Ghana Investment Promotion Centre (GIPC) is a Governmental agency established to promote, co-ordinate and facilitate investment in Ghana. In its efforts at promoting both local and foreign investments in Ghana, it has mounted series of lectures to drum home this fact and has thus done so well over the years in this regard.
Required:
In line with the GIPC Act, 2013 (Act 865), how should foreigners participate in business activities in Ghana? (9 marks)
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Under section 28 of the GIPC Act (1), A person who is not a citizen may participate in an enterprise if that person
- in the case of a joint enterprise with a partner who is a citizen, invests a foreign capital of not less than two hundred thousand United States dollars in cash or capital goods relevant to the investment or a combination of both by way of equity participation and the partner who is a citizen does not have less than ten percent equity participation in the joint enterprise; or
- where that person wholly owns the enterprise and invests a foreign capital of not less than five hundred thousand United States Dollars in cash or capital goods relevant to the investment or combination of both by way of equity capital in the enterprise.
- A person who is not a citizen may engage in a trading enterprise if that person invests in the enterprise, not less than one million United States Dollars in cash or goods and services relevant to the investments. “trading” includes the purchasing and selling of imported goods and services. An enterprise that goes into trading shall employ at least twenty skilled Ghanaians.
The above is the mode through which a foreigner can conduct business activities in Ghana.