Background:This dissertation will focus on theGhana Investment Promotion Centre Act 2013 (act 865), which repealed andreplaced the Ghana Investment Promotion Centre Act 478 of 1994.
The 2013 Actset out rules regarding the following: enterprisesreserved for Ghanaians, enterprises eligible for foreign participation andminimum foreign capital requirements, incentives for special investment,investment guarantees, and guarantees against expropriation. It alsoestablished the Ghana Investment Promotion Centre which is a government agencythat currently coordinates and monitors all investments in the country in all sectorsexcept mining and petroleum. The functions of the Centre outlined in the legislationdo not differ substantially from those set forth under the 1994 Act. In termsof attracting foreign investment some of the specific functions are to:· Formulate investment promotion policies andplans, promotional incentives and marketing strategies to attract foreign andlocal investments in advanced technology industries and skill-intensiveservices which enjoy good export market prospects;· Initiate, organise and participate inpromotional activities such as exhibitions, conferences and seminars for thestimulation of investments, to present Ghana as an ideal investment destination;· Collect, collate analyse and disseminateinformation about investment opportunities and sources of investment capital,incentives available to investors, the investment climate and advise uponrequest on the availability, choice or suitability of partners in joint ventureprojects;· Identify specific projects and prepare projectprofiles on investments and joint venture opportunities in Ghana and attractinterested investors for participation in those projects; and· Bring about harmonisation in investment policyformulation through coordination of the activities of all other institutionsand agencies.Under the Ghana InvestmentPromotion Centre Act, 2013 (Act 865), any enterprise in which there is foreignparticipation is required to register with the Ghana Investment PromotionCentre (GIPC).
Where the company is wholly owned by non-Ghanaians, there is aminimum capital requirement of US$500,000; where the company is partly owned byf non-Ghanaians the minimum capital requirement is US$250,000; and where thecompany is owned by non-Ghanaians and is to go into trading activities, a minimumcapital requirement of US$1,000,000.The government of Ghana has madeincreasing foreign direct investment a priority, acknowledging the importanceof having an enabling environment for the private sector to thrive, thusattracting foreign investment. The government has undertaken regulatory andother reforms to improve the ease of doing business and investing in Ghana.These reforms are also to deal with issues of bureaucracy, weak productivity,costly and difficult to obtain financing services, under-developed transport infrastructure,power and water cuts and an unskilled labour force, all of which hinder foreigndirect investment. Mining and oil exploration are the main sectors that attractmost of the FDI.
China, Mauritius, Canada, Lebanon and the United Kingdom are themain investing countries.Research Question:What is the effect of legislationin Ghana on foreign direct investment and portfolio investment? Methodology:This dissertation will require botha doctrinal approach and a comparative approach in answering its researchquestions.This dissertation will in its firstset of chapters consider the GhanaInvestment Promotion Act, with the subtopics, Analysisof the rules and regulations of the act in relation to rules regardingenterprises reserved for Ghanaians; Analysis of the rules and regulations ofthe act in relation to enterprises eligible for foreign participation andminimum foreign capital requirements; Analysis of the rules and regulations ofthe act in relation to incentives for special investment, Analysis of the rulesand regulations of the act in relation to investment guarantees.
Using the doctrinal approach,the aim of these chapters is to identify and go on to assess any gaps oruncertainties which may exist within the current legislation in respect of theaforementioned subtopics. It will then go on to asses any effect these gaps oruncertainties may have had on foreign investment. It would then in the next set of chapterscompare Ghana’s legislation with that of Indonesia.
The aim would be to analyseand compare how both have sought to attract as well as regulate foreigninvestment and how well it has worked. The reason for choosing Indonesia stemsfrom the fact that, though Indonesia’s legislations creates many barriers toinvestment as compared to Ghana, the country still attracts a large amount offoreign investment. The focus of the comparison would be on legislation ratherthan case law, as there isn’t much case law in relation to the subject inGhanaian courts. This dissertation will require a comparative approach as theseset of chapters would examine the questions; are there any gaps in Ghana’slegislation that have effectively been filled in the legislation of Indonesiaand Would it be in Ghana’s interest to emulate parts of Indonesia’s legislationwith regards to foreign investment? In line with analysing legislationin Ghana and its effect on foreign direct investment and portfolio investment,the dissertation will then go on to look at bodies created by the legislation,in this case the Ghana investment promotion Centre. Here question that wouldform subheadings are as follows How effective is the current GIPC; Should theGIPC be reformed? and Could legislation on its own be more effective than GIPC. In the absence of substantial case law on thesubject the materials to be consulted will be in the form of policy documents,legislation, journal articles, books, websites, and blogposts.
These materialswill be gathered from The Institute of Advanced Legal Studies Library, Westlaw,LexisNexis and HeinOnline.