Ghana Investment Promotion Centre: An Exclusive Interview with Yofi Grant

Interview with Yofi Grant, CEO of GIPC (Ghana Investment Promotion Centre)

What are your main objectives this year?

This year holds a lot of excitement for us. Our target is to attract FDI of approximately 10 billion in certain areas. Our economy is in transition from one that has been previously based on resources which we export, such as gold, cocoa, timber, and recently oil and gas. This system does not enable us to participate in the higher value end of the value chain of these resources. For example, Ghana and Côte d’Ivoire control approximately 61 to 62% of the cocoa bean industry and production in the world. Yet, if you look at just the chocolate industry, the revenue we drive is only 5% of the global industry. That is not satisfactory. If our two countries produce the bulk of the cocoa, then we need to start adding value to the beans and exporting, which will get us to the higher end of the value chain. We are looking at processing and melting cocoa here, making sure that we are in the value chain and not just the production end. Once we do that, we will then derive more and higher value revenue for a product that already comes from here. We are aiming to do the same for almost all the resources that we have in the country, whether it is gold, bauxite, iron ore, timber, or oil and gas. That in itself means that we need to be more aggressive on the targets we are setting for investors. Secondly, there are significant reforms we need to implement so that we can offer an attractive investment climate. We are examining our investment laws to see how much more attractive we can make them, such that we can remove as much front load cost for investors and businesses coming to Ghana and then create a vibrant business environment that will enable them to operate. You can then apply the taxes evenly. The next step is the institutional reforms. GIPC as an institution itself needs to be properly set up. We need the right people and the right resources to enable us to execute this agenda. We cannot simply facilitate, attract, promote for investors. There also must be investment after care. Investment is not about just bringing the money, it is about the whole life of the investor and the investment. Investment is a relationship, not an event. It is having a great relationship with the investors so that they put their business here and it is sustainable over the long term. We want them to really plant here, live here, do their business here, and make money here. The fourth layer, which is critical for us, is getting the institution correctly structured to enable us to attract the investors and then to retain them. We need to promote Ghana, to create a great relationship where you give investors after care and data on what is happening, plant them in the policy framework of government so that even before the policies come out, you have a good interaction with them to let them know why you are doing what you are doing. Then, it becomes a mutual partnership between foreign direct investment, indigenous or domestic direct investment, and foreign and indigenous portfolio investment. That is a much more sustainable way of running the relationship than just throwing out the policies and expecting the private sector to respond. We want to actually engage them in the policy framework.

How will you split your time between lobbying to change the laws and attracting and retaining investors?

We have a Deputy Minister of Finance on our Board, which gives us a clear line of sight and a clear interaction between the Ministry of Finance. The Minister of Finance and I have a great relationship. He is my former business partner. We worked together for over 17 years and have been friends for close to 45 years. We have common thoughts and a shared line of action which is mutually beneficial. I am also on the advisory board for the Ministry of Foreign Affairs. We believe strongly that we are transitioning from political diplomacy to economic diplomacy. Therefore, what we do here and what the Ministry of Foreign Affairs and Regional Integration does are closely woven together. When we come up with policies, those policies are already tested with the two agencies. We also work with the Ministry of Trade and Industry on reforms for ease of doing business. Most of those reforms impinge on trade and industrial policy. We work hand in hand, we are on all their committees, and some of our members are on their Boards. It is a collaborative, integrated effort. When we say that GIPC should do this or that, it does not necessarily come just from me, but from broad consultations with all these parties.

In light of the competition from all the other countries, why should investors come here? What do you do to attract and retain them?

We are examining our investment laws to see how much more attractive we can make them, such that we can remove as much front load cost for investors and businesses coming to Ghana and then create a vibrant business environment that will enable them to operate.

