GHANA IS READY FOR INVESTMENTS The Role of Ghana Investment Promotion Centre Presentation by David L

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GHANA IS READY FOR INVESTMENTS The Role of Ghana
Investment Promotion Centre Presentation by
David Laryea
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GHANA INVESTMENT PROMOTION CENTRE (GIPC) MANDATE

• The Ghana Investment Promotion Centre (GIPC) is a
  government agency, re-established under the Ghana
  Investment Promotion Centre Act, 1994 (Act 478)
  
• To encourage, promote and facilitate investments
  in all sectors of the economy except mining,
  petroleum, free zones activies, privatization of
  Government enterprises and Portfolio Investments.
  The latter are handled by the following
• Ministry of Energy - Petroleum
• Ministry of Mines and Minerals Commission
  Minerals and Mining
  
• Ghana Free Zones Board Free Zones Activities
• Divestiture Implementation Committee
  Privatization
  
• Tha Ghana Stock Exchange Portfolio Investment

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GHANA INVESTMENT PROMOTION CENTRE FUNCTIONS

• The GIPC is committed to providing unmatched
  professional service and support to both Local
  and Foreign investors by -
  
• Identifying Investment opportunities and projects
  in the country
  
• Providing investment advice
• Providing investors with information on specific
  investment opportunities in Ghana
  
• Assisting Investor in joint venture searches and
  in searching for funding
  
• Reviewing and making policy recommendations to
  Government about investment
  
• Organizing visits and meetings between potential
  investors and relevant economic operators in the
  country
  
• Promoting forwards and backwards linkages between
  foreign affiliates and local SMEs
  

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INVESTMENT CLIMATE

• Foreign Investors are welcome
• 100 foreign ownership of enterprises
• Joint ventures
• Other collaborative arrangements ( Agency,
  Representative/Liaison Office)
  
•  Private Investments Registered by GIPC
• (January 2001 March 2005)
• Total number of projects 695
• Estimated capital outlay
  US488.53million
  
• Foreign component US398.62
• Local Component US89.91
• 100 Foreign-owned projects 280
• Joint foreign-Ghanaian projects415

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REGISTERED PRIVATE INVESTMENTS IN GHANA (JAN
2001-MARCH 2005)

•  
• ICT SECTOR PROJECTS (1994-2005) 89
• 100 FOREIGN 32
• JOINT VENTURES 57

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ICT SECTOR INVESTMENTS REGISTERED

• Provision of Telecommunication Services
• Internet Service Providers
• Assembling of Personal Computers
• Software Development
• IT Consultancy Services
• Sales and Servicing of Hardware
• IT Training Centres

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INVESTMENT REGULATIONS AND PROCEDURES

• Liberalised and Transparent Invesment Act  
• Minimum Foreign Equity 
• Joint venture (US10,000)
• 100 foreign-owned (US50,000)
• Trading (US300,000 10 Ghanaian employees)
•  Streamlined Investment Procedures 
• No approval prior to establishment
• Company registration (Registrar Generals Dept. -
  5 days)
  
• Investment registration (GIPC 5 days)
• Telecom Operating License (National
  Communications Authority less than 14)

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INVESTMENT INCENTIVES

• Corporate Tax
• 8 on export income for non-traditional exports
• 25 for hotels and 28 for non listed companies
• 28 for listed companies on the Ghana Stock
  Exchange
  
• 25 for newly listed companies(first 3 years)

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TAX HOLIDAYS

• Free Zone Enterprises 10 years and 8
  thereafter
  
• 5 - 10 years tax holiday for Other Sectors

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OTHER INCENTIVES

• 100 customs duty exemption on plant, machinery
  and equipment
  
• Generous capital allowances on plant machinery
  and buildings
  
• Automatic Immigrant Quota for expatriate
  personnel tied to level of investments

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INVESTMENT GUARANTEES

• Guarantee against Expropriation of Investment
  under Act 478. This is also enshrined in the
  Constitution of Ghana
  
• 100 transfer of profits, dividends, fees etc
  under Act 478
  
• Bilateral Investment Promotion and Protection
  Agreements including UK, Italy, Netherlands,
  Denmark
  
