Ghana: Investing

FDI in Figures

FDIs into Ghana have been increasing in the past years; this trend has been continuing despite the global recession.

The government is trying to simplify the complex and lengthy procedures and is offering tax incentives. Additionally, Ghana is one of the most democratic countries in Africa and has a considerable and cheap labor force, a large agricultural base, numerous natural resources and stable organizations. However, the complexity of administrative procedures, low production, costly funding that is difficult to obtain, under-developed transport infrastructures, a disorganized land tenure regime, frequent power and water cuts and an unskilled labor force are the many factors that hinder FDI.

Mining and oil exploration sectors are the ones that attract most of the FDI. The United kingdom, India, China and Lebanon are the main investor countries .

	Ghana	Sub-Saharan Africa	الولايات المتحدة	Germany
Index of Investor Protection	6.0	4.4	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	1,220	1,685	2,527
FDI Stock (million USD)	4,886.1	6,570.8	9,098.0
Performance Index*, Ranking on 141 Economies	36	12	-
Potential Index**, Ranking on 141 Economies	106	-	-
Number of Greenfield Investments***	20.0	22.0	-
FDI Inwards (in % of GFCF****)	20.5	25.2	-
FDI Stock (in % of GDP)	29.5	42.4	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

VAT: 12.5%
Company Tax: 0.25
Withholding Taxes: Dividends: 8%, Interests: 8%, Royalties: 10%.
Bilateral Agreement: Ghana and Egypt have signed a Double Taxation treaty, which still has not been ratified.
Social Security Contributions Paid By Employers: 12.5%

Investment Opportunities

Tenders, Projects and Public Procurement: Tradeinvest Africa, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Ghana.
Useful Resources: Ghana investment promotion centre
Economic Developments and Prospects in Ghana - African Economic Outlook
Egyptian Embassy in Ghana
38 Senchi street , Airport Residential Area
GP 2508 Accra
Phone: (+233 21)776854 - 776795
Fax: (+233 21)777579
Contact the Embassy via Email.
Embassy of Ghana in Egypt
24 El Batal Ahmad'Abdel Aziz Street
Dokki
Cairo
Phone: 704273, 704154, 704395

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