News Headlines

Projects For Partnerships- Establishing A Modern Cocoa Processing Plant

 

AGRO-PROCESSING

Name of the company

LifeStar Cocoa Processing Ltd

Nature of business

Cocoa processing

Status/ Intention  

Expansion/diversification

Type of cooperation sought

Equity/ Loan  (US$ 1.5 million)

Read more:

Consider Ghana As Your Investment Destination – Yofi Grant To Indian Investors

 

The CEO of GIPC, Mr. Yofi Grant has urged potential Indian investors to consider Ghana as their preferred destination for investment in West Africa.According to him, Ghana has limitless investment opportunities with a stable economic and political environment which makes doing business easier.

Read more:

We Are Ready To Partner You’- GIPC Engages on TTA’s (Technology Transfer Agreement)

 

The Head of the Ghana Investment Promotion Centre's (GIPC) - Legal Division, Mrs. Naa Lamle Orleans-Lindsay, has expressed the Centre’s readiness to work with related stakeholders to ensure compliance of technology transfer (TTA) regulations in the country and also review its structure to ensure efficiency. This was during the Centre's 1st Quarter ‘Ghana On The Go’ CEOs' Breakfast Meeting on the theme “Technology Transfer Regime: The Public and Private Sector Convergence”.

“We are willing to work in close collaboration with the Bank of Ghana and the Ghana Revenue Authority to ensure compliance of technology transfer legislations. We are also ready to work in

close collaboration with financial institutions to ensure compliance by companies through GIPC Act 865 and L.I. 1547”, she said.

The event which brought together captains of industry, companies in the Ghana Club 100, and members of the diplomatic community, was organized to provide perspective on best practices for business owners in the drafting, development and implementation of TTA’s.

 Under GIPC legislation a technology transfer agreement refers to an agreement with an enterprise which involves:

  • assignment, sale and licensing of all forms of industrial property e.g. patents, industrial designs and trademarks
  • provision of technical expertise e.g. feasibility studies, plans, diagrams, models formulae
  • provision of technical know-how
  • provision of managerial services and personnel training between a company in Ghana (Transferee) and a company outside Ghana (Transferor)

 She said services such as industrial property, technical expertise, knowhow and managerial services were the four general areas under the GIPC law that needed to be registered adding, “So if there is such an agreement between a local company and a foreign company covering any one or more of these services, the company must register such an agreement with the GIPC”.

 The law insists that if the services a company needs are available in Ghana, that service cannot be the subject of a TTA, where same is paid for through transfer of money outside the country.  The law seeks to encourage local companies to use local services.

 “Transfer of fees is a key issue; local companies are converting their revenue to foreign currencies and taking it out of the country, and this has a huge effect on the Ghana cedi. We are talking about millions of dollars here; the average company that comes to the centre makes $3 to $4 million dollars averagely per annum and some are transferring $15 to 20 million yearly under these agreements”, she added.

 Mrs. Orleans-Lindsay, however, mentioned that there were some challenges with the registration and implementation of the TTA’s such as the delays in submission to GIPC, constrains to quick review of TTA by the Centre, and the requirement of second regulatory approval for renewal for TTA’s.

 Nevertheless, she said, failure to register a TTA with the GIPC was a breach of the GIPC Act 2013, Act 865 and L.I 1547 which was liable to a summary conviction.

 Additionally, a company which fails to register its TTA with the GIPC cannot legally transfer fees and charges to the Transferor in relation to technology transferred.

 “The GIPC may also suspend, cancel or revoke the registration and advise Bank of Ghana to suspend any remittance and incentives granted to the company among others if you fail to register”, she added.

 Speaking to the press at the event, Mr Yofi Grant, Chief Executive Officer of GIPC, explained that under the GIPC’s Technology Transfer Regulation, 1992 (L.I 1547), it is  expected that such services and agreements between  two companies should  be registered and paid for.

The Head of Transfer Pricing Unit of the Ghana Revenue Authority, Mr. Kwame Owusu, also shed light on how some companies were flouting the law.

He encouraged companies to stop flouting the law and register their agreements with the GIPC. 

 

Source: GIPC Corporate Affairs

The Immense Opportunities of Property Development in Ghana

Ghana’s real estate sector has seen significant growth in the past few years. This has been spurred by growth in demand for both residential and industrial property.

There exists unmet demand leading to growth opportunities in the areas of construction and real estate development and management. Ghana’s property market is dominated by residential and commercial developments.

The residential market is the most active, registering an estimated 85 000 transactions per annum over the past decade. Commercial property is the second-largest segment in the market and includes office accommodation and retail space.

The industrial segment is significantly smaller in size than the commercial market, while recreational and civic or cultural property development is virtually non-existent. The housing deficit in Ghana is estimated to be in excess of one million homes. To address this deficit, there is a need to deliver approximately 150 000 housing units per annum for the next 20 years.

To make this possible, the government is embarking on a housing programme to build over 300,000 housing units over the next five years, with the strong participation of the private sector through public-private partnerships.

Real estate companies with approval from the Ministry of Works and Housing are eligible for a five-year corporate income tax holiday in relation to the construction of low-cost/affordable housing.

New developments in the housing market are currently being driven by new apartment block complexes. These complexes are being funded by foreign investors from territories such as Turkey, South Africa and the Middle East, catering for increased demand that has resulted from new oil discoveries.

