By Fred SARPONG
Information reaching BusinessWeek indicates that Cabinet is satisfied with the inputs made into the new Ghana Investment Promotion Centre (GIPC) draft law by stakeholders and has, therefore, sent it to the Attorney General’s Department for legal review.
The expected new bill, GIPC Act 2008, will replace the GIPC 1994 Law (Act 478).
BusinessWeek learnt that stakeholders within the business industry, including Customs, Excise and Preventive Service (CEPS), Association of Ghana Industries (AGI), and Ghana Union of Traders Association (GUTA), all made inputs into the draft bill.
The approval of the draft document has been delayed due to some disparities bordering on the establishment of trade businesses in the country.
GIPC’s Chief Executive Officer (CEO), George Aboagye, is hopeful the document will be finally approved by Cabinet and subsequently passed into law by Parliament before the third quarter of this year.
According to him, all necessary stages of the review have been completed at the GIPC level.
“Ghanaians will be happy with the new Act because it has taken into consideration local content,” he added.
He indicated that the center also took into consideration concerns from Ghanaian retailers and the draft document addresses most of these concerns.
“Our citizens must be treated equally as any other investor,” he added.
He said the review of Act 478 was necessary to encourage Ghanaians to participate in investments in the country.
The revised Act is also intended to make it mandatory for foreign manufacturing firms, operating or coming into the country, to source at least 40% of their supplies locally.
The CEO has early said that even though the review of the document made specific points in the interest of Ghanaian businesses, especially those in the retail sector, government is acting carefully so there will be no conflict between Ghanaian and foreign traders.
BusinessWeek gathered that the new bill will allow a broad room for both local and foreign investors to do business in the country, but more favourable to the local indigenous business people.
However, the proposed regulations want joint-venture investment capital increased from US$10,000 to US$250,000 while investment capital for a firm 100% foreign-owned would be increased from US$50,000 to US$500,000.
The new proposed law stipulates that investors in trading will now be required to bring in US$1,000,000, as against the previous amount of US$300,000 and are required to employ at least 20 Ghanaians, double the minimum of 10 stipulated under the old law, while 25% of products content must originate from Ghana.
Before the proposed law was withdrawn from Cabinet late last year, it drew furious reactions from foreigners operating in the services and retail industry which, they said, would hinder foreign investment.
Even though Cabinet is satisfied with the document, it is not yet clear whether certain amendments will be made with regard to the proposed capital investment for various sectors.
Information reaching BusinessWeek indicates that Cabinet is satisfied with the inputs made into the new Ghana Investment Promotion Centre (GIPC) draft law by stakeholders and has, therefore, sent it to the Attorney General’s Department for legal review.
The expected new bill, GIPC Act 2008, will replace the GIPC 1994 Law (Act 478).
BusinessWeek learnt that stakeholders within the business industry, including Customs, Excise and Preventive Service (CEPS), Association of Ghana Industries (AGI), and Ghana Union of Traders Association (GUTA), all made inputs into the draft bill.
The approval of the draft document has been delayed due to some disparities bordering on the establishment of trade businesses in the country.
GIPC’s Chief Executive Officer (CEO), George Aboagye, is hopeful the document will be finally approved by Cabinet and subsequently passed into law by Parliament before the third quarter of this year.
According to him, all necessary stages of the review have been completed at the GIPC level.
“Ghanaians will be happy with the new Act because it has taken into consideration local content,” he added.
He indicated that the center also took into consideration concerns from Ghanaian retailers and the draft document addresses most of these concerns.
“Our citizens must be treated equally as any other investor,” he added.
He said the review of Act 478 was necessary to encourage Ghanaians to participate in investments in the country.
The revised Act is also intended to make it mandatory for foreign manufacturing firms, operating or coming into the country, to source at least 40% of their supplies locally.
The CEO has early said that even though the review of the document made specific points in the interest of Ghanaian businesses, especially those in the retail sector, government is acting carefully so there will be no conflict between Ghanaian and foreign traders.
BusinessWeek gathered that the new bill will allow a broad room for both local and foreign investors to do business in the country, but more favourable to the local indigenous business people.
However, the proposed regulations want joint-venture investment capital increased from US$10,000 to US$250,000 while investment capital for a firm 100% foreign-owned would be increased from US$50,000 to US$500,000.
The new proposed law stipulates that investors in trading will now be required to bring in US$1,000,000, as against the previous amount of US$300,000 and are required to employ at least 20 Ghanaians, double the minimum of 10 stipulated under the old law, while 25% of products content must originate from Ghana.
Before the proposed law was withdrawn from Cabinet late last year, it drew furious reactions from foreigners operating in the services and retail industry which, they said, would hinder foreign investment.
Even though Cabinet is satisfied with the document, it is not yet clear whether certain amendments will be made with regard to the proposed capital investment for various sectors.
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