The Parliamentary Select Committee on Trade, Industry and Tourism has commended the Ghana Investment Promotion Authority (GIPA) for its efforts to attract investment into Ghana and backed key reforms aimed at strengthening the country’s investment climate.
The Committee, led by its Chairman, Alexander Hottordze Roosevelt, made the remarks during a working visit to GIPA’s offices in Accra to gain a deeper understanding of the Authority’s operations, legal reforms, challenges and strategic direction.
The engagement featured a comprehensive briefing by GIPA Chief Executive Officer, Simon Madjie, who outlined the Authority’s mandate, evolving legal framework, operational performance, and priorities under the new investment regime.
Mr Madjie traced the evolution of Ghana’s investment promotion architecture from the Capital Investment Board established in the early 1960s, through the Ghana Investment Code under PNDC Law 116, to the Ghana Investment Promotion Centre (GIPC) Act, 1994 (Act 865), and subsequently Act 1173 of 2023, which established GIPA.
He explained that Act 1173 had repositioned the institution as an Authority, reflecting its expanded promotional and regulatory functions.
The law, he said, strengthened GIPA’s mandate around three core pillars: promoting investment into Ghana; supporting investment within Ghana at the regional and district levels; and facilitating Ghanaian investment abroad, particularly within the Economic Community of West African States (ECOWAS) and under the African Continental Free Trade Area (AfCFTA).
“Our vision is to provide investors with a seamless one-stop-shop experience, backed by accurate information and high-value facilitation services,” Mr Madjie said.
He said the Authority was working to advance the “Ghana is Open for Business” agenda and position the country as a preferred investment destination.
Mr Madjie also outlined key reforms introduced under Act 1173, particularly those relating to minimum capital requirements and sectors reserved for Ghanaian businesses.
He noted that the new law had removed the blanket minimum capital requirements of US$200,000 for joint ventures and US$500,000 for wholly foreign-owned enterprises, except in the trading sector.
According to him, the removal of the blanket requirement did not mean foreign investors could enter the Ghanaian market without adequate capital.
He said Ghana had put in place safeguards, including strong local content regulations, sector-specific financial requirements, and restrictions on certain economic activities reserved for Ghanaians.
“The absence of a blanket minimum capital requirement does not mean investors can enter with no capital. It simply means we will assess capital adequacy by sector,” he emphasized.
Mr Madjie said local content requirements and sector-specific regulations covering industries such as mining, petroleum, power, insurance, and fintech would provide more targeted mechanisms for ensuring Ghanaian participation than generic capital thresholds.
He added that the reforms aligned Ghana’s investment framework with the AfCFTA Protocol on Investment and could enhance the country’s competitiveness relative to jurisdictions that continued to maintain blanket minimum capital requirements.
Mr Madjie further briefed the Committee on GIPA’s investment performance and efforts to deepen domestic participation.
He disclosed that since 1994, the Authority had registered more than 7,160 investment projects with a cumulative foreign direct investment (FDI) value exceeding US$62 billion.
He highlighted GIPA’s growing focus on regional investment promotion through initiatives such as regional investment roadshows under the Investment Opportunity Mapping Project (IOMP), documentaries showcasing investment opportunities across the regions, and the expansion and refurbishment of regional offices.
The measures, he said, were intended to bring GIPA’s services closer to investors and facilitate investment projects at their locations.
Mr Madjie also appealed to the Committee to support efforts to operationalize the citizenship-by-investment provisions under Act 1173, in collaboration with the Ministry of the Interior.
The initiative, he said, was expected to attract high-net-worth investors through structured residency and eventual citizenship programmes.
He also called for support to develop and enforce regulations on technology transfer to ensure investment projects resulted in meaningful skills and knowledge transfer to Ghanaian partners.
In addition, Mr Madjie urged stronger enforcement of sectors reserved for Ghanaians, particularly informal retail trade, taxi services, and small-scale pharmaceutical retail, where local industry groups had continued to raise concerns.
Responding to the issues raised, Mr Hottordze Roosevelt acknowledged GIPA’s strategic role in advancing Ghana’s economic transformation agenda and underscored the need to adequately resource the Authority.
He pledged the Committee’s support in facilitating constructive engagement to ensure GIPA was sufficiently empowered to discharge its expanded responsibilities under the new investment law.
Members of the Committee also commended GIPA for promoting Ghana’s investment opportunities both locally and internationally, as well as for the progress made in implementing reforms under Act 1173.
They expressed support for initiatives aimed at improving the investment climate, strengthening investor confidence, and enhancing Ghana’s competitiveness in attracting quality investments.
