollars.

He is hoping that the bill will be passed by the close of the week.

Meanwhile, Member of Parliament for Tafo Pankrono in the Ashanti region, Dr. Anthony Akoto Osei, rejected provisions in the bill that allows deputy ministers to serve on the board of the GIPC.

He asked the government to shy away from appointing ministers to boards describing the precedent as “dangerous”. He is suggesting that directors at ministries should rather be made to replace ministers whom the institutions are supposed to report to.

Institutions such as the GIPC should “be technically driven and not politically driven,” he cautioned.