• Signatory to MIGA Convention against Non
  Commercial Risk
  
• Dispute Settlement Guarantees
• International Chamber of Commerce
• International Centre for Settlement of Int.
  Disputes
  
• Alternative Disputes Resolution Mechanisms
• Ghana Arbitration Centre
• Forum for Mediation and Conciliation(AMCHAM)
• Double Taxation Agreements with UK and France.
  Belgium, Italy, Germany and Yugoslavia are
  concluded yet to be signed and ratified
  

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INVESTMENT FACILITATION

• Onestop-shop Established Investor Services
  Centre to reduce set up time for investors
  
• In-house Registrar Generals Dept.,Customs,
  Immigration, Land bank
  
• Others linked electronically
• Bank of Ghana,
• National Communications Authority

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INVESTMENT FACILITATION

• Hand holding concept- investor is assigned to an
  officer at the GIPC who will assist him implement
  project and provide after care services
  
• Liaison services GIPC liaises with other
  implementing agencies on behalf of investors to
  minimise red tape
  
• Partner search - GIPC has list of joint venture
  projects.
  

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WHY LOCATE IN GHANA?

• Political stability multiparty democracy since
  1993 
  
• macro-economic stability 
• Increased revenue
• Reduced inflation
• Reduced interest rate
• Reduced Corporate Income Tax
• Stable exchange rate
• Reduced government borrowing

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CREATION OF VIABLE SUSTAINABLE BUSINESS
ENVIRONMENT

• Creation of Ministry for Private Sector
  Development
  
• Creation of Investors Advisory Council
• Establishment of a functional one-stop investment
  services centre
  
• Presidents declared vision to usher Ghana into
  The Golden Age of Business.
  
• Establishment of Commercial Courts for speedy
  adjudication of cases to protect investments
  

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VIBRANT ICT INFRASTRUCTURE

• Telecommunications
• International - SAT3 /VSAT
• Intercity - Fibre Optic /Copper Cables
• National - Voltacom Fibre Optic Network
• Reliable Hydro Electricity Supply
• Availability of Office Space
• Private Sector Initiatives ie Silver Star Tower
• Development of Technology Parks underway
• Availability of Skilled, Trainable and stable
  Workforce
  

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EXISTING TELECOMMUNATION SERVICE PROVIDERS

• 
  No Aut No. Ope
  
• National Fixed Network Operators 3 2
• Natonal Mobile Cellular Network 4 4
• Internet Data Service Providers 151
  27
  
• VSAT Data Operators
  162 57
  
• Public/Corporate Data Operators 83
  25
  
• Paging Services Providers 10
  -
  
• FM Stations 137 84
• TV Stations 28
  8
  

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PROACTIVE LEGAL AND INSTITUTIONAL FRAMEWORK FOR
THE ICT SECTOR

• National ICT Policy/Plan
• National Telecommunications Policy
• National Communication Regulations
• National Communications Act
• Computer Misuse Data Protection Act (Draft)
• Electronic Transactions Act (Draft)
• Investor friendly Labour Act 651

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FINANCIAL SECTOR

• Licensed Banks
• Central Bank 1
• Commercial Banks 7
• Development Banks 3
• Universal - 7
• Merchant Banks - 2
• Non-bank Financial Institutions offer Services
  including
  
• Venture capital Funding
• Insurance / Re insurance
• Discount Houses
• Leasing
• Insurance Brokerage

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INVESTMENT OPPORTUNITIES

• Business Process Outsourcing (BPO)
• E- Commerce
• E-Payment System
• E-Health
• E- Government
• Hardware Assembly
• Application Software

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CONCLUSION

• GHANA IS OPEN FOR BUSINESS
• GOVERNMENT IS COMMITTED AND SUPPORTIVE
• THE TIME IS NOW

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Where to Go?

• Ghana Investment Promotion Center (GIPC)Tel
  233- 21- 665125-9
  
• Postal Address P. O. Box M.193,
  AccraGhanaemail info_at_gipc.org.gh
  
• Website www.gipc.org.gh

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• THANK YOU