Foreign investors seeking to establish businesses in Ghana will no longer be required to meet minimum capital requirements in most sectors following the enactment of the new Ghana Investment Promotion Centre (GIPC) Act.
The legislation, which has received presidential assent, is expected to enhance Ghana’s attractiveness as an investment destination by removing one of the country’s longstanding barriers to foreign direct investment.
Mr Simon Madjie, Chief Executive Officer of the Ghana Investment Promotion Centre, said the amendment addressed a major concern consistently raised by foreign investors interested in setting up businesses in Ghana.
He explained that the new law abolishes the minimum capital requirement for foreign investors across most sectors, with trading remaining the only exception.
“For investors who’ve been complaining about the minimum capital requirement, that has been eliminated by the passage of the new law. Except for those in a trading enterprise, they must now bring in a cash amount of US$500,000. No longer can they use goods, but a cash amount of US$500,000,” he said.
Under the revised law, foreign investors engaging in trading activities will be required to inject US$500,000 in cash, replacing the previous arrangement that allowed the minimum capital requirement to be met through imported goods.
Mr Madjie said the removal of the minimum capital requirement would make it easier for investors to enter the Ghanaian market, while the revised trading provision would ensure a direct inflow of capital into the economy.
The new legislation also establishes a National Investment Registry to serve as a central database for monitoring and tracking investments across the country.
In addition, the Act provides a framework to support the international expansion of Ghanaian businesses by encouraging successful local enterprises to establish operations beyond Ghana’s borders.
Mr Madjie said the broader objective was to nurture globally competitive Ghanaian companies capable of replicating the success of leading international brands.
The law further creates a legal framework for an investment-by-citizenship programme, with implementation guidelines to be developed in collaboration with the Ministry of the Interior.
The reforms form part of efforts to strengthen Ghana’s investment climate, improve investor confidence and position the country as a preferred destination for foreign direct investment.
