One of the most common questions we receive in our corporate practice from international investors seeking to do business in Ghana is:

“We have seen from our research that, to do business in Ghana, we must contribute USD 1 million. Is this the correct position of the law?”

The visible disappointment that often followed our confirmation of this requirement (subject to the nature of the business and composition of the shareholders) underscored a long-standing concern: that the minimum capital threshold was a major deterrent to foreign investment in Ghana.

Over the years, there had been sustained discussion around relaxing these entry requirements, particularly the minimum capital contributions for foreign investors, while still protecting local industries and businesses. A significant turning point came on 4 April 2026, when Parliament passed the Ghana Investment Promotion Authority Bill, 2026 (the GIPA Bill), which received presidential assent on 15 July 2026, transforming the Bill into the Ghana Investment Promotion Authority Act, 2026 (Act 1173).

The GIPA Act repeals the Ghana Investment Promotion Centre Act, 2013 (Act 651) (GIPC Act) and introduces several important reforms. Based on the questions we frequently receive in practice, we highlight three key amendments that are especially relevant to corporate enterprises and foreign investors considering Ghana as an investment destination.

1. Relaxation of capital injection requirements for foreign nationals

This development will be welcome news to many foreign investors. Under the GIPA Act, foreign nationals are no longer required to inject up to USD 1 million to establish a business in Ghana, nor are the previous statutory thresholds of USD 200,000 for joint ventures and USD 500,000 for wholly foreign-owned enterprises maintained.

However, where a foreign investor seeks to engage in a trading enterprise, the Act provides that the investor must invest not less than USD 500,000 in cash as equity capital in the enterprise. In addition, at least 75% of the employees must be skilled Ghanaians.

For the purposes of the Act, trading is defined as the purchase and resale of goods, whether imported or locally produced. The only exemption to the minimum capital requirement applies to portfolio investments.

This represents a significant shift in the investment landscape as it lowers the fiscal entry barrier while consciously promoting the development of local participation and skills.

2. Mandatory registration of branches

Under the GIPC Act 2013, it was unclear whether foreign companies operating as branches or external companies in Ghana were required to be registered with the Ghana Investment Promotion Centre. This ambiguity often created compliance challenges for foreign enterprises.

The GIPA Act addresses this gap by explicitly mandating the registration of branches with the upgraded Ghana Investment Promotion Authority. Enterprises registered under the Act must now apply in writing to the Authority for approval before establishing a branch and must also notify the Authority within thirty days of the relocation or closure of a branch.

This clarification in our view enhances regulatory certainty and promotes improved oversight of foreign business operations in Ghana.

3. Technology Transfer Agreements: a clear compliance framework

Throughout recent years, we had also been observing increased difficulties faced by foreign-owned businesses in Ghana when attempting to make payments to offshore affiliates in the absence of properly registered Technology Transfer Agreements (TTAs).

The GIPA Act makes its position unequivocally clear: a licensed bank in Ghana shall not make payments to an entity outside Ghana in respect of obligations under a technology transfer agreement unless, a certificate of registration of the TTA, and a certified copy of the TTA confirmed by the Authority are presented to the bank.

This reform now strengthens regulatory compliance, while providing clarity to investors, banks, and multinational enterprises operating within the Ghanaian market.

A timely reset of Ghana’s investment framework

The amendments introduced by the GIPA Act represent a much-needed refresh of Ghana’s investment regime. For years, foreign investors have cited high costs, regulatory uncertainty, and lack of clarity as key challenges to investing in Ghana.

By introducing the above reforms, we consider that the GIPA Act provides a more predictable, balanced, and investor‑friendly environment. As the eagerly awaited assent to the Act by the president has finally happened and the Act has become law, our position is that if it is successfully implemented, these reforms have the potential to reposition Ghana to an investor-friendly and, importantly, legally predictable environment, both of which are very crucial when weighing investment opportunities around the world.