Protectionism is not the right way to go - Yofi Grant

The CEO of the Ghana Investment Promotion Centre (GIPC), Yofi Grant, has said the country must brace for competition, as protectionism is not the right approach for businesses in this global age.

Mr. Grant, who was speaking at the First Business Partner Dinner of the Dubai Chamber of Commerce and Industry in Accra said: “We’ve gotten to a stage where we need to shed the prejudices we had before and be more aggressive. I don’t only want to remove capital limits, but also want to remove the areas restricted for Ghanaians--barbering, hairdressing and selling on table tops.”

It’s psychologically demeaning; we must not protect our people. What we need to do is to incentivise them and equip them. And that is when we have a country developing. Our people deserve better and more. Won’t you be happy if the things are manufactured here. Why do you think protectionism is the right way to go? We need a new thinking in our businesses.”

He said the GIPC is looking at revising its laws to allow for the growth of businesses. “We are thinking of doing a lot of things…changing our laws and the way we do business here, so that we are competitive and allow business to grow” and one of things being thought of by the government is the removal of capital limits,” he said.

He also stated that, since the introduction of these restricting laws Foreign Direct Investment (FDI) into the country has significantly fallen.

“If you’re in a joint venture with a foreign company you have to show that you brought in $200,000, if you’re in a foreign company and you want to register, you have to show that u brought in $500, 000. And if you want to enter retail business $1,000,000. A lot of our people think it’s a good thing because it protects Ghanaians, but I say how it protects us.

Incidentally since those laws were implemented, we've seen FDI drop, but the bigger question is, here’s a country with all the resources yet we do not have capital to develop them and yet were saying that we want to protect what we have,” Mr. Grant said.

Non-Oil trade between Dubai and Ghana reached US$2.4 billion in 2016, marking a 47% increase compared to 2014, while the scope of trade has also expanded beyond agricultural commodities to other areas such as manufacturing, chemical and plastic products.

On his part, Head of Ghana International Office, Dubai Chamber of Commerce & Industry, Cyril Dankwa said: “we are incredibly proud at the results we have achieved so far. Ghana stands out as a beacon of safe investments in Sub-Saharan Africa, thanks to its political stability and Business friendly environment. Dubai has become a major trade hub for African businesses that provides easy access to markets across the GCC, Asia and Europe”.

“Our presence and activities in Ghana fall in line with the Chamber’s expansion strategy, the objectives of the Dubai Plan 2021 and the directives of His Highness Sheikh Mohammed bin Rahid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai”, He added

Dubai Chamber remains committed to supporting Ghana’s ambitions by promoting economic cooperation and identifying the right partners that can help fill the market gaps in the country.