Businesses must strengthen corporate governance to attract investment – GIPA

The Chief Executive Officer of the Ghana Investment Promotion Authority (GIPA), Simon Madjie, has urged local businesses to strengthen corporate governance, improve financial transparency and formalise their operations to attract domestic and foreign investment.

He says the ability of businesses to attract capital depends largely on the trust they build with investors, the quality of their projects and measures to reduce investment risks.

Speaking at the Ghana Economic Forum organised by the Business and Financial Times (B&FT), he identified trust, bankable projects and de-risking as three critical factors needed to mobilise capital for businesses.

According to him, businesses cannot expect to attract investment without credible financial records and sound corporate governance structures.

“You simply can't attract capital when you don't have good financials. But we have to go back to the basics. How do we run a local business, and how come we are unable to attract capital?” he said.

Mr Madjie urged businesses to move beyond informal operational structures and adopt practices that make them more attractive to investors.

He also encouraged local businesses to embrace partnerships and collaboration, arguing that pooling resources could help them overcome capital constraints and expand their operations.

“When we work together, we can get the capital that we need. Your 10, it is my 10; when we put them together, that is close to 50 cedis,” he stated.

He further called for policies that promote technology transfer, build local capacity and encourage greater participation of Ghanaian businesses in investment activities.

Mr Madjie said reforms to Ghana's investment laws, including the Ghana Investment Promotion Authority Bill, which has now become law, were important for improving investor protection and reducing barriers to investment.

However, he stressed that regulatory reforms must be complemented by changes in how businesses operate and collaborate to help Ghana attract the capital needed to drive economic growth.