GIPC National Task Force to monitor foreign investor/tradernactivities

GIPC National Task Force to monitor foreign investor/trader activities
Masahudu Ankiilu Kunateh, Ghanadot

The Ghana Investment Promotion Centre (GIPC) has persistently received complains from some sectors of the Ghanaian business community, especially, the Ghana Union of Traders’ Association (GUTA) that some foreign investors/traders operating in the country are flouting the country’s investment laws.

According to these local business sectors, some foreign investors/traders either do not register their investment at the GIPC as required under the GIPC Act 1994 (Act 478) before commencing operations or register under the Act but do not comply with the provisions stipulated in the Act for their registration.

And they claimed that some foreign traders evade the payment of taxes and also abuse the country’s employment regulations.

To check out and curtail these nefarious business activities by the foreign investors/traders in Ghana, a 12-member National Task Force has been inaugurated by the GIPC.

The task force, which is made up of representatives from the Customs, Excise and Preventive Service (CEPS), Ghana Immigration Service (GIS), Social Security and National Insurance Trust (SSNIT), Internal Revenue Service (IRS), VAT Service, Ghana Union of Traders Association (GUTA), the Ministry of Trade and Industry, the Registrar General’s Department and GIPC.

The task force will be in-charged for the Greater Accra and will ensure that the country’s investment regulations are religiously respected and complied with by all foreign investors.

Inaugurating the 12-member task force under the chairmanship of Mr. Pius K. Addae, a Director at GIPC in Accra, the Chief Executive Officer (CEO) of the Ghana Investment Promotion Centre, Mr. George Aboagye announced that another task force for the Northern sector of the country would be set up in the course of the week in Kumasi.

He further announced that the GIPC would provide two vehicles and other logistics to the task force to enable it carry its duties effectively.

Indeed, the GIPC Act 1994, (Act 478) mandates the centre to encourage and promote investments in the Ghanaian economy, coordinate and monitor all investment activities including building and construction, trading, agriculture, services and manufacturing.

Under section 18 (1) of the Act 478, the sale of anything whatsoever in the market, pretty trading, hawking or selling from a kiosk at any place is a wholly reserved activity for Ghanaians.

In spite of this clause, the GIPC Act does not bar non-Ghanaians from operating in the trading sector (whether wholesaling or retailing), provided they make an initial equity capital investment of at least $300,000 in either cash or goods.

Additionally, a foreign-oriented enterprise so permitted to operate in the trading sector has to employ a minimum of ten Ghanaians.

“The Act is being revised to take cognizance of the current economic and investment. The draft Act seeks to empower Ghanaians to take more active and prominent roles in our economy”, Mr. Aboagye revealed.

In this vein a distinctive feature of the draft Act is the expansion of activities reserved for Ghanaians or majority owned Ghanaian companies. Also, the draft law proposes clearer and stricter definitions of concepts such as market to forestall ambiguities in their interpretation and application.

This, the GIPC believes that the passage of the proposed legislation will go a long way in satisfying some of the major concerns raised by GUTA and Ghanaian businesses in general.

Ghanadot