President Mahama Assents to New Ghana Investment Promotion Authority (GIPA) Act | Discuss Ghana

President John Dramani Mahama has officially assented into law the landmark Ghana Investment Promotion Authority (GIPA) Act, repealing and replacing the thirteen-year-old Ghana Investment Promotion Centre Act, 2013 (Act 865).

The legislative reform—sponsored by the Ministry of Trade, Agribusiness and Industry—formally elevates the former Centre into a full-fledged corporate Authority with expanded statutory powers, establishing a modernized legal and institutional framework designed to boost foreign direct investment (FDI) and support local business scaling.

“This legislation marks a pivotal transformation in Ghana’s business climate,” stated government communicators following the presidential assent. “By eliminating bureaucratic bottlenecks, safeguarding investor rights, and fostering local enterprise participation, the GIPA Act positions Ghana as the leading, highly competitive investment destination in West Africa.”

Core Pillars of the New Investment Framework

The newly enacted GIPA Act introduces fundamental structural and policy shifts aimed at modernizing the nation's commercial ecosystem:

Removal of Blanket Foreign Minimum Capital Requirements: In a major move to lower entry barriers, the Act eliminates the previous general minimum foreign capital thresholds (formerly two hundred thousand US dollars for joint ventures and five hundred thousand US dollars for wholly foreign-owned firms). The only remaining minimum capital threshold applies specifically to foreign trading enterprises, which has been reduced from one million US dollars to five hundred thousand US dollars.

Institutional Grievance and Dispute Resolution: The Act establishes a statutory Investor Grievance Mechanism (IGM) within the Authority, providing investors with a structured, transparent process to resolve administrative or institutional complaints within a defined timeframe before escalating to court or arbitration.

Support for Domestic Enterprise and AfCFTA Gateway: For the first time, the Authority is legally mandated to facilitate outward investment by Ghanaian businesses, empowering local enterprises to expand across regional and global markets while acting as the official national focal point for the AfCFTA Protocol on Investment.

Streamlined Expatriate Quotas and Incentives: To attract large-scale capital, the Act significantly expands automatic expatriate quotas—scaling up to twelve positions for major investments exceeding ten million US dollars—while consolidating industry-specific tax incentives under a single, transparent regulatory framework.

ESG and Investor Obligations: Foreign and local enterprises are required to adhere to binding sustainability, environmental protection, human rights, and local skills development standards, transitioning company registrations from a two-year cycle to an annual renewal process.

Operational Transition

With presidential assent secured, existing GIPC-registered businesses will transition to the updated annual renewal and compliance framework under the guidance of the reconstituted GIPA Board.