President John Dramani Mahama speaking at the Ghana Presidential Investment Forum in Tokyo, Japan
Ghanaian President John Dramani Mahama has announced that his government is reviewing the Ghana Investment Promotion Centre (GIPC) Act with the aim of removing the country’s current minimum capital requirements for foreign investors.
Speaking at the Ghana Presidential Investment Forum on the sidelines of the 9th Tokyo International Conference on African Development (TICAD IX) in Japan on Wednesday, President Mahama described the existing thresholds—ranging from $200,000 to $1 million—as a major barrier to attracting foreign investment.
“We [Ghana] are open for business and working to review the Ghana Investment Promotion Centre Act. Some barriers were put to foreign investment. You had to prove that you had brought in a certain amount of money to be classified as a foreign investor,” he said.
The President told Japanese investors that the revised Act would eliminate these capital thresholds to allow all investors, regardless of financial capacity, to establish businesses in Ghana.
“In the reviewed GIPC Act, we are removing those minimal capital requirements. This will enable any investor, however little money you have—whether $100,000 or $50,000—to come in and set up a business in Ghana,” Mahama stressed.
He further assured the Japanese business community that Ghana remains “a stable, democratic, business-friendly gateway to West Africa and the continent,” citing the nation’s growing consumer market, improving macroeconomic fundamentals, and reforms aimed at lowering the cost of doing business.
President Mahama also emphasized Ghana’s strategic advantage as host of the African Continental Free Trade Area (AfCFTA) Secretariat, which grants duty-free and tariff-free access to nearly 50 African markets.
What the Current GIPC Act Says
Under the existing Ghana Investment Promotion Centre Act, foreign investors are required to meet minimum equity capital thresholds before setting up businesses:
• Wholly Foreign-Owned Business: Must bring a minimum of $500,000 in cash, goods, or a combination of both.
• Joint Venture with a Ghanaian Partner: Requires at least $200,000 in capital, with the Ghanaian partner holding at least 10% equity.
• Trading Enterprises (Import & Sale of Goods/Services): Must invest $1 million in cash, goods, or both, and employ at least 20 skilled Ghanaians.
• These provisions, according to President Mahama, will be revised to make Ghana more accessible and competitive in the global investment arena.