The Ghana Investment Promotion Authority Act: Resetting Ghana’ s Investment Framework
It was written by the CEO of the Ghana Investment Promotion Authority, Mr Simon Madjie.
The Government of Ghana recently enacted the Ghana Investment Promotion Authority Act, 2026( Act 1173) which replaces the Ghana Investment Promotion Centre Act, 2013( Act 865). It modernises Ghana’ s investment framework and aligns it with national development priorities, the African Continental Free Trade Area( AfCFTA) and international best practice.
The Act represents an important milestone under President John Dramani Mahama’ s Reset Agenda, which places the private sector at the centre of Ghana’ s economic transformation. It builds on Act 865 and advances Ghana’ s ambition to become the preferred investment destination in Africa.
A key highlight of Act 1173 is the transformation of the Centre into an Authority with an expanded mandate and broader functions. These include promoting outward investment, facilitating and regulating technology transfer, coordinating investment policies, operating the One-Stop Shop, administering an Investor Grievance Mechanism, and serving as Ghana’ s national focal institution for the AfCFTA Protocol on Investment.
Lowering Barriers and Encouraging Investment Act 1173 removes the blanket minimum capital requirements for joint ventures and wholly foreign-owned enterprises. Notwithstanding, for trading enterprises, the minimum capital requirement is US $ 500,000( cash), compared with the previous threshold of US $ 1 million, while the requirement to employ at least twenty( 20) skilled Ghanaians has been replaced with a requirement that at least 75 % of skilled employees be Ghanaian. However, investments remain subject to sectorspecific regulations, while activities reserved for Ghanaians and wholly Ghanaian-owned enterprises are largely retained.
The Act also introduces a provision on a citizenship-by-investment framework aimed at attracting strategic investors and high net-worth individuals.
In addition, Act 1173 introduces two distinct tax incentive frameworks under the Exemptions Act, 2022( Act 1083): industry-specific tax incentives which are to be established by the Minister for Finance, in consultation with the Authority for targeted growth sectors; and special tax incentives for strategic investments which are to be determined by Cabinet.
Strengthening Investor Protection and Confidence Furthermore, Act 1173 strengthens the investor protection framework by retaining key safeguards against discrimination and unlawful expropriation, while introducing an express right to compensation for losses suffered as a result of war, riot, civil unrest, revolution, insurrection or similar events. Where such losses occur, investors are to receive treatment no less favourable than that accorded to Ghanaian investors in comparable circumstances. This provision enhances the predictability and security of investments by extending protection to losses arising from political and civil disturbances and brings Ghana’ s investment protection regime closer to commonly accepted standards in international investment agreements.
A major innovation in the Act is the establishment of an Investor Grievance Mechanism, through which the Authority serves as the first point of contact for investment-related grievances involving public institutions. The mechanism provides investors with a clear channel to address concerns before they escalate into formal disputes, whiles preserving their right to pursue available judicial or other dispute resolution mechanisms.
Under Act 1173, the automatic expatriate quota regime has been expanded, providing a graduated quota framework linked to the level of investment. The regime increases the number of automatic expatriate quota positions available to registered enterprises in good standing, from the previous maximum of four( 4) to up to twelve( 12), depending on the enterprise’ s paid-up capital. The automatic expatriate quota is valid for a period of five( 5) years and may be renewed for successive five-year periods, subject to the applicable requirements. This provides investors with greater flexibility to access specialised expatriate skills while supporting the transfer of knowledge and expertise to Ghanaian employees.
Promoting Responsible and Ethical Investment The Act also sets out clear responsibilities for investors, including compliance with Ghanaian laws, labour and environmental standards, respect for human rights, promotion of gender equality, good corporate governance, and support for local communities.
Act 1173 strengthens the prohibition against fronting, which occurs where a Ghanaian or Ghanaian-owned enterprise is used to conceal the true foreign ownership or control of an enterprise in order to circumvent restrictions applicable to foreign investors or activities reserved for Ghanaians. A person who engages in fronting commits an offence and is liable, on summary conviction, to a fine of up to 10,000 penalty units, thereby reinforcing the enforcement of the restrictions on foreign participation and promoting transparency in ownership and control.
Additionally, it strengthens the compliance, monitoring and enforcement framework by requiring enterprises to renew their registration annually, obtain prior approval and registration for branches, and comply with commitments made at the time of registration. It also introduces administrative penalties for specified breaches of the Act and establishes a National Investment Registry and reporting system to facilitate investment tracking, support annual compliance reviews and generate reliable data for evidence-based policymaking.
Positioning Ghana for the Future Act 1173 marks a significant step in modernising Ghana’ s investment regime by creating a more predictable, transparent and competitive framework that balances investor protection with stronger regulatory oversight. It positions Ghana to attract and retain quality investment, deepen local economic participation, and leverage the opportunities presented by AfCFTA and regional value chains. Ultimately, the Act provides a stronger foundation for positioning Ghana as the preferred investment destination in Africa and a hub for sustainable economic growth.
Ghana is open for Business.