The International Finance Corporation (IFC) has emphasised the critical need for a consistent and business-friendly regulatory framework in lifting investor confidence.
IFC’s Senior Country Manager for Ghana, Sierra Leone and Liberia, Kyle Kelhofer, speaking at the Ghana Mutual Prosperity Partnership Roundtable with German businesses in Accra, said an improved regulatory and favourable investment climate will bolster the country’s economic recovery.
He particularly urged the government to simplify bureaucratic processes and ensure investor-friendly regulations are firmly in place.
“Ghana is on the path to economic recovery, having weathered recent challenges, with a more stable currency, FX rate and declining inflation. To sustain this positive momentum, it is essential to instil confidence and a sense of security in investors through a clear and consistent regulatory framework,” Mr. Kelhofer stated.
The call for regulatory improvements resonated with the German business community at the roundtable. Mr. Kelhofer noted the parallels between the concerns raised by the German businesses and those articulated by IFC’s partners.
The IFC, he declared, stands ready to guide this regulatory enhancement process, drawing on its nearly three decades of experience in facilitating public-private dialogues worldwide.
The Ghana Mutual Prosperity Dialogue initiative, initiated in November 2023, serves as a platform for the public and private sectors to engage on critical issues and find common ground for improving investment conditions in Ghana.
Kelhofer highlighted the importance of such dialogues in creating an environment conducive to investment, considering the evolving global economy.
IFC, a member of the World Bank Group, has played a substantial role in Ghana’s development, bringing nearly US$2billion in investment over the last decade across various sectors, including agribusiness, financial institutions, infrastructure, manufacturing, natural resources and tourism.
“The dialogues we engaged in today are pivotal in shaping the future of investment in Ghana. Through open and constructive discussions, we can unlock the full potential of Ghana’s economic landscape, creating a win-win scenario for investors and both nations,” Mr. Kelhofer asserted.
Germany, Ghana’s 8th largest European export market, holds a significant position in the West African country’s economic landscape. The Ghana Investment Promotion Centre (GIPC) reported Germany as the 8th largest source of investments in Ghana, contributing over €2.13billion to the country’s development.
Under the G20 Compact with Africa (CWA), Germany is particularly focused on the small and medium-sized enterprise (SME) sector, which is crucial to Ghana’s economy. Through the Compact with Africa initiative, Germany committed €334.10million to enhance foreign direct investment (FDI) flows in key sectors such as renewable energy, energy efficiency, finance and governance.
As Ghana positions itself as the home of the African Continental Free Trade Area (AfCFTA) Secretariat, collaboration with German businesses is seen as strategic.
The Ghana Investment Promotion Centre has said it is actively developing an Investment Code to attract both domestic and foreign strategic investments, signalling Ghana’s commitment to fostering a favourable investment environment.
