Foreign investors will no longer be required to meet minimum capital thresholds before establishing businesses in most sectors of Ghana’s economy, following the passage and presidential assent of the new Ghana Investment Promotion Centre (GIPC) Act.
The reform, long sought by investors, eliminates one of the country’s most debated investment requirements in a bid to improve Ghana’s attractiveness as an investment destination. The only exception is the trading sector, where foreign investors must now inject US$500,000 in cash, replacing the previous arrangement that allowed the requirement to be met through imported goods.
Chief Executive Officer of the Ghana Investment Promotion Centre, Simon Madjie, said the changes directly address concerns repeatedly raised by investors.
“For investors who’ve been complaining about the minimum capital requirement, that has been eliminated, you know, by the passage of the new law. Except for trading, those in a trading enterprise, they must now bring in a cash amount of $500,000. No longer have goods, but a cash amount of $500,000.”
Beyond removing barriers to investment, the new law broadens Ghana’s investment promotion agenda.
Madjie disclosed that the legislation establishes a National Investment Registry, which will serve as a central database for tracking investments, while also creating a framework to help Ghanaian companies expand beyond the domestic market.
“We are also going to encourage Ghanaian businesses who have expanded in-country to go abroad, to expand their operations abroad. The objective is ultimately to create some of the global businesses that we see around by encouraging our Ghanaian businesses to do the same.”
The Act also introduces the legal framework for an investment-by-citizenship programme, with implementation to be developed jointly with the Ministry of the Interior.
“There’s also an interesting part, which is setting the tone for investment by citizenship. Working with the Minister of Interior to come up with the modalities for that. All of these are in the new Act that has been assented to by the President.”
The legislation further transforms the Ghana Investment Promotion Centre into the Ghana Investment Promotion Authority, reflecting what Madjie describes as the institution’s expanded role.
“We’ve been promoting investment, and we’ve also been regulating investment. So, the Authority just reflects the true nature of the work that we’ve been doing for all these years.”
The new law represents one of the most significant overhauls of Ghana’s investment framework in recent years, as the government seeks to attract more foreign direct investment while strengthening regulation, improving investment monitoring and supporting the emergence of Ghanaian businesses with regional and global ambitions.
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