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Presented by
MR. EDWARD B. ASHONG-LARTEY
DIRECTOR, MARKETING& PUBLIC RELATIONS DIVISION
GHANA INVESTMENT PROMOTION CENTRE (GIPC)
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PRESENTATION ON INVESTMENT
OPPORTUNITIES IN GHANA
TO
BUSINESS DELEGATION FROM FRANCE
16th JULY, 2011
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The country has witnessed five peaceful elections since 1992
Continuous, stable multi-party political environment since 1992
Continuous macro-economic stability
Competitive corporate tax rates in the sub region
Fast developing financial infrastructure, institutions and services
Abundant supply of skilled and trainable labourProximity to both the European and American markets
GHANAS INVESTOR FRIENDLY
ENVIRONMENT
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ECONOMIC OUTTURNS FOR 2010 AND
TARGETS FOR 2011
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Economic Indicators 2010
Targets
2010
Outturns
2011
Targets
GDP (CIA est.) -- $36.58 billion(2009) --
GDP (GSS) -- $44 billion(2010) --
GDP per capita(GSS) -- US$1,380 --
Real GDP Growth 6.5% 5.9% 7.0% (excluding oil)
12.3% (including oil)
GDP sector contribution
Agriculture
Industry
Service
--
----
32.4%
25.7%
32.8%
--
----
Inflation(End of Year) 9.2% 9.13%(as at March 2011) 8.5%
Reserves (Months of
Imports Cover)
2.5 3.2 3.0(not less)
Source: 2011 Budget Statement, Ministry of Finance and Economic Planning
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GHANA INVESTMENT PROMOTION
CENTRE
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The Ghana Investment Promotion Centre (GIPC) is a
government agency re-established in 1994 under Act
478 to promote and facilitate investment in all sectors
of the economy with the exception of core mining and
petroleum activities.
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GHANA-FRANCE
RELATIONS
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Ghana and France have enjoyed cordial relations, with France playing key role in
Ghana's infrastructure development, particularly water and sanitation. The AFD has
supported water projects in Northern Ghana.
In January 2006, Ghana and France developed the Ghana-France Partnership Frameworkfor Development.
In October, 2010 the GIPC participated in the Chocolate fair in Paris.
Societe Generale Internationale (SGI) was the key advisor in the AngloGold and Ashanti
Goldfields merger.
Bilateral Investment Treaty(BIT) signed between Ghana and France in 1999
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In the area of Education, The development of Francophonie is also ensured
through the network of Alliance Franaise in Ghana. Present in 140 countries and
with a network of over 1000 committees, the Alliance Franaise is an association
created in Paris in 1883 to promote French language and culture.
Established in Ghana since 1957, it is represented in the country today by the five
local committees in Accra, Kumasi, Takoradi, Tema and Cape Coast. They are
autonomous, non-lucrative associations, affiliated to Alliance Franaise of Paris.
GHANA-FRANCE
RELATIONS-contd
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France has supported Ghana over the years in the area of Agricultural and
Agronomic Research, Water and Sanitation, Budgetary support and Private
sector Development through PROPARCO
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SECTOR
TOTAL NO. OF
PROJECTS
TOTAL ESTIMATED VALUE OF
PROJECTS US$
AGRICULTURE213 770,617,919.64
BUILDING/CONSTRUCTION285 2,835,385,887.17
EXPORT TRADING187
62,076,437.26
GENERAL TRADING570
1,211,684,062.74
LIAISON198
23,073,049.43
MANUFACTURING 892 7,993,516,364.45
SERVICE1009
2,461,259,444.52
TOURISM352
180,752,429.62
TOTAL3,706
15,538,365,594.83
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TOTAL REGISTERED PROJECTS
(SEPT 1994 MARCH 2011)
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REGISTERED FRENCH INVESTMENTS
(SEPT 1994 MARCH 2011)
SECTORAL DISTRIBUTION OF FRANCE ONLY REGISTERED PROJECTS BY GIPC
FROM SEPT 1994 TO MARCH 2011
SECTOR NO. O PROJECTS TOTAL ESTIMATED COST US$
AGRICULTURE 5 56,994,000.00
BUILDING/CONST 2 905,000.00
EXPORT TRADE3 604
,000.00
GENERAL TRADING 5 2,182,763.38
LIAISON 6 6,930,000.00
MANUFACTURING 17 13,843,564.00
SERVICE 26 15,910,426.15
TOURISM 15 1,479,158.97
TOTAL 79 98,848,912.
