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BUSINESS OPPORTUNITIES IN GHANA

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Title: BUSINESS OPPORTUNITIES IN GHANA


1
BUSINESS OPPORTUNITIES IN GHANA

PARTNERS IN BUSINESS
  • PRESENTED BY DR PETER ANKRAH
  • DIRECTOR, GIPC

2
GHANAS LOCATION
  • English Speaking Country
  • Strategically located on West Coast of Africa

3
GHANAS LOCATION
4
PURPOSE OF VISIT
  • Strengthen the deep bond of friendship and
    economic relations between Ghana and Malaysia.
  • Promote Ghana as a good investment destination
  • Promote specific projects from Ghanaian private
    sector looking for foreign collaboration.
  • follow up on some of the several reciprocal
    visits by both Public and Private Officials eg
  • visit to Malaysia by the President of Ghana, HE
    John Agyekum Kuffour in late July 2002

5
INVESTMENT CLIMATE
  • The GIPC is the Agency of the Government of Ghana
    charged with the responsibility of encouraging,
    promoting and coordinating investment in the
    Ghanaian economy and providing support services
    to both existing and prospective investors.

6
INVESTMENT CLIMATE
  •   The GIPC has jurisdiction over all sectors of
    the economy except
  • Minerals and mining which are governed by the
    Minerals and Mining Amendment Act, 1994 Act
    475 and administered by the Minerals Commission
  • Petroleum exploration and production which is
    governed by the Petroleum Law, 1984 PNDCL 84
    and administered by the Ghana National Petroleum
    Corporation GNPC
  • It should be noted that all services relating to
    mining and petroleum are, however, handled by the
    GIPC.
  • Free Zone activities, which is governed by the
    Ghana Free Zones Act, 1995 Act 504 and
    administered by the Ghana Free Zones Board
    GFZB.
  • Portfolio investment, which is governed by the
    Ghana Stock Exchange Act, 1991 Act 384 and
    administered by the Ghana Stock Exchange GSE.
  • Divestiture of state-owned enterprises which is
    governed by the Divestiture of State interest
    (Implementation) Law 1993, PNDCL326 and
    administered by the Divestiture Implementation
    Committee DIC.

7
INVESTMENT CLIMATE
  • Ghana welcomes foreign investors
  • joint ventures.
  • other forms of mutually collaborative
    arrangements
  • Since September, 1994 when we started
    implementing the current Investment Act ie GIPC
    Act 478 to December 2002, the GIPC alone
    registered 1,393 projects comprising
  •  
  • 410 in the Service Sector
  • 387 in Manufacturing
  • 165 in Tourism
  • 111 in Building and Construction
  • 116 in Agriculture
  • 112 in General Trade
  • 92 in Export Trade
  •  
  •      

8
INVESTMENT CLIMATE
  • Leading the major sources of FDI into Ghana
    is
  • 1st - Britain - 146 projects
  • 2nd - India - 131 projects
  • 3rd - China - 128 projects
  • 4th - USA - 107 projects
  • 5th - Lebanon - 102 projects
  • 6th - Germany - 90 projects
  • It may interest you or perhaps
  • surprise you to know that
  • Malaysia is the number 22nd on
  • the list with 12 projects

9
INVESTMENT CLIMATE
  •       The 12 projects from Malaysia are made
  • up of
  • 8 in the Service sector
  • 1 in Manufacturing
  • 3 Liaison offices

10
INVESTMENT CLIMATE
  • We also have some companies from Malaysia that
    have been in Ghana for quite sometime now.
  • Eg.Metropolitan and Allied Bank,
    International Commercial bank, Gama Media Group,
    Business Focus Group, Penang Shipbuilding and
    Construction Ltd. Just to mention a few.
  • Host Countrys Capabilities
  • We believe that given Malaysias vast
    resources and technological advancement, she
    could be the leading source of FDI into Ghana if
    Malaysian entrepreneurs are made aware of the
    numerous investment opportunities and incentives
    in Ghana, and that is precisely why we are here.

