18 Aug Notable Changes Introduced By The New Ghana Investment Promotion Authority Act, 2026 (Act 1173)
In 2013, Parliament passed the Ghana Investment Promotion Centre Act, 2013 (Act 865) as the overarching legislation governing Ghana’s investment landscape, and designed to attract, facilitate, and regulate foreign and domestic investment. Act 865 further established the Ghana Investment Promotion Centre as the central body responsible for encouraging and promoting investment in Ghana.
Over the years, several structural and practical weaknesses emerged. They include: the problematic blanket minimum capital requirements; the inadequacy of the incentive framework of Act 865; weak alignment with relatively newer legislations such as the Companies Act[1], the Exemptions Act[2], and the Public Financial Management Act[3]; and poor harmonization of Ghana’s investment climate with international or regional regimes such as the African Continental Free Trade Area (AfCFTA).
These gaps necessitated the passage of the new Ghana Investment Promotion Authority Act, 2026 (Act 1173) (“the GIPA Act”), a comprehensive law on investment in Ghana which aims to incentivise not only foreign direct investment in Ghana, but also facilitate outward investment by Ghanaian investors. Some notable changes introduced by the GIPA Act are discussed below.
Re-characterization and Expanded Mandate of the Regulator: The GIPA Act recharacterises the Centre as an “Authority”.[4] This change is significant because it is a deliberate shift in the institution’s legal identity as a promotional “Centre”, and subtly conveys to the general public that it has been given a stronger regulatory power, a broader administrative role and enforcement capacity. This is evident from some of the new functions[5] of the Authority which include, inter alia: promoting outward investment by Ghanaian enterprises; acting as the National Focal Point regarding the African Continental Free Trade Area Agreement (AfCFTA); facilitating amicable resolution of investor grievances; and identifying and preparing project profiles on specific projects to attract interested investors.
Revised Minimum Capital Requirements for Foreign Investors: Another crucial change is the shift from blanket minimum capital requirements to industry-based capital requirements, in line with global best practices. Under the previous regime, foreign investors had to meet the following minimum capital requirements: $200,000 for a joint venture with a Ghanaian enterprise; $500,000 for wholly-owned foreign enterprises; and $1,000,000 for trading enterprises.[6] This used to be a major impediment to foreign direct investment in Ghana. Currently, under the GIPA Act, the Authority shall register an enterprise if it is satisfied that the relevant minimum foreign capital requirements have been complied with.[7] However, the exception is where the enterprise is engaged in trading, in which case, the Act has set the foreign minimum capital requirement at $500,000, and requires at least seventy-five percent of the employees of the foreign investor to be skilled Ghanaians.[8] The aforesaid minimum capital requirement for trading does not apply to a portfolio investment.[9] It is important to add, however, that registration for foreign enterprises remains mandatory, and an enterprise of which foreign ownership is permitted shall be registered with the Authority after incorporation and before commencement of operations.[10]
Investor Grievance Mechanism: Another novelty introduced by the GIPA Act regarding investment in Ghana is the Investor Grievance Mechanism.[11] The Authority has been mandated to establish an Investor Grievance Mechanism for receiving and processing grievances submitted by enterprises regarding their investments in the country. The grievance shall contain information on the grievance; the state institution to which the grievance relates; and any other relevant information.[12] The Authority, upon receipt, is to facilitate resolution of the grievance within three months, by consulting with the relevant state institution and the enterprise that submitted the grievance.
In practice, investors encounter all sorts of obstacles, ranging from licensing delays, immigration issues, permit disputes, conflicts with land administration, to tax administration conflicts. The introduction of a defined grievance resolution timeline and a coordinated inter-agency framework is one of the strongest aspects of the reform. Additionally, the Authority is obligated to submit quarterly reports to the Office of the President on the grievances received, the decision taken on each grievance, and the status of the grievance where it remains unresolved.[13]
Obligations of an Investor: Under the previous Act 865 regime, the focus was on attracting investors, setting entry conditions, and registration. The new GIPA Act seeks to facilitate responsible investment by introducing “obligations of the investor”.[14] Some of the obligations include: complying with the relevant domestic laws, as well as human rights, business ethics, environmental standards, and safety standards. The Act further provides that the Authority may publish guidelines on these investor obligations and monitor compliance in coordination with other governmental agencies.[15]
Citizenship by Investment: The GIPA Act now explicitly links investment activity to citizenship eligibility by introducing Citizenship by Investment (CBI).[16] A CBI Scheme is a legal pathway for foreign investors to obtain a second passport and citizenship in a country by making a significant financial contribution, typically through government donations or real estate investments.[17] Under the Act, the Ministry of Interior shall, in consultation with the Authority, enact relevant legislation to specify the category of investors who qualify to apply for CBI.
Tax Incentives: Another major structural reform is the introduction of industry-specific tax incentives[18] and special tax incentives for strategic investments.[19] Under the GIPA Act, the Minister of Finance may, in consultation with the Authority by legislative instruments, grant investors an industry-specific or programme-specific tax incentive for an industry or investment programme. Additionally, in furtherance of Section 16 of the Exemptions Act, Cabinet shall determine priority areas of investment for the purposes of promoting strategic investment. The shift towards selective and strategic economic incentivisation is important because it allows the Government to tailor incentives according to sectoral priorities and industrial policy objectives.
