Message from Ambassadors

Investment Climate in Ghana andBusiness Opportunities forJapanese Companies
Frank Okyere
Ambassador of Ghana to Japan

1. Background
Ghana is a resource-rich nation with considerable
endowment in both natural resources and human capital.
When these resources are well harnessed and deployedcreatively in a transparent manner, they should catalyse
Ghana’s economic development rapidly.
The current government has adopted a ‘Ghana
Beyond Aid’ agenda which is a national transformation
agenda comprising a vision of a Ghana we want and themind-set and behavioural changes that we Ghanaians
commit to make in order to pursue that vision.
The vision calls for transforming our economy,
which has always been on the production and exports of
raw materials, to one based on manufacturing and highvalue addition services; an economy that provides
opportunities, jobs, and prosperity to all Ghanaians.
As a country, we recognise that the economictransformation and growth of our economy that will make us
prosperous and move us beyond aid, will have to be financed
primarily by domestic resources and also by foreign private
investment.
Ghana’s long-term vision sets out to achieve
consistently higher levels of GDP growth and job creation,
through increased domestic production focused on value
addition to our raw materials and international trade. This

really requires a new policy orientation as above, capableof transforming Ghana into an industry-driven economy
that delivers high levels of productivity as well as decent
jobs, on a scale significant and widespread enough toachieve equitable social and economic development.
Ghana’s credentials as a beacon of democracy inAfrica due to its political stability and deepened
democratic governance underpins the great opportunity
to implement long-term policies, develop local andinternational partnerships to promote mutually beneficial
activities and further attract local and foreign investment,
e.g. investments from Japan as seen with the establishmentof a vehicle assembling plant in Ghana by Toyota andothers.

2. Investment Opportunities
Ghana is the 2nd largest economy in West Africa (bynominal GDP USD68 billion; and by population 28.8
million):1) We are one of the fastest growing economies in theWorld (7.4% growth at end of 2018).
2) We are the 4th top destination for FDI in Africa but 1stin West-Africa (USD3.3 billion) in 2018.
3) We are strategically located within the Economic
Community of West Africa States (ECOWAS) sub-Before his appointment as Ambassador of Ghana to Japan in 2018, His
Excellency Frank Okyere worked in the well-established family-owned
business, then known as Oyoko Contractors from 1977, first as a ProjectManager, then in 1988, Project Director, then rising through the ranks to comethe Managing Director in 1999, in the now Oyoko Europarts Ltd. H. E. Frank
Okyere’s experience in the Private Sector provides an ideal basis in serving asAmbassador, because his affinity with the private sector, ensures that Ghana
will benefit greatly from his networking and cooperation with Japanese andSingaporean business. It is upon such foundations that the Government’s
vision to have a ‘Ghana Beyond Aid,’ can be tangibly realised.

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regional market (total population of 367 million, 234
million of which are English-speaking).
4) Our shipping time to major global markets is relatively
short:• 15 days to Europe by Sea or 6 hours by Air•	18 days to USA by Sea (direct) or 30 days (transshipment)5) We have two major Sea Ports, Tema & Takoradi, withTema Port undergoing a USD 1.5 billion upgrade totriple capacity at the end of 2019.
6) We also currently have one of the most modern airports
in the ECOWAS sub region.

3. Business Regulatory Reforms
Ghana is currently implementing a comprehensive
programme for Business Regulatory reforms:
1) Targeted interventions at the level of all public
institutions are aimed at improving our performance in
the World Bank “Ease of Doing Business” index.
2) The establishment of an E-Registry which documents
all business related laws, regulations, policy directives,
administrative notices etc. to ensure openness andtransparency
3) The introduction of a Regulatory Impact Assessment
programme to be implemented in each public
institution by Regulatory Impact Units
4) The adoption of a special programme to provide
targeted regulatory relief for SMEs

4. Significant Market Access
Opportunities
Ghana has significant market access opportunities toexport markets under existing regional and bilateral trade
regimes:•	ECOWAS Trade Liberalisation Scheme (ETLS), as amember of the ECOWAS•	The African Growth Opportunity Act (AGOA), withthe USA•	The Economic Partnership Agreement (EPA), withthe European Union•	Continental Free Trade Area (CFTA), with the AfricanUnion36

