What does a company gain by registering with GIPC?

According to GIPC Act 865 (2013) Section 26 (1), “An enterprise registered by the Centre is entitled to the benefits and incentives that are applicable to an enterprise of a similar nature under the Internal Revenue Act, 2000 (Act 592), Value Added Tax Act, 1998, (Act 546) and Under Chapters 82,84,85, and 98 of the Customs Harmonized Commodity and Tariff Code Schedule to the Customs, Excise and Preventive Service (Management) Act, 1993 (P.N.D.C L.330) and any other relevant law.

(2) An enterprise whose plant, machinery, equipment or parts of the plant, machinery or equipment are not zero-rated under the Customs Harmonized Commodity and Tariff Code schedule to the customs Exercise and Preventive Service management Act, 1993 (PNDCL 330) may submit an application for exemption from import duties and related charges on the plant, machinery or equipment or the parts of the plant, machinery or equipment to the Centre for onward submission to the Minister responsible for Finance

(3) The Centre shall before submitting a request for exemption to the Minister responsible for Finance determine whether the request will facilitate changes in technology and promote the specialized use of machinery, equipment or other items necessary for the establishment and operation of the enterprise”.

Companies are therefore encouraged to register and renew their registration (every two years) with the Centre to be able to enjoy these benefits.

For further information contact investor.services@gipc.gov.gh  You can also visit our website www.gipcghana.com or follow our social media handles @gipcghana on Twitter and Instagram and @ghanagipc on Facebook for more investment updates.

Source: GIPC Corporate Affairs 

1st Quarter GIPC CEOs’ Breakfast Series 2019

The GIPC ‘Ghana on the Go’ CEOs’ Breakfast Meeting- which forms part of the four (4) quarterly meetings scheduled for 2019, came off on the 29th of March 2019 at the Labadi Beach Hotel in Accra.

The meeting, themed “Ghana’s Banking Sector Reforms: Opportunities for the Private Sector” focused on the recent reforms in Ghana’s banking sector and explored the available opportunities for private sector companies and industry practitioners.

Key speakers at the event were the Head of Banking Supervision at the Bank of Ghana- Mr. Osei Gyasi, Country Senior Partner, PwC Ghana- Mr. Vish Ashiagbor, Chief Executive Officer, Asadtek Group- Mr. James Asare- Adjei and Chief Executive Officer of the GIPC Mr. Yofi Grant.

Mr. Yofi Grant, in his welcome address commended the effort by the Central Bank to strengthen the banking sector. He stated that there is a new economy emerging as Ghana gets more competitive as an investment destination.

Expressing delight at the banking sector cleanup, he opined that the sector is getting stronger and is therefore creating investor assurance of a more stable banking sector for further opportunity. Mr. Grant emphasized the role of technology in the market, adding that last year alone, total banking transactions via mobile and e-money platforms was in the region of US$52 Billion.

The Head of Banking Supervision at the Bank of Ghana- Mr. Osei Gyasi in his presentation on Policy Perspectives of opportunities created by the reform highlighted two essential topics; Foundation for functional financial sector reform and Multiple functions of the financial system.  He further stated that as part of the reforms, the Bank of Ghana has intensified both its regulatory and supervisory role. Mr. Osei Gyasi said that unlike in the past, the current approach of reforms is to place as much importance on the quality of capital to support the much-needed economic transformation and resilience of the system.

 “The reforms have promoted good corporate governance in the industry. The Corporate Governance Directive and the Basel Regulatory Capital Requirements Directive issued by the Bank of Ghana will ensure efficient governance and control of the banks by exerting both internal and external pressures, as well as discipline on banks’ operations”

Concluding his presentation, he added that Solvency and liquidity of banks will create the opportunity for businesses to grow sustainably.

The Country Senior Partner, PwC Ghana- Mr. Vish Ashiagbor presented on the Banking Sector Reforms: Perspective of the private sector. He gave an overview of the banking industry, recent reforms and expected impact and the perspective of bank executives.

He indicated that banks are generally optimistic of the existence of opportunities to pursue in order to generate the required returns after the banking reforms. He said that in a survey carried out by the PwC, banks alluded to the current stability in the economy, Government’s planned initiatives in the energy, infrastructure and industry sectors, as well as reforms in the agricultural sector as possible sources of business opportunities going forward.

Mr. James Asare- Adjei- Chief Executive Officer of Asadtek Group asserted that access to credit must be made easier and more affordable than what is being experienced. He urged the Bank of Ghana to be tactful with their planned clean-up of Microfinance and Savings & Loans as these institutions serve as a source of alternative funding for SMEs.