11
WHY CHOOSE GHANA?
  • You may be wondering by now why you should join
    your brothers and sisters who have already
    discovered Ghana and invested in the economy
  • Well, it will interest you to know that Ghana
    has unique qualities and advantages, some of
    which are
  • stable political environment for over 2 decades
    with Multi-Party Democracy since 1992
  • Economic Stability (average GDP Growth Rate of
    4.5 p.a for past decade).

12
WHY CHOOSE GHANA?
  • Commitment to market liberalization policies
  • Commitment to private sector initiative
    (privatization programme, PEF)
  • Active member of ECOWAS (regional grouping of 16
    countries with population of about 250 million)
  • Fairly good and ever improving physical
    infrastructure such as roads, telecommunication,
    electricity, ports etc

13
WHY CHOOSE GHANA?
  • Availability of skilled and trainable labour
    force.
  • Competitive labour cost
  • Preferential access to USA ( AGOA) EU Markets.
  • Proximity to EU Markets (6hrs flight time)
  • Fast developing financial Infrastructure (GSE,
    SDH, Leasing Co. Banks)
  • High degree of personal safety

14
WHY CHOOSE GHANA?
  • Warm and friendly people
  • Fairly high quality of life (recreational
    facilities such as golf courses, tennis courts
    etc)
  • An investor friendly, liberalized and transparent
    investment law which was promulgated in 1994 and
    it is currently being reviewed to make it even
    more investor- friendly

15
THE INVESTMENT ACT, GIPC ACT,1994 (ACT 478)
  • How does the investor go about establishing a
    business venture after deciding to invest in any
    business activity of his/her choice?
  • Under the Act, investment procedures have been
    streamlined. If you want to do business in
    Ghana, the procedural steps are to
  • Register a company or corporate entity at the
    Registrar Generals Department 5 days.
  • Bring in your capital/machinery and equipment to
    establish the business no prior approval
    required for establishment.

16
THE INVESTMENT ACT, GIPC ACT,1994 (ACT 478)
  • Register your investment with GIPC to be accorded
    investor status if there is foreign participation
    ie 100 foreign owned enterprises or
    Ghanaian-foreign joint-venture enterprises 5
    days.
  • Wholly Ghanaian owned enterprises do not need to
    register with the GIPC.
  • The minimum equity capital that non-Ghanaians
    will have to invest in the country to be accorded
    investor status are
  • Joint ventures - US10,000
  • 100 foreign owned - US50,000
  • Trading buy sell - US300,000
    10 Ghanaian

  • employees



17
THE INVESTMENT ACT, GIPC ACT,1994 (ACT 478)
  • Minimum equity capital exemption export
    trading, external companies liaison offices
    portfolio investment.
  • The minimum foreign equity capital can be in
    the form of either
  • a cash through the banking system or
  • b investment goods such as machinery and
  • equipment
  • Reason for higher equity capital for trading
    activities

18
THE INVESTMENT ACT, GIPC ACT,1994 (ACT 478)
  • 4 areas reserved for Ghanaians
  • 1 Petty trading or hawking small scale
    trading
  • 2 Operation of Taxi Service and Car hire
    service.
  • A non-Ghanaian may undertake this service
  • Provided he/she has a fleet of 10 new vehicles
  • 3 All aspects of Pool Betting Business and
    Lotteries except Football Pools and Casinos
  • 4 Operation of Beauty Salons and Barber shops.

19
INVESTMENT OPPORTUNITIES IN GHANA
  • Under the Investment Act, investors are at
    liberty to invest in any area of their choice
    except the four 4 specified activities reserved
    for Ghanaians which were mentioned earlier.
  • The national socio- economic goal and investment
    drive are strategically focused on encouraging
  • enterprises which add value to our local raw
    material
  • export oriented enterprises and
  • enterprises which create employment
    opportunities for Ghanaians especially in the
    rural areas.

20
INVESTMENT OPPORTUNITIES IN GHANA
  • Specific investment areas listed among the
    Governments priority areas are
  • Infrastructure with emphasize on roads, ports
    modernization, energy and ICT.
  • Modernization of Agriculture to add value to raw
    materials and promote Agro-business.
  • Improvement of social services especially in the
    areas of health and education.

