Favorable Foreign Direct Investment
Among the numerous guarantees and incentives that attract investors are:
- Low corporate tax rates
- Tax holidays
- Low equity requirements
- Custom duty exemptions for plant, machinery, equipment and parts
- Automatic immigrant quotas
- Relief from double taxation for foreign investors.
Ghana’s Foreign Investment Code:
- Eliminates screening of foreign investment
- Guarantees capital repatriation
- Does not discriminate against foreign investors.
- Only pre-condition for investment is a minimum capital requirement.
Ghana Investment Promotion Act, 1994 (Act 478), provides:
- Guarantees to all enterprises
- Free transferability through any authorized dealer bank in freely convertible currency of dividends or net profits attributable to a foreign investment
- Payments in respect of loan servicing where a foreign loan has been obtained
- Remittance of proceeds (net of all taxes and other obligations) in the event of sale or liquidation of the enterprise or any interest attributable to the investment.
Ghana is a member of the Multilateral Investment Guarantee Agency (MIGA) of the World Bank, which provides investment guarantees against non-commercial risk for investments in developing countries. Additionally, the Government has entered into bilateral Investment Promotion and Protection Agreements (IPPAs), as well as double taxation treaties with a number of countries to further enhance the protection and security of the investment regime.
See Association of Ghana Industries