2023 Investment Climate Statements: Ghana

Policies Towards Foreign Direct Investment

The Government of Ghana has made increasing FDI a priority and acknowledges the importance of having an enabling environment for the private sector to thrive.  Officials are implementing regulatory and other reforms such as automation and digitalization of government processes and enhancing the support services of the Ghana Investment Promotion Center (GIPC) to improve the ease of doing business and make investing in Ghana more attractive. The 2013 GIPC Act requires the GIPC to register, monitor, and keep records of all business enterprises in Ghana. Sector-specific laws further regulate investments in minerals and mining, oil and gas, industries within Free Zones, banking, non-bank financial institutions, insurance, fishing, securities, telecommunications, energy, and real estate.  Some sector-specific laws, such as in the oil and gas sector, mining sector and the power sector, include local content requirements that could discourage international investment.  Foreign investors are required to satisfy the provisions of the GIPC Act as well as the provisions of sector-specific laws.  GIPC leadership has pledged to collaborate more closely with the private sector to address investor concerns, but there have been no significant changes to the laws.  More information on investing in Ghana can be obtained from GIPC’s website, www.gipc.gov.gh .

Limits on Foreign Control and Right to Private Ownership and Establishment

Most of Ghana’s major sectors are fully open to foreign capital participation. U.S. investors in Ghana are treated the same as other foreign investors. All foreign investment projects must register with the GIPC. Foreign investments are subject to the following minimum capital requirements: USD 200,000 for joint ventures with a Ghanaian partner, who should have at least 10 percent of the equity; USD 500,000 for enterprises wholly owned by a non-Ghanaian; and USD 1 million for trading companies (firms that buy or sell imported goods or services) wholly owned by non-Ghanaian entities. The minimum capital requirement may be met in cash or capital goods relevant to the investment. Trading companies are also required to employ at least 20 skilled Ghanaian nationals. Ghana’s investment code excludes foreign investors from participating in the following eight sectors: petty trading; the operation of taxi and car rental services with fleets of fewer than 25 vehicles; lotteries (excluding soccer pools); the operation of beauty salons and barber shops; printing of recharge scratch cards for subscribers to telecommunications services; production of exercise books and stationery; retail of finished pharmaceutical products; and the production, supply, and retail of drinking water in sealed pouches. Sectors where foreign investors are allowed limited market access include telecommunications, banking, fishing, mining, petroleum, and real estate.

Real Estate

The 1992 Constitution recognized existing private and traditional titles to land. Given this mix of private and traditional land titles, land rights to any specific area of land can be opaque. Freehold acquisition of land is not permitted. There is an exception, however, for the transfer of freehold title between family members for land held under the traditional system. Foreigners are allowed to enter into long-term leases of up to 50 years, and the lease may be bought, sold, or renewed for consecutive terms. Ghanaian nationals are allowed to enter into leases beyond 50 years. The Ghanaian government, since 2017, has been implementing a digital property address and land registration system to reduce land disputes and improve efficiency. (See “Protection of Property Rights”).

Oil and Gas

The oil and gas sector is subject to a variety of state ownership and local content requirements. The Petroleum (Exploration and Production) Act, 2016 (Act 919) mandates local participation. All entities seeking petroleum exploration licenses in Ghana must create a consortium in which the state-owned Ghana National Petroleum Corporation (GNPC) holds a minimum 15 percent carried interest, and a local equity partner holds a minimum interest of five percent. The Petroleum Commission issues all licenses. Exploration licenses must also be approved by Parliament. Further, local content regulations specify in-country sourcing requirements with respect to the full range of goods, services, hiring, and training associated with petroleum operations. The regulations also require local equity participation for all suppliers and contractors; these requirements are increasingly being expanded into downstream activities for the sector. The Minister of Energy must approve all contracts, sub-contracts, and purchase orders above USD 100,000. Non-compliance with these regulations may result in a criminal penalty, including imprisonment for up to five years. The Petroleum Commission applies registration fees and annual renewal fees on foreign oil and gas service providers, which, depending on a company’s annual revenues, range from USD 10,000 to USD 150,000, compared to fees of between USD 8,000 and USD 140,000 for local companies.

Mining

Per the Minerals and Mining Act, 2006 (Act 703), foreign investors are restricted from obtaining a small-scale mining license for mining operations less than or equal to an area of 25 acres (10 hectares). The Act mandates local participation, whereby the government acquires 10 percent equity in ventures at no cost in all mineral rights. In order to qualify for any mineral license, a non-Ghanaian company must be registered in Ghana, either as a branch office or a subsidiary that is incorporated under the Ghana Companies Act or Incorporated Private Partnership Act. Non-Ghanaians may apply for industrial mineral rights only if the proposed investment is USD 10 million or above. The Minerals and Mining Act provides for a stability agreement, which protects the holder of a mining lease for a period of 15 years from future changes in law that may impose a financial burden on the license holder. When an investment exceeds USD 500 million, lease holders can negotiate a development agreement that contains elements of a stability agreement and more favorable fiscal terms.

