Ghana has abolished the minimum capital requirements previously imposed on most foreign investors, in a major investment policy shift designed to make the country more attractive to international businesses. The change follows the enactment of the Ghana Investment Promotion Authority Act, 2026 (Act 1173), which replaces the earlier framework under the Ghana Investment Promotion Centre Act, 2013 (Act 865).
Under the previous rules, foreign investors were required to bring in at least $200,000 for joint ventures with Ghanaian partners, $500,000 for wholly foreign-owned businesses and $1 million for foreign-owned trading companies. The requirements had been criticised for making it difficult for smaller foreign businesses, technology startups, consulting firms and other knowledge-based companies to enter the Ghanaian market, particularly where their value was built around skills, innovation and intellectual property rather than large amounts of capital.
Chief Executive Officer of the Ghana Investment Promotion Authority, Simon Madjie, said the reform was intended to create a more competitive and accessible investment environment. According to him, businesses can generate significant economic value through technology, specialised skills and innovation without making substantial upfront capital investments. The new law therefore removes the blanket capital requirements for joint ventures and wholly foreign-owned enterprises while retaining regulatory controls through sector-specific laws, licences and standards.
However, the reform does not completely remove capital requirements for every category of foreign investor. Trading enterprises will now face a minimum capital requirement of $500,000, down from the previous $1 million. The new law also replaces the requirement for trading companies to employ at least 20 skilled Ghanaians with a provision requiring at least 75 per cent of their skilled workforce to be Ghanaian. Businesses operating in sectors reserved for Ghanaian citizens or wholly Ghanaian-owned enterprises will also continue to face restrictions.
The investment overhaul could give Ghana a stronger position in the race for foreign capital across Africa, particularly among technology, fintech, professional services and other innovation-driven businesses. The government expects the reforms to reduce barriers to entry, strengthen investor confidence and attract quality investments while supporting local employment and skills development. The new Act also transforms the Ghana Investment Promotion Centre into the Ghana Investment Promotion Authority, expanding its responsibilities to include outward investment promotion, technology transfer regulation, a one-stop investment shop and an Investor Grievance Mechanism, as Ghana seeks to strengthen its position as a preferred investment destination within the African Continental Free Trade Area.
source: ghanabusiness
