Foreign direct investments (FDIs) into Africa have plummeted by 42 percent compared to pre-COVID-19 levels, prompting experts to emphasise the growing importance of Joint Venture (JV) initiatives in reviving investments and driving economic growth.
Highlighting their potential, experts at the Canada-Ghana Chamber of Commerce (CANCHAM) CEOs Connect event in Accra stressed that JVs could unlock FDIs by fostering collaboration between local and international businesses, facilitating technology transfer, job creation and innovation.
Experts at the Canada-Ghana Chamber of Commerce (CANCHAM) CEOs Connect, held in Accra, highlighted that JVs offer unique opportunities for local businesses to collaborate with international partners, leveraging their expertise, technology and resources to create mutually beneficial economic prospects.
Regional Snr. Trade Commissioner-Canada High Commission, Andrew Maharaj, emphasised that JVs not only attract significant investments but also foster innovation, job creation, technology and skills transfer, ultimately enhancing the competitiveness of local industries.
He stressed that partnerships with Canadian firms will bring in environmental, social, and governance (ESG) investment principles and expertise, which are important for human capital development and value addition to natural resources in a sustainable way.
“Human capital is a key resource in the development of a country, and therefore enhancing the skills and technical know-how of the workforce – which is one of the features of JVs – would be instrumental to unlocking investments for economic growth,” he said.
Furthermore, he emphasized that business is not all about making money but building relationships and connecting with other regions for building synergy and transfer of resources for greater impact and transformation.
Chief Executive Officer-Ghana Investment Promotion Centre, Yofi Grant, on his part echoed that FDIs to Africa have dropped by 42 percent post COVID-19 because strategies for investment have changed, and it will take joint venture initiatives to attract more such funds.
“Ghana, with its strategic location as the centre of the earth, abundance natural resources, political stability and growing economy, presents a prime destination for foreign investors. Joint ventures can play a pivotal role in unlocking FDIs, driving economic growth and improving the overall standard of living for Ghanaians.
“Government is creating an enabling ecosystem for FDIs to thrive, with initiatives such as 1D1F, Free Zones policy and other tax-waivers coupled with a stable political environment,” he said.
President-CANCHAM, Linda Vasnani, shared that as Ghana continues to navigate complexities of the global economy, embracing JVs can be a game-changer in fostering strategic partnerships and attracting FDIs.
“We believe that by capitalising on JVs, the country can unlock its full potential, drive economic development and achieve sustainable growth through value addition; especially in the agriculture sector.
“Joint Ventures provide a unique opportunity for Canadian businesses to bring in FDIs. Ghana possesses about 40 percent of natural resources on the continent, has the human capital and a stable political environment. These underlying factors attract investors. And the important thing about JV is the transfer of knowledge, technologies and capital to upscale and add value to the raw materials,” she said.
She added that the youthful population of Ghana offers easy access to human capital while the stable political environment and vast raw materials means more opportunities for partnerships and collaborations, hence Canadian business are looking towards the country for opportunities.
“The agricultural sector for instance has a great opportunity, but because of low technology, farmers are not making enough. So, it is an area where we seek to drive more joint venture partnerships to bring in advanced technologies,” she added.
Minister for Foreign Affairs and Regional Integration, Shirley Ayorkor Botchway, in a speech read on her behalf reiterated that the flow of investment into Ghana has taken a nose-dive and it’s important to take advantage of initiatives such as CEOs Connect to access more investments going forward.
“There is so much resilience and entrepreneurial spirit in the private sector of Ghana, and we need more investments to support their initiatives to scale up and gain global recognition. The African diaspora in Canada is growing and we hope they will be at the forefront of driving investments from there to Ghana,” he said.
The CANCHAM CEOs Connect Breakfast Meeting that brought together experts from the private sector, regulatory institutions, diplomatic community and Canadian businesses underlined the potential for economic growth through the institution of joint ventures.
About 130 local and foreign companies participated in the event to explore the vast advantages that joint ventures provide.