The Minerals and Mining (Amendment) Act (Act 900) of 2015 requires the mining lease-holder to “…pay royalty to the Republic at the rate and in the manner that may be prescribed.” The previous Act 703 capped the royalty rate at six percent. The Minerals Commission implements the law. In December 2020, Ghana passed the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) to expand the specific provisions under the mining regulations that require mining entities to procure goods and services from local sources. The Minerals Commission periodically publishes an updated Local Procurement List. As of January 1, 2023, this list is in its fifth edition and includes 50 categories of goods and services with a range of requirements such as mandatory Ghanaian ownership of supplying companies in some cases. This has the potential effect of driving longstanding foreign operators out of the market. U.S. investors and suppliers in the sector have noted concerns about the lack of stakeholder consultations on the development of these lists, which affect their business planning and operational capacity.

Power Sector

In December 2017, Ghana introduced regulations requiring local content and local participation in the power sector. The Energy Commission (Local Content and Local Participation) (Electricity Supply Industry) Regulations, 2017 (L.I. 2354) specify minimum initial levels of local participation/ownership and 10-year targets:

The regulations also specify minimum and target levels of local content in engineering and procurement, construction, post-construction, services, management, operations, and staff. All persons engaged in or planning to engage in the supply of electricity are required to register with the ‘Electricity Supply Local Content and Local Participation Committee’ and satisfy the minimum local content and participation requirements within five years. Failure to comply with the requirements could result in a fine or imprisonment.

Insurance

The National Insurance Commission (NIC) imposes nationality requirements with respect to the board and senior management of locally incorporated insurance and reinsurance companies. At least two board members must be Ghanaians, and either the Chairman of the Board or Chief Executive Officer (CEO) must be Ghanaian. In situations where the CEO is not Ghanaian, the NIC requires that the Chief Financial Officer be Ghanaian. Minimum initial capital investment in the insurance sector is 50 million Ghana cedis (approximately USD 4.5 million).

Telecommunications

Per the Electronic Communications Act of 2008, the National Communications Authority (NCA) regulates and manages the nation’s telecommunications and broadcast sectors. For 800 MHz spectrum licenses for mobile telecommunications services, Ghana restricts foreign participation to a joint venture or consortium that includes a minimum of 25 percent Ghanaian ownership. Applicants have two years to meet the requirement and can list the 25 percent on the Ghana Stock Exchange. The first option to purchase stock is given to Ghanaians, but there are no restrictions on secondary trading.

Banking and Electronic Payment Service Providers

The Payment Systems and Services Act, 2019 (Act 987), establishes requirements for the licensing and authorization of electronic payment services. Act 987 ( Payment-Systems-and-Services-Act-2019-Act-987-.pdf (bog.gov.gh) ) imposes limitations on foreign investment and establishes residency requirements for company senior officials or members of the board of directors. Specifically, Act 987 mandates electronic payment services companies to have at least 30 percent Ghanaian ownership (either from a Ghanaian corporate or individual shareholder) and requires at least two of its three board directors, including its chief executive officer, be resident in Ghana. There are no significant limits on foreign investment or differences in the treatment of foreign and national investors in other sectors of the economy. Article 181(5) of Ghana’s constitution requires Parliament’s approval for contracts between the state and international investors.

OTHER INVESTMENT POLICY REVIEWS

Ghana has not conducted an investment policy review (IPR) through the OECD recently. UNCTAD last conducted an IPR in 2003. The WTO last conducted a Trade Policy Review (TPR) in June 2022. The 2022 TPR urged Ghana to take steps to address the challenges investors are facing in areas such as customs procedures, transparency in taxation, minimum foreign investment requirements, and the new local participation and local content requirements in the mining and energy sectors, including renewables that the Government is keen to promote. An executive summary of the findings can be found at: s427_sum_e.pdf (wto.org)

Business Facilitation

Although registering a business is a relatively easy procedure and can be done online through the Registrar General’s Department (RGD) at rgd.gov.gh , businesses have noted that the process involved in establishing a business is lengthy and complex and requires compliance with regulations and procedures of at least four other government agencies, including GIPC, Ghana Revenue Authority (GRA), Ghana Immigration Service, and the Social Security and National Insurance Trust (SSNIT). In 2019, Ghana passed a new Companies Act, 2019 (Act 992), which among other things, created an independent office called the Office of the Registrar of Companies (ORC), responsible for the registration and regulation of all businesses. The ORC, which was inaugurated in July 2022, took over the registration process for companies from the Registrar General’s Department; the latter will continue to serve as the government’s registrar for transactions such as the registration of marriages, industrial property rights, public trusts and administration of estates. The law also simplifies some registration processes by eliminating the issuance of a certificate to commence business and the requirement for a company to state business objectives, which limited the activities in which a company can engage. The law also expands the role of the company secretary, who is now required to have some background in corporate law and administration or having been trained under a company secretary for at least three years. Foreign investors must obtain a certificate of capital importation, which can take 14 days. The local authorized bank must confirm the import of capital with the Bank of Ghana, which confirms the transaction to GIPC for investment registration purposes.

Per the GIPC Act, all foreign companies are required to register with GIPC after incorporation with the RGD. Registration can be completed online at www.gipc.gov.gh . While the registration process is designed to be completed within five business days, there are often bureaucratic delays. The Ghanaian business environment is unique, and guidance can be extremely helpful. In some cases, a foreign investment may enjoy certain tax benefits under the law or additional incentives if the project is deemed critical to the country’s development. Most companies or individuals considering investing in Ghana or trading with Ghanaian counterparts find it useful to consult with a local attorney or business facilitation company. The United States Embassy in Accra maintains a list of local attorneys, which is available through the U.S. Foreign Commercial Service ( https://www.trade.gov/ghana-contact-us ) or U.S. Citizen Services ( https://gh.usembassy.gov/u-s-citizen-services/attorneys/).