For example, Sekondi-Takoradi, the Western regional capital, is benefitting from the effects of recent oil discoveries in the form of increased demand for residential property. Demand is driven by both foreign and local employees directly connected with oil exploration, together with members of the local economy providing goods and services to this new market.

Increased residential demand has been met with high-end apartment developments funded by foreign investment.

The Accra Mall for example is dominating the retail landscape in the country. The mall attracts nearly four million visitors per year and further retail developments have been built to meet this high demand. These include the West Hills Mall, the Osu Mall, the A & C Mall, and the Junction Mall.

The West Hills Mall development is a joint project between Delico Property Developments, owned by South Africa’s Atterbury Africa, and Ghana’s pension fund. The success of A&C Square in East Legon also confirms the need for neighborhood retail centres in Accra. Melcom Ltd and Maxmart Ltd, both local general merchant retail stores, have capitalized on this emerging demand by opening stores in almost all the major areas of Ghana.

On a regional level, Kumasi and Takoradi, the next two most populous cities in Ghana, have limited formal retail centres; Kumasi recently saw the establishment of a mall with a retail floor area of 18,000 square metres. Opportunities exist for further regional developments. According to Broll Ghana, developers will more than double the amount of retail space available in the country’s capital in the coming years.

Prime office space in Ghana may be of interest to real estate investors. Office space rental values are up to US$35 to US$40/m2 per month, with a prime yield of around 10%. High demand for offices are emanating from activities such as the banking, telecommunication, professional and diplomatic or aid sectors and other service activities.

New office space in Accra is delivered to a ‘shell and core’ finish, although tenants may now demand fit-out as part of lease negotiation as more office developments are released to the market and competition for new tenants’ increases.

Ghana has a less restrictive business environment and progressive macroeconomic policies. Strong protection of civil liberties improves Ghana’s investment attractiveness, as does the country’s developed legal and regulatory framework.

Ghana’s labor market is efficient and the country’s laws make it relatively easy to appoint or retrench employees.

The outlook for the real estate or property development sector remains positive as the Ghanaian economy general shows great signs of resilience with an impressive growth rate of 8% in 2017 and a downward trajectory of inflation. It is expected that investors will continue to show great interest in the sector in order to diversify their investment portfolios in the economy.

 

Source: GIPC Corporate Affairs

 

Credit:

Real Estate, Building the future of Africa. The Oxford Business Group “The Report, Ghana 2017”

AU Continental Free Trade Agreement- What Ghana Stands To Gain

Forty Four African heads of state and government officials on March 21 2018, signed the framework to establish the African Continental Free Trade Agreement (AfCFTA). The AfCFTA is an agreement advanced by the African Union (AU) that will create the largest free trade area in the world and is one of the flagship projects of the AU Agenda 2063, which is a long-term development program urging for closer African integration by facilitating the flow of goods and people throughout the continent.

It is believed that the AfCFTA if fully implemented, could increase intra-African trade significantly and promote structural transformation by providing a lever to industrial development in African economies. However, is Ghana ready to compete in a single continental market with other African countries?

According to The Washington Post, by 2030, Africa may emerge as a $2.5 trillion potential market for household consumption and $4.2 trillion for business-to-business consumption. The treaty would result in a unified market of over 1. 2 billion people, with a combined gross product of over US$3 trillion the African Union have stated.

Creating one African market will prioritize goods and services invariably leading to the creation of job opportunities.

What Ghana Stands To Gain

So what does Ghana stand to gain from the AfCFTA? Some of the benefits Ghana will derive from a free trade market include:

  • A variety of goods and services
  • Huge market outlet
  • Reduction of market fluctuations
  • Huge job opportunities resulting from the market boom

A free trade agreement will also increase Africa’s competitiveness and boost Ghana’s manufacturing sector. It is expected to spur economic growth in Ghana, boost industrialization, and improve infrastructure development and business diversification. The Ministry of Trade and Industry (MOTI) will be the institution responsible for the implementation of the AFCFTA in Ghana. This week, the Ghanaian Parliament has recalled members for an emergency sitting to deliberate over the AFCFTA to for possible rectification. 

It will be an enabler to attract foreign direct investment (FDI) into Ghana and the continent as a whole. Ghana has much to gain from the AfCFTA as it might help wean Africa off foreign aid; an initiative that His Excellency Nana Akufo-Addo strongly advocates for in his ‘Ghana Beyond Aid’ campaign.

Source: GIPC Corporate Affairs

 

Upcoming Events

Wed Mar 28 @ 8:00AM - 05:00PM
Ghangeria Rising 2018
Fri Apr 06 @ 8:00AM - 05:00PM
Investment Promotion Mission to United Arab Emirates
Mon Apr 30 @ 8:00AM - 02:00PM
Ministry of Lands and Natural Resources (MLNR) - Market Sounding Event
Mon May 07 @ 9:00AM - 06:00PM
China Trade Week
Thu May 10 @ 8:00AM - 05:00PM
GHANGERIA RISING
Thu May 17 @ 8:00AM - 10:30PM
Economic Counsellors Dialogue
Wed Jun 20 @ 8:00AM - 05:00PM
Trade and Investment Promotion Mission to South Africa
Mon Jul 02 @ 8:00AM - 05:00PM
AFRICA CEO FORUM