The Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865) is set to undergo a comprehensive review aimed at deepening local participation in key sectors of the economy and significantly expanding employment opportunities for Ghanaians, particularly in the retail space and other targeted industries. This move, announced by the Head of the GIPC Ashanti Zonal Office, Michael Okyere, reflects growing concern that the current provisions of the Act, while well-intentioned, require refinement to ensure they deliver meaningful social and economic benefits for domestic investors and workers.
Mr. Okyere made these remarks during an interview with journalists on the sidelines of a Transparency International forum in Kumasi, where he explained that the review is part of broader efforts by the Centre to protect local investors and stimulate job creation across the economy. He expressed optimism that, if properly implemented, a revised Act 865 would help Ghanaian entrepreneurs expand their footprint in various sectors and contribute to sustainable employment growth.
Although the existing law already includes measures that restrict foreign participation in certain segments of the retail trade to safeguard local business interests, Mr. Okyere acknowledged that enforcement alone cannot guarantee the desired outcomes. He noted that while the Act reserves specific parts of the retail market for Ghanaian traders and sets investment thresholds for foreign entrants, the practical impact has not fully lived up to expectations. This shortcoming has highlighted the need to revisit these thresholds and conditions to better align them with Ghana’s development priorities.
Under the current regulatory framework, foreign investors wishing to operate in the retail sector must commit a minimum capital of US$1 million and employ at least 20 skilled Ghanaians. According to Mr. Okyere, the GIPC is considering adjustments to these requirements as part of the review process to ensure they promote increased local participation without deterring productive investment. Among the proposed changes is a reduction in the minimum capital requirement to around US$500,000, coupled with stricter employment obligations intended to ensure that local workers benefit directly from foreign entry into the market.
One of the most significant proposed changes is the introduction of a clear employment ratio that would require, for instance, that for every expatriate employed, there must be a Ghanaian counterpart on the workforce before an expatriate work permit is issued. Furthermore, the Act review aims to ensure that at least 90 percent of the workforce in qualifying businesses are Ghanaians, reinforcing the commitment to job creation and the development of local talent. Mr. Okyere emphasised that these measures are designed to strike a careful balance between attracting investment and protecting the interests of domestic enterprises.
While some have argued that foreign investors should be restricted to wholesale trade, drawing on the example of South Africa’s approach to retail markets, Mr. Okyere cautioned against simply copying policies from other countries without careful consideration. He stressed that policy formulation must be guided by broad consultation with stakeholders, including local traders, business associations and regulators, to ensure that reforms truly work within the Ghanaian context and support long-term economic growth rather than hinder competitiveness.
Beyond regulatory changes, Okyere also appealed to local investors themselves to rethink their approach to business ownership and collaboration. He observed that many Ghanaian entrepreneurs have a strong preference for sole ownership, a mindset that can limit scalability and competitiveness, especially in an increasingly globalised market. He encouraged local investors to consider partnerships and strategic collaborations that can enhance their capacity to grow and compete with foreign counterparts, pointing out that collective action and shared expertise can unlock greater opportunities for success.
The planned review of Act 865 comes at a time when Ghana is striving to position itself as a more attractive investment destination while ensuring that the benefits of economic growth are widely shared. The GIPC, mandated with promoting investment and creating a conducive business environment, plays a crucial role in shaping the policies that govern this balance. Its efforts to protect domestic investors and promote job creation reflect broader national goals of inclusive development and sustainable economic transformation.
Critically, the review is expected to address long-standing concerns raised by stakeholders about the effectiveness of the current law in shielding local enterprises from unfair competition and ensuring that foreign direct investment translates into tangible employment gains for Ghanaians. With amendments under consideration, policymakers are hopeful that a more tailored and flexible GIPC Act will promote responsible investment while safeguarding the interests of the local private sector.
As discussions progress, the GIPC and other government agencies will likely engage in extensive stakeholder consultations to ensure that the review process is inclusive, transparent and reflective of the needs of both domestic and foreign investors. The outcome of this exercise has the potential to shape Ghana’s investment landscape for years to come, fostering a business environment that supports innovation, competitiveness and shared prosperity.