The Ghana Investment Promotion Centre Act, 2013 (Act 865), which previously governed Ghana’s investment framework, has been replaced by the Ghana Investment Promotion Authority Act, 2026 (Act 1173), ushering in a new regime for the promotion, regulation and protection of investment in Ghana.
A new chapter in Ghana’s investment regime
Act 1173 transforms the Ghana Investment Promotion Centre into an Authority, but the reforms are significantly more than a change in institutional name. The new regime strikes a balance between investment promotion and regulation.
It removes some longstanding barriers to entry in certain sectors, introduces robust regulatory and compliance frameworks, strengthens investor-protection mechanisms, expands the institutional mandate of the Authority, introduces a more developed framework for responsible investment, and seeks to position Ghana more deliberately within the emerging continental investment architecture under the African Continental Free Trade Area.
What do these changes mean for businesses already operating in Ghana, and what should prospective investors consider before entering the market? This article examines the key reforms and their practical implications for both existing and prospective investors.
What existing investors or businesses should know
Existing businesses benefit from important transitional protections under Act 1173. Enterprises and joint ventures previously registered with the Centre are automatically treated as registered with the Authority. They do not need to register afresh until their existing registration expires, and the benefits attached to that registration remain valid.
Similarly, expatriate quotas and work permits issued under Act 865 remain valid until they expire, after which they must be renewed under Act 1173. Technology Transfer Agreements previously registered with the Centre also remain unaffected.
What Businesses Should Know Generally about the Changes From a “Centre” to an “Authority”
The previous regime created a Centre with the mandate to encourage, promote, and facilitate investment. Reestablishing the Centre as an Authority reorients the institutions core function away from only investment promotion towards a broader investment governance model. The new Authority assumes robust supervisory role over investment activities, as reflected in the mandate now conferred on it.
The Authority may now monitor enterprises, require information and records, and take action to enforce compliance with the Act. Although investment promotion remains its primary mandate, it now has stronger powers to hold non-compliant businesses accountable. At the same time, investors aggrieved by the actions of other public institutions may bring their complaints to the Authority for redress.
Removal of capital thresholds for joint and wholly owned enterprises
Act 865 previously required foreign investors contribute a minimum capital of US$200,000 for a joined venture and US$500,000 for wholly owned foreign company. Act 1173 has removed these thresholds.
While minimum capital requirements can help distinguish substantial investment from small-scale foreign participation, they can also deter businesses that do not require significant upfront capital. Technology companies, professional services firms, digital businesses and start-ups, for example, may create substantial value with relatively little initial capital. Removing the blanket thresholds therefore opens Ghana’s market to a broader range of foreign investors.
The reform does not, however, eliminate sector-specific capital requirements. Banks, fintech companies and businesses in other regulated sectors may still have to satisfy minimum capital, licensing or local-content requirements under the laws governing their industries. Investors should therefore assess the rules applicable to their specific sector before relying on the exemption under Act 1173.
Lower capital thresholds for trading enterprises
Under the previous regime, foreign investors engaging in trading businesses had to satisfy a minimum capital requirement of US$1 million. Act 1173 reduces this threshold by 50%, requiring non-citizens engaged in trading to contribute at least US$500,000 in cash or equity.
From an investment perspective, this is a welcome reform. It lowers a significant barrier to entry, particularly for medium-sized international trading businesses that may have found the previous US$1 million threshold prohibitive.
The lower capital threshold, however, comes with a higher local employment requirement. Under the previous regime, trading enterprises had to employ at least 20 skilled Ghanaians. Act 1173 now requires at least 75% of their workforce to be Ghanaian. Employment contracts must also comply with the Labour Act, unless the parties lawfully agree otherwise.
The new workforce requirement may prove more demanding for businesses with large or expanding workforces. Unlike the previous fixed threshold, the obligation grows with the size of the enterprise. Investors should therefore treat local employment as an important part of their investment planning, assessing the availability of suitable local talent.
Registration is now a continuing compliance obligation
Businesses must now renew their registration with the Authority annually, rather than biennially as required under the previous regime. Investors should therefore treat renewal as an ongoing compliance obligation and incorporate it into their internal compliance frameworks.
Failure to renew may have significant consequences. An enterprise may only enjoy incentives under Act 1173 while it remains registered with the Authority. A failure to renew may therefore jeopardise those benefits.