Plenary discussions after the Breakfast meeting highlighted the effects of the reforms implemented by the Central Bank, when the reforms would be initiated within the Savings and Loans subsector and the expected ROI of 21% funding for the five indigenous banks supported by the Ghana Amalgamated Trust.

Other discussions centred on alternative financing options available from the banks toward private businesses, the issue of Compliance within financial institutions, and the specific measures the central bank is implementing to protect depositors’ monies.

Source: GIPC Corporate Affairs

GIPC Leads Business Delegation to Annual Investment Meeting in Dubai

The Ghana Investment Promotion Centre (GIPC) in collaboration with the Dubai Chamber of Commerce is organizing an investment promotion mission to the United Arab Emirates (UAE) from the 6th to 13th April 2019.

Partnered by the Ghana Free Zones Authority (GFZA) and the Ghana Export Promotion Authority (GEPA) the mission is being held on the sidelines of the 9th Annual Investment Meeting (AIM 2019), an international conference and exhibition held under the Patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai.

Themed, “Mapping the Future of FDI: Enriching World Economies through Digital Globalization”, the event will bring together over 20,000 attendees from 140 countries to discuss the impact of digital globalization, how policies can be set in place to encourage an innovative investment atmosphere, the need to create long-term investment opportunities, and how to attract and develop skilled talents from across the world.

The objectives of the mission are to build on Ghana’s reputation as an attractive foreign direct Investment (FDI) friendly destination in West Africa, leverage the platform provided by the conference and exhibition to engage with global business leaders and decision makers to showcase Ghana’s unique investment opportunities in fin-tech and other digital technology driven sectors.

In addition, the mission is intended to promote the priority sectors of Ghana for investment including infrastructure development, manufacturing, tourism, agribusiness and financial services.

At the conference, the Chief Executive Officer of GIPC, Yofi Grant, bringing onboard his vast experience in investment banking and finance, will join other speakers at an investment promotion roundtable session to deliberate on the topic “Attracting Investments in the 4.0 World”.

He will touch on issues such as how the technological revolution affects the investment climate in the host countries for FDI projects, what Investment Promotion Agencies (IPAs) need to do to adapt to the changing dynamics of cross-border business and the emerging industry 4.0, whether or not incentives are the key to FDI attraction and job creation in the growing digital world, and how big data can help IPAs identify the right promotion strategy for the right investors for its market.

Highlights of the investment promotion mission include the AIM Investment Awards. The Centre has in 2015, 2016, and 2017 won the award for the Best Investment Promotion Agency for West and Central Africa. The Ghana delegation will also participate in an exclusive business to business matchmaking session in collaboration with the Dubai Chamber of Commerce.

Source: myjonline.com

GIPC Assures of Speedy Streamlining of Ghana’s Business Regulations

The Ghana Investment Promotion Centre (GIPC) has assured the business community and foreign investors of a quickened process to cataloguing the various business regulations in the country.

Foreign investors at Friday’s Economic Counsellors’ Dialogue organized by the GIPC, raised concerns about the numerous business regulations in Ghana which often makes it difficult to meeting standards and regulations in the country.

“We can’t do everything in a day, but the government is quickening the process to ensure the investment community knows what’s at stake when it comes to adhering to business regulations,” COO of GIPC, Carl Nelson, told JoyBusiness.

The Economic Counsellors’ Dialogue is an annual event organized by the Ghana Investment Promotion Centre (GIPC), aimed at creating an opportunity for members of the diplomatic community to dialogue on improving the business and investment climate in the country.

In line with scheduled engagements for strategic partners for the year, the Centre organized the 2019 edition of the Economic Counsellors Dialogue for trade/economic/commercial sections of all foreign embassies, high commissions and consulates in Ghana under the theme, “Improving the Ease of Doing Business in Ghana: Immigration Laws, Technology Transfer Agreements and Double Taxation Agreements”.

Source: myjonline.com

Ghana Signs Double Taxation Agreements with 10 Countries

The Government has signed double taxation agreements with 10 countries towards giving investors a stable and conducive tax scheme. The Government hopes that the signing of such agreements will encourage investments and in turn, facilitate the transfer of skills and technology.

The countries are Belgium, Denmark, France, the United Kingdom, Switzerland, Mauritius, South Africa, Italy, Netherlands and Germany. Mr Eric Mensah, the Assistant Commissioner in charge of Legal Affairs and Treaties at the Ghana Revenue Authority speaking at the Economic Counsellors’ Dialogue said the agreements aim at eliminating juridical or economic double taxation.

