The Resident Representative of the United Nations Development Programme (UNDP) Ghana, Niloy Banerjee, has underscored the urgent need to create an enabling environment for businesses to thrive in order to attract sustainable investment to strengthen the local economy.
He indicated that complex regulations, high lending costs and lack of equal opportunities continued to discourage investors from setting up businesses in Ghana and across Africa.
“If I want to set up a factory, I shouldn’t need 45 different permits from different agencies. The ease of doing business should be simple to encourage a lot of people to venture into business,” he stressed.
Mr Banerjee was speaking at the opening of a two-day Private Sector Investment Forum and Capacity Building Workshop in Tamale on the theme: “Accelerating Local Development, Leveraging Private Sector Investment and Partnership.”
Event
The event which was organised by the UNDP as part of its Peace-building Fund Project seeks to unlock the investment potential of northern Ghana and promote inclusive economic growth through strategic partnerships between local governments and the private sector.
It brought together key actors from private enterprises, civil society organisations and development partners to strengthen partnerships between local governments and private sector actors, promote women and youth participation in local economic development and enhance private sector readiness to leverage opportunities under the African Continental Free Trade Area (AfCFTA).
Conducive environment
Mr Banerjee observed that African investors continued to face prohibitive borrowing rates compared to other parts of the world, stating “when Ghana borrows in the capital market, the interest rate is 13 per cent, but when Germany or Switzerland borrow, it’s just three per cent”.
He maintained that ensuring a level playing field governed by clear rules and the rule of law was vital to attract more investors which would help expand the local economy and create jobs for the teeming unemployed youth.
The Director-General of the National Development Planning Commission (NDPC), Dr Audrey Smock Amoah, also called for deliberate efforts to expand economic opportunities beyond Ghana’s major cities.
She said regions such as the Upper East, Upper West and North East held vast untapped potential in agriculture, artisanal industries, renewable energy and human capital, especially among the youth and women.
“The gap between potential and prosperity is not a lack of vision but a lack of investment, coordination and forward-thinking local leadership,” she said.
She pointed out that basket weaving, shea processing, dry season farming, livestock production and eco-tourism were very viable economic opportunities that were not fully explored.
Dr Amoah pledged the NDPC’s commitment to provide the policy framework, coordination, technical support and capacity development needed to translate local development plans into national progress.
She added: “we must work together across mandates and regions to transform the potentials into prosperity and build a Ghana where no district is left behind, she added.”
Attracting investors
The North East Regional Development Planning Officer, Samson Slessor Agbeve, stressed the Regional Coordinating Council’s commitment to making the region more attractive for private investors.
“Our Assemblies depend heavily on revenue generation from the private sector, so it is critical to provide an environment where businesses can thrive,” he said.
Writer’s email:mohammed.fugu@graphic.