By Jibril Abdul Mumuni, GNA
Accra, Aug. 18, GNA – Ghana has abolished the minimum capital requirements that previously applied to most foreign investors under the newly enacted Ghana Investment Promotion Authority (GIPA) Act, 2026 (Act 1173).
This move aimed at making the country more attractive to investment and enhance its competitiveness as a regional business hub.
Before the passage of Act 1173, foreign investors were required to meet minimum capital thresholds of US$200,000 for joint ventures with Ghanaian partners, US$500,000 for wholly foreign-owned enterprises, and US$1 million for foreign-owned trading companies.
The requirements, introduced under the Ghana Investment Promotion Centre Act, 2013 (Act 865), had long been debated within Ghana’s investment community, with some stakeholders arguing that they limited entry opportunities for smaller investors.
Critics maintained that the thresholds posed significant barriers for small and medium-sized foreign enterprises, technology startups, consulting firms and other knowledge-based businesses whose primary assets were innovation, expertise and intellectual property rather than substantial capital commitments.
With the enactment of the Ghana Investment Promotion Authority Act, 2026 (Act 1173), Ghana has removed the blanket minimum capital requirements for joint ventures and wholly foreign-owned enterprises.
The reform opens the country’s investment landscape to a broader range of investors while maintaining regulatory oversight through existing sector-specific laws, licensing requirements and standards.
Mr Simon Madjie, the Chief Executive Officer of the Ghana Investment Promotion Authority (GIPA), said the reform reflected Government’s commitment to creating a more competitive and accessible investment environment.
He explained that the previous capital thresholds had served as entry barriers for many investors whose strengths lay in innovation, specialised expertise and intellectual property rather than large upfront capital investments.
“The new law recognises that businesses can create significant economic value through technology, skills and innovation, even without substantial initial capital investment,” Mr Madjie said.
He noted, however, that the Act had not completely eliminated capital requirements for all categories of investors.
Under the new framework, the minimum capital requirement for trading enterprises has been reduced from US$1 million to US$500,000.
The Act also replaces the previous requirement for trading enterprises to employ at least 20 skilled Ghanaians with a more flexible workforce provision requiring at least 75 per cent of skilled employees to be Ghanaians.
According to GIPA, the reforms are expected to lower barriers to entry while ensuring that foreign investment continues to support local employment and skills development.
The Authority stressed that the removal of minimum capital requirements does not amount to unrestricted liberalisation of the economy.
It said all investments would remain subject to applicable sector-specific laws, licensing requirements and regulatory standards administered by the relevant state institutions.
Activities reserved exclusively for Ghanaian citizens and wholly Ghanaian-owned enterprises have also been retained under the new legislation, with only limited amendments affecting certain activities.
Industry observers say the reforms could enhance Ghana’s appeal to emerging businesses seeking to establish operations within the African Continental Free Trade Area (AfCFTA) market.
The changes are also expected to benefit technology, professional services, fintech and other knowledge-driven sectors where growth is often driven by expertise and innovation rather than large capital investments.
Act 1173 forms part of broader efforts by Government to modernise Ghana’s investment framework and improve the ease of doing business.
The legislation transforms the Ghana Investment Promotion Centre into the Ghana Investment Promotion Authority and expands its mandate to include outward investment promotion, technology transfer regulation, operation of a one-stop investment shop and administration of an Investor Grievance Mechanism.
Government expects the reforms to strengthen investor confidence, attract quality investment and support Ghana’s ambition of becoming one of Africa’s preferred investment destinations.
GNA
Edited by Agnes Boye-Doe
Photo attached
18 Aug 2026
Reporter: Jibril Abdul Mumuni