The Economic Counsellors’ Dialogue was organised by the Ghana Investment Promotion Centre (GIPC) as part of its strategy to assist businesses in understanding the rudiments of investing in the country. He said the government had signed similar agreements with Barbados, Czech Republic, Seychelles, Singapore, Ireland, Malta, Qatar, and Morocco but yet to be enforced.

“Ghana had also held talks with Iran, Norway, Luxembourg, Portugal, Korea, Saudi Arabia, Nigeria and the United Arab Emirates but they are yet to sign an agreement,” he added.

Mrs Naa Lamle Orleans-Lindsay, Head of Legal Division at the GIPC speaking on Technology Transfer Regime in Ghana, said the Centre had the mandate to ensure that skills were fairly transferred to Ghanaians, once a company sought to transfer skills and technology from abroad.

She said, whenever a company needed to transfer technology or skills, the GIPC was mandated to review, register, keep records, monitor and renew the application with the aim of ensuring compliance with the law. Mrs Orleans-Lindsay said for a company to transfer technologies and skills, it was an obligation to ensure that the particular technology or skills were not freely and easily available locally.

She said under the country’s Technology Transfer Agreements (TTA), transfer fees to pay for the technology transferred must be done through a registered agreement and must also be applicable to the laws of Ghana.

“Failure to register a TTA with the Centre is a breach of the GIPC Act 2013 (Act 865) and the Legislative Instrument (L.I 1547), liable to a summary conviction and that company, which failed to register its TTA cannot legally transfer fees and charges to the transferor in relation to technology transfer,” she added.

Mr Laud Ofori-Afrifa, the Deputy Comptroller General of Ghana Immigration Service (GIS), said work and residence permit of investors was currently being issued within seven days but working towards reducing it to 24 hours by June 2019.

He said the Service would soon introduce a system to link up the investment promotion and regulatory bodies including GIPC, Free Zones Board and Registrar General’s Department electronically to reduce the duration of processing documents.

Mr Ofori-Afrifa said the GIS had taken steps to issue a longer-term residence permit to investors and key expatriates from two to eight years depending on certain factors.

Source: CITIBUSINESSNEWS

Bank Deposits Picking up Strongly – Bank of Ghana

Bank deposits have risen significantly over the last few months after the banking sector reforms, Head of Banking Supervision at the Bank of Ghana, Mr. Osei Gyasi has said. He indicated that there has been improved customer confidence among traders that banks that survived after the reforms are capable of holding their funds.

He was speaking at the CEOs’ Breakfast meeting by the Ghana Investment Promotion Centre (GIPC) in collaboration with JoyBusiness.

According to him, the outlook of the banking sector is positive and the central bank is committed to fully implement all rules and regulations which will ensure a stronger financial system. He said, “The information we’re getting indicates that there is a growth in deposit after the reform. This is because most of our market women and traders now believe that the remaining banks that survived the reform are strong and capable of managing their funds.”

He added, “There has been a growth in confidence which is resulting in the deposit growth. We at the Bank of Ghana shall continue to implement the various laws and policies that have been enacted to see a robust banking sector. We are committed to fully implementing all the regulations that will see the Ghanaian banking sector grow to the highest peak.”

However, he admitted that some banks lost customers as a result of panic withdrawals that hit the sector during the reform.

Chief Executive Officer of the GIPC, Yofi Grant commended the effort by the central bank to strengthen the banking sector.

“Anytime I meet investors both in the country and outside the country, the major discussion is always on the financial sector and the reforms by the bank of Ghana which they expressed confidence that it will spur economic growth.”

He said, “I can assure you that our international investors are behind you and we at the GIPC fully support all the reforms that aimed at strengthening the banking sector. The private sector needs funds to expand and any policy reform that will help in that direction is welcomed.”

Former President of the Association of Ghana Industries (AGI), James Asare Adjei on his part appealed to the banks to lend to the private sector businesses especially the indigenous ones.

“We have heard from the Bank of Ghana that deposit is growing on the back of the reforms but businesses continue to struggle for credit. Despite the numerous calls by industries that we need their support, lending is still on a low side. The private sector needs the funds to help the economic growth especially the local manufacturers that are competing with multinationals that get credit facilities at cheaper rates from the countries,” he noted.

The former AGI boss also renewed calls for the government to implement a fixed exchange rate system to help importers and exporters during their transactions. According to him, the current fluctuations in the currency is a major challenge for Businesses in the country.

The forum is part of initiatives by the GIPC to attract investors into the economy and also to help meet its target of $10 billion investment by the end of the year.

The theme for the event was ‘Ghana’s banking sector reforms: opportunities for the private sector.’

