Aliu encourages Italians to establish joint ventures with Ghanaians

Accra, March 4, GNA - Vice President Aliu Mahama, encouraging Italian entrepreneurs to establish partnership with their Ghanaian counterparts for their mutual benefit, said Ghana had laid the requisite foundation for businesses to thrive.

Opening an investment forum for an Italian business delegation and a cross section of Ghanaian business people on Wednesday, Vice President Mahama said all the key economic indicators pointed to a sound and vibrant economy.

"We have been able to reduce inflation form a high rate of 40 per cent to 23.6 percent and the corresponding nominal interest rate from 50 percent to 26 per cent, stabilizing the cedi's exchange rate to the major currencies," he remarked.

Under the auspices of the Ghana-Italian Chamber of Commerce, 37 Italian entrepreneurs representing interests in pharmaceuticals, minerals processing, agro processing, machinery and other industries, are in Ghana to explore business opportunities.

Vice President Mahama told them that the Government was pursuing its agenda to create wealth and reduce poverty through the implementation of programmes in five priority areas.

These are vigorous infrastructure development with emphasis on roads, ports, transportation, energy supplies and information communication technology; the strengthening of the private sector and institutions of good governance.

Other areas are the development of a modernized agriculture, based on rural development and the delivery of enhanced social services to ensure equity and quality, particularly in education and health.

Additionally, Vice President Mahama said projects had been introduced under the President's Special Initiatives to stimulate the private sector, improve productivity and to create jobs. He assured the business community that investing in Ghana would enable them get easy access to the 250 million people in the West African market.

The Italian Ambassador to Ghana, Mr Giancarlo Izzo the opportunities to forge successful business partnerships within the two countries were bright as Italy had 4.5 million companies, which were mostly medium and small-scale entities.

On the bilateral level, Mr Izzo said various interventions were being put in place to facilitate such partnerships.

Significant among them is a 10 million Euro Credit line to offer loans at six per cent interest rate to Ghanaian companies, particularly those with links to Italian companies

Mr Izzo said in few weeks the facility would be available and that Ghanaian companies with an annual turnover of 30,000 Euros and more than five employees, can access between 450,000 Euros and one million Euros to upgrade their businesses.

However, 75 per cent of the fund must be used to purchase equipment from Italy with the rest serving as capital. Farming and wood processing companies can also not benefit form the facility.

The bilateral interventions also include the signing of a double taxation agreement between the two countries, which offer some tax rebate to businesses and an investment protection agreement, which would be sign in a few months.

Mr Izzo said when Ghana reaches the HIPC Completion point, insurance charges on Italian investments in Ghana would reduce substantially. Trade between the two countries is tilted in favour of Italy whose annual exports to Ghana is 250 million dollars against Ghana's 90 million dollars exports.

The Leader of the Italian Delegation, Ms Maria Teresa Rossi Ferraris and the President of the Ghana-Italian Chamber of Commerce, Alhaji Ramadan Murtala Mohammed, both expressed optimism about having a fruitful forum.

Officials of the Ghana Investment Centre and the Chamber of Mines are facilitating the Forum.