Ghana is in a very interesting space and time. People often say they remember Ghana and Kwame Nkrumah because Ghana was the spearhead of African political liberation and emancipation. Those days are gone, and we have changed now into economic liberation and emancipation. Ghana once again wants to champion that on the continent. The previous 12 months have seen remarkable recovery of the economy in many ways. The debt to GDP dropped from 72% to 65%. The deficit dropped from 9% to 5%. Interest rates dropped from the upper 20% to the lower 10%, but we are looking to bring it even further down to single digits. We want to bring inflation down to single digits. Over the past year, we have had good currency stability as a result of improving our foreign reserves to more than four months of imports cover. We have done the background work. There are a few points that make Ghana particularly attractive. The first is that we are in the middle of the world and the middle of West Africa. Geographically, Ghana is the only country that is on the Greenwich Meridian, at longitude and latitude zero. Access to Ghana and the markets is competitive. There is also the fact that Ghana is now noted for political stability, which is very critical for any business. Investors want to see a politically stable place. We are seen and known as a peaceful democracy with a comparatively nice quality of life and lifestyle. People love to be in Ghana. The weather is good, it is warm all the time, people are very friendly, it is safe. That is what the ordinary man is looking for: a safe and happy place to live. The third point is that we have a government that is extremely responsible and responsive to ensuring that there is shared growth in the economy. All our policies are geared towards shared growth, whether between foreign and domestic capital, or domestic entrepreneurs and businesses. The simple man living in a corner of the country must be able to participate in the economy. Ghana is also a resource rich country. We want to leverage those resources for development and the mutual benefit of the investor and the consumer. Whether it is gold, timber, bauxite, iron ore, those are opportunities that we are going to use to leverage economic growth. We are a government that has been extremely responsible and is doing the right things. For example, in 2016, we had seen our GDP growth slump to its lowest in 22 years to 3.6%. Under strong fiscal consolidation and realignment of our responsibilities to our resources, we have seen that move to a growth rate of 7.9% in 2017. Under the World Bank projects in 2018, Ghana will lead the pack with a growth rate of 8.3% to 8.9%. That also establishes Ghana as the fastest growing country in the world. That alone is not enough. Ghana is a member of ECOWAS in West Africa, which makes us particularly attractive as a place to start your business, especially if you are looking at the West African market. Currently, with a population of about 370 million people, West Africa is a very attractive demographic because about 60% of that population is under the age of 35. This is a market just waiting to happen. By 2030, the population of West Africa will be 500 million people. The excitement about the region is that it is growing more than 5% on average, with Ghana leading the pack. Ghana, Côte d’Ivoire, even Nigeria are looking to grow and become major recipients of development in the sub region. Ghana is also very important politically because it is a stable, peaceful democracy. If Ghana succeeds, then the rest of the region stands a better chance of making it as well. Then, the economic development becomes infectious. Most people need jobs and a good life and if you can create an economy that facilitates and enhances the possibilities of job creation, then you will have a better chance of having a peaceful region.

Project yourself in two to three years’ time, what is your vision? What would you like to have achieved?

We are rebranding as an institution to be a major player on the government’s economic policy. We will probably be in a new office which will ensure that we have a better and more efficient way of relating to investors. Two to three years from today, we want to be that institution that every investor comes to first, whether it is looking for information or to do an investment. We will give a full value chain care from the first visit to the time you actualize your investment. We will hold your hand and walk with you to that end. We want to create a relationship. It is not just about attracting and facilitating investments, but also the investment after care that will cement the relationship that we should have with investors. You must build a relationship with the investor such that you can facilitate sustainability in their market. Most investors come in, and when conditions change, they leave. But if you are able to create a relationship where the investor and the market are a part of your policy generation, then you have a better chance of having them stay. You want them to stay so that you can create opportunities for mutual benefit and growth. We want a GIPC that is the door for all foreign, direct, and indigenous investment in this country. We want to also act as the clinic to the business sector so if there are any issues, we can pick them up and farm them out to the appropriate agencies to be properly resolved.

Look now from a world perspective, what message would you like to send?

There is a lot of political disruption going on in the world today. Brexit means the UK is looking more inward. There are trade wars in the US. I feel differently. The world now has another opportunity to better itself through engagement with partners from far and wide. People talk of the advent of globalization, but globalization has existed in the world as long as there has been business. People crossed boundaries hundreds of years ago to do business in other countries. People went to conquer countries. It was all because of economics: finding life and getting resources. That will still be maintained regardless of the fact that people want to become protectionist. There will instead be a more exciting engagement. The most important part of what we do here is how to incorporate the SDGs into our investment policy and shared growth. It is very important for the world going forward that the engagement is about shared growth and being able to spread wealth across people and to all people. That is the magic wand that will bring about peace and understanding globally. Whether it is our engagement with China, Japan, Nigeria, or Côte d’Ivoire, the end result is that it must bring about a mutually better life for people.

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