Joint project by UNCTAD and Japan Bank for International Cooperation prescribes 15 measures for improving country´s appeal to foreign investors
The Minister of Trade, Industry, Private Sector Development and Special Presidential Initiatives of Ghana welcomed this morning the publication of an "Investment Blue Book" developed by UNCTAD and the Japan Bank for International Cooperation (JBIC) to spur foreign investment in the country.
The Minister, Alan Kyerematen, committed the Government to implement the action steps contained in the Blue Book within 12 months -- in fact, he and the Chairman of the Board of the Ghana Investment Promotion Centre proposed to carry them through in eight months. They also called for increased liquidity in the country´s financial system, saying there is a need for new financing mechanisms such investment funds.
"It is an historic event," said Minister Kyerematen at a ceremony held Monday at La Palm Royal Hotel in Accra.
Among the measures called for in the Blue Book, which was developed following intensive discussions with businesses and potential investors, are simplified customs procedures, improved transparency for Ghana´s investment regulatory framework, and incentive packages to increase investment in key sectors of the economy: energy, agribusiness, and mineral processing (see attached list).
The Blue Book says the labour skills of the country´s workforce should be upgraded and the capacity of domestic firms to develop and introduce competitive international products should be improved. And it calls for the Government to issue regular e-mail bulletins on taxes affecting investment. Finance and Economic Planning Minister Kwadwo Baah-Wiredu -- also present at the event -- commended the actions proposed by the Blue Book, particularly with regards to the improvement of labour relations, productivity and increased transparency of the regulatory framework, including taxation. He said that regular e-bulletins on taxation will help investors but also will help the government in increasing its fiscal take.
Blue Books also have been produced for Kenya, Tanzania, and Uganda. The project, begun in 2004, is part of a joint effort by UNCTAD and the JBIC to enhance the appeal of Africa as a location for foreign direct investment (FDI). UNCTAD has carried out a series of related programmes in the region, such as investment reviews and the compilation of investment guides, and the Government of Japan recently announced an effort to promote Japanese investment in Africa, among other things through the facilities of the JBIC.
Blue Books are intended for countries that aren´t meeting their potential for FDI. They prescribe a short list of practical, specific, high-impact measures -- 15 in the case of Ghana -- that can be taken quickly and should result in a fast upgrading of the country´s appeal to overseas investors. UNCTAD and its development partners provide assistance in the implementation of Blue Book recommendations. Among the over US$1 billion committed by the JBIC in loans to Africa over a five-period are loans supporting the Blue Book project.
Foreign direct investment has been identified as a major factor for spurring economic expansion in developing nations. Countries such as Ghana are characterized by firms focusing on the domestic market and selling products with low value-added and low levels of technical sophistication. FDI often comes with the infusion of new, more specialized technology and can result in the marketing of more sophisticated products; if such products are competitive internationally, more expansive growth and more widespread job creation become possible.
Present at Monday´s launching ceremony were 100 senior Government officials, representatives of the diplomatic corps and the local and international private sector. Firms from Asia were strongly represented, particularly India, the largest Asian investor in Ghana and Japan. Itochu Africa - represented by Tatsuya Hosokawa, Chief Executive for Africa -- has announced an expansion of its investment in Ghana.
