Rich in agricultural resources, timber, gold and other valuable minerals, abundant with educated skilled and enterprising people, blessed with a stable form of government and dedicated to the principles of free enterprise, Ghana has long been seen as one of Africa´s most promising countries.
Ghana´s main exports: gold, cocoa, diamonds, timber, manganese and bauxite, known as traditional items. These are now increasingly supplemented by exports of processed and semi-processed industrial and agricultural products with tourism as the third largest foreign exchange earner after cocoa and gold.
The vision and policy direction of the new government is one of hope, jobs, wealth creation, and a robust economy that supports a thriving private sector.
This vision is crystalized in a comprehensive set of initiatives and critical interventions outlined in the maiden budget statement and economic policy of the government for the medium to long term toward achieving the industrial transformation of Ghana’s economy.
While addressing key challenges like stability of the macro economy, monetary and fiscal discipline and reliability of power for businesses, new initiatives like the stimulus package to improve the competitiveness of existing Ghanaian industries, reduction in the tax burden on enterprises and reform of the regulatory environment will lead to a more business friendly economy.
Other initiatives include the establishment of one multi-purpose industrial park in each administrative region, One District, One Factory, Planting for Food and Jobs as well as the development of strategic anchor industries as new pillars of growth for the Ghanaian economy.
The successful implementation of these several initiatives will create an industrialized economy that creates jobs; a modernized agricultural sector that emphasizes value addition and an integrated business infrastructure that truly cranks up the private sector as the engine of growth.
In the words of H.E. Nana Addo Dankwa Akufo-Addo, President of the Republic of Ghana “There could not be a better opportunity to “Make in Ghana” and to make it in Ghana. Ghana is open for business again!”.
Investment Incentives and Guarantees
There are attractive tax holidays to serve as incentives for enterprises engaged in farming or processing of agricultural produce. The tax holidays are designed to suit different types of farming activities e.g. cash crops, tree crops, fish farming, and crop, fish and livestock processing.
- Tree Crops – (e.g. coffee, oil palm, sheanut, rubber and coconut) – These have a tax holiday of 10yrs from date of first harvest.
- Cash Crops- (Cassava, yam, rice, pineapple, maize) These have a tax holiday of 5 years from date of commencement of farming enterprise.
The income from cocoa of a cocoa farmer is exempt from income tax.
Carry Over of Losses
The law permits farming losses to be carried forward for 5 years of assessment.
Exporters of Agricultural Products
Companies engaged in the export of non-traditional products enjoy a concessionary tax rate of 8%. The tax rate applies to income from non-traditional exports only.
Non-traditional goods include:
- horticultural products
- processed and raw agricultural products grown in Ghana, other than cocoa beans, wood products other than lumber and logs
- handicrafts and locally-manufactured godos
Ghana is a safe investment destination. Guarantees against expropriation of private investments provided under law are buttressed by the Ghanaian Constitution. The available investment guarantees are detailed as follows:
- Free transferability of capital, profits and dividends.
- Insurance against non-commercial risks – Ghana is a signatory to the World Bank’s Multilateral Investment Guarantee Agency (MIGA) Convention.
- Double Taxation Agreements (DTAs) – to rationalize tax obligations of investors in order to prevent double taxation. DTAs have been signed and ratified with several countries.
Advantages for Relocating to Ghana
- A stable political environment, with established democratic institutions and systems to ensure good governance.
- Abundant, adaptable, easily trainable and cost-effective labour force.
- Excellent sea and air connections with Europe and the USA.
- A strategic and central location within the West Africa sub-region providing access to a total market of around 250 million people.
- A dynamic private sector willing to collaborate with foreign partners.
- A high degree of personal safety.
- Resource-based activities in agri-business, agro-processing, i.e. fish, fruit, vegetable, wood products, minerals processing, gold, diamond and salt, export manufacturing and tourism.
- Real Estate Development.
- General infrastructure: Agriculture and industrial estates, toll roads and highways, railways and ports, sea and air services.
- Development and operation of export processing zones
- Operations within Free Zones encalves
Foreign Direct Investments in Ghana
Foreign Direct Investments (FDI) into Ghana has been increasing in recent years, making her one of the largest recipients of FDI in sub-Saharan Africa. Mining and oil exploration are the main sectors that attract most of the FDI basically from the United Kingdom, India, China and Lebanon are the main investing countries.
Ghanaian authorities have exerted much effort into simplifying the complex and lengthy procedures and are offering tax incentives which have resulted in boosting FDI. A politically stable democratic country, Ghana is of immense interest and attraction to most foreign investors seeking opportunities in Africa. Their interest is further sustained by a large and inexpensive labour force, a substantial agricultural base, numerous natural resources and stable institutions. Ghana ranks 20th in Africa in the 2018 Ease of Doing Business Rankings issued by the World Bank.
For more information click http://www.gipcghana.com/