Trade Minister holds talks with Houston business group
Dr Abu calls for more Foreign Direct Investment
Trade Minister holds talks with Houston business group
Accra (Greater Accra), 17th November 99
Mr. Peter Wiafe Pepera, a Deputy Minister of Trade and Industry, on Tuesday said Foreign Direct Investment is crucial to the economic development of African countries that capital to exploit their vast natural resources.
He said in order to receive FDI, Ghana embarked on Structural Adjustment Programmes that led to the liberalisation of the economy and the improvement of trade and investment laws, regulations and procedures to allow for greater efficiency and effectiveness said while briefing a 20-member business development mission from Houston, Texas, US, in Accra.
The delegation led by Mr. Lee P. Brown, Mayor of the City of Houston, arrived on Monday to explore investment opportunities in the country and to help improve the economic and commercial climate.
Mr. Pepera said the Trade and Investment Gateway Project, when in full operation will make Ghana the gateway to the 16-member ECOWAS sub-region that has a total population of nearly 250 million.
He said 66 US companies with investment capital of about 30 million dollars were registered between 1994 and 1998 making the US one of the top investment sources in Ghana.
The Deputy Minister said trade between the two has also picked up encouragingly with a total merchandise trade value of almost 400 million dollars as at the end of 1997.
"The various investment promotion and protection agreements that Ghana entered into with some of the developed countries, including the US, are a clear manifestation of the Ghana government's commitment to establish of a transparent and open investment climate."
Mayor Brown said the group has seen a great potential for co-operation during their short stay.
The members of the delegation expressed interest in the areas of health care delivery, energy, gold processing, hospitality industry and communications.
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Dr Abu calls for more Foreign Direct Investment
Accra (Greater Accra), 17th November 99
Dr. John Abu, Minister of Trade and Industry, on Tuesday reiterated the need for an increased flow of Foreign Direct Investment (FDI) to accelerate growth in the country's economy.
Dr Abu, who was speaking to a 30-member delegation of business executives of the French Enterprise Association (MEDEF) currently in the country to explore investment opportunities said so far, the interest of foreign investors in Ghana has been encouraging.
He said in 1998 FDI inflows reached 200 million dollars compared to 23 million dollars in 1992. The annual average of FDI between 1986-91 was 11 million dollars.
The delegation is led by Mr. Michael Roussin, former Minister of Co-operation of France and currently the Vice-President of the Ballore Group and Chairman of the African Committee of MEDEF.
The Minister who was briefing the delegation on the general trade and investment opportunities in Ghana said "French investors have shown interest to some extent but there is room for improvement."
French companies have, established about 20 new projects over the past four years making her the 12th highest investor in Ghana.
However, "we expect a far higher level of participation in our economy than this, because we are aware of the high level of performance of the French private sector and therefore we expect more."
Dr Abu said that in pursuant to attracting foreign investment, the country seeks to create a business environment that is conducive to competitive foreign participation through the establishment of a transparent and open investment regime.
He mentioned some major legislation in this regard as the Ghana Investment Promotion, Minerals and Mining and the Investment and Stock Exchange acts, which seek to protect the investor and safeguard against expropriation.
Mr. Roussin said the delegation aims at improving on business transactions.
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