Investment Environment
Government Policy
President John Evans Attah-Mills has committed himself to creating a "Better Ghana" by the end of his tenure of office. The essence of this vision is to energise the private sector enough to serve as the propellant from which economic growth is fuelled and thereby improving the worth of the people. This has found expression not only in closer collaboration and partnership with the private sector but also the mobilisation of funding to the latter. In line with this vision, the Government has created a special project called the Private Sector Development [PSD] with a challenge to facilitate the development and growth of a competitive and vibrant private sector and also to help reduce the cost of doing business in Ghana.
Business and the Law
Business law conforms to international norms and is based on aframework of legislation relating to business activity, copyrights, patents, trademarks, disputes and labour relations. Ghana subscribes to a number of international conventions on industrial and intellectual property. There are numerous public sector agencies as well as privatelegal, business consulting and accounting firms, which can provide expert guidance on doing business in Ghana.Sanctity of contracts ensures respect for commercial rights and obligations. Damages are compensatory, not punitive, and an independent court system ensures equitable protection of rights. Mediation, arbitration and other forms of dispute resolution are routinely used.
Attitude To Private Investment
Government’s macroeconomic policy is designed to accelerate the process of growth and transformation of the economy under competitive conditions. Monetary policy has been consistent and fiscal discipline is apparent from lower budget deficits. Inflation continues its downward course and access to foreign exchange is improving.
Investment Guarantees Transfer of Profits
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.
MIGA/IPPA
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 InvestmentPromotion 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.
Reputable surveys rate Ghana as one of the most attractive locations for doing business in Africa. However, in view of the Government’s policy to make Ghana the Gateway to West Africa, serious efforts are still being made to make the business environment more friendly thereby reducing occupancy costs for commercial and industrial properties and the general cost of doing business in Ghana.
Ghana offers many attractions to the foreign investor:
* A stable political environment
* A sound macroeconomic policy
* 100% foreign ownership permitted
* On-going Privatisation of programme
* A large Economic Community of West African States (ECOWAS) market (250 million people).
* Good and ever improving physical infrastructure
* Availability of skilled and trainable labour.
* Competitive labour cost.
* Quota-Free access to USA & European Union markets.
* Proximity to European Union (6 hrs flight time) and USA markets (9 hrs direct flight time).
* Fast developing financial infrastructure
* High degree of personal safety
* Fairly high quality of life.