STABILITY YIELDS INVESTMENT DIVIDENTS (NOV 5, 2010)

THE globalised nature of world economy requires each country to make a conscious effort at wooing investments and Ghana is no exception.
This is quite critical, especially so when the world economy is yet to come out of the global recession, precisely its second wave, which is negatively impacting on some developed economies.
Figures from the World Trade Organisation reveal how investments, especially those of transnational firms, were shrinking in the face of global economic crises.
Interestingly, however, Ghana is recording some appreciation in investments into the country as reported by the Ghana Investment Promotion Centre (GIPC) statistics for the first nine months of this year.
The country’s oil find has obviously become attractive to the international and multi-national firms. Rightly so, because oil will continue to drive the world economy in the foreseeable future.
The growing investor confidence is the result of dividends from our democratic dispensation because rule of law and respect for human rights have become a major factor in investment decision.
This, therefore, calls for the need for the country to re-think its development priorities in relation to how we treat investors in the country.
For if the country aims at playing in the big league of development economics, then we need to play by the rules of the game.
Businesses have one major goal, and that is to create shareholder value, so that such value can be re-invested in the business for growth and expansion.
The Daily Graphic believes that this is the time the country could tighten its regulatory framework to deliver the very best for the country.
Issues related to taxes of expatriate staff, local content laws and human resource development aimed at creating the needed opportunity for every Ghanaian should be put in place.
Ghana cannot on its own develop without the support of those who have the capital and technology to assist us join the club of middle-income countries.
While we welcome investors, our strategy must be to look at the opportunities that exist for our people.
Our development priorities lie in huge investments in infrastructure, expansion in educational facilities, quality health care and above all improved living conditions for every Ghanaian.
Therefore, any investment must be geared towards these priority areas that have the potential to leapfrog our economy to the middle-income status.
The Daily Graphic welcomes the news of increased investments in the country from Nigeria and China, which promotes South-South co-operation and a sign that we may well be on course towards our drive to national development.
But again, we caution that since there is increased attention on us, we should not send the wrong signal that we are not ready for a major economic take-off.
That is why the regulatory framework governing all businesses needs to be carefully scrutinised and transparently discussed devoid of any political twist but purely for the common good.