Foreign investors will no longer be required to meet minimum capital thresholds before establishing businesses in most sectors of Ghana’s economy following the passage and presidential assent of the new Ghana Investment Promotion Centre (GIPC) Act.

The reform removes one of the country’s long-standing investment requirements in an effort to make Ghana a more attractive destination for foreign direct investment.

However, the trading sector remains an exception, with foreign investors now required to bring in US$500,000 in cash. This replaces the previous arrangement that allowed the requirement to be met through imported goods.

Chief Executive Officer of the Ghana Investment Promotion Centre, Simon Madjie, said the changes address concerns that investors have raised over the years regarding the minimum capital requirement.

“For investors who’ve been complaining about the minimum capital requirement, that has been eliminated, you know, by the passage of the new law. Except for trading, those in a trading enterprise, they must now bring in a cash amount of $500,000. No longer have goods, but a cash amount of $500,000,” he said.

Mr Madjie said the new legislation also expands Ghana’s investment promotion agenda by establishing a National Investment Registry to serve as a central database for tracking investments.

He added that the law provides a framework to support Ghanaian businesses seeking to expand beyond the domestic market and become globally competitive.

“We are also going to encourage Ghanaian businesses who have expanded in-country to go abroad, to expand their operations abroad. The objective is ultimately to create some of the global businesses that we see around by encouraging our Ghanaian businesses to do the same,” he said.

The Act also introduces the legal framework for an investment-by-citizenship programme, with implementation arrangements to be developed in collaboration with the Ministry of the Interior.

“There’s also an interesting part, which is setting the tone for investment by citizenship. Working with the Minister of Interior to come up with the modalities for that. All of these are in the new Act that has been assented to by the President,” Mr Madjie stated.

The legislation further changes the Ghana Investment Promotion Centre into the Ghana Investment Promotion Authority, reflecting its expanded mandate in investment promotion and regulation.

“We’ve been promoting investment, and we’ve also been regulating investment. So, the Authority just reflects the true nature of the work that we’ve been doing for all these years,” he explained.

The new law represents a major overhaul of Ghana’s investment framework, with government seeking to attract more foreign investment, strengthen investment monitoring and support the growth of Ghanaian businesses with regional and global ambitions.

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