Ghana has enacted the Ghana Investment Promotion Authority (GIPA) Act, 2026 (Act 1173), fundamentally reshaping its investment landscape. This new legislation abolishes the minimum capital requirements for joint ventures and wholly foreign-owned enterprises, previously set at US$200,000 and US$500,000 respectively. The Act aims to attract a broader range of investors, including small and medium-sized enterprises (SMEs) and technology startups, by removing these significant entry barriers.
The GIPA Act 1173, signed into law in July 2026, repeals and replaces the Ghana Investment Promotion Centre Act, 2013 (Act 865). This comprehensive legal framework modernises Ghana's investment regime, aligning it with domestic reforms, the African Continental Free Trade Area (AfCFTA), and international best practices. The reforms seek to enhance Ghana's competitiveness as a regional investment hub and foster sustainable economic growth.
This legislative overhaul is a key component of President John Dramani Mahama's Reset Agenda, which prioritises the private sector for Ghana's economic transformation. President Mahama has a track record of modernising the investment climate, having overseen the enactment of the 2013 Act during his first term. The new Act builds on this legacy, strengthening Ghana's ambition to become Africa's preferred investment destination by introducing significant reforms in investment promotion and regulation.
Simon Madjie, CEO of GIPA, stated that investors now seek destinations with predictable regulations, efficient institutions, and strong legal protection. He emphasised that the Act addresses these needs by embedding provisions for sustainable investment, technology transfer, and social inclusion. These measures are designed to significantly strengthen investor confidence in Ghana's economic environment.
The new Act transforms the Ghana Investment Promotion Centre (GIPC) into the Ghana Investment Promotion Authority (GIPA), expanding its institutional mandate. Beyond traditional investment promotion, the Authority is now responsible for promoting outward investment, facilitating technology transfer, and coordinating policies. It will also operate a One-Stop Shop for investors and administer a statutory Investor Grievance Mechanism (IGM). The GIPA will serve as Ghana's national focal institution for the AfCFTA Protocol on Investment.
Act 1173 also reduces the minimum capital requirement for trading enterprises, whether wholly foreign-owned or joint ventures, from US$1 million to US$500,000. It replaces the rigid mandate to employ at least 20 skilled Ghanaians with a more flexible workforce ratio. This new ratio requires at least 75 per cent of skilled employees to be Ghanaian. These changes lower market entry barriers while ensuring foreign investment continues to drive local employment opportunities.
Crucially, the removal of minimum capital requirements does not liberalise the economy at the expense of local businesses. All investments remain subject to applicable sector-specific laws, licensing requirements, and regulatory standards. The Act preserves activities reserved for Ghanaian citizens and wholly Ghanaian-owned enterprises, with only minor adjustments regarding printing of recharge cards and gaming activities. The GIPA will also act as a One-Stop Shop to improve access to information, enhance transparency, and strengthen the ease of doing business, reducing administrative bottlenecks for investors.
The expanded mandate of the GIPA includes, for the first time, a clear statutory directive to promote and facilitate outward investment by Ghanaian enterprises. This move supports Ghanaian businesses looking to expand their reach beyond national borders. The institutional reforms, including an expanded Board with broader representation, aim to improve decision-making and strengthen coordination. These changes ensure the Authority is better equipped to respond rapidly to the evolving needs of investors and foster a dynamic investment climate.