GIPC’s incentives for local enterprises untapped

Local entrepreneurs are consistently missing out on incentive opportunities from the Ghana Investment Promotion Centre (GIPC) due to sheer reluctance to register with the Centre.

The GIPC Act (Act 865), does not make it mandatory for fully owned Ghanaian enterprises to register with the Centre, yet, certain benefits and incentives have been made available for local enterprises that register with the Centre.

GIPC CEO, Mr Yofi Grant, told the Goldstreet Business at the second edition of the GIPC’s Young Entrepreneurs Forum that, though the process is not compulsory, indigenous enterprises could capitalize on that provision to grow their businesses by registering with his outfit.

“There are locational incentives for indigenous entrepreneurs in the agricultural sector, including a duty-free import of machinery and equipment and to those in manufacturing,” Grant said.

He, however, explained that the decision not to register with the Centre, by most of such enterprises could be the fact that they may not be interested in that support.

“What we have constantly done at the GIPC is the creation of awareness, educating entrepreneurs, businesses and investors on the various incentive regimes that are available. Instead of approaching the Centre, it’s rather unfortunate that most of these local entrepreneurs look up to other difficult avenues for help,” he noted.

Going forward, he asked Ghanaian entrepreneurs to register with the Centre in order to gain access to some of the benefits available.

Deputy Trade Minister, Mr. Carlos Ahenkorah, said it is important to safeguard the interest of Ghanaian entrepreneurs in the area of capacity building to enable them access loans, incentives and other assistance needed to propel their businesses.

“SMEs form about 80 percent of businesses in the country and most enterprises owned by young Ghanaians fall under the SME category,” he said.

The government, through the Trade Ministry, Ahenkorah explained, will launch the ‘Startup Ghana’ programme in August, an initiative to assist new enterprises.

“We want to identify all startups, which are finding it difficult to operate and offer them assistance to enable them take off successfully,” he said.

Also in line with the Ministry’s agenda is the plan to set up the industrial subcontracting exchange, where all large companies will be profiled.

“Through the profiling, SMEs in the manufacturing and supply sector will be giving the opportunity to identify the raw materials that these large companies require and then using that advantage to supply to those companies.” he disclosed.

The Second GIPC Young Entrepreneurs Forum was organized to build the capacity of young entrepreneurs while discussing prospects and opportunities that could be beneficial to them through the Centre.

In all, about 500 entrepreneurs attended the forum, with some having the opportunity to exhibit their products.