Ghana: We can’t stop foreign companies from repatriating profits – GIPC

The Ghana Investment Promotion Center (GIPC) has rejected calls to prevent foreign businesses from repatriating all their funds in foreign currencies out of the country, after making profits.

Proponents of the suggestion have argued that such a move will prevent the cedi from falling rapidly in value against foreign currencies, particularly the dollar.

But reacting to the issue on the sidelines of “The Money Summit”, Chief Executive of the GIPC, Yofi Grant warned that such a policy could be counterproductive and deter investors from coming to Ghana.

Mr. Grant argued that investors are very sensitive to rigid economic environment; hence any move to control their finances could compel them to look elsewhere to invest.

“If you invest in for example in Togo, and the Togolese government holds your money and says you can’t take it outside, how will you feel? Will you even go there to invest in the first place?” he asked.

Proffering some solutions to the cedi depreciation, Mr. Grant advocated a system that will build confidence in the Ghanaian to invest in Ghana and expand their operations across the continent.

“This is why the Akufo-Addo government has brought brilliant initiatives like the Planting for Food and Jobs, One District, One Factory project ; among others to grow local investors and businesses here in Ghana” he said.

He is optimistic such government policies will yield positive results in the future, encouraging young people to venture into agriculture.

“In the past we have been importing everything. High import is the main reason for the cedi depreciation. But with time, if we continue with these initiatives we are going to produce what we consume and the currency will be stable” , he stressed.

Source: JoyNews