Finpro presentation on doing business in ghana Edward Ashong-Lartey
Presented by<br />EDWARD ASHONG-LARTEY<br />DIRECTOR, MARKETING AND PUBLIC RELATIONS<br />GHANA INVESTMENT PROMOTION CENTRE (GIPC)<br />1<br />GHANA-FINLAND BUSINESS SEMINAR <br />7TH SEPTEMBER, 2011, HELSINKI, FINLAND<br />PRESENTATION ON DOING BUSINESS IN GHANA<br />
GHANA INVESTMENT PROMOTION CENTRE<br />2<br />The Ghana Investment Promotion Centre (GIPC) is a government agency re-established in 1994 under Act 478 to promote and facilitate investment in the economy of Ghana.<br />We work in collaboration with the following Agencies;<br /><ul><li>Ghana Free Zones Board - Free zones activities
Ghana National Petroleum Corporation- Petroleum exploration and production
Ghana Export Promotion Council- Export of Non-traditional products
Divestiture Implementation Committee - Divestiture of state-owned enterprises</li></li></ul><li>3<br />GHANA’S INVESTOR FRIENDLY ENVIRONMENT<br /><ul><li>The country has witnessed five peaceful elections since 1992
Continuous, stable multi-party political environment since 1992
PRIORITY SECTORS FOR INVESTMENT IN GHANA <br />Oil and Gas Services<br />Energy<br />Infrastructure<br />Agric and Agric-business<br />Manufacturing and Industry<br />Tourism<br />Information Communication Technology <br />Financial Services<br />7<br />
OIL AND GAS SERVICES <br />8<br />GHANA’S ESTIMATED FIELD SIZE: 400 MILLION BARRELS TO OVER 1 BILLION BARRELS (ALL IN THE JUBILEE FIELD)<br />PUMPING OF OIL COMMENCED ON 15 DECEMBER 2010:<br /><ul><li> CURRENT OIL PRODUCTION IS 80,000 BARRELS PER DAY.
THIS IS EXPECTED TO INCREASE TO 120,000 IN EARLY 2012.
CURRENT ASSOCIATED GAS PRODUCTION IS 60 MILLION CU/FT PER DAY
THIS IS EXPECTED TO INCREASE TO 250 MILLION CU/FT PER DAY BY DECEMBER 2014.</li></li></ul><li>OIL AND GAS SERVICES <br />9<br />OTHER LANDMARK DISCOVERIES<br />Other landmark discoveries are Owo, Tweneboa, Mahogany Deep and Odum in the Deepwater Tano block and West Cape Three Points.<br />There is also the Dzata find in a block south of the Eni/Vitol block,“<br />These discoveries are being appraised at the moment to determine the potential reserves.<br /><ul><li> Reports estimate the Mahogany field to hold between a hundred and five hundred million barrels of crude.
It currently has five wells on which various appraisal works are being done.</li></li></ul><li>OIL AND GAS SERVICES <br /><ul><li>Dedicated shore base with a dedicated mini harbor
Assembling of knocked down structures in yards in Ghana
Real estate construction and management </li></li></ul><li>OIL AND GAS SERVICES <br />Measures against negative impact of the oil sector on the communities in the catchment area include:<br /><ul><li>Implementation of a no-gas flaring policy
Local Content Requirements for the Petroleum Sector -- investors will be expected to utilize a percentage of Ghanaian human and material resources .
Environmental Health and Safety Plan (EHS) -- A comprehensive environmental health and safety policy for this sector is being developed.</li></ul>TAKORADI, GHANA <br />11<br />
ENERGY <br /><ul><li>Government’s major energy policy (electricity) - Universal access to electric power by 2020.
Current Status is -1980 mw, and it is government’s policy to increase to 5000 mw by 2015.
Current electricity penetration is 60% and 100% penetration is expected to be achieved by 2020.
To fill the 3000 mw demand, government is ready for partnerships with private sector. </li></ul>CONSTRUCTION OF SUNON ASOGLI POWER PLANT, GHANA<br />12<br />
ENERGY<br />Pursuing a renewable energy generation target of 10% of total production and the renewable resources to be promoted include solar, wind, mini-hydro and bio fuels.<br />The first 133MW of the 400MW Bui Hydro project is expected to be commissioned by the end of 2011, with the total installed capacity of 400MW being commissioned by end of 2012.<br />Government of Ghana is actively promoting Independent Power producers in the country. Major projects:<br /> -Sunon-Asogli Power Plant-200MW<br /> -TemaOsonor Plant Ltd- 126 MW and eventually to 300 MW<br /> -Kpone Thermal IPP Project-220 MW<br />13<br />
ENERGY <br /><ul><li>Energy services provision (energy audits & energy management strategies, electrical load management, boiler efficiency/heat recovery, refrigeration and air conditioning systems, fuel substitution)
Energy manufacturing companies to supply energy-monitoring equipment
Alternative decentralized sustainable energy system to be deployed in remote and deprived communities
Solar energy systems for schools in off-grid communities</li></ul>14<br />
INFRASTRUCTURE <br />Roads<br />Public Housing And Property Development <br />Rail Transport And Ports<br />HERITAGE TOWERS, ACCRA <br />ACCRA-TEMA RAILWAY LINES <br />SILVER STAR TOWER AREA, ACCRA <br />15<br />
INFRASTRUCTURE – ROADS <br /><ul><li>Provision of efficient and effective mass transport facilities in all regions of Ghana.
