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.

The workshop was held under the theme, "Promoting Transparency and Accountability in Ghana's Investment Regime: The Role of Journalists." Sections 27 and 28 of the GIPC Act, 2013 (Act 865) outline the scope of foreign participation in Ghana's business environment. 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. Benedict Doh, Head of Finance at TI Ghana, stressed the importance of the media in safeguarding transparency within Ghana's investment space, saying "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." Michael Otchere, Deputy Director of the GIPC, warned against the practice of fronting, describing it as illegal and harmful to Ghana's investment environment. He said, "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."

TI Ghana and the GIPC will continue to collaborate with the