Ghana Investment Promotion Authority implements reforms and retail protections

The Ghana Investment Promotion Authority (GIPA) is implementing reforms under the Ghana Investment Promotion Authority Act, 2023 (Act 1173) to enhance the country’s investment climate. CEO Simon Madjie informed the Parliamentary Select Committee on Trade, Industry and Tourism that the new law expands GIPA’s mandate to support regional investments and facilitate Ghanaian ventures within the ECOWAS region and the African Continental Free Trade Area (AfCFTA).

A key change includes the removal of blanket minimum capital requirements of US$200,000 for joint ventures and US$500,000 for wholly foreign-owned enterprises, except in the trading sector. Instead, capital adequacy will be assessed on a sector-specific basis.

To protect local interests, GIPA and the Ghana Union of Traders Association (GUTA) have agreed on measures to safeguard the informal retail sector, which remains reserved exclusively for Ghanaian citizens. These measures include enhanced monitoring, public education, and reporting mechanisms to prevent foreign nationals from using Ghanaian fronts to operate in restricted sectors. While the informal market is reserved for locals, GIPA noted that Ghana remains open to foreign investment in the formal retail sector, such as malls and supermarkets, provided investors comply with national laws.