The Ghana Investment Promotion Centre (GIPC) in partnership with the Ghana South Africa Business Chamber and the South Africa High Commission, Accra is leading a trade and investment promotion mission to the Republic of South Africa.

 The mission which will take place from the 20th to 28th June 2018 will take participants to two South African provinces; Mpumalanga (20th – 23rd June 2018) and Gauteng (23rd – 28th June 2018) respectively.

 This forms part of the Centre’s programme to deepen its engagement with investors from Sub-Sahara Africa, explore the potential opportunities for investment as a result of the new continental free trade agreement, and recognise the growing trend of trade and investment from the sub region.

 Highlights of the mission include business forums in Mpumalanga and Gauteng, business to business meetings, industrial/company site visits and also participation in the Southern Africa International Trade Exhibition (SAITEX) 2018 Conference in Johannesburg, South Africa.

 Participants will meet and network with senior government officials, business owners, project promoters and investors from South Africa. There will be the opportunity for delegates with bankable projects looking for partnerships, funding (debt or equity) to be matched with South African investors. The mission presents a great opportunity for Ghanaian businesses to find new markets for their products and services.

The sectors of focus for the trade and investment promotion mission are Agriculture & Agro-processing, Tourism & Hospitality management, Manufacturing and Services including Information and Communication Technology (ICT).

The Ghana Investment Promotion Centre and its partners for this mission welcome the business community to register and participate to benefit from numerous opportunities it presents.

Source: GIPC, Corporate Affairs

A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. A failure to pay, or evasion of or resistance to taxation, is punishable by law.

The income tax regime has seen various changes since the Internal Revenue Act, 2000 (Act 592). Although there are still a number of issues in the tax regime that need to be addressed, the current state of taxation is quite encouraging for the business community.

The 2018 budget statement includes a number of tax policy proposals expected to enhance tax revenue generation which remains a key objective of government.

Then there is the overall success of the Taxpayer Identification Number (TIN); a unique number generated by the Ghana Revenue Authority for persons including corporate entities upon application. The Ghana Revenue Authority (GRA) has so far issued over a million taxpayers with a new Taxpayer Identification Number (TIN) since the introduction of the regime. In 2017, over 258,000 new TINs were issued, an increase of 68% compared to the same period in 2016.

All persons and entities who have any dealings with the GRA are required to register for a TIN; it may be obtained free of charge from any GRA office. Applicants are expected to provide a clear copy of a valid identity card (National ID Card, Voters Card, Driving License or Passport), together with the original ID itself. TIN issuance has been boosted by the nationwide rollout of GRA’s new computerised tax system – tripsTM, managed by GCNet on behalf of the Government of Ghana. TripsTM is now live in a total of 59 offices across nine regions of Ghana.

The tripsTM seeks to streamline and bring transparency to the business operations of the GRA Domestic Tax Revenue Division. The system supports a full range of tax administration functions, including Registration, Returns Processing, Automated Compliance, Collections, Taxpayer Accounting, Revenue Accounting, Refunds, Risk Management, Case Management, Audit, Objections and Appeals.

The benefits of the TIN are numerous for holders as it is impossible to perform the following transactions without the TIN among others:

• Clear goods from the ports
•   Register your land documents with the Lands Commission
•   Obtain a Tax Clearance Certificate from the Ghana Revenue Authority
•   Open a bank account
•   Register your company at the Registrar-Generals’ Department
•   Obtain payments for jobs/contracts done for the government
•   File a case at the courts
•   Obtain a passport from the Passport Office
•   Obtain a drivers’ licence and register your vehicle at the Driver and Vehicle Licensing Authority (DVLA)
•   Bid for contracts from government agencies
•   Conduct business with Ministries, Departments and Agencies
•   Conduct business with Metropolitan, Municipal and District Assemblies

The future of the financial and tax system in Ghana is very bright with the indication of projects such as the TIN Number.

All in all, the TIN Number will serve as an identification pin for each individual’s contribution of tax in Ghana and is expected to broaden the country’s revenue whiles increasing developmental projects which will, in the long run, help the country in its financial growth.

