News Headlines

Prospects of Ghana Issuing Samurai Bond Good - Ken Ofori-Atta

The Minister of Finance, Mr Ken Ofori-Atta, has observed that prospects for Ghana issuing a Samurai bond in the medium term looked good, judging from the interaction and reception accorded a Ghanaian delegation on the Non-deal investor road show in Tokyo.

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Ghanageria Rising Postponed to May 10, 2018

The first edition of the Ghana Nigeria Business Conference dubbed Ghangeria Rising” to take place at the Kempinski Gold Coast City Hotel on 28th and 29th March 2018 has been rescheduled to Thursday  May 10, 2018.

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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)

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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.

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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

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