GRi Business, Economic & Finance 15 – 04 - 2002

 

‘Respect contracts to attract investors’

 

Accra (Greater Accra) 15 April 2002-The head of the Overseas Private Investments Corporation (OPIC), Dr Peter Watson, has said that good governance, the right to property and respect for contracts are essential ingredients that attract foreign capital to any country.

He said a strong entrepreneurial base without adequate property rights is a disincentives to investments. Speaking in an interview after meeting top notch business executives in Accra, on Friday, Dr Watson said Ghana has the capacity to attract foreign direct investments.

The meeting was organised by Fidelity Discount House Ltd, to honour the visiting team and create an opportunity for the members to interact with a cross section of the Ghanaian business community. He said since 1975, the members of OPIC have invested over $280 million in various financial services and projects in the country.

Dr Watson led a team of fund managers looking for investments of one million dollars and above in private sector projects. The group is on a three-Africa nation tour designed to identify direct investment opportunities in African countries.

OPIC-supported investment funds make direct equity and equity-related investments in new, expanding and privatising companies in emerging market economies. OPIC funds address the need for private equity in developing countries and provide a catalyst for private sector development, and encourage investment discipline in emerging markets.

Mr Edward Effah, the Managing Director of Fidelity, said in his presentation on the economy that the private sector is ready to join forces with foreign investors. He said the investment climate is very stable and friendly and pointed out that what is needed is equity participation in local businesses. He, however, cautioned that there are many pitfalls, depending on the industry that is invested in.

GRi…/

 

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