Vice President Paa Kwesi Bekoe Amissah-Arthur on Tuesday asked development partners operating in Ghana, to undertake more direct investments as the nation moves to attain middle income status.
He stressed that the country needed more direct investments than portfolio investments as it strives towards stronger indicators and vibrant economic growth.
Vice President Amissah-Arthur assured Ghanaians and the international community that despite last year being an election year in the country with more challenges, government was poised to improve on the gains made so far, to improve the living standards of the people.
The Vice President, an Economist and a former Governor of the Bank of Ghana, made the call when Trudy Kernighan, the Canadian High Commissioner in Accra, paid a courtesy call on him at the Flagstaff House in Accra.
Expressing appreciation at the call, the Vice President said for many years, Canadian assistance to Ghana has been exemplary, and recalled the close collaboration Ghana had with Canada through the Canadian International Development Agency.
Vice President Amissah-Arthur called for more social connections between Accra and Ottawa, for the mutual interest and benefit of peoples of Canada and Ghana.
He announced that President John Dramani Mahama would soon relocate to the Flagstaff House, stressing that the government needed stability to move on with the development agenda set for it.
Kernighan called for more collaboration and partnership between Canada and Ghana.
She said Canada, which was involved with development assistance in the area of water in the Northern part of Ghana, and would also engage is sanitation, mining, education and other people centered programmes.
Kernighan announced that the Canadian Minister for Trade would soon visit Ghana to explore more areas of bilateral and business relations.
Wikipedia defines portfolio investment as the entry of funds into a country where foreigners make purchases in the country’s stock and bond markets, sometimes for speculation.
It is a usually short term investment, sometimes less than a year, or with involvement in the management of the company.
It is also investment in securities that is intended for financial gain only and does not create a lasting interest in or effective management control over an enterprise.
This is includes investment in an assortment or range of securities, or other types of investment vehicles, to spread the risk of possible loss due to below expectations performance of one or a few of them.
Foreign Direct Investment involves partnership possibly through joint venture, involving transfer of technology and “know-how”.