PROSPECTS AND CHALLENGES OF THE GHANA INVESTMENT PROMOTION CENTRE (GIPC) IN PROMOTING FOREIGN DIRECT INVESTMENT IN GHANA

Abstract

The purpose of the study was to examine the prospects and challenges of the Ghana Investment Promotion Centre (GIPC) in promoting foreign direct investment in Ghana. Descriptive survey research design was employed for this study. The populations of interest for this study are staff and management of GIPC. Convenience sampling method was adopted. The main instrument that was used to gather data was an open-ended questionnaire. The study found that the GIPC is mandated to formulate investment promotion policies and plans, promotional incentives and marketing strategies to attract foreign and local investments in advanced technology industries and skill-intensive services which enjoy good export market prospects; initiate and support measures that will enhance the investment climate in Ghana for both Ghanaian and non-Ghanaian enterprises. The study found inadequate infrastructure, inhospitable regulatory environments, macroeconomic instability, inadequate Employees, inadequate support from Investors and financial challenge as the major challenges facing GIPC in promoting FDI. Moreover, the study also found the following as the strategies that can be used to effectively to promote FDI in Ghana; providing financial support to GIPC, getting enough infrastructure to facilitate the activities of the Centre, appointment of qualified staff to occupy positions in the GIPC, employing more employees to help GIPC to effectively carry out its mandate, registration should be relatively easy and the entire process of establishing a business in Ghana should not be complex, provision of hospitable regulatory environments, ensuring macroeconomic stability, investment generation and facilitation and reducing minimum equity requirements