Navigating Ghana’s Evolving Investment Landscape: Insights from the Joint Business Breakfast Meeting

Yesterday, the Movenpick Ambassador Hotel in Accra hosted an exclusive Business Breakfast Meeting organized by the Ghana Netherlands Business and Culture Council (GNBCC) and the European Chamber of Commerce in Ghana (EuroCham). Bringing together policymakers and industry leaders, the event spotlighted Ghana’s economic recovery, regulatory overhauls, and the practical steps the government is taking to optimize the business environment.

The event was held in partnership with key bilateral business associations, including AHK Ghana, the Ghana Belgium Business Club (GBBC), and CCI France Ghana. It included insights from PwC, the Ghana Investment Promotion Centre (GIPC), and the Ghana Revenue Authority (GRA). The session painted a picture of an economy in transition, balancing promising recovery with the need for deep structural reforms.

The General Manager of the GNBCC, Hilde Famaey, made the welcome address to a room full of members from all the partnering chambers and the distinguished speakers. She invited each of them to make their presentations, which would later lead to the open forum for a Q&A discussion.

Macroeconomic Recovery and the Business Climate

Ghana’s economy is showing strong signs of rebounding. According to Vish Ashiagbor, Country Senior Partner at PwC Ghana, the country’s overall investment climate is improving and remains opportunity-rich, although it is still vulnerable to external shocks.

• Economic Rebound: The economy outperformed expectations in 2025, recording a real GDP growth of 6.0%, up from 5.8% in 2024. This expansion was primarily driven by the services and agriculture sectors.
• Restored Confidence: Reflecting improved fiscal discipline and successful debt restructuring, major rating agencies, including Moody’s, S&P, and Fitch, upgraded Ghana’s sovereign credit ratings in late 2025, effectively moving the nation out of default status.
• Persistent Challenges: Despite the positive macroeconomic indicators, insiders note that doing business on the ground still has hurdles. The 2025 UKGCC Business Environment and Competitiveness Survey highlighted the high costs of land, capital, and power as major pain points for businesses. Furthermore, while Ghana scored highly (72%) in financial services in the World Bank’s B-READY 2025 report , it scored the lowest (34%) in market competition due to barriers to entry and weak competition law enforcement.

Regulatory Overhaul: The New GIPA Bill

To position Ghana as a more competitive and open investment destination, Vera Adjei from the legal division of the GIPC shared that the GIPC is undergoing a strategic repositioning. A cornerstone of this strategy is the introduction of the Ghana Investment Promotion Authority (GIPA) Bill, which will repeal and replace the existing GIPC Act of 2013 (Act 865).

Key reforms proposed under the new Bill include:

• Removal of Minimum Capital Requirements: The Bill completely removes the minimum foreign capital requirements , which previously stood at USD 500,000 for wholly foreign-owned enterprises and USD 200,000 for joint ventures.
• Investor Grievance Mechanism (IGM): An IGM will be established to handle disputes between investors and government institutions , aiming to facilitate resolutions within a three-month timeframe.
• Citizenship by Investment: The Bill paves the way for the Ministry of Interior to enact legislation allowing specific categories of investors to apply for Ghanaian citizenship based on the investment amount, sector, and residency.
• Technology Transfer Agreements (TTAs): The initial duration for TTAs has been reduced from 10 years to 5 years , with unregistered TTAs becoming legally unenforceable and ineligible for tax deductions.

Taxation: Moving Towards a Customer-Centric GRA

Elsie Appau-Klu, Technical Advisor at the GRA, outlined the authority’s aggressive push toward modernization, simplification, and an improved taxpayer experience. The GRA is shifting its operational philosophy from a rigid policing institution to a customer-centric service provider.

Key tax reforms and administrative updates include:

• Simplified VAT Regime: The GRA has introduced a unified VAT rate of 15%, removing previous variations and cascading structures. To ease compliance for small businesses, the VAT registration threshold has been increased significantly from 200,000 GHS to 750,000 GHS.
• Digitalization and Enforcement: The authority is leveraging data analytics and real-time intelligence for compliance. The introduction of physical electronic devices (e-VAT) and real-time transaction reporting is designed to level the playing field and curb tax evasion.
• Dispute Resolution: A new, independent tax appeal process has been established to resolve disputes more efficiently and cost-effectively, saving businesses the time and resources traditionally spent on litigation.
• Legislative Updates in the Pipeline: The GRA, in collaboration with the Ministry of Finance, is working on updating several key laws, including the Income Tax Act, Customs Act, and Excise Act, to broaden the tax base and boost economic development.

Direct Insights from the Q&A Session with the Speakers

The event concluded with an interactive  Q&A session moderated by Nicolas Gebara, CEO of EuroCham, where the panel addressed direct concerns from the business community:

• Addressing Taxpayer Harassment: In response to concerns about hostile tax enforcement, Ms. Appau-Klu emphasized the GRA’s ongoing cultural shift. She acknowledged past challenges with some of their 12,000 staff members but highlighted new training programs focused on customer service, behavior, and communication. The GRA has also established a customer service center and a whistleblower system, actively suspending staff engaging in illicit practices to ensure a secure and trusted environment for businesses.
• The Role of Government vs. Private Sector: Mr. Ashiagbor addressed how the government can better align with the private sector. He noted that while government intervention is justified in social sectors like healthcare and education, its primary role in business should remain focused on policy formulation and maintaining critical infrastructure, such as utilities, transport, and energy. This focus allows the private sector to drive employment and growth organically.
• The Implementation Gap: A recurring theme was the gap between policy design and execution. Mr. Ashiagbor pointed out that while initiatives like the digitalization of the Registrar of Companies and the GRA are steps in the right direction, true benefits are only realized when these systems are fully implemented and managed by properly trained personnel.
• Addressing GIPC and Registrar General Discrepancies: Ms. Adjei from the GIPC clarified the ongoing operational friction between the GIPC’s strict capital requirements and the Registrar of Companies’ systems. She advised businesses facing alignment issues regarding their declared business objects, such as trading versus other services, to update their documentation with the Registrar to reflect their actual operations. She reaffirmed that passing the new GIPA Bill, which is currently awaiting presidential action, will eliminate many of these hurdles.
• Unlocking Agricultural Financing: Addressing the severe lack of financing in the agribusiness sector, Mr. Ashiagbor highlighted the need for new financial instruments and guarantees. He mentioned initiatives like the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL), which works with banks to guarantee agricultural loans. He stressed that while plans exist, rigorous execution is needed to move Ghana’s agriculture from primary production to value-added processing.

Summary

Ghana is making deliberate strides to shed bureaucratic bottlenecks and foster a welcoming environment for both domestic and Foreign Direct Investment. While structural challenges like the cost of power, land, and access to finance remain, the sweeping regulatory reforms under the GIPA Bill, coupled with the GRA’s commitment to a more customer-centric approach, signal a strong commitment to making Ghana a premier investment area in West Africa.

A big thank you to all our partners for making this event a successful one. To our distinguished speakers and engaged members who were present, we are grateful for your time and participation.