FDI success depends on local content participation – PwC
Mr. Vish Ashiagbor, Country Senior Partner, Price WaterhouseCoopers Ghana (PwCG), says the success of Foreign Direct Investments (FDI) depends on the inclusion of local content in the production processes of foreign owned businesses.
He said because the activities of foreign-owned businesses affected host communities, it was prudent that they created mutually beneficial partnerships with indigenous businesses.
Mr. Ashiagbor was speaking at the Ghana Investment Promotion Centre (GIPC) CEO’s breakfast meeting in Accra.
He urged foreign investors to integrate local content into their production by adopting local technology, promote skills and knowledge transfer, create employment, and adopt environmentally sustainable practices.
“The investors need to explore the host community to facilitate modern technological transfer, such as efficient production techniques and financing tools to lead advancement of technology in the host community.”
Concerning the Oil and Gas sector, Mr. Herbert Krapa, Deputy Minister of Energy, said the Ministry was keen on enforcing local content law in the petroleum sector to the benefit of indigenous businesses.
“What the government has done over time is to use laws and policies to ensure that Ghanaians participate in the oil and gas sector because the sector is very capital intensive so, we are deliberate on Ghanaian businesses participating in the value chain,” he said.
He noted that the passage and enforcement of the Local Content Participation Act had resulted in a major increase in the inclusion of Ghanaians in businesses owned by foreigners in the oil and gas sector.
Dr. Humphrey Ayim-Darke, President of the Association of Ghanaian Industries (AGI), said Ghana’s Foreign Direct Investment promotion must be sector-specific.
He said it was important for the government to select the industry with the greatest commercial potential and target its FDI promotion efforts toward that area.
Mr. Yofi Grant, Chief Executive Officer of the GIPC, said Africa must focus on attracting environmentally sustainable investments because the continent was heavily affected by the impact of climate change.
Source: GNA