Specific information about setting up a business is available at the GIPC website: .
Ghana Investment Promotion Centre
Post:
P. O. Box M193, Accra-Ghana
Note: Omit the (0) after the country code when dialing from abroad.
Telephone: +233 (0) 302 665 125, +233 (0) 302 665 126, +233 (0) 302 665 127, +233 (0) 302 665 128, +233 (0) 302 665 129, +233 (0) 244 318 254/ +233 (0) 244 318 252
Email: info@gipc.gov.gh

Note that mining or oil/gas sector companies are required to obtain licensing/approval from the following relevant bodies:

Petroleum Commission Head Office
Plot No. 4A, George Bush Highway, Accra, Ghana
P.O. Box CT 228 Cantonments, Accra, Ghana
Telephone: +233 (0) 302 953 392 | +233 (0) 302 953 393
Website: http://www.petrocom.gov.gh/  

Minerals Commission
Minerals House, No. 12 Switchback Road, Cantonments, Accra
P. O. Box M 248
Telephone: +233 (0) 302 772 783 /+233 (0) 302 772 786 /+233 (0) 302 773 053
Website: http://www.mincom.gov.gh/ 

Outward Investment

Ghana has no specific outward investment policy. However, it has entered into bilateral treaties with a number of countries to promote and protect foreign investment on a reciprocal basis. Some Ghanaian companies have established operations in other West African countries and there are a number of active Ghanaian investments in the United States in the food processing and personal care sectors.

Transparency of the Regulatory System

The Government of Ghana’s policies on trade liberalization and investment promotion are guiding its efforts to create a clear and transparent regulatory system. Ghana does not have a standardized consultation process, but ministries and Parliament generally share the text or summary of proposed regulations and solicit comments directly from stakeholders or via public meetings and hearings. All laws that are currently in effect are printed by the Ghana Publishing Company, while the notice of publication of the law, bills, or regulations are made in the Ghana Gazette (equivalent of the U.S. Federal Register). The non-profit Ghana Legal Information Institute ( https://ghalii.org/ ) re-publishes hard copies of the Ghana Gazette. The Government of Ghana does not publish draft regulations online, and the Parliament publishes only some draft bills ( https://www.parliament.gh/docs?type=Bills&OT ), which inhibits transparency in the approval of laws and regulations. The Government of Ghana has established regulatory bodies such as the National Communications Authority, the National Petroleum Authority, the Petroleum Commission, the Energy Commission, and the Public Utilities Regulatory Commission to oversee activities in the telecommunications, downstream and upstream petroleum, electricity and natural gas, and water sectors. The government launched a Business Regulatory Reform program in 2017 to improve the ease of doing business, review all rules and regulations to identify and reduce unnecessary costs and requirements, establish an e-registry of all laws, establish a centralized public consultation web portal, provide regulatory relief for entrepreneurs, and eventually implement a regulatory impact analysis system. The government continues to work towards achieving these goals and in 2020 established the centralized public consultation web portal Ghana Business Regulatory Reforms Portal (bcp.gov.gh) .

International Regulatory Considerations

Ghana has been a World Trade Organization (WTO) member since January 1995 and a member of the General Agreement on Tariffs and Trade since 1957. Ghana issues its own standards for many products under the auspices of the Ghana Standards Authority (GSA). The GSA has promulgated more than 500 Ghanaian standards and adopted more than 2,000 international standards including European Union and U.S. standards for certification purposes. The Ghanaian Food and Drugs Authority is responsible for enforcing standards for food, drugs, cosmetics, and health items. Ghana has a WTO obligation to notify all draft technical regulations to the WTO Committee on Technical Barriers to Trade (TBT).

Legal System and Judicial Independence

Ghana’s legal system is modeled on the British common law system and recognizes local traditional/customary law. The Supreme Court is the highest court in Ghana and has supervisory authority over all other courts. It has original jurisdiction to enforce or interpret the Constitution and to determine whether Parliament exceeded its authority in making laws. There is no requirement that there be an existing “case or controversy” in order to file a lawsuit that involves a constitutional claim. The High Courts have original civil and criminal jurisdiction in all matters except those expressly excluded by the Constitution or statute and have supervisory jurisdiction over all lower courts. All decisions of the High Courts are appealable to the Court of Appeal, except decisions in treason or high treason cases, which are appealable directly to the Supreme Court. Circuit Courts have civil and criminal jurisdiction. Appeals are to the Court of Appeal. District courts have civil and criminal jurisdiction. Appeals are to the High Court. District Courts handle general matters, criminal matters for those below 18 years of age, and family matters.

There is a history of suspected government attempts to influence judicial decision making, especially in matters related to politics or involving parties with ties to the government. Suspected government attempts to influence commercial matters are less common. The courts have entered judgments against the government. However, the courts have been slow in disposing of cases and at times face challenges in having their decisions enforced, largely due to resource constraints and institutional inefficiencies. Investors should note that the acquisition of real property is governed by both statutory and customary law and fee simple transfers of real property are rare. Most property transactions involve long-term leases.

