Government pushes local firms into foreign markets as competition intensifies – GIPA CEO

The government is seeking to help Ghanaian businesses expand into foreign markets as competition within the African Continental Free Trade Area intensifies.

The Chief Executive Officer of the Ghana Investment Promotion Authority (GIPA), Simon Madjie, says supporting outward investment is now part of the authority’s mandate under its new law.

Speaking on JoyNews’ PM Express Business Edition, he said the objective was to help successful local firms invest abroad, expand their operations and bring profits home.

“So outside of Ghana now, the objective is also to help some of these Ghanaian businesses that are doing well to go, sorry, to other African countries or the rest of the world to invest their money,” he said.

Mr Madjie warned that Ghanaian businesses risked being squeezed by competition if they failed to look beyond the domestic market.

“Otherwise, within the AFCFTA zone, you are going to be crowded.”

He said the approach broadened GIPA’s work beyond attracting investment into Ghana. The authority would also support investment within the country and the expansion of Ghanaian businesses overseas.

Madjie argued that government support for domestic firms was not new. He cited local content regulations, Ghana Exim, and agencies that provide capital to businesses as interventions intended to build stronger local enterprises.

“It's to build giants who can produce and export.”

However, he cautioned against measuring business development solely by access to government contracts. He questioned whether such dependence could sustain firms when those contracts ended.

Instead, he stressed the importance of understanding and developing value chains. He cited Kasapreko as an example of a Ghanaian business that had grown through that approach.

Beyond foreign expansion, Madjie said GIPA was working to expose local investors to opportunities within Ghana.

The authority is mapping investment opportunities across districts and regions. It is also organising regional investment roadshows to connect businesses with those opportunities.

“We are encouraging Ghanaian businesses to come along to the regions to see the opportunities that are in those regions, as well, so they can also take advantage of them.”

He said strengthening domestic investors remained essential to the government’s economic ambitions.

“No government will succeed by diminishing the influence of its local businesses or domestic investors. No government.”