Chief Executive of the Ghana Investment Promotion Centre (GIPC),Yofi Grant has defended the recent decision to eliminate the capital requirements for foreign businesses under Section 28 of the GIPC Act.
Previously, foreign individuals entering joint ventures in Ghana were mandated to invest a minimum of $200,000, while those entering the retail sector needed $1 million.
Speaking at the second Ghana EU Business Forum in Accra, Grant emphasized that this change aims to enhance competitiveness and attract more investors to Ghana.
He clarified, “There was a misunderstanding because the required capital remains with the company, not deposited anywhere. Our research shows nearly every foreign investor ultimately brings more than $500,000.”
Grant highlighted concerns about the psychological barrier the requirement posed, especially for SMEs in joint ventures. He noted, “In a 50-50 joint venture, if the foreign partner contributes $200,000, the local investor is expected to match. Unfortunately, many SMEs lack sufficient capital.”
However, some local trading associations have criticized the revision, claiming it favors foreign, particularly Asian, entities and disadvantages Ghanaian traders.