Parliamentary committee commends GIPA’s investment drive, backs key reforms

The Parliamentary Select Committee on Trade, Industry and Tourism, chaired by Alexander Hottordze Roosevelt, recently toured the Ghana Investment Promotion Authority (GIPA) to learn more about its operations, legal reforms, challenges, and plans for attracting investment in and around Ghana. The tour took place at GIPA's headquarters in Accra and was led by GIPA's Chief Executive Officer, Simon Madjie, who provided a thorough overview of the authority's role, its changing legal framework, effectiveness, and priorities under the new investment regime.

In his presentation, Madjie traced the development of Ghana's investment promotion system from the Capital Investment Board established in the early 1960s, through the Ghana Investment Code under PNDC Law 116, to the Ghana Investment Promotion Centre Act of 1994 (Act 865), and finally to Act 1173 of 2023, which created GIPA. He explained that Act 1173 transformed the institution from a centre to an authority, reflecting its dual promotional and regulatory functions.

The new law establishes three key areas of focus for GIPA: promoting investment into Ghana, supporting investment within Ghana at regional and district levels, and facilitating Ghanaian investment abroad, especially within the Economic Community of West African States (ECOWAS) and under the African Continental Free Trade Area (AfCFTA).

Madjie emphasized the Authority's goal of providing investors with a streamlined one-stop-shop experience, backed by precise information and high-quality facilitation services. He also outlined key reforms under Act 1173, including the removal of blanket minimum capital requirements of $200,000 for joint ventures and $500,000 for wholly foreign-owned enterprises, except in the trading sector.

Furthermore, Madjie explained how the new law strengthens local businesses' protection through robust local content regulations, sector-specific financial requirements, and reserved economic activities for Ghanaians, replacing the generic capital thresholds.

The reforms also align Ghana's investment framework with the AfCFTA Protocol on Investment, enhancing the nation's competitiveness compared to other jurisdictions that maintain blanket minimum capital requirements. GIPA has registered over 7,160 investment projects since 1994, with a combined foreign direct investment (FDI) value exceeding $62 billion.

The authority has expanded efforts to promote regional investment through initiatives like regional investment roadshows and the development and refurbishment of regional offices.

In addition to these efforts, Madjie urged the Committee to support the implementation of citizenship-by-investment provisions under Act 1173, enable the development and enforcement of regulations on technology transfer to ensure meaningful skills and knowledge transfer to Ghanaian partners, and enforce stronger measures to protect local businesses in reserved sectors such as informal retail trade, taxi services, and small-scale pharmaceutical retail.