28.09.2005 General News

German ambassador supports Govt

Listen to article

The German ambassador to Ghana, H. E. Peter Linder has supported the opinion of the government that a strong and competitive Ghanaian production and industry is the right answer to globalization and international competition. This is because foreign investment can be very helpful to reach an ambitious goal and can give its developments strong impetus towards promoting the introduction of new technologies or captalizing interesting joint ventures. He said a national economy without foriegn investments will only isolate itself in the time of worldwide exchange, interesting trade and worldwide production of national firms. In view of this, Germany, is trying to attract as much foreign investments as possible and to create agencies for this purpose not only on national level but also on the level of each of the German lander. His Excellency Linder was speaking at the lunching of the GGEA guide in Accraunder the theme"Doing Business with Ghana".

He disclosed that Ghanaian-Germen economic, business and trade relations have been steadily developing over the last ten years. More than 90 German-Ghanaian companies came to invest in the industrial trade and service sector with the total investment since 1994 being 13 million dollars in 114 projects. According to him, the legal framework of business relatons is given by the Bilateral agreemet on the encouragement and reciprocal protection of investments and will be based on the bliateral agreement on avoidance of double taxation and the prevention on fiscal evasion with respect to taxes on income, on capital and capital gains.He added that trade figures however declined in 2004 by about 10 percent, a development which is not yet a real warning but decidedly a sign to become more aware of the potential of Ghanaian-German trade and business opportunities in the partner country and to create best conditions for this exchange. The current figures show clearly that there is potention for further development for an increase in trade and for much more German investment in Ghana, H. E. Linder added. The German ambassador praised the government of Ghana for taking steps to improve the situation of foriegn investors considerably by the setting up of the Ghana Investment Promotion Centre and its one stop-shop-agency. He said Germany supports this project by a cooperation between the Ghana Investment Promotion Center,GIPC and the German Technical Cooperation dedication to create a more favourable climate for foriegn investment to Ghana. His Excellency Peter Linder was however not happy about insecurities with land acquization, legal question and the difficulties that investors at times go through in acquiring land. This he said is preventing most smaller and medium scale German investors who cannot afford the financial ease bigger companies dispose off when looking for lands for their investment purposes to set up businesses in the country. He appealed to the government to improve conditions to lure these more shy but very efficient enterpreneurs to Ghana since most smaller German firms are currently on the lookout for new investment opportunities worldwide.