Source: MYJOYONLINE

World’s Largest Two Wheel Manufacturer Partners with Trans-Sahara Industries to Set Up Plant in Ghana

Ghana is currently at a turning point and looking forward to a more advanced economy. As the Republic presses on to the next frontier of economic development, it has opened up its market to foreign investors to expand local industries.

Hero Motor Company, an India-based company headquartered in Dehli, has recently partnered with Accra-based Trans-Sahara Industries to establish a manufacturing plant in Ghana.

Hero Motor Company, widely recognised around the globe for using cutting-edge technology for the production of bicycles, electric bikes and motorcycles has retained an enviable position as the world’s largest two-wheeler manufacturer for the past 18 years.

The economic partnership between the two companies was announced, on 19th March 2019, at the Ghana High Commission in India.

Chief Executive Officer of the Ghana Investment Promotion Centre, Mr. Yofi Grant and Chief Executive Officer of Trans-Sahara Industries, Mr Gerald Acheampong, were present for the signing of the memorandum. Senior Executives from the Hero Motor Company, Mr Ashok Abrol and Amit Kumar Sharma, were also present.

The Ghana Investment Promotion Centre, in collaboration with the Ghana Chamber of Commerce and the Association of Ghana Industries, led a private sector delegation from Ghana to participate in the CII-EXIM Bank Conclave on the India-Africa Project which took place in New Delhi, India from the 17th to the 19th of March 2019. Dr Mahamudu Bawumia, Vice President of Ghana was the Guest of Honour for the Conclave.

The Hero Motor Company (HMC) is a group identity of businesses controlled by the Munjal Family. When operational, this venture will be the first of its type within the Economic Community of West African States and the Sub Saharan Region.

Source: Graphic Online

‘Ghana Is Ready for Business’ – President Akufo-Addo to Maltese Companies

The President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, has urged Maltese companies to take advantage of the new impetus given to Ghana-Maltese relations by the reciprocal high-level visits of the last eighteen (18) months and invest in Ghana.

Addressing a Ghana-Malta Business Forum, on Tuesday 26th March 2019 at Valletta Malta, President Akufo-Addo stated that “Ghana, ladies and gentlemen, is ready for business, and I am happy that Maltese companies have already made investments to the tune of some $19 million in our country.”

He told the gathering that there are several projects in Ghana in the areas of water, housing, transport, industry, manufacturing, agriculture, petroleum and gas, the exploitation of our mineral wealth of bauxite, iron ore and gold, amongst others, which are being structured to attract private sector investment and financing.

Touting the achievement of his government over the last two years, President Akufo-Addo noted that his administration spent the last two years putting in place measures to improve the fundamentals of Ghana’s economy which, in recent years, had been in considerable disarray, necessitating recourse to an IMF bailout programme.

“We have been moderately successful in trying to grow the Ghanaian economy, ensuring that our economy grew from 3.6% in 2016, the lowest in two decades, to 8.5% in 2017, our first year in office, to 6% last year, and is projected to grow by 7.9% in 2019, making it one of the fastest growing economies in Africa,” he said.

The President continued, “We have also now successfully completed and exited the IMF programme and have decided that, with disciplined management of our public finances, we will not have recourse, again, to a bailout programme.”

Additionally, Government, he said has implemented measures which are leading Ghana and her economy into the new digital age, formalising the Ghanaian economy, reducing the cost of doing business, and facilitating interaction between businesses and their clients, particularly in a technology-driven era, where connectivity through digital services is an important element in achieving competitiveness.

The implementation of these measures, and the strengthening of Ghana’s macroeconomy have meant that Ghana is, today, the leading recipient of foreign direct investment in West Africa.

“Growing investor confidence has meant that global vehicle manufacturing companies such as Volkswagen, Sinotruck, Nissan, Renault and Suzuki; major oil companies such as Aker Energy of Norway, and ExxonMobil of the United States of America; and Tech giant Google, are working towards establishing bases in Ghana,” President Akufo-Addo noted.

To Maltese companies present at the meeting, the President indicated that they can choose to invest in Ghana through the Ghana Investment Promotion Centre or set up as a Free Zones enterprise.

Regardless of where the investment is, President Akufo-Addo explained that government has instituted a number of incentives for the investor, depending on the nature of the activity, or the location of the investment, all intended to help investments succeed.

The President assured that “Ghana is a country governed by the rule of law, where the separation of powers is real. We have an independent judiciary, which ensures accountable governance, and you can be assured that your investments will be protected and secure.”

He was hopeful that the business forum has provided Maltese investors with the necessary environment for business networking, which will help advance economic relations between Ghana and Malta.

Source: Allafrica.com

GIPC Leads Private Sector Business Delegation to Netherlands

The Ghana Investment Promotion Centre (GIPC) is leading a private sector business delegation on an investment promotion mission to the Netherlands scheduled to take place from 4th to 9th March 2019.

