The concern was raised at an emergency meeting by the association to react to a statement allegedly made by the Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mr Yofi Grant, at a press conference to the effect that his outfit would reduce the threshold to promote foreign businesses in the country.

Concerns

Speaking to the Daily Graphic after the meeting, the Chairman of the association, Mr Alfred Korlie Martey, who is the Managing Director of Freddies Corner, said such a reduction would create unhealthy competition between foreign and the local businesses which could affect the latter negatively.

Mr Martey said in China, for instance, the interest rate on loans was between 6 and 7 per cent while in Ghana it was between  30 and 35 per cent, “it, therefore, makes it difficult for Ghanaian businessmen to compete with the Chinese.”

He said the association would resist any attempt by the GIPC to review the threshold downward.

"We wonder why the GIPC has failed to implement the laws that prohibit foreigners from operating from the Central Business District of Accra and has not supported all efforts by Ghanaian traders to flush them out of the area," the chairman stated.

Mr Martey observed that some foreigners had now adopted a new strategy of displaying Ghanaian passports they had illegally acquired to prove their Ghanaian nationality when “they are approached by the association or law enforcement agencies.”

Amendment

Parliament on July 19, 2013 passed the amended Ghana Investment Promotion Centre (GIPC) Bill 2013, revising the country’s investment laws to reflect changing economic dynamics to guarantee optimum business opportunities and incentives for Ghanaian enterprises.

The Bill seeks to repeal the GIPC Act 1994 (Act 478) and position Ghana as the hub for business in West Africa.

The bill is to regulate investment policies to foster efficiency in attracting strategic foreign direct investments that would inure to the benefit of Ghana’s development drive and provide Ghanaians with opportunities to take advantage of the improved economic situation prevailing in the country to do business.

The current GIPC Act, 1994 (Act 478) has become archaic after almost 15 years of it promulgation, necessitating a review to reflect recent developments to provide a new policy direction for the country.

It also seeks to establish the Ghana Investment Promotion Centre as government agency responsible for the encouragement and promotion of investments.

The Bill rectifies the abuse of sectors reserved for Ghanaians by foreign investors, particularly the retail and trading sectors, increasing the minimum capital required of foreigners to engage in retail trade from US$300,000 to one million dollars in cash or goods.

The review ensures that Ghanaian entrepreneurs are not subjected to competition from unscrupulous foreign businesses that would make it unprofitable for them to operate.

The Bill reserves the sale of goods or provision of services in markets, petty trading, hawking or selling of goods in stalls to Ghanaians.

Foreigners cannot operate taxi or car hire services in an enterprise that has a fleet of not more that 25 vehicles.

They cannot operate beauty salons or barbers shops and are prohibited from printing recharge scratch cards for the use of subscribers of mobile telecommunications.