The Ghana Association of Restructuring and Insolvency Advisors (GARIA) has cautioned of alarming consequences on Foreign Direct Investments (FDIs) to Ghana, if efforts are not intensified to develop the country’s insolvency regime.
GARIA argues that the current practice where businesses are compelled to shut down over huge debts, downgrades the country’s reputation in attracting investments.
“It is important for Ghana to have a good regime so that in addition to all our democratic dividends, goodwill and political dividends, we will be able to attract FDIs to the country. We do attract quite a few because we have been fortunate, we have oil, we have gold, and we have all manner of natural resources. But we need to dramatically improve and increase the level of FDIs coming to Ghana,” President of GARIA, Felix Addo asserted.
According to GARIA, the lack of effective legislations has led to an increase in unreported cases of insolvency which also affects the economy.
The latest World Bank’s ranking on ease of doing business has also placed Ghana at 114th position out of a total of 183 countries.
Mr. Addo added, “We can improve this if the ease of doing business in this country is enhanced.”
Meanwhile Felix Addo tells Citi Business News Ghana could avert such occurrences if stakeholders rally for laws on insolvency to be passed.
“That is what the business reforms activities seek to do and I’m hoping that when the new administration comes in place, it will be on top of their agenda.”
The comments of the restructuring and insolvency advisors precede a two day conference on the theme, “The Freedom to Fail; Insolvency for Micro Small and Medium Enterprises.”
Key speakers at the event include the Chief Justice, Georgina Woode and renowned Businessman, Ishmael Yamson.
This year’s edition which will be hosted in Ghana, is the 7thsince its inception.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana