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TO BUSINESS DELEGATION FROM FRANCE
16th JULY, 2011
Presented by MR. EDWARD B. ASHONG-LARTEY DIRECTOR, MARKETING& PUBLIC RELATIONS DIVISION GHANA INVESTMENT PROMOTION CENTRE (GIPC)
GHANA S INVESTOR FRIENDLY ENVIRONMENT
The country has witnessed five peaceful elections since 1992 Continuous, stable multi-party political environment since 1992 Continuous macro-economic stability Competitive corporate tax rates in the sub region Fast developing financial infrastructure, institutions and services Abundant supply of skilled and trainable labour Proximity to both the European and American markets
ECONOMIC OUTTURNS FOR 2010 AND TARGETS FOR 2011
Economic Indicators GDP (CIA est.) GDP (GSS) GDP per capita(GSS) Real GDP Growth GDP sector contribution Agriculture Industry Service Inflation(End of Year) Reserves (Months of Imports Cover)
2010 Targets ---6.5%
2010 Outturns $36.58 billion(2009) $44 billion(2010) US$1,380 5.9%
2011 Targets ---7.0% (excluding oil) 12.3% (including oil) ---8.5% 3.0(not less)
32.4% 25.7% 32.8%
9.13%(as at March 2011) 3.2
Source: 2011 Budget Statement, Ministry of Finance and Economic Planning
GHANA INVESTMENT PROMOTION CENTRE The Ghana Investment Promotion Centre (GIPC) is a government agency re-established in 1994 under Act 478 to promote and facilitate investment in all sectors of the economy with the exception of core mining and petroleum activities. 4 .
In October.GHANA-FRANCE RELATIONS Ghana and France have enjoyed cordial relations. Ghana and France developed the Ghana-France Partnership Framework for Development. The AFD has supported water projects in Northern Ghana. Bilateral Investment Treaty(BIT) signed between Ghana and France in 1999 5 . In January 2006. Societe Generale Internationale (SGI) was the key advisor in the AngloGold and Ashanti Goldfields merger. 2010 the GIPC participated in the Chocolate fair in Paris. particularly water and sanitation. with France playing key role in Ghana's infrastructure development.
Budgetary support and Private sector Development through PROPARCO In the area of Education. Kumasi. The development of Francophonie is also ensured through the network of Alliance Française in Ghana. Takoradi.GHANA-FRANCE RELATIONS-cont d France has supported Ghana over the years in the area of Agricultural and Agronomic Research. non-lucrative associations. They are autonomous. 6 . Present in 140 countries and with a network of over 1000 committees. Tema and Cape Coast. the Alliance Française is an association created in Paris in 1883 to promote French language and culture. it is represented in the country today by the five local committees in Accra. Water and Sanitation. affiliated to Alliance Française of Paris. Established in Ghana since 1957.
516.887.43 7.17 62.365.385.62 15.919.049.617.83 7 .64 2.364. OF PROJECTS 213 285 187 570 198 892 1009 352 3.259.594.211.062.684.993.TOTAL REGISTERED PROJECTS (SEPT 1994 MARCH 2011) SECTOR AGRICULTURE BUILDING/CONSTRUCTION EXPORT TRADING GENERAL TRADING LIAISON MANUFACTURING SERVICE TOURISM TOTAL TOTAL NO.26 1.706 TOTAL ESTIMATED VALUE OF PROJECTS US$ 770.538.752.437.073.461.076.429.45 2.835.52 180.74 23.444.
479.50 Ranked 15th in terms of Value of investments and 11th in terms of number of investments in the Ghanaian economy 8 .000.38 6.000. O PROJECTS 5 2 3 5 6 17 26 15 TOTAL ESTIMATED COST US$ 56.000.15 1.00 905.912.994.000.426.910.97 98.00 604.843.00 15.00 13.00 2.564.182.158.REGISTERED FRENCH INVESTMENTS (SEPT 1994 MARCH 2011) SECTORAL DISTRIBUTION OF FRANCE ONLY REGISTERED PROJECTS BY GIPC FROM SEPT 1994 TO MARCH 2011 SECTOR AGRICULTURE BUILDING/CONST EXPORT TRADE GENERAL TRADING LIAISON MANUFACTURING SERVICE TOURISM TOTAL 79 NO.848.763.930.
Certificate to Commence Business 3.US$ 300.000 100% Foreign-Owned . provided all documents are in order. Step 2 . This process takes up to five statutory working days to complete. Certificate of Incorporation 2.Registration with Registrar General's Department Incorporate your company at the Registrar General's Department and obtain the following : 1.Minimum Equity Contribution Compliance with GIPC Act 478 regarding minimum equity requirements either in cash or in kind as follows: Joint Venture .000 Step 3 . Company Regulations The Registrar General s Department takes up to five working days to complete formalities if all documents are in order.PROCEDURE FOR STARTING A COMPANY IN GHANA Step 1 . Registration with the GIPC entitles Investor to the Incentives and Guarantees under the GIPC Act 478 9 .000 Trading Enterprises .US$ 10.Registration with GIPC You registers with the Ghana Investment Promotion Centre.US$ 50.
machinery.INVESTMENT INCENTIVES AND GUARANTEES.PROVIDED UNDER GIPC ACT Custom duties exemptions for plant. five-year loss carry-over and R & D expenditure deductibility Relief from double taxation for foreign investors and employees where applicable 10 . equipments and parts thereof Graduated and reasonable corporate taxes Location incentives of between 25%50% tax rebates for manufacturing companies Tax holidays ranging from 5-10 years depending on sectors 478 Automatic immigrant quotas depending on paid-up capital Other attractive tax concessions such as accelerates depreciation for plant and buildings.
INVESTMENT OPPORTUNITIES Oil and Gas Services Energy Infrastructure Agriculture Manufacturing Tourism ICT Financial Services 11 .
THIS IS EXPECTED TO INCREASE TO 120.000 BY JUNE 2011 AND 240. 12 .000 BARRELS PER DAY.000 BARRELS OF OIL PER DAY BY DECEMBER 2011. 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.OIL AND GAS SERVICES GHANA¶S ESTIMATED FIELD SIZE: 400 MILLION BARRELS TO OVER 1 BILLION BARRELS (ALL IN THE JUBILEE FIELD) PUMPING OF OIL COMMENCED ON 15 DECEMBER 2010: CURRENT OIL PRODUCTION IS 60.
There is also the Dzata. Mahogany Deep and Odum in the Deepwater Tano block and West Cape Three Points. Reports estimate the Mahogany field to hold between a hundred and five hundred million barrels of crude. Tweneboa. These discoveries are being appraised at the moment to determine the potential reserves.OIL AND GAS SERVICES OTHER LANDMARK DISCOVERIES Other landmark discoveries are Owo. It currently has five wells on which various appraisal works are being done. 13 .
weather forecasting. search and rescue facilities Restaurants . anchor handling boats. vehicle rental and security services Transportation/Freight Banking Services Insurance Services 14 . etc Telecommunications. catering . diving vessels.OIL AND GAS SERVICES Business Opportunities Dedicated shore base with a dedicated mini harbor Rig operations Fuel supply Onshore support and logistics Office accommodation for numerous oil service companies Supply chain services Helicopter and fixed wing aircraft transportation Equipment supply Supply boats.
OIL AND GAS SERVICES Construction Opportunities LNG pressure vessels Metal work and fabrication Petroleum separation Construction. installation and commissioning of offshore structures Pipeline manufacturing from steel Electrical wiring of platforms and vessels Installation and maintenance of instrumentation for production plants Welding and Joinery Hookup of structures already built in other countries Assembling of knocked down structures in yards in Ghana Real estate construction and management 15 .
16 .investors will be expected to utilize a percentage of Ghanaian human and material resources .A comprehensive environmental health and safety policy for this sector is being developed.OIL AND GAS SERVICES Measures against negative impact of sector on the communities in the catchment area include: Implementation of a no-gas flaring policy Local Content Requirements for the Petroleum Sector -. Environmental Health and Safety Plan (EHS) -.
CONSTRUCTION OF SUNON ASOGLI POWER PLANT. GHANA To fill the 3000 mw demand.ENERGY Government¶s major energy policy (electricity) . and it is government¶s policy to increase to 5000 mw by 2015. Current Status is -1980 mw. Current electricity penetration is 60% and 100% penetration is expected to be achieved by 2020. government is ready for partnerships with private sector.Universal access to electric power by 2020. 17 .
wind. mini-hydro and bio fuels. with the total installed capacity of 400MW being commissioned by end of 2012. The first 133MW of the 400MW Bui Hydro project is expected to be commissioned by the end of 2011.126 MW and eventually to 300 MW -Kpone Thermal IPP Project-220 MW 18 . Major projects: -Sunon-Asogli Power Plant-200MW -Tema Osonor Plant Ltd.ENERGY Pursuing a renewable energy generation target of 10% of total production and the renewable resources to be promoted include solar. Government of Ghana is actively promoting Independent Power producers in the country.
electrical load management. boiler efficiency/heat recovery. 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 19 .ENERGY Energy services provision (energy audits & energy management strategies. refrigeration and air conditioning systems.
ACCRA SILVER STAR TOWER AREA. ACCRA ACCRA-TEMA RAILWAY LINES .INFRASTRUCTURE Roads Public Housing And Property Development Rail Transport And Ports 20 HERITAGE TOWERS.
KWAME NKRUMAH CIRCLE (BY NIGHT). Construction of toll road and rapid transit route in cities encouraged. ACCRA 21 .INFRASTRUCTURE ROADS Provision of efficient and effective mass transport facilities in all regions of Ghana.