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Ranked 15th in terms of Value of investments and 11th in terms of
number of investments in the Ghanaian economy
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PROCEDURE FOR STARTING
A COMPANY IN GHANA
Step 1 - Registration with Registrar
General's Department
Incorporate your company at the
Registrar General's Department and
obtain the following :
1. Certificate of Incorporation
2. Certificate to Commence Business
3. Company Regulations
The Registrar Generals Department
takes up to five working days to
complete formalities if all documents
are in order.
Step 2 - Minimum Equity
Contribution
Compliance with GIPC Act 478
regarding minimum equity
requirements either in cash or in kind
as follows:
Joint Venture - US$ 10,000
100% Foreign-Owned - US$ 50,000
Trading Enterprises - US$ 300,000
Step 3 - Registration with GIPC
You registers with
the Ghana Investment
Promotion Centre.
This process takes up to five
statutory working days to
complete, provided all
documents are in order.
Registration with the GIPC
entitles Investor to theIncentives and Guarantees
under the GIPC Act 478
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INVESTMENT INCENTIVES AND
GUARANTEES- PROVIDED
UNDER GIPC ACT 478
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Custom duties exemptions for plant,
machinery, equipments and parts
thereof
Graduated and reasonable corporatetaxes
Location incentives of between 25%-
50% tax rebates for manufacturing
companies
Tax holidays ranging from 5-10 years
depending on sectors
Automatic immigrant quotas
depending on paid-up capital
Other attractive tax concessionssuch as accelerates depreciation
for plant and buildings, five-year
loss carry-over and R & D
expenditure deductibility
Relief from double taxation for
foreign investors and employees
where applicable
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INVESTMENT OPPORTUNITIES
Oil and Gas ServicesOil and Gas Services
EnergyEnergy
InfrastructureInfrastructure
AgricultureAgriculture
ManufacturingManufacturing
TourismTourismICTICT
Financial ServicesFinancial Services
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OIL AND GAS SERVICES
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GHANAS ESTIMATED FIELDSIZE: 400 MILLION BARRELS TOOVER 1 BILLION BARRELS (ALL
IN THE JUBILEE FIELD)
PUMPING OF OIL COMMENCED ON 15
DECEMBER 2010: CURRENT OILPRODUCTIONIS 60,000
BARRELS PER DAY.
THIS IS EXPECTED TO INCREASE TO
120,000 BY JUNE 2011 AND 240,000
BARRELS OF OILPER DAY BY DECEMBER
2011.
CURRENT ASSOCIATED GAS PRODUCTIONIS
60 MILLION CU/FT PER DAY
THIS IS EXPECTED TO INCREASE TO 250
MILLION CU/FT PER DAY BY DECEMBER
2014.
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OIL AND GAS SERVICES
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Other landmark discoveries are Owo, Tweneboa, Mahogany Deep and Odum
in the Deepwater Tano block and West Cape Three Points.
There is also the Dzata.
These discoveries are being appraised at the moment to determine the
potential reserves.
OTHER LANDMARK DISCOVERIES
Reports estimate the Mahogany field to hold between a hundred andfive hundred million barrels of crude.
It currently has five wells on which various appraisal works are being
done.
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Dedicated shore base with a dedicated mini harborRig operationsFuel supplyOnshore support and logisticsOffice accommodation for numerous oil service companiesSupply chain servicesHelicopter and fixed wing aircraft transportationEquipment supply
Supply boats, anchor handling boats, diving vessels, etcTelecommunications, weather forecasting, search and rescue facilitiesRestaurants , catering , vehicle rental and security servicesTransportation/FreightBanking ServicesInsurance Services
OIL AND GAS SERVICES
Business Opportunities
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LNG pressure vesselsMetal work and fabrication
Petroleum separationConstruction, installation and commissioning of offshore structuresPipeline manufacturing from steelElectrical wiring of platforms and vesselsInstallation and maintenance of instrumentation for production plantsWelding and Joinery
Hookup of structures already built in other countriesAssembling of knocked down structures in yards in GhanaReal estate construction and management
OIL AND GAS SERVICES
ConstructionOpportunities
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Implementation of a no-gas flaring policy
Local Content Requirements for thePetroleum Sector -- investors will be
expected to utilize a percentage ofGhanaian
human and material resources .
