GIPC reports significant increase in business registrations and tech sector growth
The Ghana Investment Promotion Centre (GIPC) has announced a 15% increase in new business registrations over the past year, a result of its proactive engagements with both foreign and local businesses. At the recent launch of the third quarter Ghana Club 100 CEO Breakfast Meeting and the 21st edition of the Ghana Club 100 Awards in Accra, GIPC Chief Executive Officer Yofi Grant emphasized the Centre’s initiatives in promoting digital infrastructure and innovation, leading to a 12% growth in the tech sector.
The GIPC has reiterated its commitment to enhancing Ghana’s attractiveness as a business destination by fostering partnerships between indigenous businesses and foreign direct investors. This commitment has been recognized, with Ghana ranking as the most appealing destination for investment in Africa, according to Deloitte’s 2022 Africa Investment Attractiveness Index.
To strengthen its engagement with businesses, the GIPC has implemented various measures across its monitoring and evaluation, aftercare, business development, and diaspora divisions, along with its flagship events and programs. These include regional sensitization tours aimed at helping businesses capitalize on new investment opportunities in the regions.
The GIPC also addressed challenges such as currency depreciation and high tax burdens, which have been partly mitigated in the 2024 Mid-Year Budget Review. According to the World Bank’s 8th Economic Update for Ghana, maintaining reform momentum is crucial for sustaining economic recovery. Despite the pace of exchange rate depreciation, Ghana’s economic indicators are improving due to efforts to restore fiscal and debt sustainability, reduce inflation, and strengthen financial stability.
In terms of taxation, the government has not introduced new taxes in the Mid-Year Budget Review, which is a positive development for businesses and individuals concerned about high tax burdens. The GIPC emphasized that thriving businesses are essential for tax revenue collection.
The World Bank report suggests re-establishing fiscal rules, enhancing public financial management, and accelerating revenue mobilization for long-term growth. The GIPC underscored the importance of stimulating consumption to grow the economy, a responsibility shared by both the government and the private sector. Increased investment leads to the creation of more businesses, higher employment, and greater tax revenue.
The Ghana Club 100 Awards, themed “Partnership for Prosperity,” celebrate the top-performing companies in Ghana’s economy. These companies have shown excellence in their respective fields and have significantly contributed to the country’s growth and development. The resilience and determination of the Ghanaian business community are acknowledged for their crucial role in driving economic growth.
Notably, there has been a surge in Ghanaian investments registering at the GIPC, amounting to $3.5 billion USD in 2023. This reflects a growing confidence among Ghanaian investors in reinvesting in the economy.
Despite global challenges, the Ghanaian economy has shown remarkable resilience. The 2024 macroeconomic framework has been revised, with an overall real GDP growth rate increasing from 2.8% to 3.1% and the non-oil real GDP growth rate rising from 2.1% to 2.8%. These positive indicators highlight a focus on economic growth despite prevailing challenges.
As the GIPC continues to facilitate partnerships and create an enabling environment for businesses, it remains optimistic about Ghana’s economic future.