000.000 unit Annual supply = 40. Cost of Deficit at US$7.000 units Level of Investment required = US$ 7.INFRASTRUCTURE PUBLIC HOUSING & PROPERTY DEVELOPMENT Level of Investment ± Est. Construction Residential (low cost housing. warehousing facilities) Commercial (regional shopping centres/malls. storage) b. retirement villages) Industrial (light industrial parks.000 units Annual Demand = 140. Production and marketing of construction equipment and building materials VILLAGIO APARTMENTS 22 . high rise luxury apartments.5 billion Deficit = 1.5bn a. office accommodation.
near Kumasi (heart of country) Creation of river port at Buipe. Northern Region (on the Volta river) 23 TEMA PORT . signals and telecommunication systems. bridges .5 billion Creation of Inland Port at Boankra.INFRASTRUCTURE RAILWAYS & PORTS Rehabilitation of existing railway infrastructure mainly tracks. Expansion and modernization of Tema and Takoradi ports ± US$ 1. expansion to cover whole country especially linking south to the north. Modernization of existing railway.
AGRIC AND AGRO PROCESSING Technological and support services: supply and installation of cold chain equipment. factory building technology Production of agricultural inputs: fertilizers. packaging and cold vans building for management and market-oriented enterprises. training and certification. Ghana has potential irrigable area of 346. agricultural finance and insurance Storage facilities: avoidance of high postharvest losses and low returns for farmers and processors Standards.000 hectares has been developed Large scale farming of crops Supply of machinery to establish hatcheries for day-old chicks Floriculture: cultivation of exotic flowers. pesticides and fungicides Distribution services: post-production services in transport. market intelligence research . potential in national.000 hectares. regional and European Union market 24 . capacity Developing irrigable land through irrigation. only 10. packaging .
MANUFACTURING AND INDUSTRY Food processing Cocoa processing Pharmaceuticals Textiles and garments Wood processing and manufacturing PHARMACY PAPSO DRINKS Salt production Production of electrical wirings and electronic products 25 GHANAIAN KENTE CLOTH .
business hotels. hostels. camping sites) Tourist Information Shops Tourist Transport Services Tourist Travel Services Tourism Financial Services Tourism Medical Services Food and Beverage Services Entertainment Leisure and Sports Shopping Meeting Facilities KINTAMPO WATERFALLS 26 . single-hotel resorts. lodges and inns.TOURISM Tourist Accommodation -(multi-hotel resorts. motels.
INFORMATION COMMUNICATION TECHNOLOGY Category 1 2 3 4 5 6 7 8 National fixed network operators National Mobile cellular operators Direct to Home (DTH) Satellite Services Internet Service Data Providers VSAT Data Operators Public/Cooperate Data Operators FM Stations TV Stations No. Operating 2 5 8 29 57 25 84 8 free-to-air 5 pay/view 2 6 13 165 176 99 140 32 No. Required 27 .
networking. VSAT. ACCRA .INFORMATION COMMUNICATION TECHNOLOGY Education: software development. telecom and IT Engineering Production of Business Solutions (software and networking services) Business Processing Outsourcing Supply of High-Tech Telecommunication Equipments Back Office Operations ( especially for Financial Institutions) Telephony ± rural and fixed lines Internet Service Provision Service Transaction Processing Manufacturing. assembling and supply of computers and accessories VSAT services E-commerce and Legal Database Services Logistics Management Services and Medical Transcription Services 28 BUSYINTERNET.
FINANCIAL SERVICES Organization Banks Rural and Community Banks Non-Bank Financial Institutions Forex Bureaux Insurance Companies Re-insurance Companies Insurance Brokers GSE Listed Companies GSE Licensed Stockbrokers Number 27 135 44 273 17 2 35 38 18 Opportunities Universal banks Development banks Insurance companies Reinsurance companies Mortgage finance institutions Leasing companies Venture capital companies Hire purchase companies Export finance companies Investment banks Mutual funds Investment trusts Savings and loans companies 29 .
PROVIDED UNDER GIPC ACT Custom duties exemptions for plant. equipments and parts thereof Graduated and reasonable corporate taxes Location incentives of between 25%50% tax rebates for manufacturing companies Tax holidays ranging from 5-10 years depending on sectors 478 Automatic immigrant quotas depending on paid-up capital Other attractive tax concessions such as accelerates depreciation for plant and buildings.INVESTMENT INCENTIVES AND GUARANTEES. machinery. five-year loss carry-over and R & D expenditure deductibility Relief from double taxation for foreign investors and employees where applicable 30 .
PROVIDED UNDER GIPC ACT 478 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 31 .INVESTMENT INCENTIVES AND GUARANTEES.
INCENTIVES FOR SPECIAL INVESTMENT For the purpose of promoting identified strategic or major investments. 32 . 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.
P.com Website: www.gipcghana. Box M193 Ministries. Ghana Location: Public Services Building Ministries.CONTACT The Chief Executive Officer Ghana Investment Promotion Centre (GIPC) Postal Address: GIPC. Accra.com 33 . Accra. O. Ghana Tel: +233 302 665125-9 Fax: +233 302 663801 Email: info@gipcghana.
THANK YOU FOR YOUR ATTENTION 34 .