The President of the Ghana-South Africa Business Chamber has called on the Ghana Investment Promotion Center (GIPC) to review the minimum equity requirement for foreign investors.
According to Ashley Rix, the current requirement is on the high side and a disincentive for foreign investors. All enterprises with foreign participation are required to register with the Ghana Investment Promotion Center, GIPC.
Under the GIPC Act, 2013 (Act 865), the minimum requirement for retail business is $1 million.
Foreign investors who participate in a joint venture have to show $200,000 while wholly owned foreign enterprises have to show a minimum of $500,000.
Speaking at a Trade and Investment Seminar organized by Brand SA, Ashley Rix said the current conditions pose a hindrance to many foreign investors. He said, “We believe that there should be a change. It’s currently a hindrance to foreign companies coming in, especially in the services sector.”
Mr. Rix expressed hope that the GIPC would reconsider the current requirements. Trade and Investment between Ghana and South Africa have grown over the years; however, both countries are bent on improving the numbers, thus the seminar.
“There’s such good relationship between the two countries and we think this can really grow. There are a lot of potentials” Dr Judy Smith-Hohn, General Manager, Global Markets at Brand SA indicated.
She added there were great opportunities in the areas of agriculture, financial services and hospitality.
The seminar was organized in partnership with the South Africa High Commission and the Ghana South Africa Business Chamber.