DOING BUSINESS IN GHANA:

OPPORTUNIES IN TOURISM
INFRASTRUCTURE DEVELOPMENT

PRESENTED
PRESENTEDBY
BY

DR.
DR.PETER
PETERANKRAH
ANKRAH

DIRECTOR,
DIRECTOR,FINANCE,
FINANCE,
ADMINISTRATION
ADMINISTRATION
&&MIS
MISDIVISION,
DIVISION,GIPC
GIPC

27
27TH JULY,
TH
JULY, 2010.
2010.
 INTRODUCTION
This presentation will cover the following:

The mandate of the Ghana Investment

Promotion Centre {GIPC}

Opportunities in Tourism infrastructure

Development

Investment benefits, incentives and

guarantees under Act 478 and LI 1817
2
MANDATE OF THE GHANA INVESTMENT
PROMOTION CENTRE
 The GIPC is the central Agency of the Government of
Ghana charged with the responsibility of encouraging,
promoting and facilitating investments in the Ghanaian
economy and providing support services to both existing
and prospective investors.
 We hold the hands of the investor (both local and
foreign) from the beginning through establishment and
operation of the business.
 We also liaise with other Agencies on behalf of the
investor to minimize red tape
 Policy advocacy role on behalf of the private sector

3
 INSTITUTIONAL INFRASTRUCTURE FOR
INVESTMENT PROMOTION
 The GIPC has jurisdiction over all sectors of the economy
except:

 Minerals and mining --------Minerals Commission;

 Petroleum {exploration and production} ----------- The

Ministry of Energy and The Ghana National Petroleum
Corporation {GNPC};

 It should be noted that all services relating to mining and

petroleum are, however, handled by the GIPC.

 Free Zone activities----------Ghana Free Zones Board

{GFZB}.
 Portfolio investment------ Ghana Stock Exchange {GSE}.

 Divestiture of state-owned enterprises-------Divestiture

Implementation Committee {DIC}.

4
 THE INVESTMENT ACT 478

• Investor friendly, liberalized and transparent

investment law which was promulgated in
1994 and it is currently being reviewed to
make it even more investor- friendly

5
 INVESTMENT OPPORTUNITIES
  The Investment Act (GIPC ACT478) allows
foreign investors to invest in virtually any
area of their choice, either as wholly foreign
owned enterprise or as joint-venture
partnership with Ghanaians except the
following activities:
1) Petty trading or hawking {small scale trading}

2} Operation of Taxi Service and Car hire service.

A non-Ghanaian may undertake this service Provided he/she has a
fleet of 10 new vehicles

3} All aspects of Pool Betting Business and Lotteries except

Football Pools and Casinos;

4} Operation of Beauty Salons and Barber shops.

6
 OPPORTUNITIES IN TOURISM INFRASTRUCTURE
DEVELOPMENT
 Tourism is one of the 8 priority sectors identified by the GIPC for
promotion.
 Opportunities:

 TOURIST ACCOMODATION-

 3 -5 Star Hotels, Guests Houses and Hostels

 Multi and single Hotel Resorts at beach and lake sites

 Motels on major tourist routes

 Highway Rest Stops ranging from small scale with facilities for
parking, washrooms and basic refreshment to medium scale
with all the above facilities plus Cafteria, Shops , Fuel and auto
Servicing 7
 OPPORTUNITIES IN TOURISM INFRASTRUCTURE
DEVELOPMENT
 Tourist Information Shops in major Tourist Centres and border entry
Points
 Tourist Transport Services such as Tourist Taxis, Air Taxis, Car hire at
major tourist locations as well as Cruise Boats on the Volta Lake for
leisure, game fishing etc
 Tourist Travel Services such as Tour Guiding Services, Tour handling
Services and Tour Operators
 Specialized Financial Services such as Credit Card Agents or Discount
Houses to offer credit to pay bills at areas which do not accept credit
cards, tourism Rental Services for the rental of catering, camping and
picnic accessories as well as mobile phones and toilets
 Tourism Medical Services for various types of health services such as
Tourism health insurance companies and ambulance service for
tourists including the flying doctor concept to service remote tourist
sites

