PRESENTATION ON INVESTMENT OPPORTUNITIES IN GHANA CONTENT Mandate

PRESENTATION ON INVESTMENT OPPORTUNITIES IN GHANA

CONTENT § Mandate Of GIPC § Ghana at a Glance § Steps To Investing In Ghana § Minimum Capital Requirement § Investment Opportunities § Investment Incentives § Locational Incentives § General Reliefs And Investment Guarantees § Ghana On The Go

THE GIPC MANDATE The Ghana Investment Promotion Centre (GIPC) is a government agency established under Act 865 to promote, coordinate, and facilitate investment in the Ghanaian economy. Our functions include: §Investment advisory services §Joint venture facilitation §Identification of specific projects for investment promotion §Grant of investment incentives and provision of investor support services §Registration of technology transfer agreements §Negotiation of bilateral investment treaties

ACTIVITIES OF GIPC The main activities of the Centre include the following: §Promoting available investment opportunities §Conducting general industry or sector specific investment missions as required §Coordinating investment seminars and missions both local and foreign §Participating in exhibitions, conferences, workshops and seminars §Applying one-to-one direct marketing efforts §Facilitating visits of prospective investors §Matching prospective foreign investors with local partners (joint venture facilitation) §Ensuring effective and efficient on-going liaison with Ghana’s missions abroad

GHANA AT A GLANCE Population 27, 409, 893 Income category Lower middle income GDP per capita US$ 1, 480 A Stable Democracy since its transition to multi-party democracy in 1992 Rule of Law A demonstrated commitment to the philosophy of market liberalization and rule of law

GHANA AT A GLANCE Economy West Africa’s 2 nd largest economy and market access to over 350 million ECOWAS Market Best destination for ease of doing business in West Africa ahead of Cote d’Ivoire and Nigeria – 108 th (*World Doing Business Report 2017) Accessibility Easy flight connections to Europe, Middle East, The Americas and Asia An average of 6 - 8 hours across countries Human Resource Skilled and trainable labour

GIPC REGISTERED PROJECTS FROM POLAND – SEPT. ‘ 94 TO SEPT. 2017 SECTOR No. OF PROJECTS FDI ($ ) Manufacturing 1 1, 200, 000. 00 Service 2 26, 495, 117. 67 Liaison 1 74, 666. 60 Total 4 27, 769, 784. 27

INVEST IN 3 EASY STEPS Step 1 - Registration with Registrar General's Department Step 2 - Minimum Equity Contribution Step 3 – Registration with GIPC

MINIMUM CAPITAL REQUIREMENT Joint Ventures (JV) with Ghanaian partners are encouraged, 100% foreign participation is permissible Equity: § US$200, 000 for JV with Ghanaian partner (Min. 10% ) § US$ 500, 000 for 100% foreign ownership § US$ 1, 000 for trading activity (Min. 20 Skilled Ghanaians) Exemptions: § Portfolio investment § Manufacturing and export trade enterprises § Foreign spouse of a citizen of Ghana § Dual nationals

AUTOMATIC EXPATRIATE QUOTAS Automatic immigrant quotas depending on paid-up capital • US$ 50, 000 – US$ 250, 000 – 1 person • US$ 250, 000 – US$ 500, 000 – 2 people • US$ 500, 000 – US$ 700, 000 – 3 people • Above US$ 700, 000 – 4 people Companies may also apply for time-bound work permits where necessary

OPPORTUNITIES FOR INVESTORS § Agriculture and agro-processing § Manufacturing § Tourism § Energy § Infrastructure & transportation § Financial services § ICT § Health § Education

OPPORTUNITIES FOR INVESTORS Agriculture and Agro-processing § Crop production § Poultry production § Aqua culture § Vegetable oil meals plants § Livestock feeds & fishmeal § Cocoa beans & waste processing into liquor, beverages, fertiliser, etc. § Packaging § Irrigation & storage facilities § Mechanised equipment for leasing

OPPORTUNITIES FOR INVESTORS Manufacturing § Food processing establishments § Pharmaceuticals manufacturing § Manufacturing of spare parts for the oil & gas industry § Wood processing § Jewellery manufacturing § Salt production § Textile & Garments

