Finance and Economics Professor, Godfred Bokpin, has urged government to exercise caution in its plans to scrap the minimum capital requirement for foreign investors.
Speaking to Joy Business at Prudential Bank’s special customer seminar on the appreciation of the cedi, Professor Bokpin said while the proposal may boost foreign investment inflows, it could also expose local enterprises especially small and medium-scale businesses to unfair competition.
He explained that the minimum capital requirement under the Ghana Investment Promotion Centre (GIPC) Act acts as a safeguard for indigenous businesses, particularly in sensitive sectors such as retail.
“Removing this threshold without adequate protective measures could allow foreign players to dominate areas reserved for local entrepreneurs. This would weaken the capacity of Ghanaian businesses to grow and create sustainable jobs,” he cautioned.
Professor Bokpin further stressed the need for a balanced approach that attracts foreign investment while also protecting the competitiveness of local industries.
According to him, failure to manage the process carefully could expose the SME sector to intense competition from foreign players, weakening their growth prospects.
“It has a potential to affect our small business so we need to find ways to manage it well”, he added.
The seminar, organised by Prudential Bank, brought together policymakers, industry players, and business leaders to deliberate on strategies for sustaining the recent appreciation of the cedi and ensuring long-term economic stability.
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Source: myjoyonline.com
