Ghana urged to rethink foreign investment strategy

Ghana’s approach to foreign direct investment (FDI) needs a significant overhaul, according to David Ofosu-Dorte, Founder and Senior Partner of AB & David Africa. Speaking at the 13th Ghana Economic Forum, Ofosu-Dorte emphasized the need for a balanced strategy that prioritizes domestic investment alongside FDI to achieve sustainable economic growth.

Ofosu-Dorte argued that domestic investment plays a critical role in creating a conducive environment for FDI, and that no country can truly develop if it neglects its domestic investors. He challenged the Ghana Investment Promotion Centre (GIPC) to provide data on the growth of foreign direct investors after they have domesticated, and to publish a report on the impact of FDI over the last 20 years.

Ofosu-Dorte’s comments were echoed by other speakers, including Abena Amoah, Managing Director of the Ghana Stock Exchange, who highlighted the crucial role of capital markets in driving national development. Amoah argued that a strong domestic investment base is essential for attracting foreign investors and sustaining economic growth.

Richard Kwame Frimpong, Advisory Board Chair of Financial Literacy Africa, also emphasized the need for a more integrated and coordinated approach to regulation and financial literacy. Frimpong pointed out that the current structure of the financial services sector across the continent is fragmented, with regulatory bodies operating in silos.

The speakers called for a shift in investment strategy, advocating for policies that support and protect domestic enterprises, and for the establishment of a national financial services authority to coordinate domestic savings and ensure they are efficiently utilized to support economic growth.