Laws and Regulations on Foreign Direct Investment

The GIPC Act codified the government’s desire to present foreign investors with a transparent foreign investment regulatory regime. GIPC regulates foreign investment in acquisitions, mergers, takeovers, and new investments, as well as portfolio investment in stocks, bonds, and other securities traded on the Ghana Stock Exchange. The GIPC Act also specifies areas of investment reserved for Ghanaian citizens, and further delineates incentives and guarantees that relate to taxation, transfer of capital, profits and dividends, and guarantees against expropriation.
GIPC helps to facilitate the business registration process and provides economic, commercial, and investment information for companies and businesspeople interested in starting a business or investing in Ghana. GIPC provides assistance to enable investors to take advantage of relevant incentives. Registration can be completed online at Ghana Investment Promotion Centre – GIPC . As detailed in the previous section on “Limits on Foreign Control and Right to Private Ownership and Establishment,” sector-specific laws regulate foreign participation/investment in telecommunications, banking, fishing, mining, petroleum, and real estate. Ghana regulates the transfer of technologies not freely available in Ghana. According to the 1992 Technology Transfer Regulations (L.I. 1547), fee levels for the Ghanaian company (transferee) to pay to a foreign company (transferor) are capped as follows: management services fee of at most 2% of before-profit tax; royalties – not exceeding 6% of net sales; technical services only – not exceeding 3% of net sales; technical services and know-how – not exceeding 5% of net sales; and technical services, know-how, management services, and royalties together – not exceeding 8% of net sales. Any higher rates must be approved by the GIPC. The regulations do not allow agreements that impose obligations to procure personnel, inputs, and equipment from the transferor or specific source. The duration of related contracts cannot exceed ten years and cannot be renewed for more than five years. Any provisions in the agreement inconsistent with Ghanaian regulations are unenforceable in Ghana.

Competition and Antitrust Laws

Ghana is reportedly working on a new competition law to replace the existing legislation, the Protection Against Unfair Competition Act, 2000 (Act 589); however, the new bill is still under review.

Expropriation and Compensation

The Constitution sets out some exceptions and a clear procedure for the payment of compensation in allowable cases of expropriation or nationalization. Additionally, Ghana’s investment laws generally protect investors against expropriation and nationalization. The Government of Ghana may, however, expropriate property if it is required to protect national defense, public safety, public order, public morality, public health, town and county planning, or to ensure the development or utilization of property in a manner to promote public benefit. In such cases, the GOG must provide prompt payment of fair and adequate compensation to the property owner, but the process for determining adequate compensation and making payments can be complicated and lengthy in practice. The Government of Ghana guarantees due process by allowing access to the High Court by any person who has an interest or right over the property.

Dispute Settlement

ICSID Convention and New York Convention

Ghana is a member state of the International Centre for the Settlement of Investment Disputes (ICSID). Ghana is a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention). Ghana’s Alternative Dispute Resolution Act 2010 (Act 798) provides for enforcement of foreign awards under the New York Convention. There is a caveat for investment disputes arising from within the energy sector. The Government of Ghana has expressed a preference for handling disputes under the ad hoc arbitration rules of the UN Commission on International Trade Law (UNCITRAL Model Law).

Investor-State Dispute Settlement

Ghana does not have a Bilateral Investment Treaty (BIT) or Free Trade Agreement (FTA) with the United States. Investment disputes registered against Ghana at ICSID, International Chamber of Commerce (ICC) and London Court of International Arbitration (LCIA) in the last 10 years have increased. Most disputes are related to allegations that the government or its entities actions cancelled agreements or imposed arbitrary measures.

International Commercial Arbitration and Foreign Courts

The Commercial Conciliation Center of the American Chamber of Commerce (Ghana) provides arbitration services on trade and investment issues for disputes regarding contracts with arbitration clauses. Alternative dispute resolution is practiced, including commercial cases. Several lawyers provide arbitration and/or conciliation services. Arbitration decisions are enforceable provided they are registered in the courts. In March 2005, the government established a commercial court with exclusive jurisdiction over all commercial matters. This court also handles disputes involving commercial arbitration and the enforcement of awards; intellectual property rights, including patents, copyrights and trademarks; commercial fraud; applications under the Companies Act; tax matters; and insurance and re-insurance cases. A distinctive feature of the commercial court is the use of mediation or other alternative dispute resolution mechanisms, which are mandatory in the pre-trial settlement conference stage. Ghana also has a Financial and Economic Crimes Court, which is a specialized division of the High Court that handles high-profile corruption and economic crime cases. Enforcement of foreign judgments in Ghana is based on the doctrine of reciprocity. Judgments from American courts are not currently enforceable in Ghana. The GIPC, Free Zones, Labor, and Minerals and Mining Laws outline dispute settlement procedures and provide for arbitration when disputes cannot be settled by other means. They also provide for referral of disputes to arbitration in accordance with the rules of procedure of the United Nations Commission on International Trade Law (UNCITRAL), or within the framework of a bilateral agreement between Ghana and the investor’s country. The Alternative Dispute Resolution Act, 2010 (Act 798) provides for the settlement of disputes by mediation and customary arbitration, in addition to regular arbitration.

Bankruptcy Regulations

Ghana does not have a bankruptcy statute. The Corporate Restructuring and Insolvency Act, 2020 (Act 1015), was passed to replace the Bodies Corporate (Official Liquidations) Act, 1963 (Act 180). The law provides for reorganization of a company before liquidation when it is unable to pay its debts, as well as cross-border insolvency rules. It does not have a U.S. Chapter 11-style bankruptcy provision but allows for a process that puts the company under administration for restructuring. The law complements the law for private liquidations under the Companies Act, 2019 (Act 992), but does not apply to businesses that are under specialized regulations such as banks and insurance companies.

