 How safe will my investment in Ghana be?
Ghana's 1992 Constitution, which is the basic framework for the governance of the country, offers guarantees for protection to investors and their investments. Chapter five of the Constitution embodies the relevant protection mechanisms.
What guarantees do you have under the laws of Ghana for protecting my investment?
Article 20 of the Constitution guarantees protection from deprivation of property. Specifically, the Constitution states that there shall be no compulsory acquisition of property which by implication includes "investment", except where such compulsory acquisition is necessary for the defense, public order, morality, health and benefit of the country. More importantly, compulsory acquisition of property must be accompanied by prompt, fair and adequate compensation.
Under the Ghana Investment Promotion Centre Act 1994 (GIPC ACT 478), investors are given concrete guarantees and assurances in respect of their investments in Ghana.
Will my company be allowed to transfer profits, dividends and capital upon liquidation?
Companies are guaranteed
Unconditional transferability of dividends and net profits after tax to their home countries;
Transferability of payments for loan servicing in the case of foreign loans and royalties and other fees in respect of technology transfer transactions e.g. licenses technical assistance and management contracts; and the remittances of proceeds in the event of sale and liquidation of investment assets in the currency in which the investment was originally made to their home countries so far as they meet their tax obligations.
What is Ghana government's track record in expropriation?
The GIPC Act offers guarantees against expropriation. Similar to the provisions in the Constitution, expropriation is allowed only in the national interest and must be accompanied by fair and adequate compensation. The aggrieved party or the investor is given the right of access to the High Court for the determination of the fair value of the investment and the amount of compensation payable.
Does the Ghana government accord national and most favoured nation treatment in any bilateral regimes between Ghana and my country?
Ghana offers commitments at the bilateral level to protect investors and their investments. Under these bilateral regimes, government gives the right to the investor to take government to arbitration in any of the selected and pre-agreed dispute settlement fora.
Further protection under the BITs include: national treatment, which is by reference to treatment similar to that accorded to nationals of the host country; most favoured nation treatment, which is by reference to the standard of treatment not less favourable than that accorded to nationals and investments of third countries in similar circumstances; and treatment which is fair and equitable which is derived from basic principles of international law and a common shared sense of justice.
Does Ghana have Bilateral Investment Promotion and Protection Agreement and Double Taxation Agreement with my country?
In furtherance of the investment promotion mandate given under section 2 of the Ghana Investment Promotion Centre Act 1994 (Act 478), the Ghana Investment Promotion Centre is mandated to encourage and promote investments in the Ghanaian economy through the negotiation of Bilateral Investment Treaties with interested countries.
To date, Ghana has concluded over twenty one (21) BITS. Some of the agreements have been ratified while others are still awaiting ratification. The relevant Countries include:-
Those signed and ratified include:
- The United Kingdom
- The Kingdom of Denmark
- The Federal Republic of Germany
- The Peoples Republic of China
- The Swiss Confederation
- The Republic of Malaysia
- The OPEC Fund
- The Kingdom of the Netherlands
Those signed but awaiting ratification are
- The Republic of Romania
- The Republic of La Cote d' Ivoire
- The Republic of Yugoslavia
- The Republic of South Africa
- The Republic of Mauritius
- The Republic of Zambia
- The United States of America (OPIC)
- The Republic of Egypt
- The Republic of Bulgaria
- The Republic of Cuba
- The Republic of France
- The Republic of Guinea
- The Republic of Mauritania
- The Republic of Burkina Faso
Is your country a signatory to the MIGA Convention?
YES. Ghana is a signatory to the MIGA Convention
Does Ghana have an IPPA with OPEC?
YES. Ghana has an IPPA with OPEC
Does Ghana have an Investment Incentive Agreement with OPIC?
YES.Ghana has an Investment Incentive Agreement with OPIC
What protection guarantees do you have under national law?
The GIPC Act offers guarantees against expropriation. Similar to the provisions in the Constitution, Article 20, expropriation is allowed only in the national interest and must be accompanied by fair and adequate compensation. The aggrieved party or the investor is given the right of access to the High Court for the determination of the fair value of the investment and the amount of compensation payable.
What is your legal system? Is it similar to the common law or civil law? Is it written law? Is it modern?
Ghana's legal system takes its root from the British common law tradition and it is supplemented by various legislations on specific issues. Accordingly, Ghana's legal system has all the attributes and safeguards for the protection of property and human freedom, all of which are inherent attributes of the common law tradition.
Does the government rule by military decrees?
Ghana is NOT ruled by military decrees. Ghana has had a freely elected democratic government since 1992
What protections do we have regarding our personal safety as investors and as expatriate experts in Ghana?
Similar to the United States Constitution and the British legal tradition, Ghana's Constitution guarantees the independence of the judiciary. Under the Constitution, the judiciary is subject only to the Constitution and is, accordingly, insulated from interference by the President and impliedly other members of the Executive, the Legislature and other government bodies and in the exercise of its administrative, financial and judicial functions, it is not subject to the Control of any authority. This protection mechanism is designed to give the judiciary the freedom to handle cases in a firm and fair manner devoid of political, racial, religious or other considerations
Can we depend on the country's judicial system to handle investment disputes in a fair and equitable manner and in accordance with due process under law?
Ghana's judiciary comprises very seasoned lawyers with specialization in various areas of the law. They are singled out for appointment to the judiciary on the basis of their excellent performance at the Bar. Similar to the United States Constitution and the British legal tradition, Ghana's Constitution guarantees the independence of the judiciary
The institution of the fast track court and the introduction of Alternative Dispute Resolution Mechanisms such as arbitration, mediation and conciliation (ADRS) within the Courts system are all attempts to enhance the work of the judiciary and to generate the necessary confidence in the legal and judicial systems.
What about delays in the courts? How long does it take to settle a dispute in the court?
The period to settle a dispute depends on the available information that the prosecutors have. But there are fast track and commercial courts which deal with cases involving commerce and investments expeditiously. In addition, disputes can be settled under Alternative Dispute Resolution Mechanism, such as arbitration, mediation and conciliation
Does the Ghana Government exercise control through golden-shares?
This is done in very exceptional cases, mostly in the strategic industries
Does Ghana offer you arbitration, mediation and conciliation proceedings as alternative
mechanisms for dispute settlement in the courts?
Within the National Court System, ADRs, as a mechanism for dispute settlement is vigorously encouraged. The Ghana Arbitration Centre (GAC) has been established to reinforce the legal framework for protecting commercial or economic interests and accordingly inspire the confidence of the prospective investor in Ghana.
The Ghana America Chamber of Commerce in Ghana has also established a Forum for Mediation and Conciliation.
Is there any exemption on electric generators for industrial purposes?
Currently all electric generators below 375kva attract import duty of 5% and VAT of 12.5% |
