TI Ghana, GIPC intensify media campaign against fronting in business sector
Transparency International Ghana and Ghana Investment Promotion Centre have intensified efforts to combat fronting in Ghana’s business sector through a capacity-building workshop for journalists in the Ashanti Region.
The workshop, held in Kumasi, sought to strengthen collaboration with the media in tackling the growing practice where foreign investors allegedly use Ghanaian proxies to circumvent business ownership regulations.
The training equipped participants with knowledge of the relevant legal frameworks and investigative techniques needed to uncover and report cases of fronting and other violations within Ghana’s investment regime.
Held under the theme, “Promoting Transparency and Accountability in Ghana’s Investment Regime: The Role of Journalists,” the workshop highlighted the critical role of the media in promoting accountability through accurate and informed reporting.
Sections 27 and 28 of the GIPC Act, 2013 (Act 865) outline the scope of foreign participation in Ghana’s business environment, including enterprises reserved exclusively for Ghanaians and the conditions under which foreign nationals may invest.
According to the GIPC, some Ghanaian nationals are increasingly being used as fronts by foreign investors seeking to bypass restrictions on certain categories of businesses reserved for citizens.
Addressing participants, the Head of Finance at TI Ghana, Benedict Doh, stressed the importance of the media in safeguarding transparency within Ghana’s investment space.
“Accurate and informed reporting is critical to protecting Ghana’s investment space. When journalists understand the laws and mechanics of fronting, they can expose violations that undermine local participation and fair competition,” he said.
Mr Doh noted that improved public awareness could help strengthen investor confidence and attract responsible investment into the country.
“A review of several studies revealed that there is low public knowledge of how the government is trying to attract investors to the country. That is why we organised this event, where participants were taken through the relevant provisions of the GIPC Act so they can also go and educate the public,” he added.
Speaking at the workshop, Deputy Director of the GIPC, Michael Otchere, warned against the practice of fronting, describing it as illegal and harmful to Ghana’s investment environment.
“We have observed that some Ghanaians front for foreign businesses, where a company is owned and controlled overseas but appears on paper to be Ghanaian-owned. This constitutes an offence. I wish to caution Ghanaians involved in such practices to desist, as any offenders caught will be handed over to the appropriate authorities to face the full rigours of the law,” he stressed.
Mr Otchere also expressed concern over businesses operating without complying fully with the provisions of the GIPC Act.
“Another challenge we are facing is that many businesses do not want to comply; they hide and continue operating outside the law. We therefore urge you, as journalists, to collaborate with us to identify them and ensure they are dealt with in accordance with the law.”
He explained that the GIPC is mandated to promote and facilitate both foreign and domestic investment while identifying sectors that present opportunities for local and international investors.
The workshop forms part of broader efforts to strengthen compliance within Ghana’s investment sector and ensure that foreign investment contributes meaningfully to technology transfer, job creation, and local enterprise development.
Both TI Ghana and the GIPC say they will continue to collaborate with the media to monitor and expose illicit business practices in the country’s investment landscape.
المصدر: MyJoyOnline (GH)