Investment Incentives

Investment incentives differ slightly depending upon the law under which an investor operates. For example, while all investors operating under the Free Zone Act are entitled to a ten-year corporate tax holiday, investors operating under the GIPC law are not. Tax incentives vary depending upon the sector in which the investor is operating. All investment-specific laws contain some incentives. The GIPC law allows for import and tax exemptions for plant inputs, machinery, and parts imported for the purpose of the investment. Chapters 82, 84, 85, and 89 of the Customs Harmonized Commodity and Tariff Code zero-rate these production items. The Ghanaian tax system is replete with tax concessions that considerably reduce the effective tax rate. The minimum incentives are specified in the GIPC law and are not applied in an ad hoc or arbitrary manner. Once an investor has been registered under the GIPC law, the investor is entitled to the incentives provided by law. The government has discretion to grant an investor additional customs duty exemptions and tax incentives beyond the minimum stated in the law.

The GIPC website Ghana Investment Promotion Centre – GIPC  provides a thorough description of available incentive programs. The law also guarantees an investor all the tax incentives provided for under Ghanaian law. For example, rental income from commercial and residential property is exempt from tax for the first five years after construction. Similarly, income from a company selling or leasing out premises is income tax exempt for the first five years of operation. Rural banks and cattle ranching are exempt from income tax for ten years and pay eight percent thereafter.

The corporate tax rate of 25 percent applies to all sectors, except income from non-traditional exports (8 percent tax rate), companies principally engaged in the hotel industry (22 percent rate), and oil and gas exploration companies (35 percent tax rate). Some sectors enjoy temporary tax holidays, including: Free Zone enterprises and developers (0 percent for the first ten years and 15 percent thereafter); real estate development and rental (0 percent for the first five years and 25 percent thereafter); agro-processing companies (0 percent for the first five years, after which the tax rate ranges from 0 percent to 25 percent depending on the location of the company in Ghana), and waste processing companies (0 percent for seven years and 25 percent thereafter). In December 2019, corporate tax holidays among other import duty and value-added tax exemptions were granted to manufacturers or assemblers of semi-knocked-down vehicles (0 percent for three years) and complete knocked down vehicles (0 percent for ten years). Tax rebates are also offered in the form of incentives based on location. A capital allowance in the form of accelerated depreciation is applicable in all sectors except banking, finance, commerce, insurance, mining, and petroleum. Under the Income Tax Act, 2015 (Act 896), all businesses can carry forward tax losses for at least three years.

Major international investors in Ghana have registered concern about increasingly aggressive tax collection policies by the Ghana Revenue Authority (GRA). In particular, the GRA has introduced a practice of applying an automatic 30% penalty on alleged, outstanding corporate tax payments collected prior to companies receiving an adjudication about their appeal before the Independent Tax Appeal Board (inaugurated in January 2023) regarding the legitimacy of the assessed taxes.

Ghana has no discriminatory or excessively burdensome visa requirements. While ECOWAS nationals do not require a visa to enter Ghana for 90 days, they need a work and residence permit to live and work in Ghana. The current fees for work and residence permit for ECOWAS nationals is USD 500 while that for non-ECOWAS nationals is USD 1,000. A foreign investor who invests under the GIPC Act is automatically entitled to a specific number of visas/work permits based on the size of the investment. When an investment of USD 50,000 but not more than USD 250,000 or its equivalent is made in convertible currency or machinery and equipment, the enterprise can obtain a visa/work permit for one expatriate employee. An investment of USD 250,000, but not more than USD 500,000, entitles the enterprise to two visas/work permits. An investment of USD 500,000, but not more than USD 700,000, allows the enterprise to bring in three expatriate employees. An investment of more than USD 700,000 allows an enterprise to bring in four expatriate employees. An enterprise may apply for extra visas or work permits, but the investor must justify why a foreigner must be employed rather than a Ghanaian. There are no restrictions on the issuance of work and residence permits to Free Zone investors and employees. Overall, the process of issuing work permits is not very transparent.

Foreign Trade Zones/Free Ports/Trade Facilitation

Free Trade Zones (called Free Zones in Ghana) were first established in May 1996, with one in the Greater Accra Region, and two other sites located at Mpintsin and Ashiem near Takoradi in the Western Region. The seaports of Tema and Takoradi, as well as the Kotoka International Airport in Accra and all the lands related to these areas, are part of the Free Zone. The law also permits the establishment of single factory zones outside or within the areas mentioned above. Under the law, a company qualifies to be a Free Zone company if it exports more than 70 percent of its products. Among the incentives for Free Zone companies are a ten-year corporate tax holiday and zero import duty. To make it easier for Free Zone developers to acquire the various licenses and permits to operate, the Ghana Free Zones Authority ( https://gfza.gov.gh/ ) provides a “one-stop approval service” to assist in the completion of all formalities. A lack of resources has limited the effectiveness of the Authority. Foreign employees of Free Zone businesses require work and residence permits.

