Ghana Investment Promotion Act 2025 Reforms FDI Rules, Boosts AfCFTA Integration

Ghana’s Parliament approved the Ghana Investment Promotion Act (GIPA) Bill 2025 into law on April 4, 2026. This new legislation replaces an investment code over a decade old. The GIPA Act aims to position Ghana as a prime destination for Foreign Direct Investment (FDI), including investments from within Africa.

The new law makes significant changes to Ghana's investment framework. It removes the general minimum capital requirements for joint ventures and wholly foreign-owned enterprises. Previously, these were US$200,000 for joint ventures and US$500,000 for wholly foreign-owned businesses. The minimum capital for trading enterprises has also reduced from US$1 million to US$500,000. These changes address past hurdles that deterred smaller investments, especially from the African diaspora.

This legislative overhaul is crucial for Ghana’s economic development and its role in regional integration. The previous Ghana Investment Promotion Centre (GIPC) Act 865, enacted in 2013, faced challenges. Rigid minimum capital requirements limited investment inflow. Inconsistencies also existed between Act 865 and newer Ghanaian laws, alongside regional commitments like the Economic Community of West African States (ECOWAS) Protocols and the African Continental Free Trade Area (AfCFTA).

According to Dode Seidu, Chief Executive of the Africa Trade Academy, the previous generic minimum capital requirements acted as a barrier. Many potential investors, particularly from the diaspora and those with African origins, could not meet the thresholds. This sometimes led to investors using Ghanaian partners as fronts to operate in the country, undermining regulatory transparency. The new GIPA Act 2025 tackles these issues directly.

The new Act also updates employment rules. The rigid requirement of hiring 20 skilled Ghanaians has been replaced with a proportional approach. Trading enterprises must now ensure at least 75% of their employees are skilled Ghanaians. The list of activities reserved for Ghanaians remains, with only printing recharge scratch cards and pool betting/lotteries removed. This aims to protect local industries while allowing for targeted foreign participation.

Furthermore, the GIPA Act incorporates principles of sustainable development. It requires businesses to adhere to human rights, fair labour practices, corporate social responsibility, climate action, and environmental protection. These provisions align with the AfCFTA Protocol on Investment, promoting responsible business practices across the continent. Enterprises must now renew their registration annually, a change from the previous two-year cycle, to enhance regulatory oversight.

The GIPC has transformed into the Ghana Investment Promotion Authority (GIPA) under the new law. GIPA now has a broader mandate, including promoting outward investment by Ghanaian businesses into foreign markets, particularly within Africa. This shift aims to turn Ghana from a capital-importing nation into a potential capital exporter, fostering regional industrial development. GIPA also gains enhanced enforcement powers, including administrative penalties, and aims to be a 'one-stop-shop' for investment facilitation.

The GIPA Act 2025 is expected to significantly impact Ghana’s implementation of the AfCFTA. It explicitly mandates GIPA to promote outward investment by Ghanaian enterprises into other African markets. The Act also includes AfCFTA-aligned provisions, such as Most Favoured Nation Treatment and Fair and Equitable Treatment. These measures aim to create a more integrated and mutually beneficial investment environment across Africa. Experts will closely watch how GIPA leverages its new powers to attract quality investments and facilitate Ghana's economic integration into the broader African market.