Ghana is a stable and mature democracy with a rapidly expanding economy
Ghana has a large amount of natural resource wealth with strong cocoa and gold production, a thriving construction and transport industry and increasing oil revenues
Ghana is Africa's leading gold producer and production is expected to increase to 5.1 million ounces in 2025
The mining sector is the largest tax-paying sector in the country and makes a significant contribution to GDP and employment
The mining sector is vital in the Ghanaian economy. It attracts more than half of all foreign direct investment, and generates more than one-third of all export revenues
In late 2024, Ghana announced the discovery of commercial-grade deposits of tantalum, nickel and iron ore, which are crucial minerals for the green and digital industries
Foreign direct investment of over $3 billion a year – examples include:
Rashtriya Chemicals and Fertilisers investment of $1.5 billion to set up a urea and ammonium nitrate plant
The $2 billion construction of an industrial park by Huasheng Jiangquan Group
$32 billion in financial assistance from Japan to invest in infrastructure, human and mineral resource development
A $9 billion deal with China Exim Bank for road, railway and dam projects
A US$700 million Sankofa Gas Project by Eni and Vitol together with Ghana National Petroleum Corporation
A $1 billion deal with UAE’s Ports, Customs & Free Zone Corporation (PCFC) to build Tech Hub in Ningo-Prampram.
A $12 billion investment by a consortium led by Touchstone Capital Group Holdings and UIC Energy Ghana for the construction of Phase 1 of the Jomoro Petroleum Hub in Ghana.
The total investments in the mining sector within the past 10 years have been in excess of US$10 billion.
United Nations
Economic Community of West African States (ECOWAS)
The World Trade Organization (WTO)
ACP-EU Partnership Agreement
The African Union (AU)
Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development
International Monetary Fund (IMF)
The Commonwealth of Nations
The African Free Continental Free Trade Area (AfCfTA)
The Non-Aligned Movement
International Labour Organisation (ILO)
International Centre for Settlement of Investment Disputes (ICSID) Convention
Ghana’s Constitution lays the foundation for fundamental political principles, the structure of the judiciary and legislation, and iterates the fundamental rights and duties of its citizens
Common law legal system based on judicial precedents and Ghanaian customary law
Has not accepted compulsory ICJ jurisdiction
Provides for the investment and participation of non-Ghanaians in the marketplace by formulating investment plans, enhancing the investment environment, and disseminating information about investment opportunities and protections
Foreign investment requires minimum equity participation of funds or equivalent in capital goods:
Joint ventures: not less than US$ 200,000 with a Ghanaian having not less than 10% equity participation
100% foreign-owned investment: not less than US$ 500,000
Foreign owned trading enterprise: not less than US$ 1 million with at least 20 skilled Ghanaians employed
Ongoing stakeholder consultation on a new GIPC Act with proposals to reduce/eliminate minimum equity participation requirements and possibility of reintroduction into Parliament.
Minimum foreign capital requirement does not apply to:
Portfolio investment
Export trading and manufacturing enterprise
Provide investors with information regarding incentives such as immigration quota, personal remittances of wages and free transferability of dividends and profits
Register, monitor and keep records of all enterprises in Ghana and all technology transfer agreements
Mining and petroleum are governed by specific laws including the Minerals and Mining Act, 2006 (Act 703) which provides for 10% free carried interest for the government in mineral rights
May require a mining company to issue the State a special share for no consideration
Right of pre-emption of all minerals raised, won or obtained in Ghana and from any area covered by territorial waters, the exclusive economic zone or the continental shelf and products derived from the refining or treatment of these minerals
5% of the total revenue earned from mining operations is payable to the State
Annual mineral right fee is also payable to the State and annual ground rent must also be paid to the actual owners of the land
Unincorporated businesses, incorporated partnerships and statutory corporations
Company limited by shares or guarantee
There are few unlimited companies and they are mostly law firms
External company- incorporated bodies formed outside Ghana that seek to operate in Ghana
Companies that export more than 70% of their products may enjoy benefits under the Free Zone Act including exemption from duties on imports and exports, a 10-year tax holiday, post-holiday rate of 8%, foreign employees exempt from paying income tax on income earned in the Free Zone
Companies engaged in non-traditional exports charged at rate of 8%
Companies engaged in petroleum operations subject to 50% income tax
Companies engaged in mineral operations subject to a 35% income tax on profits from mineral operations
Manufacturing companies in regional capitals subject to a rate of 75% of the relevant rate of tax
Capital gains tax – 15% on realisation of chargeable assets
Salaries – taxed on a sliding scale of 5-25% for residents and a flat rate of 25% for non-residents
Royalties payments for private parties carrying on mining activities are revenue based – fixed at 5% of total revenue obtained from mining operations
Dividends and interest – 8% withholding tax
Royalties, natural resource payments and rent – 15% withholding tax
VAT – 15%, Ghana Education Trust Fund Levy (GETFund), 2.5% National Health Insurance Levy (NHIL), 1% COVID-19 health recovery levy
A 10% windfall tax levy on mining companies was announced in 2012, but is yet to be passed into law
Thin-capitalisation rules do NOT apply
Transfer pricing rules require justifiable interest rates
Double-taxation treaties
Ghana applies relatively flexible exchange control rules in terms of the Foreign Exchange Act, 2006 (Act 723)
Floating exchange rate system with no exchange rate controls at transactional level
Banks report foreign currency transactions to central bank (Bank of Ghana)
Individuals may operate foreign currency account with banks in Ghana
Investments under the GIPC Act are assured of unconditional transferability of personal remittances of wages through authorised dealer banks and free transferability of dividends and profits
Information duties toward the Bank of Ghana or government must be complied with (e.g., local banks must report foreign currency transactions to the Bank of Ghana
All proceeds from sale of minerals must be repatriated within a relatively short period following the sale (within 60 days)
Import of funds for mining activities is subject to the foreign exchange laws of Ghana and the holder of mineral rights is required to transact through entities authorised to deal in foreign exchange, such as the banks. A holder of a mining lease is permitted to retain not less than 25% of net earnings in foreign exchange in an external account for acquiring machinery and equipment, spare parts and raw materials as well as for debt servicing, dividend payment and remittance in respect of quotas for expatriate personnel.
A holder of a mining lease is guaranteed free transferability, through the Central Bank of Ghana, or in the case of a net foreign exchange earning holder through the external account, in convertible currency of dividends or net profits attributable to the investments of such convertible currency payments in respect of a loan servicing where a foreign loan has been obtained by the holder for his or her mining operations and the remittance of foreign capital in the event of sale or liquidation of the mining operations or any interest therein attributable to foreign investment.
A judgment obtained in a foreign jurisdiction may only be enforced against a Ghanaian citizen if there is an agreement. In every other case, judgments are enforced only on retrial
Signatory of the New York Convention on the Recognition and Enforcement of Arbitration Awards
Signatory to the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID)
Has signed Bilateral Investment Protection Treaties with about 30 countries, 9 of which are currently in force including with Germany, Netherlands, Switzerland, United Kingdom, Denmark, and China). Double-taxation agreements with Ireland, Malta and Norway are yet to be implemented