Performance and Data Localization Requirements

In most sectors, Ghana does not have performance requirements for establishing, maintaining, and expanding a business. Investors are not required to purchase from local sources or employ prescribed levels of local content, except in the mining sector, the upstream petroleum sector, and the power sector, which are subject to substantial local content requirements. Similar legislation is being drafted for the downstream petroleum sector, and a National Local Content Policy is being debated by Cabinet that may extend to a broad array of sectors of the economy, but there is no clear timeline for its approval. Generally, investors are not required to export a specified percentage of their output, except for Free Zone enterprises which, in accordance with the Free Zone Act, must export at least 70 percent of their products. Government officials have intimated that local content requirements should be applied to sectors other than petroleum, power, and mining, but no local content regulations have been promulgated for other sectors. There are a few areas where the GOG does impose performance requirements, including the mining, oil and gas, insurance, and telecommunications sectors.

Data Storage and Access

The Government of Ghana does not follow a forced localization policy in which foreign investors must use domestic content in goods or technology and there are no requirements for foreign IT providers to turn over source code and/or provide access to surveillance (backdoors into hardware and software or turn over keys for encryption). During the coronavirus outbreak, to achieve its goal of contact tracing, the government issued Executive Instrument E.I. 63 that requires all telecommunication network operators to make available to the National Communications Authority (NCA) Common Platform mobile users location log and roaming files, caller or called numbers, Merchant Codes (of mobile money vendors), Mobile Station International Subscriber Directory Number Codes, International Mobile Equipment Identity Codes and site location. In 2021, a High Court ruled that the Executive Instrument 63 violates people’s right to privacy and ordered the National Communications Authority to stop collecting personal information from mobile phone subscribers and delete data already collected.

Real Property

The legal system recognizes and enforces secured interest in property. However, the process to get clear title over land is difficult, complicated, and lengthy. It is important to conduct a thorough search at the Lands Commission to ascertain the identity of the true owner of any land being offered for sale. Investors should be aware that land records can be incomplete or non-existent and, therefore, clear title may be impossible to establish. Ghana passed a land law, Land Act, 2020 (Act 1036), which revised, harmonized, and consolidated laws on land to ensure sustainable land administration and management. The law makes it possible to transfer and create or register interests in land by electronic means to speed up conveyancing, supports decentralized land service delivery, and includes provisions relating to property rights of spouses by ensuring that spouses are deemed to be party to the interest in land that is jointly acquired during the marriage. These changes are expected to improve accessibility and secured tenure. Mortgages exist, although there are only a few thousand due to factors such as land ownership issues and scarcity of long-term finance. Mortgages are regulated by the Home Mortgages Finance Act, 2008 (Act 770), which has enhanced the process of foreclosure. A mortgage must be registered under the Land Act, 2020 (Act 1036), for it to take effect. Registration with the Land Title Registry is a reliable system of recording the transaction.

Intellectual Property Rights

Ghana is not included in the United States Trade Representative (USTR) Special 301 Report or the Notorious Markets List.

The protection of intellectual property rights (IPR) is an evolving area of law in Ghana. There has been progress in recent years to afford protection under both local and international law. Ghana is a party to the Universal Copyright Convention, the Berne Convention for the Protection of Literary and Artistic Works, the Paris Convention for the Protection of Industrial Property, the Patent Cooperation Treaty (PTC), the Singapore Trademark Law Treaty (STLT), and the Madrid Protocol Concerning the International Registration of Marks. Ghana is also a member of the World Intellectual Property Organization (WIPO), the English-speaking African Regional Intellectual Property Organization (ARIPO), and the World Trade Organization (WTO). The WIPO Copyright Treaty was ratified in 2006 and the WIPO Performances and Phonograms Treaty was ratified in 2012. Ghana also amended six IPR laws to comply with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), including: copyrights, trademarks, patents, layout-designs (topographies) of integrated circuits, geographical indications, and industrial designs. Except for the copyright law, implementing regulations necessary for fully effective promulgation have not been passed.

The Government of Ghana launched a National Intellectual Property Policy and Strategy in January 2016, which aimed to strengthen the legal framework for protection, administration, and enforcement of IPR and promote innovation and awareness, although progress on implementation stalled. Enforcement remains weak, and piracy of intellectual property continues. Although precise statistics are not available for many sectors, counterfeit computer software is regularly available at street markets, and counterfeit pharmaceuticals have found their way into public hospitals. Counterfeit products have also been discovered in such disparate sectors as industrial epoxy, herbicides and pesticides, cosmetics, drinking spirits, and household cleaning products. Most counterfeit goods whose origin was tracked have usually been found to be produced in Asia. IPR holders have access to local courts for redress of grievances, although the few trademark, patent, and copyright infringement cases that U.S. companies have filed in Ghana have reportedly moved through the legal system slowly.

RESOURCES FOR RIGHTS HOLDERS

Please contact the following at Mission Ghana if you have further questions regarding IPR issues:

U.S. Embassy, Economic Section
No. 24 Fourth Circular Road, Cantonments, Accra, Ghana
Tel: +233(0) 302 741 000 (Omit the (0) after the area code when dialing from abroad)
Email: AccraICS@state.gov

The United States Embassy in Accra maintains a list of local attorneys, which is available through the U.S. Foreign Commercial Service ( https://www.trade.gov/ghana-contact-us ) or U.S. Citizen Services ( https://gh.usembassy.gov/u-s-citizen-services/attorneys/).

American Chamber of Commerce Ghana
No. 10 Mensah Wood Avenue, East Legon, Accra P.O. Box CT2869, Cantonments-Accra, Ghana
Tel: +233 (0) 302 247 562/ +233 (0) 307 011 862 (Omit the (0) after the area code when dialing from abroad)
Email: info@amchamghana.org
Website: http://www.amchamghana.org/ 

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/. 