Environmental Health and Safety Plan(EHS) -- A comprehensive environmental
health and safety policy for this sector is
being developed.
Measures against negative impact of sector on the
communities in the catchment area include:
OIL AND GAS SERVICES
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ENERGY
Governments major energy policy(electricity) - Universal access to
electric power by 2020.
Current Status is -1980 mw, and itis governments policy to increase to5000 mw by 2015.
Current electricity penetration is60% and 100% penetration is
expected to be achieved by 2020.
To fill the 3000 mw demand,government is ready for
partnerships with private sector.
CONSTRUCTIONOF SUNON ASOGLI
POWER PLANT, GHANA
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ENERGY
Pursuing a renewable energy generation target of 10% of total
production and the renewable resources to be promoted include solar,
wind, mini-hydro and bio fuels.
The first 133MW of the 400MW Bui Hydro project is expected to be
commissioned by the end of 2011, with the total installed capacity of
400MW being commissioned by end of 2012.
Government of Ghana is actively promoting Independent Powerproducers in the country. Major projects:
-Sunon-Asogli Power Plant-200MW
-Tema Osonor Plant Ltd- 126 MW and eventually to 300 MW
-Kpone Thermal IPP Project-220 MW
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ENERGY
Energy services provision (energy audits & energy managementstrategies, electrical load management, boiler efficiency/heat recovery,
refrigeration and air conditioning systems, fuel substitution)
Energy manufacturing companies to supply energy-monitoringequipment
Alternative decentralized sustainable energy system to be deployed in
remote and deprived communities
Solar energy systems for schools in off-grid communities
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INFRASTRUCTURE
Roads
Public Housing And
Property Development
Rail Transport AndPorts
HERITAGE TOWERS, ACCRA ACCRA-TEMA RAILWAY LINESSILVER STAR TOWER AREA, ACCRA
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INFRASTRUCTURE ROADS
Provision of efficientand effective mass
transport facilities in
all regions of Ghana.
Construction of tollroad and rapid transit
route in cities
encouraged.KWAME NKRUMAH CIRCLE (BY NIGHT), ACCRA
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a. Construction
Residential (low cost housing, high rise luxury apartments, retirement villages)
Industrial (light industrial parks, warehousing facilities)
Commercial (regional shopping centres/malls, office accommodation, storage)
b. Production and marketing of construction equipment and building materials
INFRASTRUCTURE PUBLIC HOUSING &
PROPERTY DEVELOPMENT
VILLAGIO APARTMENTS
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Level of Investment Est. Cost of Deficit at US$7.5 billionDeficit = 1,000,000 unitsAnnual Demand = 140,000 unitAnnual supply = 40,000 unitsLevel of Investment required = US$ 7.5bn
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INFRASTRUCTURE RAILWAYS &
PORTS
Rehabilitation of existing railway infrastructure mainly tracks, bridges , signals andtelecommunication systems.
Modernization of existing railway, expansion to cover whole country especiallylinking south to the north.
