| ADVANTAGES
OF SETTING UP BUSINESS IN GHANA |
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Ghana offers
the following unique blend of advantages to potential
investors
- A stable, multi-party democratic
environment;
- A demonstrated commitment
to the philosophy and practice of market liberalization
policies as evidenced by the ongoing success of the
Economic Recovery Programme;
- An ongoing divestiture programme
which also underscores Ghana's commitment to private
sector initiative;
- Investor confidence in the
country's economy as evidenced by major successful
investments in most sectors of the economy, particularly,
the mining sector;
- The promulgation of a new
investment law ? the Ghana Investment Promotion Centre
Act, 1994(Act 478) with in built transparent procedures;
- Availability of low-cost labour
and a good supply of trained and trainable labour;
- Availability of a stock exchange
and other emerging financial markets;
- Progressive institutional
development as evidenced by the process of establishing
export free zones and factory ? specific export processing
zones for existing firms, as well as emerging bank
and non-bank financial institutions such as Exim Guaranty
Co. Ltd., Venture Fund Management Company and Ghana
Leasing Company;
- Ongoing donor and government
support for infrastructure development? electricity
and water supplies, transport and communications;
- Quota-free access to United
States of America and European Union markets;
- Strong private sector advocacy
groups such as the Private Enterprise Foundation and
the Private Sector Advisory Group;
- A strategic location for communication
facilities in terms of international commerce; and
- Warm and friendly people and
a high degree of personal safety.
INVESTMENT ENVIRONMENT
Promotion Of Private Investment
The Government of Ghana has, over the past decade, instituted
a number of reforms under the Economic Recovery Programme
(ERP) to create an enabling environment for investment
activity.
The Government recognizes private investment to be the
leading stimulus for economic growth. Accordingly, the
legal framework regulating activities in the private sector
has been revised, so that the granting of benefits and
incentives is largely automatic. Initial interest has
been rekindled by the passing into law of the Ghana Investment
Promotion Centre (GIPC) Act, 1994 (Act 478), and the Minerals
and Mining (Amendment) Act, 1994 (Act 475), which have
relieved investors of the unintended obstacles imposed
by previous legislations.
Private investors are benefiting from the macro-economic
and sectoral reforms introduced under the ERP ? most notably,
the rehabilitation of economic and social infrastructure,
the liberalization of imports and foreign exchange, as
well as easy remittance of dividends, profits and fees
abroad as provided under the GIPC Act, 1994. In addition,
trade regimes devoid of public intervention and reforms
that have reduced company taxes in the manufacturing sector
have helped to make the business climate more conducive
to investment.
Ghana is a member of the Multilateral Investment Guarantee
Agency (MIGA) of the World Bank, which provides investment
guarantees against non-commercial risk for investments
in developing countries. The Government has entered into
bilateral Investment Promotion and Protection Agreements
with a number of countries to give further protection
to their nationals wishing to invest in Ghana. In addition,
the Ghana Arbitration Centre (GAC) has been established
to address the critical need in the country's system of
resolving civil disputes.
In order to sustain efforts at improving the investment
environment, the Government, through GIPC, has instituted
an in-country Investors' Outreach Programme which holds
periodic consultations with specific country investor
groups to map out possible solutions to problems facing
foreign investors. In addition, a number of investment
promotion seminars, conferences and fora are regularly
held both locally and abroad to promote investment opportunities
in the country. The focus of these investment drive has
been the prevailing stable macro-economic framework and
the attractive and enabling investment environment. |
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