The Parliamentary Select Committee on Trade, Industry and Tourism has commended the Ghana Investment Promotion Authority (GIPA) for its efforts to attract quality investments into the country and pledged its support for reforms aimed at strengthening the investment climate.

The Committee said the reforms under the Ghana Investment Promotion Authority Act, 2023 (Act 1173), would help position Ghana as a competitive investment destination while promoting greater local participation in the economy.

It made the commitment when it paid a working visit to the GIPA office in Accra to gain a deeper understanding of the Authority’s operations, legal reforms, challenges and strategic direction.

The Chief Executive Officer of GIPA, Mr Simon Madjie, briefed the Committee on Friday on the Authority’s mandate and reforms introduced under Act 1173.

He said the law had expanded GIPA’s role to promote investment in Ghana, support investment across the regions and facilitate Ghanaian investments abroad, particularly within the ECOWAS region and under the African Continental Free Trade Area (AfCFTA).

Mr Madjie said the law had removed the blanket minimum capital requirements of US$200,000 for joint ventures and US$500,000 for wholly foreign-owned enterprises, except in the trading sector.

He explained that the removal of the blanket requirement did not mean foreign investors could enter the country without adequate capital, but rather allowed capital requirements to be assessed according to the specific sectors in which investors operated.

“The absence of a blanket minimum capital requirement does not mean investors can enter with no capital. It simply means we will assess capital adequacy by sector,” he said.

Mr Madjie said local content requirements, sector-specific regulations and activities reserved for Ghanaians would provide safeguards for local businesses while allowing the country to attract competitive investments.

He said the reforms also aligned Ghana’s investment framework with the AfCFTA Protocol on Investment and would enhance the country’s competitiveness.

On investment performance, Mr Madjie said GIPA had registered more than 7,160 investment projects since 1994, with cumulative foreign direct investment exceeding US$62 billion.

He said the Authority was also expanding investment promotion across the regions through roadshows, investment opportunity mapping and documentaries showcasing opportunities in various parts of the country.

He added that GIPA was improving its regional offices to enable it to support investors closer to their project locations.

Mr Madjie appealed to the Committee to support the operationalisation of the citizenship-by-investment provisions under Act 1173, in collaboration with the Ministry of the Interior, to attract high-net-worth investors.

The Committee Chairman, Mr Alexander Hottordze Roosevelt, acknowledged GIPA’s strategic role in Ghana’s economic transformation and stressed the need to adequately resource the Authority to enable it to discharge its expanded responsibilities.

He pledged the Committee’s support for constructive engagement to address the challenges raised and strengthen GIPA’s capacity to facilitate investments.

Members of the Committee also commended GIPA for promoting Ghana’s investment opportunities locally and internationally.