Foreign Direct Investment in Figures
The authorities are making an effort to simplify the complex and lengthy procedures and are offering tax incentives. Additionally, Ghana is one of the most democratic countries in Africa, and it counts a large and inexpensive labour force, a substantial agricultural base, numerous natural resources and stable institutions. However, the burdensome bureaucracy, weak productivity, costly and difficult to obtain financing services, under-developed transport infrastructure, ambiguous property laws, frequent power and water cuts and an unskilled labour force are the main factors that hinder FDI.
FDI into Ghana had been constantly increasing in recent years. In late 2013, Ghana was the fourth largest recipient of FDI in sub-Saharan Africa. However, in 2015 FDI flows decreased, mainly due to the falling prices of oil. As a consequence, there has been less interest in investing in the country's mining capacities. FDI, which reached USD 3.4 billion in 2014, decreased by 31% in 2015.
Moreover, the Government announced the signing of four agreements between Ghana and Turkey, especially in order to promote FDI. The signing took place in March 2016 when the Turkish President visited the country. Ghana is trying to attract projects that would drive development of the local labour market. In 2013, the Government authorised the exploitation of a new oil field. Ghana ranked 114th out of 189 countries in the 2016 Doing Business classification issued by the World Bank, which represents a substantial decline compared to 2015.
Mining and oil exploration are the main sectors that attract most of the FDI. The United Kingdom, India, China and Lebanon are the main investing countries.
Tax Rates
- Value added tax (VAT)
- 15%
- Company Tax
- 25%
- Withholding Taxes
- Dividends: 8%, Interests: 8%, Royalties: 10%.
- Social Security Contributions Paid By Employers
- The employer must contribute 13% of an employee's basic salary to the Social Security and National Insurance Trust.
- Other Domestic Resources
- Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Investment Opportunities
- Tenders, Projects and Public Procurement
- Fontier Market Network, 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
Contact the American Chamber of Commerce in Ghana.
Contact the Embassy of the United States in Ghana.
Contact the Embassy of Ghana in the United States.
Ghana Trade Portal
Business Portal for Africa
