Ghana Is A Gateway For Trade And Investment In West Africa

Introduction

Ghana is often considered a gateway for trade and investment in West Africa. While agriculture still provides employment for more than half of Ghanaians and accounts for almost one-quarter of GDP, Ghana's industrial base is relatively advanced compared to other African countries and its most important service sectors include trade, transport and storage, and real estate. Ghana's economic growth has been fuelled by the burgeoning oil industry; however, the recent oil price crash reduced Ghana's oil revenues by half in 2015.

Ghana is a member of several regional trading blocs, including the Economic Community of West African States (ECOWAS). This organisation allows for the free movement of goods and people across its 15 member states, constituting a market of some 250 million people. Compared to some of its regional counterparts, Ghana boasts relative political stability and a recent history of strong economic growth, not least as a result of its abundant natural resources. However, the contribution of the extractive sector to state revenues is relatively small, and oil production only began in 2011. Challenges to investors include delays in the implementation and enforcement of the legislation and policies designed to promote investment, complex and protracted land acquisition and registration procedures, and local ownership requirements in certain sectors.

Investment law

Ghana enacted new investment legislation in 2013, the Ghana Investment Promotion Centre Act (GIPCA),1 to cement its reputation as a stable environment in which to do business, and to establish the eponymous government agency. The legislation's aim is to facilitate foreign investment and provide qualifying investors with common protections, including enjoyment of the same rights as Ghanaian citizens and the free transfer of funds. Specific provision is made for the registration and renewal of technology transfer agreements.

The investment law provides an independent basis for disputes between investors and the state to be resolved by arbitration where amicable settlement is not reached within six months, in accordance with the UNCITRAL Rules, or within the framework of any applicable bilateral or multilateral investment treaty, or in accordance with any other national or international machinery for the settlement of investment disputes agreed by the parties. With the exception of enterprises that are registered as free zone entities, the GIPCA applies to all...