Business News of Monday, 26 March 2018
Ghana Investment Promotion Centre (GIPC) has said it is confident of meeting its 2018 target of registering foreign direct inflows to the tune of $10 billion.
The amount, when achieved would represent 100 percent more than last year’s target of $5 billion by the centre.
Out of the $5 billion targeted last year the centre pooled $4.91 billion representing almost 100 percent of the target.
But GIPC’s CEO, Yofi Grant, addressing the media at the 1st quarter edition of the ‘Ghana On the Go’ CEOs Breakfast Meeting for 2018, on the theme, “Technology Transfer Regime in Ghana: The public and private centre convergence,” said investor confidence in the economy is still very high.
“We have met many of those investors who say we need reforms – most of which have begun, the digital addressing system, paperless port project to boost trade, and paperless business registration and still counting. These reforms, we will ensure are done to make Ghana a better place to do business,” he said.
He explained that technology transfer regime, is usually an agreement, backed by law with GIPC as the regulator and is a relationship between an indigenous company and its parent company abroad or external company, where there is a provision of some service from the external company to its local subsidiary in Ghana.
“So at the GIPC, there is the expectation that such services and agreements between the two companies must be registered and paid for, according to GIPC’s technology transfer regulation, 1992 (L.I 1547)” he said.
Mr. Grant however explained that many companies do not comply with such regulations, making the country lose out on monies which are supposed to be paid to the GIPC.
“A check from the GRA indicates a certain ‘big’ company in Ghana, with a powerful external partner has been making losses for the past six years yet they are still in business. Because they get compensated in many other different ways, etc.” he disclosed.
GIPC’s Head of Legal, Mrs. Naa Lamle Orleans-Lindsay, indicated, “It is important to ensure that the regulation is understood and what it is purported to do. The importance is that, many local companies contract these services with their foreign partners, and are charged for services rendered to them by their partners.”
She maintained that such charges are sometimes so high that there must be a supervisor to check what the local company is paying for.
“That can only happen when such contracts and agreements are registered with the GIPC because in there is also the issue of transfer pricing,” she added.