2024: Doing Business in Ghana
Part 1: Doing Business in Ghana
What is the current business climate in your jurisdiction including major political, economic, and/or legal activities on the horizon in Ghana that could have a big impact on businesses?
In the latter part of 2022, Ghana faced macroeconomic challenges as a result of a mix of domestic imbalances and external shocks. Pre-existing fiscal vulnerabilities, such as rising debt burdens, high energy sector debt and low public revenues, together with the new economic challenges led, to the government applying to the International Monetary Fund ("IMF”) for relief funding. Based on the terms of the IMF package, the government amended a number of business laws to provide for increased tax revenue and a widening of taxable products and services, aimed at increasing government revenue.
In addition to tax law amendments, Ghana has made several other regulatory changes, such as expanding Ghanaian content and local participation requirements in the petroleum downstream sector, digitalizing government services to reduce corruption, and providing modes of rewarding whistleblowers, thus improving the business environment and boosting investor confidence.
Ghana is one of the most stable democracies in West Africa as a result of a multi-party democratic environment with largely peaceful successive changes of government. With 2024 being an election year, it is envisaged that the government will work keenly to ensure fiscal stability and economic growth to rebuild investor confidence in the country.
From what countries do you see the most inbound investment? What about outbound?
Ghana receives inbound investment from China, South Africa, the United States, India, Jordan, the United Arab Emirates, the Netherlands, Syria, Lebanon, Côte d'Ivoire, the Philippines, and Taiwan.
In what industries/sectors are you seeing the most opportunity for foreign investment?
Foreign investment opportunities are available in various industries/sectors, including: agriculture and agro-processing; oil and gas, health, information and communications technology; financial technology; manufacturing; mining and mineral processing; property development; recreation and tourism; energy; education; and financial services.
What advantages and pitfalls should others know about doing business in Ghana?
While the government welcomes foreign private investment, the investment legislation prescribes local participation requirements for certain sectors – including the petroleum, mining and energy sectors – to limit foreign domination in the economy. The country has domestic anti-avoidance provisions which limit benefits of the already limited number of Double Taxation Agreements in force.
Despite these challenges, Ghana has a generally stable political and social environment and relative security which support a conducive and enabling business environment. As the host of the African Continental Free Trade Area Secretariat, Ghana is strategically located to serve as a gateway into sub-Saharan Africa’s growing market. The government has introduced various tax and investment incentives as well as economic reforms to promote private sector growth and foreign investment.
Ghana’s Constitution and its investment promotion law protect investors against expropriation and guarantee the free transfer out of the country of dividends and profits in a convertible currency. Investment laws provide for expropriation or nationalization in a limited range of cases, under which adequate compensation must be paid.
What is one cultural fact or custom about your country that others should know when doing business there?
Hierarchy is an important part of Ghanaian business culture, therefore, it is customary to address seniors and those with academic or professional titles in the appropriate manner. One should avoid using the left hand when offering gifts to a business associate or when receiving them. Before beginning any formal business proceedings, Ghanaian people enjoy getting to know their business associates on a personal level.
Part 2: About Your Firm
What distinguishes your firm from others in your market?
With offices in Eastern, Southern and Western Africa, we have deep expertise and the capacity to solve all our client's legal, tax, forensics, and IP requirements and help them navigate regulatory hurdles, no matter where in Africa they do business.
Because we have many years of practical experience working on the ground throughout Africa, we have developed a proven track record and a solid understanding of local cultural, commercial and geopolitical contexts, as well as long-standing partnerships with trusted firms with whom we work.
Our practitioners are qualified to practice English law and French law and we have extensive experience in the legal codes of OHADA used in West and Central Africa.
Our tagline at ENS is 'Original Thinking,' meaning we thrive on ingenuity and producing the best solutions for our clients and their needs.
What are three words that describe the culture of your firm?
Smart, Open-minded, Caring.
How does your firm participate in Corporate Social Responsibility (CSR) and/or Environmental, Social, and Governance (ESG) initiatives?
We invest thousands of hours every year in a wide variety of pro bono work across the African continent. In South Africa, our efforts are focused on our two permanent pro bono offices—a first for a law firm. These offices are located in areas with difficult living conditions, including high levels of unemployment and numerous challenges.
Our pro bono project has a multipronged approach which consists of the provision of advice and assistance, as well as legal education and skills development, in order to equip community members with knowledge and vital skills, thereby contributing to access to justice and the fostering of entrepreneurship and the growth of sustainable small businesses.
We run annual business management training programmes and courses in human rights and constitutional law, with the aim of empowering leaders and activists with important information which will be shared in their communities.
Are there any new and exciting initiatives, practice areas, or industry focuses in your firm?
We have recently introduced our Public Law practice, showcasing our experience in providing opinion and advisory services, administrative law services relating to the performance of public powers and functions, transactional services relating to public-private partnerships, drafting legislation supporting investigative and reporting work, and conducting judicial reviews of decisions by organs of state and public functionaries.
Our Public Law practice has advised clients from a number of industries, namely banking and finance, basic education, construction, electronic communications, early childhood development, energy, electricity, mining, port services, private and public higher education, transport and logistics, strategic oil reserves, telecommunications, human settlements, media, electoral issues, real estate, prisons, and pharmaceuticals.