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.
Investment laws which guarantee 100% transfer profits, dividends, etc.
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
Emphasis on investment promotion has been a major objective of the industry with a shift to a comprehensive vision that facilitates greater exploitation of Ghana’s industrial minerals.
Investment opportunities in the industry are in the areas of exploitation or production and industrial processes.
The production of industrial minerals for both local and international consumption
b. Applications/processing of industrial minerals in the areas of construction, ceramics, paints, electronics, filtration, plastics, glass, detergents and paper.
a. Companies to set up refinery facilities to serve the local industry for value-added products.
b. Companies to exploit and produce solar salt. Potential exists for the utilization of part of the salt to produce caustic soda which is a raw material for the soap and detergent industry. The chlorine co-product can also be used as water treatment chemical and also serve as raw materials for the production of various health and sanitation chemicals.
c. Companies to produce clinker for the mining industry. Demand for clinker is estimated at over one million metric tons per annum.
d. Companies to exploit the extensive deposit of granite to produce high quality floor tiles.
e. Companies to produce dimension stones for the building industry
f. Suppliers to supply salt for the local market.
Engineering and Services
a. Service companies to provide support services, including contract drilling, assay laboratories, contract mining and geological consultancies to mining companies in the country.
b. Companies to set up manufacturing plants and machinery for the mining industry.
c. Companies to set up downstream production facilities to manufacture key input for the mining industry. Examples, mill balls, drill bits, cyanide and activated carbon.
Specific incentives to the sector include:
Depreciation 75% of the capital expenditure incurred in the first year of investment and 50% of the declining balance in subsequent years
b. Investment allowance of 5% in the first year only
c. Losses in each financial year not exceeding the value of the capital allowance for the year may be carried forward. Capitalization of all pre-production expenses approved by the authorities when the holder starts development of commercial mining.
The Holder of a Mining Lease is also granted the following Benefits:
a. Exemption of staff from out of Ghana payments of income tax relating to furnishing accommodation at a mine
b. Immigration quota for expatriate personnel free from any tax imposed by government for the transfer of foreign currency out of Ghana
c. Exemption from the selective alien employment under the selective alien employment decree
Ghana’s Minerals and Mining Act 2006, Act 703 has added some significant aspects to the country’s commercial law and they are:
a. Expenditure on exploration and development may be capitalized in accordance with regulated amortization provision for tax relief
b. Capital allowances have been designed to shorten the pay-back period and include 75% write off of capital in the first year and 50% annually thereafter on a declining balance
c. Retention of a proportion of revenue in foreign currency account for use in acquiring essential equipment and spare parts required for mining operations which would otherwise not be readily available without the use of such earnings
d. Exemptions from import duties on imported plant and equipment.