Capital Markets and Portfolio Investment

Private sector growth in Ghana is constrained by financing challenges. Businesses continue to face difficulty raising capital on the local market. While credit to the private sector has increased in nominal terms, levels as percentages of GDP have remained stagnant over the last decade, and high government borrowing has brought interest rates above 30 percent and crowded out private investment. Capital markets and portfolio investment are gradually evolving. Foreign investors are permitted to participate in auctions of bonds only with maturities of two years or longer. In 2015, the Ghana Stock Exchange (GSE) added the Ghana Fixed-Income Market (GFIM) – https://gfim.com.gh/ , a specialized platform for secondary trading in debt instruments to improve liquidity. The rapid accumulation of debt over the last decade has made Ghana’s debt unsustainable. Approval of Ghana’s impending program with the IMF is contingent on restructuring its domestic and external debts. On February 10, the government concluded the exchange of existing local currency government bonds for new bonds with lower coupons and longer tenors for an estimated $7.8 billion in domestic bonds for various domestic creditors. Ghana is in talks with external creditors to restructure an estimated $29.2 billion of its foreign debt, which includes about $13 billion of Eurobonds. The Ghana Stock Exchange (GSE) has 40 listed companies. Both foreign and local companies are allowed to list on the GSE. The Securities and Exchange Commission regulates activities on the Exchange. There is an eight percent tax on dividend income. Foreigners are permitted to trade stocks listed on the GSE without restriction. There are no capital controls on the flow of retained earnings, capital gains, dividends, or interest payments. The GSE composite index (GGSECI) has exhibited mixed performance.

Money and Banking System

Banks in Ghana are relatively small, with the largest in the country in terms of operating assets, GCB Bank Ltd., holding assets of about USD 3 billion in 2021. The Central Bank’s minimum capital requirement for commercial banks is 400 million (USD 35 million), effective December 2018. As a result of the reforms and subsequent closures and mergers of some banks from 2017 to 2019, the number of commercial banks dropped from 36 to 23. Eight are domestically controlled, and the remaining 15 are foreign controlled. In total, there are over 1,500 branches distributed across the sixteen regions of the country. Overall, the banking industry in Ghana is well capitalized with a capital adequacy ratio of 16.6 percent as of December 2022, above the 11.5 percent prudential and statutory requirement. The non-performing loans ratio decreased from 15.2 percent in December 2021 to 14.8 percent as of December 2022. However, banks’ capital is expected to weaken because of Ghana’s domestic debt restructuring program. The Bank of Ghana (the central bank) has completed actions to address weaknesses in the non-bank deposit-taking institutions sector (e.g., microfinance, savings and loan, and rural banks) and has also issued new guidelines to strengthen corporate governance regulations in the banks. Lending in foreign currencies to unhedged borrowers poses a risk, and widely varying standards in loan classification and provisioning may be masking weaknesses in bank balance sheets. Recent developments in the non-banking financial sector indicate increased diversification, including new rules and regulations governing the trading of Exchange Traded Funds. Non-banking financial institutions such as leasing companies, building societies, and village savings and loan associations have increased access to finance for underserved populations, as have rural and mobile banking. Currently, Ghana has no “cross-shareholding” or “stable shareholder” arrangements used by private firms to restrict foreign investment through mergers and acquisitions, although, as noted above, the Payments Systems and Services Act, 2019 (Act 987), does require a 30 percent Ghanaian company or Ghanaian holding by any electronic payments service provider, including banks or special deposit-taking institutions.

Foreign Exchange and Remittances

Foreign Exchange

Ghana operates a managed-float exchange rate regime. The Ghana cedi can be exchanged for dollars and major currencies. Investors may convert and transfer funds associated with investments, provided there is documentation of how the funds were acquired. Ghana’s investment laws guarantee that investors can transfer the following transactions in convertible currency out of Ghana: dividends or net profits attributable to an investment; loan service payments where a foreign loan has been obtained; fees and charges with respect to technology transfer agreements registered under the GIPC Act; and the remittance of proceeds from the sale or liquidation of an enterprise or any interest attributable to the investment. Companies have not reported challenges or delays in remitting investment returns although they have reported difficulties in obtaining foreign currency to finalize import transactions related to their businesses. For details, please consult the GIPC Act ( www.gipc.gov.gh ) and the Foreign Exchange Act guidelines ( https://sec.gov.gh/ ). Persons arriving in or departing from Ghana are permitted to carry up to USD 10,000.00 without declaration. Ghana’s foreign exchange reserve needs are largely met through cocoa, gold, and oil exports; government securities; foreign assistance; and private remittances. However, as a result of Ghana’s macroeconomic challenges, its foreign exchange reserves dwindled, leading the government in November 2022 to announce a gold for oil program in which it stated it would buy oil products with gold instead of dollars in order to preserve its foreign exchange reserves. The Bank of Ghana in November stated that it would no longer provide foreign exchange support to importers for the importation of some products into the country. It said the items included rice, poultry, vegetable oil, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods – items which could be locally produced in Ghana.

Remittance Policies

There is a single formal system for transferring currency out of the country through the banking system. The Foreign Exchange Act, 2006 (Act 723) provides the legal framework for the management of foreign exchange transactions in Ghana. It fully liberalized capital account transactions, including allowing foreigners to buy certain securities in Ghana. It also removed the requirement for the Bank of Ghana to approve offshore loans. Payments or transfer of foreign currency can be made only through banks or institutions licensed to do money transfers. There is no limit on capital transfers if the transferee can identify the source of capital.