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 OPPORTUNITIES IN TOURISM INFRASTRUCTURE
DEVELOPMENT
 Food and Beverage Services including Fast food
Restaurants and specialty Restaurants
 Entertainment spots such as Pubs, Discotheques Night-
Clubs, Casinos and Amusement Parks
 Leisure and Sports including World-class golf Courses for
international Tournaments, Theme parks, Marinas for
sport fishing, yachting, skiing, sailing and surfing, as well
as sports Centres in Cities offering a wide range of indoor
& outdoor activities
 Meeting facilities such as Multi purpose Convention,
Conference and Exhibition Centres
 Shops such as Souvenir shops, supermarkets, shopping
arcades, shopping Malls and Duty-free shops
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 INVESTMENT BENEFITS,
INCENTIVES AND GUARANTEES
 The investment law provides generous and
attractive incentives, benefits and
guarantees in all sectors of the economy
including Tourism.
 In the special case of Tourism
infrastructure, a Legislative Instrument for
the promotion of Tourism , L.I 1817 was
promulgated in 2006.

 The L.I has identified within the entire

Tourism sector, various activities with
incentives for promotion
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 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817

 These are:
ACCOMODATION ESTABLISHMENTS

including hotels, motels, resorts, guest houses,

catering rest houses, serviced flats and
apartments, holiday apartments and other
accommodation establishments as categorized
and licensed by the Ghana Tourist Board.

 Applicable Incentives and Benefits:

11
 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817
 Exemption from payment of Customs import
duties,VAT and other related charges on machinery,
equipment, appliances, furniture & fittings in pre-
approved quantities as ff:
i. Refrigerators/deep freezers,
ii. Television sets
iii. Audio visuals and video equipment
iv. Air conditioners
v. Public address system
vi. Furnishing including carpets, bedding and fixtures
vii. Fans
viii. Bedside & lounge audio visuals and video equipment
ix. Crockery
x. Industrial ovens, cooking ware and cutlery
xi. Computers, printers and servers
xii. Courtesy minibus, passenger or transit vehicles and delivery vans
xiii. Fitness and healthcare equipment, and
xiv. Office equipment.
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 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817
 Tax holidays of 4-10yrs depending on the star rating and
location of project.

 4yrs for establishments below 2 star in Accra

 5yrs for establishments below 2 star in regional capitals
 7yrs for establishments below 2 star elsewhere
 5yrs for establishments 2,3,4,5 star in Accra
 7yrs for establishments 2,3,4,5 star in regional capitals
 10yrs for establishments 2,3,4,5 star elsewhere

 Other relevant incentives or benefits that are generally

applicable to enterprises under the Ghana Investment
Promotion Centre Act 1994, (Act 478
13
 INVESTMENT BENEFITS AND INCENTIVES
UNDER LI 1817

CATERING ESTABLISHMENTS

 including fast food, specialized

restaurants and other catering
establishments as categorized and
licensed by the Ghana Tourist Board.

Applicable Incentives and Benefits:

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 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817
 Exemption from payment of Customs import
duties, VAT and other related charges on
machinery, equipment, appliances, furniture
and fittings in pre-approved quantities as ff:
– Air conditioners
– Crockery and cutlery
– Refrigerators/deep freezers
– Furnishing including carpets
– Industrial ovens, cooking ware (industrial cookers, microwave
ovens, deep fryers)
– Computers, printers and servers
– Public address system
– Television sets
– Office equipment, and
– Delivery vans

15
 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817

 Tax holidays of 3-5yrs depending on location of

project.

 3yrs for establishments in Accra or within 30km

radius from Accra
 4yrs for establishments in regional capitals
 5yrs for establishments elsewhere

16
 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817

 TRAVEL AND TOUR ESTABLISHMENTS

 including operation of a fleet of tourist coaches

and/or buses and car hire services.

