High Capital Requirements Undermine Ghana’s Investment Competitiveness – GIPC
Ghana’s investment landscape faces a major hurdle due to high capital requirements, making the country less competitive in West Africa, the Ghana Investment Promotion Centre (GIPC) has revealed. According to the Centre, foreign investors are often required to inject between $200,000 and $1 million in equity depending on their business type, a policy that has deterred potential investment compared to neighbouring markets.
Speaking at the Deloitte–UKGCC Investment Readiness Webinar, George Asafo-Agyei, Director of Monitoring and Evaluation at GIPC, highlighted ongoing efforts to revise the framework. He explained that the blanket capital requirement, in place since 2017, is being reconsidered to align with the government’s vision of making Ghana a preferred hub for foreign investment. “We are trying to take away the minimum equity requirements for most sectors… It’s not making us competitive,” Asafo-Agyei noted.
While the reforms aim to remove barriers in most sectors, the trading industry is expected to retain stricter entry requirements. Asafo-Agyei emphasized that the minimum capital threshold often duplicates existing sector-specific rules, requiring businesses to meet both GIPC and individual regulator standards. “There’s no need for the GIPC to also have that blanket one,” he added.
The new Ghana Investment Promotion Authority (GIPA) Bill 2025 will replace the current GIPC Act, 2013, modernizing investment regulations across the country. Key provisions include eliminating minimum capital requirements for most foreign investors, positioning GIPA as the primary body regulating sectoral investments, and streamlining approval processes to attract more international business.
Experts say the reforms could mark a turning point for Ghana’s investment climate. By reducing upfront barriers for investors and simplifying regulatory compliance, the country hopes to enhance its attractiveness and competitiveness in the West African sub-region, potentially drawing more capital, creating jobs, and stimulating economic growth.
source: citi newsroom