A new report by CUTS Ghana has shown that foreigners who wish to invest in Ghana want the minimum capital requirement set by the GIPC Act, 2013 (Act 865) reduced.
The research was conducted in collaboration with the World Economic Forum and the Ghana Investment Promotion Centre (GIPC).
According to the research findings, some foreigners say the high charges in setting up a business in Ghana is partly accountable for the seeming low investments from potential investors.
Currently, a foreigner who wishes to establish a wholly-owned business in Ghana will have to provide a minimum capital of US$500,000.
Speaking to Citi Business News on this, Centre Coordinator of CUTS Ghana, Appiah Kusi Adomako, said the country is losing its competitiveness due to this high minimum capital requirement.
“If a foreigner wants to come to invest in Ghana, there is a minimum capital requirement of US$500,000 under the GIPC Act and by fixing one figure on all requirements, you do disincentive to other sectors. When we do this, we are also losing out to our competitors in the West African region,” he warned.
The research also revealed several issues hindering investors from investing in Ghana including predictable tax regime, Agriculture among others.
Policy and Community Lead for International Trade and Investment at the World Economic Forum, Matthew Stephenson expressed confidence that the research conducted will aid in ironing out all concerns of investors who wish to invest in Ghana.