Ghana has announced sweeping reforms to its investment laws, eliminating mandatory minimum capital requirements for most foreign investors in a bold move to boost the country’s competitiveness as a regional investment destination.
President John Dramani Mahama unveiled the policy shift during the Presidential Investment Forum in Japan on August 20, 2025, signaling a major departure from regulations that have governed foreign investment for over a decade. The announcement comes as Ghana seeks to capitalize on a dramatic surge in foreign direct investment, which jumped 382 percent in the first half of this year.
Under the existing Ghana Investment Promotion Centre Act 2013 (Act 865), foreign investors have been required to meet strict capital thresholds: US$200,000 for joint ventures with Ghanaian partners and between US$500,000 to US$1 million for wholly foreign owned enterprises, depending on the business sector. These requirements have long been criticized as outdated barriers that discourage smaller investors and limit Ghana’s appeal compared to regional competitors.
The new GIPC Act, expected to pass into law before year’s end, will remove these thresholds for most business categories. However, trading companies may still face minimum capital requirements to protect local merchants from being overwhelmed by foreign competition in retail sectors.
Ghana’s decision reflects a broader strategic calculation. While the country has historically maintained protective measures for local entrepreneurs, policymakers now believe that rigid capital barriers are costing Ghana opportunities in an increasingly competitive investment landscape. Kenya, Côte d’Ivoire, and Nigeria have already relaxed similar restrictions, making Ghana’s requirements look restrictive by comparison.
The timing isn’t coincidental. Foreign direct investment inflows soared from US$179.07 million to US$862.96 million in the first half of 2025, suggesting that investor appetite for Ghana remains strong despite global economic headwinds. Government officials are betting that removing capital barriers will accelerate this momentum, particularly in manufacturing, agribusiness, and digital services where innovation often comes from smaller, more nimble investors.
But the reforms have sparked intense debate within Ghana’s business community. Local industry groups worry that opening the floodgates to foreign capital without adequate safeguards could marginalize Ghanaian entrepreneurs who lack the financial resources to compete with well funded international firms. There’s also concern about attracting what some call “briefcase companies,” fly by night operations with minimal commitment to Ghana’s long term economic development.
The Ghana Investment Promotion Centre has responded by promising a risk based screening system to evaluate investor credibility, project viability, and compliance with environmental and labour standards. The Centre is also coordinating with the Registrar of Companies and Ghana Revenue Authority to streamline registration processes, addressing complaints that bureaucratic delays have discouraged legitimate investors.
What makes this reform particularly significant is its potential to reshape Ghana’s economic identity. For years, the country has walked a tightrope between welcoming foreign capital and protecting local interests. The new approach suggests Ghana is willing to embrace greater openness, trusting that competitive market forces will ultimately benefit the economy more than protective regulations.
Regional implications matter too. As West Africa’s economies compete for limited global investment dollars, Ghana’s move could pressure neighboring countries to further liberalize their own investment regimes or risk losing capital to Accra. It’s a high stakes gamble that Ghana can attract quality investors while maintaining enough regulatory oversight to prevent exploitation.
The real test will come in implementation. Will the screening mechanisms prove robust enough to filter out problematic investors? Can local businesses adapt and compete, or will they need additional support? And will removing capital requirements actually translate into the job creation and technology transfer that Ghana needs?
Parliament is expected to debate these questions as the Bill moves toward passage. For now, Ghana has sent a clear signal to the international investment community: the door is open wider than ever before, and the country is betting that the benefits of liberalization will outweigh the risks.
Source: newsghana.com.gh
