Ghana is set to introduce a new legal framework to govern investment promotion as the Ghana Investment Promotion Centre (GIPC) moves to replace the existing GIPC Act, 2013 (Act 865) with an entirely new legislation titled the Ghana Investment Promotion Authority Bill. The move is part of efforts to reposition the country as a competitive investor-friendly destination in West Africa, better aligned with the needs of modern investors and global capital flows.
The proposed bill, which is being developed in collaboration with the Ministry of Finance, comes after the previous attempt to amend the Act lapsed with the dissolution of the Eighth Parliament in January 2025. Originally intended as a revision, the legal overhaul has now evolved into a comprehensive replacement following advice from the Attorney General.
According to Ms Audrey Orleans Lindsay, Head of Legal at GIPC, the new law is intended to remove existing bottlenecks, align with sustainable development goals, and respond more directly to the practical concerns of both local and foreign investors.
Post-2013, feedback from both public and private sector stakeholders indicated that aspects of the GIPC Act posed challenges to investing in Ghana. “Based on our review and consultations, we identified a need to update the law to better reflect investor realities and attract long-term capital,” she noted in a GIPC internal newsletter shared with The High Street Journal.
Removing Investment Barriers
Among the key reforms being proposed is the removal of blanket minimum capital requirements, which currently apply to all foreign investors whether in wholly foreign-owned companies, joint ventures, or trading enterprises. The existing uniformity in capital thresholds, regardless of sector-specific dynamics, has been seen as a deterrent to investors, particularly in the fast-growing services and technology sectors where high capital is not always a prerequisite.
The new bill will eliminate these capital requirements for joint ventures and wholly foreign-owned companies while maintaining them only for trading enterprises. This is expected to lower the entry barrier for new investments, especially in innovation-driven sectors and small to medium-scale service firms.
Additionally, the bill seeks to clarify ambiguous definitions in the current Act, including those related to Technology Transfer Regulations and the classification of Trading Enterprises, which have created legal uncertainty for investors.
Aligning with a 24-Hour Economy Vision
The legislative update also ties into government’s broader agenda of building a resilient 24-hour economy. In his 2025 budget presentation to Parliament, Finance Minister Dr Cassiel Ato Forson underscored the need to revise both the Labour Act and the GIPC Act to enable the private sector to adapt to round-the-clock business operations.
“For the 24-hour economy to be effective, our labour laws and investment frameworks must provide the flexibility and incentives businesses need to operate efficiently across time zones,” Dr Forson said.
The new GIPC bill will support this ambition by targeting investments in sectors that can benefit from extended operating hours such as logistics, manufacturing, digital services, and business process outsourcing. It also aims to streamline the role of the GIPC itself, updating the Centre’s functions to better reflect modern global investment promotion standards and practices.
A Step Towards Economic Resilience
As Ghana navigates economic recovery supported by a US$3 billion IMF-backed programme, the legal transformation is seen as a strategic move to deepen investor confidence, diversify capital inflows, and position the country as a top-tier investment hub in Africa.
The GIPC and Ministry of Finance are expected to lay the new bill before Parliament in the coming months pending stakeholder consultations and Cabinet approval.
