WTS Nobisfields Legal Alert

Ghana Investment Promotion Authority Act, 2026 (Act 1173)

Key Legal Reforms Every Investor and Business Operating in Ghana Should Know.

Introduction

The Government of Ghana has enacted the
Ghana Investment Promotion Authority Act, 2026 (Act 1173),
introducing significant reforms to Ghana’s investment regulatory framework.
The Act repeals and replaces the
Ghana Investment Promotion Centre Act, 2013 (Act 865)
and establishes a more modern, compliance-driven, and investor-focused investment regime.

The legislation strengthens the institutional framework for investment promotion and regulation,
reduces barriers to foreign investment, enhances investor protection mechanisms,
and introduces stricter compliance obligations for businesses operating in Ghana.
Existing and prospective investors should carefully assess these changes to understand their legal and operational implications.

WTS Nobisfields Insight

Act 1173 marks the most significant reform of Ghana’s investment framework in over a decade.
While it substantially lowers entry barriers for foreign investors,
it also introduces enhanced regulatory oversight, stricter compliance obligations,
and stronger enforcement powers under the Ghana Investment Promotion Authority (GIPA).

Key Reforms Introduced by the New Law

1. Institutional Transformation: From Centre to Authority

The Act transforms the Ghana Investment Promotion Centre (GIPC) into the
Ghana Investment Promotion Authority (GIPA),
significantly expanding its mandate and regulatory authority.

  • Enhanced Regulatory Mandate – GIPA now promotes investments while exercising broader regulatory oversight and enforcement powers.
  • AfCFTA National Focal Point – GIPA becomes Ghana’s designated National Focal Point for implementing the AfCFTA Protocol on Investment.
  • Promotion of Outward Investment – GIPA is now mandated to facilitate and promote Ghanaian investments abroad.
  • Administrative Enforcement Powers – The Authority may impose sanctions and administrative penalties for non-compliance.

This reform represents a shift from a predominantly facilitative institution to a more active regulator and supervisor of investments.

2. Major Reform of Capital Requirements

One of the most significant reforms under Act 1173 is the removal of minimum capital requirements for many foreign investors entering Ghana.

Investment Type Act 865 (Old Law) Act 1173 (New Law)
Joint Venture US$200,000 Abolished
Wholly Foreign-Owned Enterprise US$500,000 Abolished
Trading Enterprise US$1,000,000 plus employment of 20 skilled Ghanaians. US$500,000 (must be in cash).

Important Compliance Note

Although the capital threshold has been reduced, trading enterprises must maintain
at least 75% of their workforce as skilled Ghanaian employees.

3. Expansion of Expatriate Quotas

The Act increases the maximum automatic expatriate quota available to eligible companies from
four (4) positions to
twelve (12).

Companies qualify for the expanded quota only if
90% of their skilled workforce is Ghanaian.

The reform gives investors greater flexibility to recruit specialised foreign expertise while reinforcing local employment participation.

4. Citizenship by Investment

Act 1173 introduces a framework for
Citizenship by Investment,
enabling qualifying foreign investors to apply for Ghanaian citizenship based on eligible investments.

Detailed eligibility requirements will be prescribed by the Minister for the Interior in consultation with GIPA.

5. Investor Grievance Mechanism (IGM)

The Act requires GIPA to establish an
Investor Grievance Mechanism (IGM)
for resolving investment-related grievances.

  • Investors may submit grievances directly related to their investments.
  • Complaints involving government institutions must be filed within 6 months.
  • GIPA is required to resolve eligible complaints within 3 months.
  • Criminal matters are excluded from the mechanism.

6. Targeted Incentive Framework

The Act establishes a framework for
industry-specific and
programme-specific tax incentives.

  • The Minister for Finance may prescribe tax incentives in consultation with GIPA.
  • Cabinet will identify priority sectors eligible for strategic tax incentives.

7. Narrowing of Reserved Activities

While the Act preserves restrictions on certain activities reserved for Ghanaian citizens,
it narrows the scope of those restrictions.

Activities such as
printing recharge scratch cards and
pool betting
have been removed from the reserved list, opening those sectors to foreign participation.

8. Technology Transfer Agreement (TTA) Reform

The Act strengthens regulation of Technology Transfer Agreements to prevent capital flight disguised as service payments.

Banking Restriction Banks cannot process foreign exchange remittances relating to unregistered TTAs.
Tax Consequences Payments under unregistered TTAs are not deductible for income tax purposes.
Minimum Duration Reduced from 18 months to 12 months.
Initial Validity Reduced from 10 years to 5 years.

9. Compliance and Anti-Fronting Measures

To strengthen local participation requirements,
the Act introduces strict anti-fronting provisions.

  • Fronting is now a criminal offence.
  • Fines range between GHS120,000 and GHS240,000.
  • GIPA registrations must now be renewed annually.

10. Strengthened Regulatory Oversight

Registration with GIPA is no longer a one-time regulatory approval.
Investors will be subject to continuous compliance monitoring.

Ongoing Investor Obligations

  • Compliance with human rights standards.
  • Labour and employment laws.
  • Environmental and occupational safety laws.
  • Ethical business practices.
  • Ongoing compliance during annual registration renewals.

Key Takeaways for Investors

  1. Lower barriers to foreign investment through the abolition of minimum capital requirements for joint ventures and wholly foreign-owned enterprises.
  2. Stronger regulatory oversight with expanded compliance, monitoring, and enforcement powers for GIPA.
  3. Improved ease of doing business through expanded expatriate quotas and a formal Investor Grievance Mechanism.
  4. Greater protection of local interests through workforce localisation requirements, reserved activities, and anti-fronting provisions.
  5. Heightened compliance obligations including annual registration renewals and stricter Technology Transfer Agreement regulation.
  6. New opportunities for strategic investors through industry-specific incentives and the proposed citizenship-by-investment framework.
  7. Regional investment positioning by making GIPA Ghana’s focal institution for AfCFTA investment implementation and outward investment promotion.

Conclusion

The Ghana Investment Promotion Authority Act, 2026 (Act 1173)
represents a comprehensive overhaul of Ghana’s investment regulatory framework,
modernising the country’s approach to domestic and foreign investment.

By strengthening institutional capacity, reducing entry barriers,
tightening compliance systems, and aligning incentives with national development priorities,
the Act signals Ghana’s commitment to a more competitive, transparent,
and strategically focused investment environment.

Businesses operating in Ghana should proactively review their corporate structures,
investment registrations, Technology Transfer Agreements,
workforce composition, and compliance procedures to ensure alignment with the new legal framework.

WTS Nobisfields Legal & Tax Advisory

This publication is provided for general informational purposes only and does not constitute legal or tax advice.
Investors and businesses should seek professional legal advice regarding the application of the Ghana Investment Promotion Authority Act, 2026 (Act 1173) to their specific investment structures, operations, and compliance obligations.