 Source: G.I.P.C. Corporate Affairs

The Ghana Investment Promotion Centre organized the 2018 Edition of the Economic Counsellors Dialogue on the 17th of May 2018. The Dialogue, being the fifth in a series organized by the Centre, aimed at bringing together the economic, trade and commercial attaches of various foreign missions located in Ghana, as well as foreign businesses associations and relevant government agencies.

The event held on the theme “Improving the Investor Experience in Ghana: Incentives Regime, Business Licensing and Taxation” had notable speakers in persons of the Deputy Finance Minister- Hon. Kwaku Kwarteng, Mrs Jemima Oware- Registrar General of Ghana, Mr Francis Ashinyo- Assistant Commissioner for Large Tax Payers Office GRA, Mr Emmanuel Asiedu- Senior Tax Partner at KPMG and Chief Executive Officer of the Ghana Investment Promotion Centre- Mr Yofi Grant.

Mr Grant indicated that the dialogues were to educate the Diplomatic Community about the GIPC’s programmes and investment policies so that the information could be passed down to potential and existing investors from their respective countries interested in doing business in Ghana.
“Few of the Missions consistently offer that advice to their nationals who want to invest here, but of course, we at the GIPC want the numbers to increase through the assistance from the various embassies,” he said.

In his opening remarks the Deputy Minister of Finance, Hon. Kwaku Kwarteng, reiterated the government’s commitment to expanding the economy so as to bridge the expenditure and revenue gap. He also stated that the private sector was a catalyst for the development agenda of the country, adding that the existing cooperation between the diplomatic communities would help accelerate inclusive economic growth.

Senior Tax Partner at KPMG Mr Emmanuel Asiedu in his presentation spoke referring to his experience dealing with regulators and tax authorities. He commended the Centre for effective service delivery and quick turnaround time when engaging with investors.

The Registrar General, Mrs Jemima Oware showcased the Business Regulatory Reforms being implemented by the Registrar General’s Department. These included:

• Segregation of final approval of Business Registration: Previously attorneys gave final approval for all registrations; businesses, companies, marriages industrial property as well as administration of estates. All these activities increased their workload resulting in longer processing time for business registration. To support the attorneys, selected company inspectors have been authorized to give final approval for registration of businesses (such as sole proprietorships and subsidiary business names). This has contributed immensely to the turnaround time which is now two to three days for business registration of a company.

• Direct Commencement of business: In the past Incorporation and Commencement Certificates were completed at different times. Presently, Incorporation and Commencement Certificates are issued on the same day for businesses that do not require any license to commence business.

• One Stop Shop (TIN, AMA, SSNIT): A GRA desk has been created within the premises of RGD to facilitate the generation of Tax Identification Number (TIN) which is a prerequisite for business registration. The TIN and registration documents are submitted at one point and clients who do not have TIN can have this generated within a day. Desks for the Accra Metropolitan Assembly (AMA) and Social Security and National Insurance Trust (SSNIT) have also been established within the premises of RGD to issue business permit license and register with these agencies after business registration is completed.

• e-Certificate and e-Shop: the RGD said that the e-portal platform had been introduced for e-registration, the network tax offices hence filing returns can be done in any of the offices in the country. eRegistrar portal is a system designed to provide clients with the ability to transact business online with the Registrar General’s Department.

The Registrar General further stated that RGD’s Business Regulatory Reforms aim to eliminate obstacles impeding the process of starting up a business, economic development and improving Ghana’s performance in the World Bank’s Doing Business ranking.

The forum concluded with a Q&A session for participants to engage speakers and other government agency representatives present.

Source: GIPC, Corporate Affairs

Agility Distribution Parks is a world-class company investing and building capacity for Africa through warehouse parks creation.

Agility’s activities include Funding, developing and operating international standard warehouse parks providing warehouses for both multinational and local SME company’s eliminating their need to invest in expensive non-core assets.

Warehouses from 500m2 upwards, suitable for distribution, storage, processing and light manufacturing. Only 3 months deposit required for a standard unit. The company commenced operations in Ghana in 2016 and went through the following processes to establish offices in Ghana:

• Feasibility study
• Company formation
• Land acquisition
• Construction tenders
• Phase 1 development completed and fully let
• Phase 2 development completed and fully let
• Phase 3&4 development under construction opening Q4 2108

When asked about the experience of setting up in Ghana, the company indicated that it was a transparent and efficient process that made the decision to invest in Ghana simpler.