21
INVESTMENT OPPORTUNITIES IN GHANA
  • Other suggested sectors, sub-sectors and
    activities with high potential for investment are
    listed on our website www,gipc.org.gh and the
    promotional diskettes provided.
  • I would like to highlight a few as follows
  • AGRICULTURE AGRO-PROCESSING Food and
    industrial crops, floriculture, livestock and
    Poultry, Tuna fishing and Forestry
  • MANUFACTURING (including) precious minerals
    jewellery, garment/textile, Salt, wood, ethnic
    beauty products, ceramics, hand-tools, packaging
    and pharmaceuticals

22
INVESTMENT OPPORTUNITIES IN GHANA
  • PROPERTY DEVELOPMENT AND CONSTRUCTION
    (including) Residential, Commercial, Industrial
    houses
  • INFRASTRUCTURE (including) Roads and Domestic
    Airports Air, Road, Lake Rail Transport
  • TOURISM (including) Hotels, lodges and resorts
  • FINANCIAL SERVICES (including) Insurance,
    Banking and other investment services
  • HIGH TECH (including) ICT, Electrical and
    electronic Industries

23
INVESTMENT OPPORTUNITIES IN GHANA
  • I would also like to indicate that we have a
    portfolio of specific projects from Ghanaian
    Entrepreneurs looking for foreign collaboration
    and I will be ready to discuss them with
    interested Companies.

24
INVESTMENT BENEFITS, INCENTIVES AND GUARANTEES
  • Generous and attractive incentives are available
    for all sectors. These include
  • Customs duty exemption on machinery and equipment
  • Accelerated depreciation machinery 2 yrs
    building 5yrs.
  • Locational incentive for manufacturing
    industries 25-50 tax Rebate
  • Tax Holidays Agric 5-10 yrs Real Estate 5
    yrs
  • conversion of crops, fish or livestock produced
    in Ghana into edible,canned or other packaged
    products other than in their raw state 3 yrs
  • Losses carried over for 5 yrs
  • Corporate tax 32.5 for all sectors except
    hotels 25 and income from exports 8

25
INVESTMENT BENEFITS, INCENTIVES AND GUARANTEES
  • Work and Residence Permits for foreign
    shareholders and employees are tied to the
    paid-up capital as follows 
  • US10,000 paid up capital 1
    automatic quota
  • US100,000gtUS500,000 paid up
    capital 2 automatic quota
  • US500,000 and above paid up
    capital 4 automatic quota
  • Special additional incentives exist for
    operators in the Ghana Export Processing Zone.

26
INVESTMENT BENEFITS, INCENTIVES AND GUARANTEES
  •  
  • Investment Guarantees
  • Repatriation in freely convertible currency of
    profits, dividends, payments in respect of loans
    etc
  • No expropriation of enterprises by Government
  • Member of MIGA Insurance against non-commercial
    risks
  • Investment Promotion and Protection Agreements
    (IPPA) signed with several countries including
    Malaysia 21 countries
  • Ghana Arbitration Centre for amicable resolution
    of disputes.

27
CONCLUSION
  • It is my sincere hope that by the time we leave
    the shores of Malaysia, we would have made very
    interesting business agreements with the
    Malaysian business community to form the basis
    for very fruitful, rewarding and lasting business
    relations.
  • I would like to re-emphasize that tremendous
    investment opportunities exist in Ghana in
    various sectors as indicated in our promotional
    diskettes and portfolio of joint-venture projects.

28
CONCLUSION (Cont.)
  • I would therefore like to officially invite you
    to Ghana, the home of the UN Secretary General,
    Kofi Annan, to explore these opportunities.
  • The GIPC and the UNIDO-AAITPC are ever
    prepared to facilitate your visit and to assist
    you in the development of any specific projects
    you may wish to venture into now or in the near
    future in Ghana.
  • I thank you for your attention and for taking
    sometime off your busy schedule to meet with us
  • I also wish to thank UNIDO-AAITPC for making
    this seminar possible.
  • Thank You.
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