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5. S
 trategic objectives of our IndustrialPolicy•	Job creation•	Export diversification•	Providing targeted support to companies investing inGhana to compete with imports•	Promoting Ghanaian participation and collaboration
in foreign commercial transactions through jointventures, technology licensing, subcontracting,franchise arrangements etc.
•	
Using the power of Government procurement tosupport local investments•	Promoting even and spatial distribution ofindustries - “One District One Factory”•	Investing in new strategic anchor industries as newgrowth poles of the Ghanaian economy•	Promoting the establishment of Industrial Parks andSpecial Economic Zones to enhance the eco-system
for industrial activity•	
Revitalizing domestic industries by providing
stimulus support

6. Incentive Packages for Industries
6.1 Free Zone Enterprises
Under the Ghana Free Zones Act, firms can either locate
in an Export Processing Zones or as a stand-alone andenjoy the same incentives as long as 70% of its goods orservices are exported. The following fiscal and non-fiscal
incentives are available under the law:
Fiscal Incentives•	100% exemption of import duties and levies•	100% exemption of export duty•	100% exemption of income tax on profits for 10years. Thereafter, the tax rate will not exceed 15%•	Total exemption from payment of withholding taxes
from dividends arising out of free zone investments•	Relief from double taxation for foreign investors
Non-Fiscal Incentives•	No import licensing requirements•	Minimal customs formalities•	100% ownership of shares by any investor (foreign ornational) is allowed.
•	
No conditions or restrictions on repatriation ofdividends or net profit, foreign loan servicing andtechnology transfer agreement•	Permitted to operate foreign currency accounts withbanks in Ghana.
•	Up to 30% of annual production of goods and services
are authorized for sale in the local market. At least
70% must be exported.
•	Free zone investments are guaranteed against
nationalization & expropriation.
•	Inspection on export and import is easily and quickly
done by customs officers.
6.2 Incentive Package for One-District-One Factory(1D1F Enterprises)
The One-District-One Factory Initiative was instituted byPresident Nana Addo Dankwa Akufo-Addo, to address
the challenge of slow economic growth at the districtlevel, through a massive private sector-led nationwide
industrialization drive. This initiative will equip andempower communities to utilize their local resources inmanufacturing products that are in high demand locallyand internationally:
1) Corporate Tax•	Tax holiday of five years after commencement ofoperations. The tax holiday may be renewed onapplication by the company and subsequent approvalby the Minister for Finance.
2) Exemptions, Waiver of Import Duties and Levies on
Equipment, Machinery, Plants and Parts and Raw
Materials•	Industrial plants, machinery or equipment and parts
imported for IDIF enterprises are exempted frompayment of taxes, levies and Customs Import Duty.
•	An enterprise whose Plant, Machinery or Equipmentand Parts are not zero rated under the Customs, Exciseand Preventive Service Management Act, 1993 maysubmit an application for exemption from importduties and related charges on the plant, machinery orequipment at the Customs Division of Ghana Revenue
Authority (GRA).
•	100% exemption from payment of direct and indirect
duties and levies on all raw material imports for ID1F
production for domestic market and exports•	Exemption from payment of withholding taxes fromdividends•	Relief from double taxation for foreign investors andemployees participating in 1D1F enterprises
3) Guarantees•	Guarantees for the repatriation of dividends or net
profit of foreign investors participating in 1D1F
enterprises, subject to existing foreign exchange

regulations•	Guarantee against nationalization and expropriationof investments in 1D1F companies•	
Foreign owned 1D1F companies can employ aspecified number of expatriate workers on request
with the approval of GIPC, but on a sliding scale
based on the number of years of continued operation.
4) Other Incentives•	Provision of Subsidy on Interest Rates for 1D1F
Companies by Government: Standardized interest
rates to be charged by 1D1F Participating FinancialInstitutions (PFIs) shall not exceed 20% per annum;
associated net interest rate to be paid by beneficiary
1D1F companies shall not exceed 10% with
Government providing related subsidy on interest
rates.
•	Insurance Risk Cover : A special credit risk insurance
guarantee scheme shall be established to support
medium to long term financing for 1D1F companies.

7. S trategic Anchor Industries for
Investment
The following listed sectors are opened for foreign
investment:• Petrochemicals• Iron and Steel• Integrated Bauxite and Aluminum• Industrial Chemicals (incl. Industrial Salt)• Pharmaceuticals• Vehicle Assembly• Garments and Textiles•	Agribusiness, e.g. Vegetable Oils and Fats, IndustrialStarch• Machinery and Equipment Manufacture

8. Why Ghana?
1) Stable macro-economic environment2) Strong democratic credentials
3) Political stability4) Safe haven for investors5) Good enabling infrastructure – energy, roads, sea ports,airports, telecoms, new railway network (underdevelopment)
6) Access to commercial justice7) Educated workforce and Skilled manpower
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