- March 22, 2017
- Posted by: activesol
- Category: Investments
Investing in Ghana
Ghana’s wealth of resources, democratic political system and dynamic economy, makes it undoubtedly one of Africa’s leading lights.
Gaining the world’s confidence with a peaceful political transition and a grounded and firm commitment to democracy has helped in expediting Ghana’s growth in foreign direct investment (FDI) in recent years.
Ghana has attracted the attention of well-known international businesses, investing in all sectors of our economy.
All these investors have come to Ghana because they know we have a wonderful conducive social, political and economic environment in which they can invest, grow and be successful.
Building on significant natural resources, our dear nation is committed to improving its physical infrastructure.
Moreover, Ghana has recently embarked on an ambitious but achievable reform programme to improve the investment climate for both local and international investors.
These efforts have paid off tremendously with Ghana being recognised by the World Bank Doing Business Report 2014 as the “Best Place for Doing Business in the ECOWAS Region”.
Also with the difficult times during last year where most countries did not show good growth levels due to the global economic downturn, Ghana had an economic growth rate provisional of 7.4% .
As happy as we are to receive such recognition, we are even happier to see increased investments and re-investments in Ghana as a result of these ongoing reforms.
Ghana has a solid tradition of investments in agriculture and agro-processing.
The financial services and telecommunications sectors are fast gaining ground, providing dynamic and innovative services to the most diverse customers in the world.
Further opportunities exist in manufacturing, ICT, and Tourism.
Mineral deposits including gold and diamond abound, and with the discovery of oil, Ghana’s famous black star has never shone brighter.
Tax Regime And Investment in Ghana
Local Incentives (Tax Rebates )
a)Manufacturing industries located in:
- Accra and Tema 25%
- All other regional capitals 18.75%
- Located outside regional capitals 12.50%
- b) After the initial 5-year tax holiday period, Agro-processing enterprises which use local agricultural raw materials as their main inputs shall have corporate tax rates fixed according to their location as follows:
- Accra – Tema 20%
- Other Regional Capitals (except Northern,
Upper East and Upper West Regional Capitals) 10%
- Outside Regional Capitals 0%
- Northern, Upper East and
Upper West Regions (capitals and all other locations)0%
Industrial plant, machinery or equipment and parts thereof are exempted from customs import duty under the HS Codes chapter 82, 84, 85 and 98.
An enterprise whose plant, machinery or equipment and parts are not zero rated under the Customs, Excise and Preventive Service Management Act, 1993 may submit an application for exemption from import duties and related charges on the plant, machinery or equipment or parts of the plant, machinery or equipment to the Centre.
- Constitutional guarantee
- Investment laws which guarantee 100% transfer profits, dividends, etc.
- MIGA membership
- Bilateral Investment Promotion Treaties (BITs)
- Double Taxation Agreements (DTAs)
Due to the key successes achieved under the implementation of the Ghana Poverty Reduction Strategy I (GPRS I), especially in the areas of reducing poverty from 39% to 28.5% during the period 2003 to 2005, and the attainment of relative economic stability in the economy, a successor national development policy framework, GPRS II, has been formulated to be carried out between 2006 to 2009 to focus on policies and programmes that will bring about growth of the economy and support wealth creation and poverty reduction.
Ghana’s medium term development framework, the Ghana Shared Growth and Development Agenda, pinpoints the critical and vital role infrastructure plays in propelling economic growth and sustainable poverty reduction, both key objectives of the Better Ghana Agenda.
In the specific context of improving the level of infrastructure in the country, the goal is to facilitate both intra regional trade and to open up rural areas for investment, productivity enhancement and job creation, introduce/deepen competition and create an enabling environment for the private sector to spearhead the country’s development in the following areas:
- Information and communication technology