OPPORTUNITIES FOR INVESTORS Oil & Gas § LNG Deployment Opportunities § Opportunities exist for the deployment of LNG infrastructure to serve the country & sub-region § This is to be executed by PPP or IPP §Ancillary Services § Helicopter & fixed-wing aircraft transportation § On-shore support & logistics § Mini harbours & warehouses § Anchor handling boats § Diving vessels § Construction of a dedicated pipeline from Takoradi to Tema § A dedicated on shore pipeline to connect the two port cities of Takoradi and Tema

OPPORTUNITIES FOR INVESTORS Tourism § § § Accommodation Entertainment, leisure, and sports Shopping, meeting facilities Information shops, cultural centres Training institutions for the tourism sector

OPPORTUNITIES FOR INVESTORS Financial Services Specific financial institutions dedicated to the oil & gas sectors Focal areas include: § Insurance § Asset financing companies § Leasing companies ACCRA FINANCIAL CENTRE

OPPORTUNITIES FOR INVESTORS Property Development § Deficit of over 1. 7 m units § Annual demand is over 200, 000 units § Annual production is 70, 000 units § Opportunities in residential, industrial, and commercial real estate § Physical infrastructure

OPPORTUNITIES FOR INVESTORS EDUCATION § Establishment of campuses & program sharing § To establish local campuses of international universities § Accreditation of Ghanaian universities to run foreign university programs § Research collaboration § Sharing of research & development with Ghanaian institutions § Technical institutes

OPPORTUNITIES FOR INVESTORS SERVICES – ICT § Development of two science and technology parks (STPs) in Ghana § Biotechnology and precision & engineering § Education: software development, networking, VSAT, telecom, and IT engineering § Business processing outsourcing § Back office operations

INVESTMENT INCENTIVES § Custom duty exemption on plant, machinery and equipment § Guarantee against expropriation § Accelerated depreciation for plants and buildings, § Full repatriation of dividends and net profit attributed to investment § Transfer of funds in respect of servicing of foreign loans § Losses carry forward apply to the following businesses. § Those in specified priority areas: five years § other areas: three years

INVESTMENT INCENTIVES GENERAL RELIEFS AND INVESTMENT GUARANTEES The general reliefs and investment guarantees apply to all sectors R&D Expenditure Deductibility 1. Deductions for Repairs and Improvements § Expenses for the repair or improvement of depreciable assets that are incurred in the production of income may be deducted irrespective of whether they are of a capital nature § Depreciation allowance 2. Research and Development Expenses § Research and development expenses may be deducted irrespective of whether or not they are of a capital nature

INVESTMENT INCENTIVES (Sector Specific) SECTOR/ACTIVITY CONCESSIONARY TAX RATE AFTER CONCESSIONARY PERIOD Tree crop farming 1% for 10 years from start of operation 25% Cash crops/farming livestock, other than cattle or fish 1% for 5 years from start of operation 25% Cattle farming 1% for 10 years from start of operation 25% Agro-processing business – converting fish, livestock into edible canned products 1% for 5 years from start of operation 25% Income from a cocoa by-product 1% for 5 years from start of operation business 25% Income of a company from a waste processing business 1% for 7 years from start of operation 25% The income of a venture capital financing 1% for 10 years from start of operation 25%

INVESTMENT INCENTIVES Locational Incentives for Agro-processing Companies After the five-year concessionary period (1% for five years from start of operation), agro-processing enterprises which use agricultural raw materials as their main inputs have corporate tax rates fixed according to their location: § Accra/Tema 20% § Other regional capitals (except Northern, Upper East and Upper West regional capitals) 15% § Outside regional capitals 10% § Northern, Upper East and Upper West regions (capitals and all other locations) 5%

INVESTMENT INCENTIVES Locational Incentives for Manufacturing Companies § § § Manufacturing industries located in regional capitals other than Accra and Tema 25% Elsewhere 50% Strategic Investment Incentives under Section 26(4) of GIPC Act 865

GHANA ON THE GO! § Ghana is open for business § There is strong government support for investors § There is a transparent and functional legal framework to ensure the success of every investment