Construction of toll roads, bridges and rapid transit routes in cities encouraged.</li></ul>KWAME NKRUMAH CIRCLE (BY NIGHT), ACCRA <br />16<br />
INFRASTRUCTURE – PUBLIC HOUSING & PROPERTY DEVELOPMENT <br /><ul><li>Level of Investment – Est. Cost of Deficit at US$7.5 billion
Deficit = 500,000 units (with oil discovery, deficit is estimated to be around 1,000,000 units)
Commercial (regional shopping centres/malls, office accommodation, storage) </li></ul>b. Production and marketing of construction equipment and building materials<br />PPP: The Government of Ghana has signed housing agreement with STX-Korea to build 200,000 housing units in 5 years with investment value of US$ 10 billion . <br />H.E President J.E. A. Mills on Thursday, 27 January 2011 cut the sod for the start of construction of the 30,000 STX housing units for the security services.<br />VILLAGIO APARTMENTS <br />17<br />
INFRASTRUCTURE – RAILWAYS & PORTS <br /><ul><li>Rehabilitation of existing railway infrastructure mainly tracks, bridges , signals and telecommunication systems.
Modernization of existing railway, expansion to cover whole country especially linking south to the north.
Modernization of suburban railway services currently operating between Accra and Nsawam, expansion to other areas within Accra-Tema Metropolis using Diesel Multiple Units (DMUs).</li></ul>18<br /><ul><li>Expansion and modernization of Tema and Takoradi ports – US$ 1.5 billion
Creation of Inland Port at Boankra, near Kumasi
Creation of river port at Buipe, Northern Region (on the Volta river)</li></ul>TEMA PORT <br />
AGRIC AND AGRO PROCESSING <br /><ul><li>Production of agricultural inputs: fertilizers, pesticides and fungicides
Storage facilities: avoidance of high post-harvest losses and low returns for farmers and processors
Developing irrigable land through irrigation. Ghana has potential irrigable area of 346,000 hectares, only 10,000 hectares has been developed
Technological and support services: supply and installation of cold chain equipment, packaging , factory building technology
Distribution services: post-production services in transport, packaging and cold vans
Standards, training and certification; capacity building for management and market-oriented enterprises; market intelligence research , agricultural finance and insurance</li></ul>19<br /><ul><li>Large scale farming of crops
Supply of machinery to establish hatcheries for day-old chicks
Floriculture: cultivation of exotic flowers, potential in national, regional and European Union market</li></li></ul><li>MANUFACTURING AND INDUSTRY <br /><ul><li> Food processing
Location incentives of between 25%-50% tax rebates for manufacturing companies
Tax holidays ranging from 5-10 years depending on sectors</li></ul>Automatic immigrant quotas depending on paid-up capital <br />Other attractive tax concessions such as accelerates depreciation for plant and buildings, five-year loss carry-over and R & D expenditure deductibility <br />Relief from double taxation for foreign investors and employees where applicable <br />
INVESTMENT INCENTIVES AND GUARANTEES- PROVIDED UNDER GIPC ACT 478<br />27<br /><ul><li>Full repatriation of dividends and net profit attributed to investment
Transfer of funds in respect of servicing of foreign loans
Guarantee against expropriation ( also enshrined in the Constitution of Ghana)
Remittance of proceeds in the sale or liquidation of investment</li></li></ul><li>INCENTIVES FOR SPECIAL INVESTMENT<br />28<br />For the purpose of promoting identified strategic or major investments, the Board in consultation with the appropriate agencies as the Board may determine and with approval of the President, negotiate specific incentive package in addition to the incentive provided under section 23 & 24 of the GIPC Act. <br />
PROCEDURE FOR STARTING A COMPANY IN GHANA<br />Step 1 - Registration with Registrar<br /> General's Department <br />Incorporate your company at the<br />Registrar General's Department and<br />obtain the following :<br />1. Certificate of Incorporation<br /> 2. Certificate to Commence Business<br /> 3. Company Regulations<br /> The Registrar General’s Department<br />takes up to five working days to<br />complete formalities if all documents<br />are in order.<br />Step 3 - Registration with GIPC<br />You registers with<br />the Ghana Investment<br />Promotion Centre. <br />This process takes up to five<br />statutory working days to<br />complete, provided all<br />documents are in order.<br />Registration with the GIPC<br />entitles Investor to the<br />Incentives and Guarantees<br />underthe GIPC Act 478<br />Step 2 - Minimum Equity<br /> Contribution<br />Compliance with GIPC Act 478<br />regarding minimum equity<br />requirements either in cash or in kind<br />as follows:<br /><ul><li>Joint Venture - US$ 10,000 </li></ul> <br /><ul><li>100% Foreign-Owned- US$ 50,000