It may also attract an initial administrative penalty of GHS 84,000, with additional monthly penalties of between GHS 2,400 and GHS 6,000 for continuing non-compliance. These penalties will ordinarily not apply where an enterprise applies for renewal on time, but the Authority delays the process.
Businesses should therefore assign clear responsibility for GIPA registration and renewal and integrate it with their corporate, tax, immigration and sector-specific compliance processes.
Expansion of expatriate quotas
Act 1173 expands automatic expatriate quotas from a maximum of four to twelve positions, depending on the level of investment. Each quota remains valid for five years and is renewable. The Authority may also assist businesses in securing related approvals from institutions such as the Ghana Immigration Service.
The reform gives larger investors greater flexibility to deploy specialised foreign expertise. Investors should, however, balance this flexibility with the Act’s broader emphasis on local employment, training and knowledge transfer.
Market access has become more liberalized
Act 1173 retains certain activities exclusively for Ghanaians and Ghanaian-owned enterprises but narrows the reserved list. Notably, recharge scratch-card printing and pool betting and lottery operations, previously reserved for Ghanaians, are now open to foreign participation.
However, activities such as the retail of finished pharmaceutical products, sachet-water production and supply, beauty salons and barbering services, certain taxi and car-hire businesses, and specified forms of petty trading remain reserved for Ghanaians.
Foreign investors should therefore confirm that their proposed activities are open to foreign participation and assess any additional sector-specific restrictions before entering the market.
Investor protection has been strengthened
Act 1173 introduces an investor grievance mechanism that strengthens investor protection. Investors may now lodge complaints against public institutions with the Authority, which must determine them within a prescribed period. The institution concerned must cooperate with the Authority and implement its decision.
The mechanism applies only to disputes that are not already before a court or arbitral tribunal. It therefore gives investors an opportunity to resolve regulatory and administrative disputes before resorting to formal proceedings.
Investors who are dissatisfied with the Authority’s decision may still pursue available judicial, arbitral or administrative remedies. The effectiveness of this mechanism will, however, depend largely on how it operates in practice.
Sustainable investment obligations
Act 1173 introduces affirmative obligations for investors, marking a significant shift from the previous regime. Registered businesses must now advance ESG-related objectives, including sustainable development and social inclusion, human rights and business ethics, gender equity, local content, human-capital development and knowledge transfer.
This shift aligns Ghana’s investment framework with broader international standards for responsible investment. For businesses, particularly in mining, energy, infrastructure and natural resources, ESG is no longer merely a matter of corporate policy; it is a regulatory concern. Boards should review their governance and compliance systems to ensure that they meet these new obligations.
Technology transfer agreements
Act 1173 strengthens the rules governing Technology Transfer Agreements (TTAs), which multinational businesses commonly use for intellectual property licensing, technical know-how, management services and other specialised expertise provided to Ghanaian entities.
Unlike Act 865, the new Act expressly provides that an unregistered TTA is void and unenforceable. Registration is therefore critical, particularly because non-compliance may also affect cross-border payments and their tax treatment.
Act 1173 also reduces the minimum duration of a TTA from 18 months to 12 months, giving businesses greater flexibility to structure shorter-term arrangements. Multinational companies should therefore review their existing technology, licensing, management-service and intellectual-property agreements to ensure compliance with the new regime.
Final reflections
Viewed as a whole, Act 1173 deliberately recalibrates Ghana’s investment framework.
On the one hand, it lowers barriers to entry by reducing capital requirements for trading enterprises, expanding expatriate quotas, narrowing the activities reserved for Ghanaians and allowing greater flexibility in technology transfer arrangements.
On the other, it strengthens regulatory oversight through annual registration renewals, administrative penalties, stricter technology transfer rules and statutory ESG obligations.
The result is a measured policy balance: Ghana is opening its market to a broader range of investors while demanding higher standards of compliance and responsible business conduct.
For investors, however, understanding the legislation is only the first step. The real test of Act 1173 will be how effectively Ghana’s new investment framework operates in practice.
About the Authors
Marilyn Badger is a Ghanaian lawyer and Senior Associate at AB Lexmall & Associates. She has extensive experience in advising businesses on corporate, commercial, and regulatory matters. She supports local and international companies across various sectors, with particular expertise in corporate structuring, labour law, transactions, and governance.
Ruth Awenteme Adams is a Ghanaian lawyer and an Associate at AB Lexmall & Associates. She has advised businesses on corporate, commercial, and regulatory matters. She supports organisations across various sectors, with particular expertise in transactions, intellectual property, corporate governance and compliance.
