Ghana: Investing

FDI in Figures

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

The government has made efforts in simplifying the complex and lengthy procedures and it is offering tax incentives. Additionally, Ghana is one of the most democratic countries in Africa and has a considerable and inexpensive labor force, a large agricultural base, numerous natural resources and stable institutions. However, the burdensome bureaucracy, a weak production, costly and difficult financing, under-developed transport infrastructures, unclear property laws, frequent power and water cuts and an unskilled labor force are the many factors that hinder FDI.

In 2011, Accra signed an agreement of USD 800 million with China aiming to finance the construction of a gas pipe-line.

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 .

Country Comparison For the Protection of Investors

	Ghana	Sub-Saharan Africa	United States	Germany
Index of Transaction Transparency*	7.0	4.8	7.0	5.0
Index of Manager’s Responsibility**	5.0	3.4	9.0	5.0
Index of Shareholders’ Power***	6.0	5.0	9.0	5.0
Index of Investor Protection****	6.0	4.4	8.3	5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** 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: 25%
Withholding Taxes: Dividends: 8%, Interests: 8%, Royalties: 10%.
Bilateral Agreement: Ghana and lebanon are not bound by a Double Taxation treaty.
Social Security Contributions Paid By Employers: 12.5%

Country Comparison For Corporate Taxation

	Ghana	Sub-Saharan Africa	United States	Germany
Number of Payments of Taxes per Year	33.0	37.3	11.0	16.0
Time Taken For Administrative Formalities (Hours)	224.0	315.1	187.0	215.0
Total Share of Taxes (% of Profit)	32.7	68.0	46.8	48.2

Source: Doing Business - Last Available Data.

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
Embassy of Lebanon in Accra, Ghana
F864/1 off Cantonments
Osu, P.O. Box 562, Ghana
Phone: (+233) (21) 776727
Fax: (+233) (21) 764290
Contact the embassy by Email

Business Setup Procedures

Setting Up a Company	Ghana	Sub-Saharan Africa
Procedures (number)	7.00	8.90
Time (days)	12.00	45.20

Source: Doing Business.

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