Ghana has abolished the minimum capital requirements previously imposed on most foreign investors under the newly enacted Ghana Investment Promotion Authority (GIPA) Act, 2026 (Act 1173).
The reform is aimed at lowering barriers to investment, improving Ghana’s competitiveness and positioning the country as a preferred regional business and investment hub.
Under the previous Ghana Investment Promotion Centre Act, 2013 (Act 865), foreign investors were required to provide minimum capital of US$200,000 for joint ventures with Ghanaian partners, US$500,000 for wholly foreign-owned enterprises and US$1 million for foreign-owned trading companies.
The requirements had been a subject of debate within the investment community, with stakeholders arguing that they created barriers for smaller foreign businesses, technology startups, consulting firms and other knowledge-based enterprises.
With the enactment of Act 1173, the blanket minimum capital requirements for joint ventures and wholly foreign-owned enterprises have been removed.
The reform is expected to broaden Ghana’s investment landscape by allowing businesses whose value is driven by innovation, specialised skills, technology and intellectual property to enter the market without significant upfront capital requirements.
Mr Simon Madjie, Chief Executive Officer of the Ghana Investment Promotion Authority (GIPA), said the reform demonstrated the Government’s commitment to creating a more competitive and accessible investment environment.
He said the previous capital thresholds had restricted investors whose strengths were based on innovation, expertise and intellectual property rather than large financial commitments.
“The new law recognises that businesses can create significant economic value through technology, skills and innovation, even without substantial initial capital investment,” Mr Madjie said.
Mr Madjie, however, noted that the Act had not completely eliminated minimum capital requirements for all categories of foreign investors.
Under the new framework, the minimum capital requirement for foreign-owned trading enterprises has been reduced from US$1 million to US$500,000.
The Act also replaces the previous requirement for trading enterprises to employ at least 20 skilled Ghanaians with a more flexible provision requiring at least 75 per cent of skilled employees to be Ghanaians.
GIPA said the reforms were expected to reduce barriers to entry while ensuring that foreign investment continued to contribute to local employment and skills development.
The Authority stressed that the removal of minimum capital requirements did not amount to unrestricted liberalisation of the economy.
It said investments would continue to be subject to applicable sector-specific laws, licensing requirements and regulatory standards administered by relevant state institutions.
Activities reserved exclusively for Ghanaian citizens and wholly Ghanaian-owned enterprises have also been retained under the new legislation, with limited amendments affecting certain activities.
Industry observers said the reforms could strengthen Ghana’s attractiveness to emerging businesses seeking to establish operations to serve the African Continental Free Trade Area (AfCFTA) market.
The changes are also expected to benefit technology, professional services, fintech and other knowledge-driven sectors where growth is increasingly driven by expertise, innovation and intellectual property rather than large capital investments.
Act 1173 forms part of broader Government efforts to modernise Ghana’s investment framework and improve the ease of doing business.
The legislation transforms the Ghana Investment Promotion Centre into the Ghana Investment Promotion Authority and expands its mandate to include outward investment promotion, technology transfer regulation, operation of a one-stop investment shop and administration of an Investor Grievance Mechanism.
Government expects the reforms to strengthen investor confidence, attract quality investment and advance Ghana’s ambition of becoming one of Africa’s preferred investment destinations.
