The GIPA Act: Resetting Ghana’s investment framework
The removal of the minimum capital requirement, however, is not a liberalisation of the economy at the expense of local businesses. All investment remain subject to the applicable sector-specific laws, licensing requirements and regulatory standards administered by the relevant authorities.
Ghana's economic landscape has become increasingly competitive, prompting investors to seek destinations with predictable regulations and efficient institutions. The government responded by enacting the Ghana Investment Promotion Authority (GIPA) Act, 2026 (Act 1173), which modernizes the country's investment framework and aligns it with domestic reforms, regional initiatives, and international best practices.
The Act consolidates previous legislation, including the Ghana Investment Promotion Centre Act, 2013 (Act 865), and introduces a comprehensive legal framework to promote investment and bolster Ghana's competitiveness as a regional investment hub.
The new law focuses on sustainable investment, technology transfer, outward Foreign Direct Investments (FDI), and social inclusion to strengthen investor confidence. President John Dramani Mahama, a reform-minded leader, has prioritized the private sector in Ghana's economic transformation. During his second term, he expanded upon the reforms initiated during his first term, which included the establishment of the Ghana Investment Promotion Centre Act, 2013 (Act 865).
The Act 1173 effectively transforms the Ghana Investment Promotion Centre (GIPC) into the Ghana Investment Promotion Authority (GIPA), a more expansive institution with a broader mandate. The Authority now promotes outward investment, facilitates technology transfer, coordinates policies, operates the One-Stop Shop, and administers a statutory Investor Grievance Mechanism (IGM). The Authority also serves as Ghana's national focal institution for the AfCFTA Protocol on Investment.
Key reforms in Act 1173 include removing minimum capital requirements for joint ventures and wholly foreign owned enterprises, lowering the minimum capital requirement for trading enterprises, and adjusting workforce ratios to ensure a higher percentage of skilled Ghanaian employees. These changes lower barriers to market entry while maintaining local business interests and preserving activities reserved for Ghanaian citizens and wholly Ghanaian-owned enterprises.
Additionally, the Authority now has a clear mandate to promote and facilitate outward investment by Ghanaian enterprises, accelerating the expansion of local businesses into regional and global markets. The Act also introduces targeted incentives for high-impact investments, encouraging strategic investments and recommending priority investment areas with Presidential approval.
Overall, Act 1173 aims to create a more competitive investment environment, streamline administrative processes, and enhance transparency to improve Ghana's ease of doing business.
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