May, 2026

Ghana is set to significantly reshape its investment landscape with the introduction of the Ghana Investment Promotion Authority Bill, 2025 (the Bill), which was passed by Parliament on 4^th April 2026 and awaits presidential assent.

At its core, the Bill establishes a new regulatory body known as the Ghana Investment Promotion Authority (the Authority), which has an expanded mandate to encourage, promote, facilitate and regulate investments into and within Ghana and to also promote investment by Ghanaian businesses outside the country. As stated in the Bill, its purpose is to create a transparent, predictable and facilitating environment for investments in Ghana.

Beyond institutional restructuring, the Bill introduces significant reforms affecting foreign investors, capital requirements, investment incentives, technology transfer, dispute resolution and compliance obligations. These changes reflect a deliberate policy shift towards improving ease of doing business, enhancing investor protection and aligning Ghana’s investment framework with evolving global standards.

This article provides a clear and practical breakdown of the key changes introduced by the Bill, with a focus on its impact on both Ghanaian and foreign investors operating in or contemplating entry into the Ghanaian market.

Lower Foreign Investment Thresholds

While the Bill effectively abolishes the minimum capital requirements applicable under the existing regime to joint ventures (USD 200,000) and wholly foreign-owned non-trading enterprises (USD 500,000), the Bill reduces the minimum capital requirement for trading enterprises from USD1,000,000 to USD 500,000.

However, this reduction in minimum capital requirement for trading enterprises is accompanied by a significantly stricter localisation requirement: at least 75% of employees must be skilled Ghanaians, replacing the current requirement of employing a minimum of 20 skilled Ghanaians. This shift allows businesses to scale their workforce organically, rather than meeting a fixed employment threshold from the outset.

The Bill also introduces a notable exemption: Ghanaian citizens who lose citizenship upon acquiring another nationality are exempt from the minimum foreign capital requirement. This preserves flexibility for dual nationals and investors of Ghanaian origin.

Additional changes include:

• • Removal of most exemptions available under the current law, with only portfolio investments remaining exempt from minimum capital requirements
  • Elimination of the spousal exemption for foreign spouses of Ghanaians
  • Reduction of reserved activities for Ghanaians from eight to six, following the removal of activities such as the printing of recharge scratch cards and pool betting and lotteries
  • Introduction of annual (rather than biennial) registration renewals

On the other hand, the definition of “capital” remains broad and includes cash, plant, machinery, equipment, buildings, spare parts, raw materials, and other business assets (excluding goodwill).

Overall, the Bill lowers financial barriers to entry while increasing emphasis on local employment and skills transfer, shifting the focus from capital intensity to workforce localisation.

Enhanced Expatriate Quota Regime

Just as with the minimum capital requirements, the Bill expands the expatriate quota system but ties it more closely to both capital investment and local employment. In addition to the quota system, the Bill introduces time-bound work permits for expatriates, allowing investors to engage specialised personnel for defined periods to support their operations.

The previous cap of four expatriates is replaced with a graduated system allowing up to 12 expatriates, based on paid-up capital:

• • USD 50,000 – 500,000: 2 expatriates
  • USD 500,000 – 1,000,000: 4 expatriates
  • USD 1,000,000 – 3,000,000: 6 expatriates
  • USD 3,000,000 – 6,000,000: 8 expatriates
  • USD 6,000,000 – 10,000,000: 10 expatriates
  • Above USD 10,000,000: up to 12 expatriates

However, this expanded flexibility is balanced by a strict requirement that at least 90% of the workforce must be skilled Ghanaians, making expatriate access conditional on meaningful local employment.

Stronger Compliance Framework

The Bill significantly strengthens compliance and enforcement by introducing:

• • A national investment registry
  • Mandatory reporting and annual compliance reviews
  • Administrative penalties of up to 10,000 penalty units for breaches

The Bill also addresses regulatory gaps in the existing legislation by introducing anti-fronting provisions, which criminalise arrangements in which   Ghanaian entities are used to conceal foreign ownership in economic sectors reserved for Ghanaians.

Similarly, the Bill clarifies the consequences of failing to register Technology Transfer Agreements (TTAs) with the Authority. Unregistered TTAs are rendered legally unenforceable, and banks are prohibited from processing payments under such agreements without proof of registration. The maximum validity period for TTAs has also been reduced from 10 years to 5 years.

Finally, key definitions are expanded to include:

• External companies (branch or liaison offices) within the definition of “enterprise.”
• New concepts such as “majority-owned Ghanaian enterprise” and “outward investment,” which were grey areas under the existing regime.

Robust Investor Protection and Dispute Resolution Channels

The Bill retains core investor protections, including protection against discrimination and unlawful expropriation, free transfer of capital, profits, and dividends, with the introduction of new compensation for losses arising from war or civil unrest, ensuring that foreign businesses are treated no less favourably in these instances than domestic enterprises, in line with protections commonly found in international investment agreements.

A key innovation is the introduction of an Investor Grievance Mechanism, providing a faster administrative route for resolving disputes with government agencies. Under this mechanism, the Authority must:

• Acknowledge grievances within 5 days and
• Target a resolution of the said grievance within 3 months

New Incentives and Strategic Investment Framework

The Bill adopts a more structured approach to tax incentives by allowing:

• Industry-specific tax incentives
• Special tax incentives for priority sectors

It also introduces a pathway to citizenship by investment, subject to criteria determined by the Minister for the Interior.

A Shift in Institutional Mandate From “Centre” to “Authority”

One of the most notable changes is the transition from a “Centre” to an “Authority” reflecting a shift from promotion to regulation and facilitation. In this regard, the Authority is empowered to impose administrative penalties (recoverable as civil debt), as well as enhanced criminal sanctions. It may also suspend services, restrict access to incentives, and issue compliance notices.

The Authority is designed to operate as a one-stop shop for investor services and is also empowered to promote Ghanaian investments abroad, particularly within Africa, under the AfCFTA framework.

The Bill further incorporates sustainable development principles, requiring investments to align with economic, social, and environmental objectives.

Conclusion

The Bill marks a significant shift in Ghana’s investment framework, combining reduced entry barriers with stronger compliance and localisation requirements.

While it creates new opportunities through lower capital thresholds and expanded incentives, it also introduces stricter regulatory oversight, higher penalties, and increased expectations for local participation.

In effect, Ghana remains open to investment, but under a more structured, transparent, and compliance-driven regime.