Accra: The Ghana Investment Promotion Centre Act, 2013 (Act 865), which previously governed Ghana's investment framework, has been replaced by the Ghana Investment Promotion Authority Act, 2026 (Act 1173), ushering in a new regime for the promotion, regulation, and protection of investment in Ghana.
According to Ghana Web, Act 1173 transforms the Ghana Investment Promotion Centre into an Authority, significantly more than a change in institutional name. The new regime strikes a balance between investment promotion and regulation. It removes longstanding barriers to entry in specific sectors, introduces regulatory and compliance frameworks, strengthens investor-protection mechanisms, expands the institutional mandate of the Authority, and aligns Ghana with the African Continental Free Trade Area.
Existing businesses benefit from transitional protections under Act 1173. Enterprises and joint ventures previously registered are automatically treated as registered with the Authority, maintaining their benefits until registration expiry. Expatriate quotas and work permits remain valid until expiration, after which renewal under Act 1173 is necessary.
The previous regime created a Centre with a mandate for investment promotion. Reestablishing it as an Authority reorients its core functions towards a broader investment governance model. The Authority now monitors enterprises, enforces compliance with the Act, and provides redress for investor grievances against public institutions.
Act 1173 removes capital thresholds for joint and wholly foreign-owned enterprises. This opens the market to a broader range of foreign investors, although sector-specific requirements remain. For trading enterprises, the capital requirement is halved to US$500,000, but with a higher local employment requirement of 75% Ghanaian workforce, aligning with the Labour Act.
Registration renewal with the Authority is now an annual obligation. Failure to renew may result in significant penalties and jeopardize incentives under Act 1173. Businesses are advised to integrate renewal into their compliance frameworks.
Expatriate quotas expand from four to twelve positions, depending on the investment level, allowing for more specialized foreign expertise. However, the Act emphasizes local employment, training, and knowledge transfer.
Act 1173 narrows the list of activities exclusively for Ghanaians, allowing foreign participation in areas like recharge scratch-card printing and pool betting operations. However, certain activities remain reserved for Ghanaians.
The Act introduces an investor grievance mechanism for disputes not already in court or arbitration, offering a resolution avenue before formal proceedings. It also imposes sustainable investment obligations aligning with international standards, requiring businesses to advance ESG-related objectives.
Technology Transfer Agreements (TTAs) must be registered to be enforceable, with new rules reducing the minimum duration to 12 months, offering businesses greater flexibility.
Overall, Act 1173 recalibrates Ghana's investment framework, lowering entry barriers while enhancing regulatory oversight and compliance standards. The effectiveness of this new framework will depend on its practical implementation.