As he encouraged Japanese companies to take advantage of fresh investment opportunities in Ghana, President John Mahama announced that the Ghanaian cedi is the currency that has performed the best globally this year.
He said that Ghana had increased investor trust and restored macroeconomic stability while speaking at the Ghana Presidential Investment Forum on the fringes of the 9th Tokyo International Conference on African Development (TICAD IX) on Wednesday.
“For those of you who know the history of the Ghanaian cedi, it’s been one of the most volatile currencies in Africa, and a few years back, we were said to be the worst-performing currency.
“I’m happy to announce that this year, the Ghana cedi has been the best-performing currency in the world,” the President stated.
As definite indicators of Ghana’s turnaround, he cited recent sovereign credit upgrades, declining inflation, and extensive measures meant to reduce the cost of doing business.
“Inflation rose to a high of almost 23% in 2024 and it’s currently down to 13.7% and we expect that by the end of the year to hit single digit.
“And as Simon said, we’ve been upgraded from junk status to B minus with a stable outlook, and I’m certain that in the next review, we’re going to be upgraded again,” he added.
As the host of the African Continental Free Trade Area (AfCFTA), Mahama emphasised Ghana’s status as a democratic, stable, and business-friendly hub in West Africa.
“So far, almost 50 African countries have signed agreements that allow us to export duty-free, tariff-free into each other’s markets. And once you register your product and it meets all the standards, you can export duty-free and tariff-free into each other’s markets,” he clarified.
He went on to say that Japanese investors might reach 1.4 billion people on the continent.
The Ghana Investment Promotion Centre Act was one of the recent amendments that the president emphasised as a means of attracting greater international investment.
“Some barriers were put to foreign investment. You had to prove that you had brought in a certain amount of money to be classified as a foreign investor. In the reviewed Ghana Investment Promotion Centre Act, we are removing those minimal capital investments.
“This will enable any investor, however little money you have, $100,000 or $50,000, to be able to come in and set up a business in Ghana,” he emphasised.
Opportunities in important industries like manufacturing, agribusiness, energy, and car assembly were also highlighted by Mahama.
“Japan has a comparative advantage when it comes to automobile manufacturing. Using the opportunity to be able to export into not only our sub-region, but also into Africa, Ghana becomes a good place for the local assembly of automotive products.
“Already, we have Japanese companies that are based in Ghana and assembling for the local market and also for exporting to the sub-region,” he stated.
He presented proposals for the Volta Economic Corridor, which would provide industrial parks for agro-processing and irrigate large areas of land using the Volta Lake.
“We have millions of hectares of land that border that huge lake, and the water can be used to bring about 2 million hectares of land under irrigation.
“But also, we intend to establish industrial parks, so that we can process agricultural products. We can invest in textile manufacture for export into the EU markets, into the American market and other places,” he mentioned.
Mahama also mentioned Ghana’s port facilities, expanding digital economy, and energy potential as extra inducements for Japanese companies.
“We also have an important area, which is the digital economy and skills. Ghana has a very young population, English-speaking, and they’re very smart, and quick to upskill in any areas, robotics, AI, fintechs. The FinTech sector is one of the fastest growing in Ghana than in any other African country.”
“Africa is the next frontier for investment. Most parts of the world are saturated when it comes to investment. Africa is opening up, growing, and is a place that Japan should be looking at.
“And so let us marry Japanese position with Ghanaian potential and create a win-win situation for ourselves,” Mahama concluded, with a clear plea for closer ties between Ghana and Japan.