“Ghana has a burgeoning economy and political stability. The process and execution of establishing a business in Ghana were clear and simple and we could identify immediate demand from customers for quality warehousing. We are expanding the project faster than budgeted, attracting new customers from both the local SME sector and multinationals. The project has created the essential warehouse infrastructure enabling companies to establish their regional base in Accra.”

From the first meeting on the project, the Ghana Investment Promotion Centre has been very supportive and central to the ease of doing business in Ghana.

Now that we are operational, the relationship remains close and GIPC actively utilizes the availability of warehouses that have been funded and developed by Agility in the Agility Warehouse Park in Tema as an additional way to attract new companies to set up operations in Ghana.

Ghana is a very attractive location for investment in West Africa driven by both the economic growth of Ghana and its ever-increasing role as a central hub within ECOWAS.

Source: Agility Africa

Ghana raised $2billion in its first ever Eurobond with the longest length of time, comprising ten and thirty-year bonds, meant to improve infrastructure and in turn create jobs. The development represents the first time a sub–Saharan country with a rating of B stable has priced a sovereign Bond at such low costs indicating strong investor confidence.

The country sold $1 billion each of the 10-year notes maturing in 2029 and a 30-year with 2049 maturity at 7.625 percent and 8.625 percent, respectively. Ghana has achieved remarkable macroeconomic stability and growth in this regard.

On the hugely successful issue of the bond, the Finance Ministry explained that the government was seeking to raise 750 million dollars. However, upon completion, the Sovereign bond accrued two billion dollars from investors. The success of the bond among other factors demonstrates the high level of investor confidence in the country.

According to the US-Africa Business Centre in Washington DC, an organization responsible for the Investor Confidence Indicator for Africa (ICIFA), Ghana ranked among the best countries in Africa in terms of convenience of doing business. The report, which is a tool for government and industry leaders is used to make policy and investment decisions that drive economic growth. The report was released to enable investors to decide on countries in which to push in capital for business.

Investor confidence in the upstream petroleum sector has also shot up following Ghana’s recent victory at the International Tribunal for the Laws of the Sea (ITLOS).  This has led to some investors expressing interest in developing the Saltpond oilfields.

The Minister of Energy, Mr Boakye Agyarko, stated that the definite nature of the decision, which favoured Ghana against Cote d’Ivoire over a maritime boundary dispute, had contributed towards whipping up investor confidence and interest in the upstream petroleum sector. Source: Ministry of Energy

Prudent policies by the government in the micro and macroeconomic space is yielding positive results. Month on month inflation has hit single digit, interest rates are on the downward trend with treasury bill rates averaging about 13%. Reduction in electricity tariff, 30% for industrial establishments and about 17% for domestic consumers and fair stability in the exchange rate have further strengthened confidence in the Ghanaian economy.

According to the World Bank, Ghana is one of the fastest growing economies in the world, with projected growth being approximately 8% by end of 2018, above the global average. The government is committed to and continues to work towards building a unique environment for investments to thrive.

Source :G.I.P.C. Corporate Affairs

Some multinational companies moving to establish their retail base in Ghana are predicting good business opportunities due to the strategic location of the country. The companies are also citing ease of doing business as a major factor in selecting Ghana to be their main retail market in the West African sub-region.

The latest company that has moved to Ghana to set up its retail hub in the country is Renault Trucks. Speaking to Citi Business News on the decision, the Vice President of Renault Trucks in Africa, Latin America and Asia, Cyril Barille explained that the company wants to penetrate the ECOWAS region through Ghana.

“Ghana is a very good place to operate a business. The economic infrastructure is here. The peace and political atmosphere is also good. We can reach all over West Africa from here,” he said.

He stated that as part of its business activities, Renault Trucks International team organizes regular visits to the most strategic countries, with the objective to understand better their particularities, characteristics and market dynamics.

“We have local resources that constantly give us insights and do an amazing work. But for us, as managers, going to the field where our business has the biggest potential and getting to meet our customers, see their activities and understand their challenges is the key to improve our offer and services,” he said.

