By Fred Sarpong
The Ghana Investment Promotion Centre (GIPC) will get it new regulation after Parliament has passed it into an act. This is after Cabinet gave finally approval to the GIPC revise regulation, after so many years it has been in the seat of Government.
When passed into law by Parliament, it will seek to enhance and better help with the regulation of investments in the country.
The regulation went through Attorney General’s department for legality review before Cabinet approves it.
Business Analyse learnt that the new regulation will empower Ghanaian entrepreneurs to be able to have larger share and ownership of the economy and also encouraging businesses from abroad to feel comfortable in doing business in the country.
However, the proposed regulations want joint-venture investment capital increased from US$10,000 to not less than US$250,000 while investment capital for a firm 100% foreign-owned would be increased from US$50,000 to US$500,000.
It also stipulates that investors in trading will now be required to bring in not less than US$1,000,000, as against the previous amount of US$300,000 and are required to employ at least 20 Ghanaians, double the minimum of 10 stipulated under the old law, while 25% of products content must originate from Ghana.
The revised Act is also intended to make it mandatory for foreign manufacturing firms, operating or coming into the country, to source at least 40% of their supplies locally.
The expected new GIPC regulation, GIPC Act 2008, will replace the GIPC 1994 Law (Act 478), which regulates investment activities in Ghana.