The mission is jointly organized with the Embassy of the Kingdom of the Netherlands in Ghana with the assistance of the Netherlands Enterprise Agency (RVO) and Netherlands African Business Council (NABC) and supported by the Ghana Embassy in the Netherlands.

The objective of the mission is to showcase investment opportunities in Ghana and pursue opportunities for bilateral trade and investments in the areas of agriculture and agro-processing, waste management, ports and logistics, and Information, Communication and Technology (ICT).

It also intends to promote collaboration between companies of the two countries and assist them to identify opportunities for strategic partnerships, as well as promote Dutch technology, equipment and knowledge, and improve trade relations between both countries.

The 4-day program will include, an Investment seminar, B2B event, relevant company/ site visits and a Ghana Diaspora Investment Seminar.

The program will be arranged with the assistance of the NABC. The NABC established in 1946, promotes commerce in Africa by providing Dutch companies with the tools they need to succeed in the various regions and markets across the continent.

The Council has over the last few years hosted more than 60 trade missions in Africa and over 50 in the Netherlands.  These missions are carried out to facilitate the exchange of both tangible and non-tangible assets between regional entrepreneurs.

They allow both African and Dutch businesses to become familiar with the practices, strategies and technologies used in their respective regions, and often usher in fruitful business relationships.

The RVO is a government agency which operates under the auspices of the Ministry of Economic Affairs and Climate Policy.

Its activities are commissioned by the various ministries and the European Union.  The agency stimulates entrepreneurs in sustainable, agricultural, innovative and international business.

It also aims to improve opportunities for entrepreneurs, strengthen their position and help them realise their international ambitions with funding, networking, know-how and compliance with laws and regulations.

This high-level mission will send a strong message to the Dutch business community in the Netherlands and strategically position Ghana in the Netherlands as an interesting trade and investment destination within the region.

Source: www.myjoyonline.com

Ghana Attracts Over US$3.5 BN FDI in 2018

Ghana has cemented its position as the most attractive destination for Foreign Direct Investment (FDI), ahead of neighbouring Nigeria, by attracting FDI commitments to the tune of well over US$ 3.5 billion in 2018. Indeed, the actual FDI figures for the year could be considerably higher since data from the Petroleum Commission, Minerals Commission and the Ghana Free Zones Board, only covers the first three quarters of the year.

It is possible that the Petroleum Commission’s figures could have risen considerably during the last quarter of 2018 due to the intensity of Aker Energy’s exploratory drilling programme during that period which indeed culminated in the announcement of the largest single oil find in the entire West African Gulf of Guinea to date, a few weeks ago.

Full year figures from the Ghana Investment Promotion Centre (GIPC), the country’s flagship FDI facilitation agency proved that 2017’s record breaking performance was not a fluke. In 2017, the Centre attracted FDI commitments to the tune of US$3,614.07 million, and adding on local counterpart investment, this brought the total investment commitments registered with it to US$3,745.60 million.

Despite this being the highest FDI registered in the 24 year history of the GIPC cynics argued that it was only achieved because of one single investment commitment of over US$2 billion made during the year. However, in 2018, GIPC nearly matched the previous year’s performance, registering US$3,324.42 million in commitments and with local counterpart commitments added on, a total of US$3,540.73 million. Instructively, the highest single investment registered is for US$1,417.58 million and indeed two investments are for over US$1 billion each.

But the level of total investment commitments for 2018 (full year for GIPC but first nine months for the other agencies) at US$3,676.49 million is likely to fall short of the US$6,189.68 million (full year for all for agencies) because of sharp declines by the Petroleum Commission, Minerals Commission and GFZB which only registered commitments during the first three quarters of the year, to the tunes of US$134 million, US$770,000 and US$990,000 respectively, down from 2017’s full year levels of US$493.86 million, US$549.59 million and US$1,400.63 million respectively.

Importantly, commitments generated by GIPC are expected to create 17,924 jobs, up from 13,108 jobs in 2017. For 2018, GIPC attracted commitments to the tune of US$1,417.58 million for the service sector expected to generate 7,780 jobs; US$1,101.87 million for the general trade sector, expected to create 1,687 jobs; US$715.41 million for the manufacturing sector, expected to generate 4,859 jobs; US$137.51 million for export trade expected to generate 217 jobs; US$93.66 million for the building and construction sector expected to generate 259 jobs; US$65.65 million for liaison offices, generating 2,086 jobs; and US$8.91 million for the agricultural sector, to generate 946 jobs.

Source: www.ghanaweb.com