The Chief Executive Officer (CEO) of AgroCenta LLC Francis Obirikorang is calling for a review of the capital limit required for foreign investors to enter into joint ventures with Ghanaians.
Mr. Obirikorang maintained that some of the financial requirements deter investors who wish to invest in Ghana.
Speaking on the Citi Breakfast Show as part of the on-air series of the Citi Business Festival, Mr. Obirikorang stressed that there is the need to put in laws that will encourage start-ups to partner foreign investors.
He argued that pegging the joint venture capital limit at US$250,000 repels young foreign investors to other countries that are ready to embrace investments below the figure.
“If a foreign entity wants to invest in a Ghanaian entity, it must be about US$250,000 or more. Not every startup needs US$250,000; some need US$50,000 so if an investor put in US$50,000 his name cannot come on your table”.
Mr. Obirikorang stated that such investors turn to Mauritius and friendly investment nations that are ready to welcome such investors.
He added that government must also work at improving the tax regime to encourage young entrepreneurs in the start-up ecosystem to grow.
“It is not easy trying to start up a business in Ghana, I have to be very frank with you. There are a lot of issues when it comes to raising funds and the taxes. I always say that our taxes regime do not benefit startups because some of them are very old, and startups always find themselves in a lot issues with it”, he told host of the #CitiCBS, Benard Avle.
Calling for some recommendations, Mr. Obirikorang called for a flexible tax regime that will give some amount of allowances for start-ups to be stable in their gestation period.
