Overview

Ghana offers a range of investment incentives to attract foreign direct investment (FDI) and promote local entrepreneurship. These incentives are designed to create a favourable business environment, stimulate economic growth, and diversify the economy.

Key Investment Incentives

- Tax Incentives

Tax Holidays: Companies in specific sectors such as agriculture, manufacturing, and tourism can enjoy tax holidays for up to 10 years.

Agro-processing businesses receive a five-year tax holiday.

Reduced Tax Rates: Companies located in regional capitals (excluding Accra and Tema) benefit from reduced corporate tax rates (20% instead of the standard 25%).

Rural businesses enjoy even lower rates (10% for those in less-developed areas).

- Customs Duty Exemptions

Import Duty Exemptions: Companies importing machinery, equipment, and raw materials for production purposes may be eligible for exemptions from import duties.

This is particularly beneficial for sectors such as manufacturing, agriculture, and renewable energy.

- VAT Exemptions:

Certain sectors, including agriculture and education, can benefit from Value Added Tax (VAT) exemptions on imported goods.

- Investment Guarantees

Legal Protection: The Ghanaian government offers legal protection against expropriation, ensuring that investments are not nationalized.

Investors are guaranteed the right to transfer profits and dividends out of the country without restrictions.

Dispute Resolution: Ghana is a member of international dispute resolution bodies such as the International Centre for Settlement of Investment Disputes (ICSID) and the Multilateral Investment Guarantee Agency (MIGA).

- Ghana Free Zones Program

Incentives for Free Zone Enterprises: Businesses operating within Ghana’s Free Zones enjoy a 10-year corporate tax holiday and a subsequent reduced tax rate of 15%.

Additional benefits include exemption from import and export duties, and the right to repatriate capital and profits freely.

Export Promotion: Companies are encouraged to export at least 70% of their output, thereby boosting Ghana’s foreign exchange earnings.

- Sector-Specific Incentives

Agriculture: Incentives include a five-year tax holiday for agro-processing businesses and tax rebates for companies engaged in livestock farming, fish farming, and poultry.

Manufacturing: Companies involved in manufacturing enjoy reduced corporate tax rates and duty exemptions on raw materials and machinery.

Tourism: Investment in the tourism sector qualifies for a range of incentives including tax holidays and customs duty exemptions.

- Special Economic Zones (SEZs)

Incentives for SEZs: Businesses operating in SEZs benefit from a range of incentives similar to those offered in Free Zones, including tax holidays, reduced tax rates, and customs duty exemptions.

Infrastructure Support: SEZs offer enhanced infrastructure support, including access to utilities, transport, and communication networks.

Institutional Support

- Ghana Investment Promotion Centre (GIPC)

Facilitation Services: GIPC provides support for business registration, investment advisory services, and aftercare services to ensure investors navigate regulatory and operational challenges smoothly.

Incentive Administration: GIPC administers various incentive programs and helps investors access available benefits.

- Export-Import Bank of Ghana (EXIM Bank)

Financial Products: EXIM Bank offers a range of financial products including loans, guarantees, and export credit facilities to support export-oriented businesses.

Capacity Building: The bank provides training and capacity-building programs to enhance the competitiveness of Ghanaian exporters. Ghana Free Zones Authority (GFZA)

Operational Support: GFZA oversees the development and management of Free Zones, providing operational support to businesses to maximize the benefits of operating within these zones.

Regulatory Assistance: GFZA assists businesses in complying with regulatory requirements and accessing incentives.

Conclusion
Ghana's comprehensive investment incentive framework is designed to attract foreign and local investors, boost industrialization, and promote economic diversification. By offering tax holidays, customs duty exemptions, legal protections, and sector-specific incentives, Ghana aims to create a competitive and attractive investment climate. The support provided by institutions like GIPC, EXIM Bank, and GFZA further enhances the ease of doing business and ensures investors can maximize their returns.