 Applicable Incentives and Benefits:

17
 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817
 Exemption from payment of Customs import
duties, VAT and other related charges on
machinery, equipment, appliances, furniture
& fittings in pre-approved quantities as ff:

i. Cars and tourist coaches to be used by operators

ii. Air conditioners
iii. Furnishing including carpets
iv. Computers, printers and servers,
v. Office equipment
vi. Server for galileo system and radio communication equipment.

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 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817

 Tax holidays of 3-5yrs depending on

location of project.

 3yrs for establishments in Accra or within

30Km radius from Accra
 4yrs for establishments in regional capitals
 5yrs for establishments elsewhere

19
 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817
CONFERENCE AND CONVENTION
ESTABLISHMENTS:

 including management and operation of

international conference centres.

 Applicable Incentives and Benefits:

20
 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817
 Exemption from payment of Customs
import duties, VAT and other related
charges on machinery, equipment,
appliances, furniture & fittings in pre-
approved quantities as ff:

i. Cars and tourist coaches to be used by operators

ii. Air conditioners
iii. Furnishing including carpets
iv. Computers, printers and servers,
v. Office equipment
vi. Server for galileo system and radio communication equipment.
vii. Audio visual and video equipment.
21
 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817

 Tax holidays of 3-5yrs depending on

location of project.

 3yrs for establishments in Accra or

within 30Km radius from Accra
 4yrs for establishments in regional
capitals
 5yrs for establishments elsewhere
22
 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817
 RECREATION AND ENTERTAINMENT
ESTABLISHMENTS:

 including night clubs, amusement Centres,

themes parks, casinos, provision of facilities
for hand gliding and paragliding, water
skiing, surfing, yachting and boating,
cruising, angling and other marine and
water based recreational facilities.

 Applicable Incentives and Benefits:

23
 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817
 Exemption from payment of Customs
import duties, VAT and other related
charges on machinery, equipment,
appliances, furniture & fittings in pre-
approved quantities as ff:

i. Air conditioners
ii. Furnishing including carpets
iii. Computers, printers and servers
iv. Office equipment
v. Audio visual and video equipment, and
vi. Cars and vans to be used by the operators and
organizers.
24
 INVESTMENT BENEFITS AND
INCENTIVES UNDER LI 1817
 Tax holidays of 3-5yrs depending on
location of project.

 3yrs for establishments in Accra or

within 30Km radius from Accra
 4yrs for establishments in regional
capitals
 5yrs for establishments elsewhere

25
INVESTMENT BENEFITS AND INCENTIVES
UNDER LI 1817
• STRATEGIC OR MAJOR INVESTMENT
PROJECTS:

• In the case of Strategic or major investment

whose capital outlay is above US$30 million,
provision has been made in the Investment
Law for the investor to negotiate additional or
special incentive packages with the
Government through the Board of the Ghana
Investment Promotion Centre and with the
approval of the President of Ghana
26
 OTHER INVESTMENT INCENTIVES AND BENEFITS
UNDER GIPC ACT 478

 Work and Residence Permits for foreign shareholders

and employees are tied to the paid-up capital as
follows: 

US$10,000 paid up capital 1 automatic quota

US$100,000>US$500,000 paid up capital 2 automatic quota
US$500,000 and above paid up capital 4 automatic quota

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INVESTMENT GUARANTEES UNDER GIPC ACT 478

 There are also Investment Guarantees which include:

• Repatriation in freely convertible currency of profits,
dividends, payments in respect of loans etc

• Guarantee against expropriation of private enterprises by

Government

• Ghana is a member of MIGA {Insures against non-

commercial risks}

• Investment Promotion and Protection Agreements (IPPA) or

Bilateral Investment treaties (BITS) which protect foreign
investments and Double taxation Agreements signed with
several countries {23 Countries-BITS}
• Commercial courts have been established to fast track the
adjudication of commercial and business cases in the
country

• Ghana Arbitration Centre for amicable resolution of

disputes. 28
 CONCLUSION
 Ghana is open for business

 Government is committed and supportive

 The GIPC is ever prepared to assist in the

development of any specific Tourism projects
you may wish to undertake either now or in
the near future.

 I thank you for your attention

29