Expatriate Quotas and Work Permits: Under the old regime, there was an automatic expatriate quota once an enterprise’s paid-up capital met certain specified thresholds. The new regime does not necessarily shift from the automatic nature of the quotas; however, it increases the number of specified thresholds and quotas. For example, an enterprise that has invested a minimum capital of more than $10,000,000 is entitled to an expatriate quota of 12 persons.[20] The quotas granted by the Authority upon application are valid for up to 5 years and may be renewed for further periods, each not exceeding five years.[21] Additionally, the Act explicitly provides that an enterprise that is registered with the Authority and wishes to obtain a work permit for expatriate staff shall apply, through the Authority, to the Ghana Immigration Service.[22]
New Provisions on Technology Transfer Agreements: The GIPA Act explicitly states that a technology transfer agreement (TTA) that is not registered with the Authority is not legally enforceable.[23] Where a TTA is registered, it is valid for five years and subject to renewal every five years[24], in consultation with the regulator of the relevant sector to which the agreement relates.[25] Another interesting addition regarding TTAs is that it is behooved on licensed banks to decline payment on behalf of an investor in respect of a TTA, unless the investor has presented to the bank: a certificate of registration of the TTA, and a certified true copy of the TTA.[26]
National Investment Registry: Regarding monitoring and compliance, the GIPA Act mandates the Authority to establish a National Investment Registry and reporting system to undertake activities including: tracking of local and foreign investment performance; the annual compliance review for all local and foreign investors registered under this Act; and surveys on foreign direct investments on investments and re-investment.[27] This inclusion of a centralized investment registry is a highly significant reform as it demonstrates that the new framework is moving decisively toward a data-driven and compliance-oriented investment governance model.
Compensation for Loss: The new GIPA Act also introduces a provision on compensating investors who suffer loss directly related to their investments as a result of war, armed conflict, revolution, revolt or any other similar event, and that loss is attributable to a failure of Government to comply with its obligations under Ghana’s laws.[28] In such circumstances, the investor shall be compensated whether it is a wholly Ghanaian-owned enterprise or a foreign investor registered under the Act.
Exclusion of Pool Betting and Lottery from Enterprises Reserved for Ghanaians: The betting and gaming industry has dramatically evolved since Act 865 was enacted. It comes as no surprise, therefore, that under the new regime, Parliament maintained all the reserved activities under the previous regime but for “all aspects of pool betting business and lotteries, except football”.[29] This removal indicates that foreign participation in pool betting and lottery-related businesses may now be permissible for foreigners, subject to regulatory oversight by the Gaming Commission.
Improved Governance Structure of the Authority: The new investment regime positions the Authority as a central strategic investment institution embedded within executive governance, and repositions investment governance as a matter of national economic strategy and executive policy coordination. Firstly, there is an inclusion of the Minister for Foreign Affairs, or a duly appointed representative from the said Ministry, on the governing body of the Authority (“the Board”).[30] This furthers alignment of investment policy with Ghana’s international obligations, foreign policy, and strategic bilateral relationships. Secondly, the GIPA Act imposes duties and liabilities[31] on the Board to signal ethical governance, fiduciary responsibility, regulatory accountability, and transparency. Finally, the GIPA Act includes on the Technical Committee of the Board, a representative from the Office of the Registrar of Companies.[32] This reform is practical and very important because it creates institutional integration regarding company incorporation, investment regulation and compliance supervision.
Conclusion
The new GIPA Act represents a significant evolution of Ghana’s investment governance framework from a registration and promotion-oriented regime into a more strategic, coordinated, and compliance-driven system of investment administration. The reforms collectively demonstrate a deliberate shift toward modern investment governance through stronger executive oversight, inter-agency coordination, data-driven compliance monitoring, investor grievance resolution mechanisms, responsible investment obligations, targeted incentive structures, and enhanced regulatory supervision.
Additionally, the new framework tries to balance making Ghana attractive to investors with protecting the country’s economic interests. It does this by allowing more foreign participation while also increasing supervision over sectors reserved for Ghanaians, promoting local participation, and ensuring investors follow proper standards of conduct. The introduction of special investment incentives, centralized reporting systems, and CBI provisions also shows an effort to use investment regulation as a tool for Ghana’s broader economic growth and development.
[1] Companies Act, 2019 (Act 992)
[2] Exemptions Act, 2022 (Act 1083)
[3] Public Financial Management Act, 2016 (Act 921)
[4] Section 2(1), Ghana Investment Promotion Authority Act, 2026 (Act 1173)
[5] Ibid, Section 4
[6] See Ghana Investment Promotion Centre Act, 2013 (Act 865), Section 28
[7] GIPA Act supra, Section 34(3)(b)
[8] Ibid, Section 31(1)(a)
[9] Ibid, Section 31(3)
[10] Ibid, Section 34(1)
[11] Ibid, Section 43(1)
[12] Ibid, Section 43(3)
[13] Ibid, Section 43(10)
[14] Ibid, Section 45(1)
[15] Ibid, Section 45(3)
[16] Ibid, Section 39
[17] See Organisation for Economic Co-operation and Development, Citizenship and Residence by Investment Schemes: Potential Risks for Effective Exchange of Information in Tax Matters (OECD 2018) 8.
[18] GIPA Act Supra, Section 37
[19] Ibid, Section 38(1)
[20] Ibid, See Section 49(1)
[21] Ibid, Section 49(6)
[22] Ibid, Section 50
[23] Ibid, Section 52(13)
[24] Ibid, Section 52(7)
[25] Ibid, Section 52(8)
[26] Ibid, Section 52(11)
[27] Ibid, Section 46(4)
[28] Ibid, Section 53
[29] Juxtapose Section 27(1)(h) of Act 865 with Section 32(1) of GIPA Act
[30] Ibid, Section 5(1)(g)(iii)
[31] Ibid, Section 7
[32] Ibid, Section 12(2)(c)(iv)