Sovereign Wealth Funds

Ghana’s main sovereign wealth fund is the Ghana Petroleum Funds (GPF), which is funded by oil profits and flows to the Ghana Heritage Fund and Ghana Stabilization Fund. The Petroleum Revenue Management Act (PRMA), 2011 (Act 815), spells out how revenues from oil and gas should be spent and includes transparency provisions for reporting by government agencies, as well as an independent oversight group, the Public Interest and Accountability Committee (PIAC). Section 48 of the PRMA requires the Fund to publish an audited annual report by the Ghana Audit Service. The Fund’s management meets the legal obligations. Management of the GPF is a joint responsibility between the Ministry of Finance and the Bank of Ghana. The minister develops the investment policy for the GPF and is responsible for the overall management of GPF funds, consults regularly with the Investment Advisory Committee and Bank of Ghana Governor before making any decisions related to investment strategy or management of GPF funds. The minister is also in charge of establishing a management agreement with the Bank of Ghana for the oversight of the funds. The Bank of Ghana is responsible for the day-to-day operational management of the Petroleum Reserve Accounts (PRAs) under the terms of Operation Management Agreement. For additional information regarding Ghana Petroleum Funds, please visit: Ghana Petroleum Funds – Bank of Ghana (bog.gov.gh) .

Privatization Program

Ghana has no formal privatization program. The government has announced its intention, however, to prioritize the creation of public-private partnerships (PPPs) to restructure and privatize non-performing SOEs, although progress to implement this goal has been slow. The National Policy on Public Private Partnerships in Ghana, adopted in June 2011, permitted the creation of PPPs. The Public Private Partnership Act, 2020 (Act 1039) was passed in December 2020.

Additional Resources

Department of State

• Country Reports on Human Rights Practices ( https://www.state.gov/reports-bureau-of-democracy-human-rights-and-labor/country-reports-on-human-rights-practices/)
• Trafficking in Persons Report ( https://www.state.gov/trafficking-in-persons-report/)
• Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities ( https://www.state.gov/key-topics-bureau-of-democracy-human-rights-and-labor/due-diligence-guidance/)
• U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises ( https://www.state.gov/u-s-national-contact-point-for-the-oecd-guidelines-for-multinational-enterprises/)
• Xinjiang Supply Chain Business Advisory ( https://www.state.gov/xinjiang-supply-chain-business-advisory/)

Department of the Treasury

• OFAC Recent Actions ( https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions )

Department of Labor

• Findings on the Worst Forms of Child Labor Report ( https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings  )
• List of Goods Produced by Child Labor or Forced Labor ( https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods )
• Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World ( https://www.dol.gov/general/apps/ilab )
• Comply Chain ( https://www.dol.gov/ilab/complychain/ )

Climate Issues

Ghana’s national climate strategy is contained in the Ghana National Climate Change Policy published in 2013 and Ghana’s Nationally Determined Contributions (NDCs). The revised NDCs, submitted to the United Nations Framework Convention on Climate Change (UNFCCC) in September 2021, outline Ghana’s strategies in various sectors regarding climate change. To reduce its carbon footprint and greenhouse gas emissions (GHG), Ghana aims to reduce carbon emissions by 64 MtCO2e through the adoption of 47 climate actions across 19 policy areas. Although Ghana has announced that it is fully committed to achieving a net-zero emission by 2070, policies are being designed to reduce energy and CO2 intensity driven by the transition to renewable and low-carbon energy sources. In December 2021, the government established the National Energy Transition Committee to prescribe risk mitigation measures towards environmental sustainability. Policies introduced to reduce carbon emissions include the Liquefied Petroleum Gas (LPG) Promotion Policy, the Renewable Energy Master Plan, and improved charcoal stove distribution. Ghana has set a target of increasing the share of renewable energy (including hydropower capacity up to 100 MW) from 42.5 MW in 2015 to 1363.63 MW by 2030. The government, however, does not include environmental and green growth considerations in public procurement policies for businesses aimed at preserving biodiversity, clean air, and other ecological benefits.

Resources to Report Corruption

Office of the Special Prosecutor
6 Haile Selassie Avenue
South Ridge, Accra, Ghana GA-079-096
Telephone: 233 (302) 668 517; 233 (302) 668 506
corruptionreports@osp.gov.gh; info@osp.gov.gh
www.osp.gov.gh  

The Commissioner
Commission on Human Rights and Administrative Justice (CHRAJ)
Old Parliament House, High Street, Accra
Omit the (0) after the area code when dialing from abroad: +233 (0) 242 211 53
info@chraj.gov.gh
http://www.chraj.gov.gh  

The Executive Director
Economic and Organized Crime Office (EOCO)
Behind Old Parliament House, High Street, Accra
Omit the (0) after the area code when dialing from abroad: +233 (0) 302 665559, +233 (0) 302 634 363
eoco@eoco.gov.gh
www.eoco.gov.gh  

George Amoh
Advocacy and Legal Advice Centre (ALAC) Ghana – Transparency International
Abelenkpe Rd Accra, Accra
Omit the (0) after the area code when dialing from abroad: +233 (0)302 760 884
alacghana@yahoo.com
https://www.transparency.org/en/report-corruption/ghana