Political Risk and Government Relations
- What actions should I take in order to maintain strong government relations?
- What is the level of political risk in Ghana?
- What can be done to mitigate the political and government relationship risk to my business?
- Who can help me mitigate my political risk help me develop strong government relations?
- Where can I go if I am exposed to serious government corruption?
- Concrete Actions
The first key principle is to obey all the laws and regulations set forth by the government and its agencies. Taxes and other fees required by the government should be paid on time.
- Assessing Political Risk
Ghana is viewed as one of the most politically stable counties in Sub-Sahara Africa. The Political Risk Insurance (PRI) Center shows Ghana with a B+ rating from Fitch and Standard & Poor's. Other risk factors are strong enough to make political risk insurance available.
- Mitigating Political and Government Risk
Insead offers some great strategies in striving to mitigate political risk:. They also give suggestions on what to do when a bribe is offered.
- Political Risk Insurance
Many firms will find political risk insurance to be a viable option that allows them to focus on core businesses while mitigating the political risk. Insurance Brokers, the IFC and MIGA are all resources for political risk insurance. Ghana’s political risk ratings are strong enough to make this insurance a viable option.
- Who can help?
Insurance brokers and agents can help with acquiring political risk insurance. By statute the Ghana Investment Promotion Center (GIPC) exists to support businesses in their government relationships and enable their financial success in Ghana. Business and investment advocacy groups, such as the Chambers of Commerce and trade associations, can assist in strengthening government relationships and provide a unified voice for the industry. Your country’s embassy may also be of value in marketing, consulting and promoting your country of origin. The Trade Union Commission, Labor Commission and various high commissions can also be of assistance with the government on certain issues. Many law firms also have strong political connections and can give guidance on government relations.
- Anti Corruption Resources
The nine member organizations that comprise the Ghana Anti-Corruption Coalition are making progress in the battle against corruption in Ghana. They form a valuable resource to prevent or address exposures to government corruption.