Parliament backs GIPA's investment reforms to boost Ghana's competitiveness

Ghana's Parliamentary Select Committee on Trade, Industry and Tourism has lauded the Ghana Investment Promotion Authority (GIPA) for its efforts in attracting quality investments. The committee expressed its commitment to supporting reforms designed to enhance the nation's investment climate.

These reforms, enacted under the Ghana Investment Promotion Authority Act, 2023 (Act 1173), are intended to bolster Ghana's standing as an attractive investment hub and encourage greater local economic participation. The committee visited GIPA's Accra office to gain a comprehensive understanding of its operations, legal changes, challenges, and future strategies.

GIPA CEO Simon Madjie detailed the expanded mandate under Act 1173, which now includes promoting investment within Ghana, supporting regional investments, and facilitating Ghanaian ventures abroad, particularly within the ECOWAS and African Continental Free Trade Area (AfCFTA).

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The absence of a blanket minimum capital requirement does not mean investors can enter with no capital. It simply means we will assess capital adequacy by sector.

A significant change under the new law is the removal of blanket minimum capital requirements for joint ventures and wholly foreign-owned enterprises, except in the trading sector. Madjie clarified that this does not imply a lack of capital scrutiny but rather a sector-specific assessment of adequacy. Safeguards for local businesses are maintained through local content requirements and reserved activities, while ensuring Ghana remains competitive and aligned with AfCFTA investment protocols.

Since 1994, GIPA has facilitated over 7,160 investment projects, attracting more than $62 billion in foreign direct investment. The authority is actively expanding its regional promotion efforts through roadshows and showcasing investment opportunities across the country. GIPA also seeks parliamentary support for operationalizing citizenship-by-investment provisions to attract high-net-worth individuals.

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The reforms under the Ghana Investment Promotion Authority Act, 2023 (Act 1173), would help position Ghana as a competitive investment destination while promoting greater local participation in the economy.