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Expansion and modernization of Tema
and Takoradi ports US$ 1.5 billion
Creation of Inland Port at Boankra,
near Kumasi (heart of country)
Creation of river port at Buipe,
Northern Region (on the Volta river) TEMA PORT
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AGRIC AND AGRO PROCESSING
Production of agricultural inputs: fertilizers,pesticides and fungicides
Storage facilities: avoidance of high post-harvest losses and low returns for farmers and
processors
Developing irrigable land through irrigation.Ghana has potential irrigable area of 346,000
hectares, only 10,000 hectares has been
developed
Technological and support services: supplyand installation of cold chain equipment,packaging , factory building technology
Distribution services: post-production servicesin transport, packaging and cold vans
Standards, training and certification; capacitybuilding for management and market-oriented
enterprises; market intelligence research ,
agricultural finance and insurance
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Large scale farming of cropsSupply of machinery to establish
hatcheries for day-old chicks
Floriculture: cultivation of exotic
flowers, potential in national, regional
and European Union market
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MANUFACTURING AND INDUSTRY
Food processing
Cocoa processing
Pharmaceuticals
Textiles and garments
Wood processing and manufacturing
Salt production
Production of electrical wirings and
electronic products
GHANAIAN KENTE CLOTH
PAPSO DRINKS
PHARMACY
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Tourist Accommodation --(multi-hotel resorts, single-hotel
resorts, business hotels, lodges
and inns, motels, hostels, camping
sites)
Tourist Information ShopsTourist Transport ServicesTourist Travel ServicesTourism Financial ServicesTourism Medical Services
Food and Beverage ServicesEntertainmentLeisure and SportsShopping
Meeting Facilities
TOURISM
KINTAMPOWATERFALLS
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INFORMATION COMMUNICATION
TECHNOLOGY
Category No. Operating No. Required
1 National fixed network operators 2 2
2 National Mobile cellular operators 5 63 Direct to Home (DTH) Satellite Services 8 13
4 Internet Service Data Providers 29 165
5 VSAT Data Operators 57 176
6 Public/Cooperate Data Operators 25 99
7 FM Stations 84 140
8 TV Stations 8 free-to-air5 pay/view
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Education: software development,networking, VSAT, telecom and IT
Engineering
Production of Business Solutions(software and networking services)
Business Processing OutsourcingSupply of High-TechTelecommunication Equipments
Back Office Operations ( especially forFinancial Institutions)
Telephony rural and fixed linesInternet Service Provision Service
INFORMATION COMMUNICATION
TECHNOLOGY
BUSYINTERNET, ACCRA28
Transaction ProcessingManufacturing, assembling and supplyof computers and accessories
VSAT servicesE-commerce and Legal DatabaseServicesLogistics Management Services andMedical Transcription Services
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FINANCIAL SERVICES
Opportunities
Universal banksDevelopment banksInsurance companiesReinsurance companiesMortgage finance institutionsLeasing companiesVenture capital companiesHire purchase companiesExport finance companies
Investment banksMutual fundsInvestment trustsSavings and loans companies
Organization Number
Banks 27
Rural and Community Banks 135
Non-Bank Financial
Institutions
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Forex Bureaux 273
Insurance Companies 17
Re-insurance Companies 2
Insurance Brokers 35
GSE Listed Companies 38
GSE Licensed Stockbrokers 18
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INVESTMENT INCENTIVES AND
GUARANTEES- PROVIDED
UNDER GIPC ACT 478
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Custom duties exemptions for plant,
machinery, equipments and parts
thereof
Graduated and reasonable corporatetaxes
Location incentives of between 25%-
50% tax rebates for manufacturing
companies
Tax holidays ranging from 5-10 years
depending on sectors
Automatic immigrant quotas
depending on paid-up capital
Other attractive tax concessions
such as accelerates depreciation
for plant and buildings, five-year
loss carry-over and R & D
expenditure deductibility
Relief from double taxation for
foreign investors and employees
where applicable
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INVESTMENT INCENTIVES AND
GUARANTEES- PROVIDED
UNDER GIPC ACT 478
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Full repatriation of dividends and net profit attributed to
investment
Transfer of funds in respect of servicing of foreign loans
Guarantee against expropriation ( also enshrined in the
Constitution of Ghana)
Remittance of proceeds in the sale or liquidation of
investment
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INCENTIVES FOR
SPECIAL INVESTMENT
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For the purpose of promoting identified strategic or
major investments, the Board in consultation with theappropriate agencies as the Board may determine and
with approval of the President, negotiate specific
incentive package in addition to the incentive provided
under section 23 & 24 of the GIPC Act.
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The Chief Executive OfficerGhana Investment Promotion Centre (GIPC)
Postal Address: GIPC, P. O. Box M193
Ministries, Accra, Ghana
Location: Public Services BuildingMinistries, Accra, Ghana
Tel: +233 302 665125-9
Fax: +233 302 663801
Email: [email protected]
Website: www.gipcghana.com
CONTACT
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THANK YOU FORYOUR ATTENTION
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