By Jibril Abdul Mumuni
Accra, Jan 2, GNA – Ghana’s aspiration to fully leverage the African Continental Free Trade Area (AfCFTA) is facing significant headwinds due to a series of legal hurdles, according to a new report.
A collaborative effort by the University of Professional Studies Law School and top law firms, the report, titled “A Situational Analysis of Ghana’s AfCFTA Preparedness and a Review of the Legal, Policy, and Regulatory Framework,” dissected the nation’s legal landscape, revealing potential stumbling blocks for AfCFTA success.
The report highlights those existing regulations governing foreign direct investment, such as mandatory registration with the Ghana Investment Promotion Centre (GIPC) and the $500,000 minimum capital requirement for expatriates, could deter foreign businesses from participating in the AfCFTA market.
Furthermore, restrictions on foreign ownership and utilization of land and real estate are identified as a significant impediment, particularly for sectors reliant on land, such as agriculture, tourism, and real estate development.
The report underscores the critical need for enhanced harmonization of laws, regulations, and standards across the African continent.
Within Ghana itself, inconsistent and overlapping regulations present a significant challenge to seamless trade facilitation.
The report also pointed to the detrimental impact of bureaucratic procedures, a lack of transparency, and inefficient coordination among government agencies.
These factors can significantly increase costs for businesses and hinder the smooth flow of goods and services within the AfCFTA framework.
The report concluded that while Ghana had taken steps to align its legal framework with AfCFTA obligations, overcoming these challenges was paramount to fully reap the benefits of this historic trade agreement.
GNA