Ghana becomes a growing business destination, says president
President Nana Akufo-Addo used a recent speech to promote changes to make Ghana more attractive …
President Nana Akufo-Addo used a recent speech to promote changes to make Ghana more attractive to private equity investors.
The President of Ghana provided an update on the measures taken by his government to make the country more attractive to international investors and to encourage the development of local businesses.
Give the keynote at last week’s annual online conference of the African Private Equity and Venture Capital Association (AVCA), President Nana Akufo-Addo said there were positive signs regarding the level of private equity and venture capital investments in Africa after the pandemic, and called for greater cooperation between the public and private sector to facilitate such progress.
REMOVAL OF CONSTRAINTS
Governments must encourage the growth of private equity, Akufo-Addo said, noting that Ghana has identified constraints on the sector, including inflation, currency depreciation, competing government funding costs, financial literacy , evaluation problems, financial problems of micro, small and medium enterprises. businesses (MSMEs) and family businesses that do not want to cede control to outsiders.
He said his government and the Ghanaian Security and Trade Commission took measures, from 2018, to remove these constraints, strengthen financial markets and improve investment conditions, “in order to maintain the country’s role as the best destination for investors in Africa”.
In March, the government announced he would raise $ 5 billion international financial markets to finance its 2021 budget and manage the economic impact of the pandemic.
Among the measures taken by Akufo-Addo, the country has developed a 10-year master plan for improvements, cleaning up the asset management industry, introducing guidelines for private funds of real estate investment trusts ( REIT), an improved corporate governance licensing regime, improved regulatory communication and encouragement of institutional and angel investors from Ghana and abroad by removing VAT on management fees, private equity, capital -risk and mutual funds.
As a result, he proclaimed that “Ghanaian stock market trading volumes reached historic highs in 2020, and bond market volumes greatly exceeded past trading volumes”, despite the global stock market turmoil caused by the pandemic.
Earlier this month, Twitter announced it had chosen Ghana as the site of its first African office.
The president further discussed the creation of a financial data center and a national credit rating agency, which he said are in the process of being finalized, while the 2020 bill of the Ghana Business Agency aims to improve the climate for MSMEs, stating, “We expect these initiatives will lead to greater availability of many companies ready to invest. “
The latter aspect is important, as over 90% of all businesses registered in Ghana are MSMEs, accounting for over 70% of the country’s GDP. As a result, SMEs and MSMEs have been identified by many organizations, including the London Stock Exchange, as a key to Africa’s economic development.
In March of this year, an investor based in Lagos provided $ 64 million for SME investment in Nigeria and Ghana, while elsewhere in West Africa, Vista Bank Guinea received 10 million euros to put in small local businesses and the International finance corporation provided funding to Sub-Saharan start-ups.
The United States is another SME support organization in Africa International Development Finance Corporation (DFC), which ended 2020 by engaging in a range of investments on the continent.
Ghana has consistently performed well on the Ibrahim Index of African Governance, but last year’s edition warned of the risk of decline without more vigilance.