US Criticises Ghana's Investment Drive

The United States says in spite of its professed liberal economic policies, the Kufuor administration still has some major obstacles to clear to be able to attract foreign direct investment. The US Assistant Secretary of Commerce for Market Access and Compliance, William Henry Lash made this observation during a meeting with reporters in Accra. The US envoy was in the country last week for a high-level meeting with government officials and private sector representatives over trade relations between Ghana and the United States.

Mr. Lash commended the government for taking steps to participate and share in global economy. However he said, there are still some barriers to foreign direct investment.

Although the US envoy did not go into details, he referred to the current stalemate over the future of Westel, the second national telecommunications operator in the country, which has been slapped with a $70 million penalty for failing to meet its license conditions.

Westel is partly owned by two American companies, one of which is Western Wireless with 56 per cent majority shares. The company has petitioned the government for a review of the penalties and awaiting the final decision. According to Mr. Lash, for Ghana to attract the required foreign direct investment, there is the need for openness on the part of government in its dealings with foreign business.