Conditions for Doing Business in Ghana
Ghana: flow of FDI in 2018 - 3 bln US Dollars (at current prices, UNCTAD)
FDI - Foreign Direct Invetsment
Africa Capacity Index (ACI) 2019
Since 2011, the African Capacity Building Foundation (ACBF – specialized agency of the AU, located in Harara, Zimbabwe https://www.acbf-pact.org/) publishes an annual Africa Capacity Report (ACR).
The ACR measures and examines the capacity of African countries to pursue their development agenda, focusing on key determinants and components of capacity for development. ACBF defines capacity as the “ability of people, organizations, and society as a whole to manage their affairs successfully” and capacity development as the process by which “people, organizations, and society as a whole unleash, strengthen, create, adapt, and maintain capacity over time.
Capacity of African countries, examined in ACR, is reflected by Africa Capacity Index (ACI). The ACI - is a composite index computed from a quantitative and qualitative assessment of four sub-indices or indicator “clusters” on a specially designed questionnaire. “The policy environment cluster” considers the conditions that must be in place to make transformational change and development possible. “The processes for implementation cluster” assesses the extent to which countries are prepared to deliver results and outcomes. “The development results at country level cluster” refers to tangible outputs that encourage development. And “the capacity development outcomes cluster” measures change in the human condition.
Ghana ACI 2019 Rank 4 Score 65.2
Cluster 1 Policy environment for capacity development 85.5
Cluster 2 Processes for implementation 63.8
Cluster 3 Development results at country level 66.7
Cluster 4 Capacity development outcomes 52.7
Incentives and Guarantees for foreign investors
In Ghana there are two main lows which regulate foreign investments juridically – The Ghana Investment Promotion Act (1994) and Ghana Free Zones Act (1995). Also The Companies Act (1963) is relevant for economic activity in Ghana. Besides these two codes, economic activity for foreign investors is determined in regulatory enactments on corresponding areas.
With the aim to attract more foreign investments Ghana’s government created Ghana Investment Promotion Centre http://www.gipcghana.com/
In 1995, the Ghanaian Parliament enacted the country's Free Zone Act (FZA) which created attractive packages of incentives for hassle-free business operation for exporting firms.
These incentives amplify business in what is already a centre for international business. The FZA allows production, manufacturing, and services, including financial services, exemption from taxes on profits for 10 years; up to 30% of the annual production can be sold in the national customs zone; a foreign investor may take hold of 100% of shares in Free Zone property; income tax after 10 years does not exceed 8%; and foreign and domestic investors have equal status.
Ghana signed to the Convention on the Settlement of Investment Disputes between State and Nationals of other States on 26 November 1965 and is a member of integration schemes that include the African Union, New Partnership for Africa's Development and Economic Community for West African States.
Ghana is an eligible member of the United States' market access initiative for African countries - the African Growth and Opportunity Act and the Cotonou Agreement for renegotiating the partnership between the African, Caribbean and Pacific countries with the European Union. Ghana is also a member of the Multilateral Investment Guarantee Agency and the World Trade Organization [UNCTAD. World investment directory. Volume X. Africa. United Nations. N.Y. and Geneva. – 2008, p. 293].
Prospects for economic cooperation with Ghana:
- agroindustry;
- processing of foodstuff;
- mining;
- machine building;
- fishing;
- manufacturing;
- construction;
- energy;
- transportation;
- education;
- scientific cooperation on oceanography and agroindustry;
- tourism.
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