He added that “We are committed to our customers’ success and this is why it is a must to be close to them”. This visit was also organized to thank its partner, SSP, the exclusive Renault Trucks importer in Ghana.

“We don’t only sell trucks. We are engaged in increasing customers’ profits and making their life easier, so they can concentrate on their core business. Our offer includes financing solutions, service contracts, drivers’ training and TCO studies to optimize the cost of operations.

We offer a lot more than the outstanding trucks specially adapted to the African market that we have developed,” he said.

Source: citibusinessnews.com

Infrastructure is critical to the development of the aviation sector. Over the years, the government has done some work in assessing the current state of our airports and some improvements have been made at the Kotoka International Airport, Kumasi Airport and the Tamale Airport.

It sought to improve aeronautical facilities like the terminals, taxiways, runways, parking bays and navigational or the guidance systems to improve safety, increase capacity and ensure efficiency in service delivery and on-time performance for airlines that operate out of these airports.

The Kotoka International Airport (KIA) has seen development with the establishment of the new Terminal 3, which aims to ease congestion and expected to help facilitate tourism growth in Ghana. The project began in March 2016, extends over five floors totalling 45,000 sq. meters. The project expands the airport’s total passenger-handling capacity by 5metres and will significantly ease peak-hour congestion at the existing international Terminal 2.

The $274m project being built by Turkish-based MAPA Construction and Trade Company is near completion and has been partly funded by a $ 120m loan facility from the Africa Development Bank. This project serves as a boost for the local economy, generating an estimated 900 temporary jobs during the two-year construction phase, with plans to sustain a further 760 permanent jobs into the future.  The terminal expansion is vital to infrastructure investment at KIA where the private sector will help fulfil the country’s quest to raise Ghana’s profile as a regional hub.

In 2016, KIA opened the 17,000 square meters Ghana Airport Cargo Centre, increasing its cargo handling from 50,000 tons per year to more than 70,000 tons. This facility, Ghana’s first public-private partnership in the aviation industry was developed by a joint venture between Air Ghana and the Ghana Airports Company Limited and is operated by Swiss Port Ghana.

Kumasi is also looking to strengthen its aviation infrastructure with the Ghana Airports Company Limited earlier this year requesting for expression of interest for design review and construction supervision for the Kumasi Airport. The work is part of the second phase of expansion at the site and includes a terminal building and runway extension. The improvements will help attract new international connections through the Ashanti Region.

The infrastructure improvements completed earlier in Kotoka, Kumasi and Tamale Airports are key measures implemented to make travel cheaper for passengers and increase the country’s attractiveness to foreign airlines operating in the region.

In 2016, the government removed a 17.5% value-added tax on domestic air travel. This resulted in a significant increase in domestic passenger air travel growing from 163,322 to 201,851 in May 2017 representing an increment of 24%.

Tourism is expected to be a key beneficiary of airport expansions in Ghana. According to the World Tourism and Tourism Council (WTTC), Ghana’s tourism sector’s total contribution to GDP is expected to increase by 4.2% on average per year to GHC19.9bn by 2028. In 2017, the sector contributed 6.2%. The domestic tourism spending accounts for 60.4% of the sector’s contribution to GDP. The Ghana Tourism Authority has also set a target of attracting 1.5m international tourists to the country this year, up from the estimated 1.2m in 2017.

To reach this goal, additional measures are also being taken to improve connectivity. The government expects to receive the first tranche of a $50m grant from the World Bank in June, to be used to improve road infrastructure and sanitary services in key tourist hotspots. Meanwhile, the Ghana Civil Aviation has outlined plans to construct new airstrips in popular visitor areas to improve connectivity, highlighting Axim, Bolgatanga and Cape Coast as potential locations.

Ghana’s Aviation industry has high rating within the West African sub-region, with the attraction of routes such as the Air France which joined other international carriers, including Delta Airlines, Turkish Airlines, South Airways, British Airways, Emirates Airlines, Middle East Airlines, KLM Royal Dutch, Air Ivoire and America Airlines in 2017.

The Aviation sector continues to present numerous opportunities for the business community to consider, including the proposed launch of a domestic and international airline by 2019.

Source :G.I.P.C. Corporate Affairs