BoG measures won’t affect incentives -- Haruna tells investors

The Trade and Industry Minister, Haruna Iddrisu, has assured investors that the recent foreign-currency control measures announced by the Bank of Ghana (BoG) are only to tackle the “dollarisation” of the economy and do not affect any of the incentives the country offers them.

In February, the BoG announced measures to stabilise the cedi, reinforce its tight monetary policy stance as well as restore stability and transparency in the foreign exchange market.

The measures outlawed transfer of foreign exchange within bank accounts and said owners of such accounts can only withdraw their funds in cedis, except when they are travelling and are allowed to withdraw foreign exchange worth up to US$10,000.

The rules also required exporters to repatriate their earnings within 60 days and sell them to their banks for cedis in five days. Offshore currency dealings by resident companies were also prohibited.

The measures caused some anxiety among business people, and the central bank has spent the past few weeks clarifying its actions to assuage the public’s concerns.

The Minister, who was speaking at the opening of the 18th Ghana International Trade Fair (GITF) in Accra, also told investors that the country is a peaceful one with a stable political environment, which is underpinned by strong institutions of democratic governance.

This, he said, guarantees not only the rule of law for investors, but also enhances their personal safety and security.
He said Ghana offers generous investment incentives that include guarantees against expropriation, which are provided for under the Ghana Investment Promotion Act and the Free Zones Act.

The Fair

Mr. Iddrisu said trade fairs are undoubtedly one of the most powerful means of promoting a country’s goods and services to the international market.

According to him, the 18th GITF is very unique as it comes just after President John Mahama said in his State-of-the-Nation address that Ghana must significantly increase its exports and decrease imports to ease pressure on the cedi.

He said the fair will provide an opportunity to draw the international community’s attention to the country’s economic and business agenda for the years ahead.

“Government will continue to invest in people, jobs and the economy, and maintain a transparent and accountable government. We will maintain sound fiscal discipline that will reduce inflation, interest rates as well as arrest the decline in value of the cedi.”

Investors’ Opportunity

Mr. Iddrisu told investors the country offers them an opportunity to diversify their investment into profitable and sustainable operations which provide a safety-net for their world-wide corporate operations.

“It is therefore necessary that you apprise yourselves of the various investment opportunities that Ghana offers, as well as specific items that can be sourced from Ghana while you also try to identify Ghana’s critical needs in terms of imports.

“I am aware that there are a number of public organisations also exhibiting at this fair that can help you take the right business decisions in this regard. These organisations include the Ministry of Trade and Industry, Ghana Investment Promotion Centre, and the Ghana Export Promotion Authority among others,” he said.


By Benson Afful | B&FT Online | Ghana