Ghana has become a destination for many global investors looking for booming business opportunities to invest in. With its stable democracy and strong regulatory bodies and institutions, Ghana has emerged as one of the most promising destinations for foreign investors seeking lucrative business opportunities and in fact, has attracted many foreign direct investments for decades. The discovery of crude and other rare minerals has further attracted investors to the country, particularly in the extractive industries.
As a result of its growth over the past few decades, Ghana's economy has experienced significant economic growth with a GDP growth rate averaging around 5% to become a hub for foreign investors and businesses looking to expand. Combined with a growing population and its unique location in West Africa, the country provides a friendly business environment for investors and is the gateway to the sub-regional market.
This article aims to provide a comprehensive guide for foreign investors interested in exploring the business potential in Ghana. By highlighting lucrative business opportunities, and discussing the factors that foreign investors should consider, this article will equip potential investors with the necessary knowledge to make informed decisions. Thus, if you have been wondering about what business opportunities are available in Ghana for foreigners, then kindly read this article to the end.
Drivers of Ghana's Economic Growth
The key industries driving this growth include agriculture, manufacturing, mining, and services. However, there are various legal and regulatory requirements that foreign investors must satisfy before they can establish a business in Ghana. For example, Ghana's legal framework does not allow foreigners to engage in certain activities reserved for Ghanaians. There are also certain minimum investment thresholds that apply for foreigners wishing to invest in Ghana. That being said, let's look at some lucrative sectors that investors can explore.
Extractive Industries
Ghana has a long history in the extractive industry that dates back to the pre-colonial era. The country is endowed with many mineral resources and has vast deposits of gold, bauxite, iron, and diamonds among many rare minerals. Ghana is the leading producer of gold on the African continent with several multinational mining companies engaging in mining activities in the country. Despite current gold production, there is no proper linkage between the mining sector and other sectors such as manufacturing. Thus, there are more prospects for investors in the refinery sector due to the government's position to assist and provide tax cuts for investors willing to invest in these areas.
Agro-processing
Another key business opportunity in Ghana is the Agro-processing industry. With a glut of agricultural produce yearly, the government of Ghana is encouraging the development of agro-processing industries. There are lots of opportunities in the agro-industry and that is why most industries are acquiring land in rural areas not just to produce, but also to process and export to Europe. The government has established the Ghana Investment Production Support Centre (GIPC) to help investors willing to invest in the agro-processing industry and other sectors. And the minimum investment threshold that applies to foreign investments do not apply to businesses engaged in manufacturing.
Oil Industry
With the discovery of oil in Ghana decades ago, the country has gone on to discover more oil fields. The oil sector just like the minerals sector is lacking proper linkage with the industry and thus, provides business opportunities for foreigners wanting to invest in Ghana. The oil refinery sector is one area that offers significant untapped opportunities. This requires huge capital to engage it with unimaginable potential returns.
These business opportunities however require huge investment and the right information about how to register a company or have a business in Ghana. There are various requirements depending on the type of business and the regulatory body requirements involved.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
