Revised GIPC law not targeted at foreigners – Haruna Iddrisu

Government has discounted suggestions that the revised Ghana Investments Promotions Council (GIPC) Bill which is currently before Parliament will discourage foreign investors from venturing into the country.

According to Haruna Iddrisu, Minister for Trade and Industry, the new GIPC Bill, “will rather situate Ghana as the facilitator of business in the sub-region.

Parliament’s sub-committee on Trade, Industry and Tourism finalised its report on the Bill and submitted its recommendations to the House for consideration.

Members of Parliament on Tuesday began scrutinizing the revised GIPC bill.

When passed into law, the Act, among others, will seek to increase the minimum capital requirement for foreign companies from the current threshold of $300,000 to $1million.

It will also require foreign companies to cede 30% of ownership to local partners.

Mr. Haruna Iddrisu said the modified legislation is to enhance the investment climate for foreign investors and also empower local business.

Speaking Wednesday, June 19, 2013, on Joy FM's Super Morning Show he maintained that the Act will provide the opportunity for foreigners to feel secured in their operations.

He said local businesses stand to profit from the Act when passed, as it contains provisions that will allow them to benefit from facilities such as tax exemptions, currently being enjoyed by their foreign counterparts.

The minister stated the focus for government, is to facilitate the growth of the manufacturing sector in order to generate more jobs for the youth.

“Ghana today is an oasis of peace and stability with enormous investment opportunities which hold the key to the prosperity of our country.

“If we are able to direct foreign direct investments…that will contribute to employment creation, increase our production capacity by way of contribution to gross domestic product,” Mr. Iddrisu said.

He, however, entreated the public to take keen interest in the ongoing debate over the Bill, and make suggestions to specific areas that may be offensive “and give justification why you think it is offensive” for possible consideration before it is passed by Parliament.