One of the wealthiest corners of this planet is the Caribbean Island of British Virgin Island. This oversea territory of Great Britain has per capita income of $41,000. Forty years ago, the economy of the country was then precariously based on ?ground provisions and degenerate scrub stock (of cattle)?. There were predictions that the islands could potentially be "wiped-out" because of its economy. What a difference four decades could make?
The political leaders put their heads, hands and hearts together. They started encouraging and wooing developers for secluded and environmentally sensitive tourist resorts. Could Ghana also engage in an environmentally sensitive industry with the filth engulfing our major cities and villages? Not in the least. Ghana however, has something that countries like Virgin Island do not have. As every school child in Ghana knows dotting along our coastline, are the forts and castles that were used during the shameful era of the heinous slave trade. Nowhere on the globe is concentrated such ?facility?. We can capitalize on this available historical ?artifacts?. We have the sand just Jamaica; we have the sea just like Gambia. We have the fauna and fuana which neither Jamaica nor Gambia possess. One could also add that we also blessed with the virile men and beautiful babes to boot. A tourist industry more aggressively promoted could potentially yield more returns than our president?s obsession with globe-trotting with a calash always in hand
But BVI economy is not a ?one trick horse economy?. By far the most important revenue is derived from this territory serving as a principal center of offshore finance. While other Caribbean islands may have established reputations for insurance, private banking and fund management, the BVI leads the way as the offshore registry for international companies.
At the last count, more than 750,000 companies were registered. From international ventures-looking for neutral but legally safe home to smaller businesses eyeing the benefit of flexible structures and low tax, BVI is the first port of call.
Like a viable flag of convenience operations, off shore registry of companies needs the requisite legislation and basic and inexpensive infra-structure. It is not a capital intensive industry. The relevant laws, religiously administered rules and regulation, a reliable flow of electricity and water and aggressive advertisement are all that we need. Such a well functioning industry would be a boom to our lawyers and accountants.
Sound regulation is a good for business particularly an offshore industry like the registration of companies. The sophisticated clientele who uses such vehicles for legitimate cross-border activities looks for reputable and well regulated jurisdiction.
Ghana does not have to abandon its traditional economic sectors. Just as we now export cocoa as well as pineapple we could add flag of convenience and off-shore registration of companies to our national portfolio.
Certainly, competition would be fierce from the well established jurisdictions. But Ghana can distinguish itself by quality of its regulatory regime. Care must also be made for Ghana not to be a haven for the ethically challenged companies. Already the frequency of international drug-related reports from emanating from Ghana is a splotch on our escutcheon. Such a splotch is not indelible. Transparency and market integrity should be our watch words. As I write this piece, it is reported that BVI is moving into the value-added services such as mutual fund and hedge funds registration, captive insurance and trusts.
Every where one cursorily turn his gaze, that the wheel is already invented becomes apparent. No nation has developed mainly as a result of hand outs and benefits accruing from the countless number of travels of its head of state. For Ghana to realize the dream of becoming the financial hub on the continent, these building blocks must be put in place one piece at the time. Now is the hour.
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