Accra: The Ghana Investment Promotion Centre (GIPC) has announced plans to revise capital requirements for foreign-owned businesses under the proposed Ghana Investment Promotion Act. The proposed Act will remove existing mandates for joint ventures and wholly foreign-owned enterprises while maintaining provisions for trading companies to meet a capital requirement of $500,000.
According to Ghana News Agency, Ms. Naa Lamle Orleans-Lindsay, Director of Legal Division at GIPC, disclosed this during a stakeholder engagement aimed at discussing and enhancing the effectiveness of technology transfer processes in Ghana. The stakeholder forum emphasized the Centre's measures to streamline investment processes and enhance Ghana's business climate.
The Director stated that under the current GIPC Act, foreign companies face specific capital requirements of $500,000. However, the revised Act will eliminate these requirements, retaining only those applicable to foreign-owned trading companies. 'The proposal is to remove them entirely and leave the capital requirements for trading companies owned by foreigners. The new law will ensure these revisions align with investor needs while maintaining regulatory oversight,' she said.
The Director also highlighted plans to resolve Technology Transfer Agreements Guidelines (TTAG) concerns raised by registered financial institutions. She expressed the hope that the proposed Act would introduce a more efficient registration and monitoring system for such agreements.
Additionally, the Director revealed that the GIPC would collaborate with other sector regulators to harmonize approval processes. This, she noted, was to reduce delays faced by investors while acknowledging the frustrations caused by prolonged regulatory clearance.
She said the proposed Act would introduce clearer provisions to facilitate foreign and domestic investment, particularly in technology and intellectual property transfers. Ms. Orleans-Lindsay noted that with the proposed Act, the GIPC would transition from a Centre to an Authority with expanded regulatory and promotional roles.
The Bill will provide a clearer definition for technology transfer agreements, specifying that the transfer must be a foreign-based enterprise incorporated outside Ghana, while the transferee must be a Ghanaian registered company.
