PROFILE OF GHANA
Geography
Location
Ghana is located on the west coast of Africa, about 750 km north of the equator between the latitudes of 4 and 11.5o
north and longitude 3.11°West and 1.11° East. It is bounded on the north by Burkina Faso, on the west by
La Cote D'ivoire, on the east by Togo and on the south by the Gulf of Guinea (Atlantic Ocean). Tema, the industrial city,
which is Adjunct to Accra, the capital city of Ghana, is on the Greenwich Meridian (zero line of longitude), making Ghana
the closest landmark to The centre of the world.
PROCEDURES AND COST OF DOING BUSINESS IN GHANA
A. Business Registration
(a) Registrar General’s Department (RGD)
The Registrar General’s Department is the organization that registers all companies (societies and institutions) in Ghana.
The Law regulating the formation of companies is the Companies Code, 1963 (Act 179). A Limited Liability company is
the most common structure utilized by businesses, particularly foreign investors and others who want to limit their
liabilities.
Limited Liability companies are expected to fill out the relevant Application Forms, which serve as the Company’s Regulations.
All companies must have an auditor, who must be a member of the Institute of Chartered Accountants, but should not
be an officer or servant of the company or be an employee or partner of such persons. When all such forms have been
filled satisfactorily and relevant fees paid, a Certificate of Incorporation and a Certificate to Commence Business
a reissued. Below are the basic costs and fees applicable at the RGD office:
(i) Application Forms ¢65,000.00 (US$8.00)
(ii) Stamp Duty 0.5% of Stated/Paid-up Capital
(iii) Filing Fees ¢100,000.00 (US$12.00)
(iv) Incorporation Fees ¢560,000 (US$64.00)
(v) Auditors’ Fees Varied
(b) Ghana Investment Promotion Centre (GIPC)
The GIPC is responsible for registering all (foreign) investment, which qualify under the GIPC Act 1994. This Act does
not apply to either mining or petroleum enterprises.
Application Procedure:
Investors are required to complete Investor Registration Forms (Form GIPC/R1) in triplicate. Within five (5) days
from the date of orderly receipt of these forms (and its attachments) the GIPC will formally register the investment.
Below are the relevant fees and costs applicable at GIPC:
(i) Application Forms ¢50,000.00 (US$6.00)
(ii)Processing Fees:
a. Commercial (Trading & Liaison) (US$1,000.00)
b. Non-commercial (US$800.00)
(c) Ghana Free Zones Board (GFZB)
The GFZB is responsible for the promotion of the processing and manufacturing of commodities through the establishment
of export processing zones. It also encourages the development of commercial and service activities within the ports of
Ghana. These activities are regulated by the Free Zone Act, 1995 (Act 504).
Application Procedure:
As a basic requirement for commencing business with GFZB, investors are expected to incorporate a company/partnership
in Ghana and provide evidence of possession or lease of property or intent to acquire such property.
Depending on the activity to be undertaken in the zone, the applicant should obtain and complete GFZB Form 3, 4 or 5;
and submit it with the required attachments to the Secretariat of the Board. The GFZB shall notify the investor of his/her
Application for License within 28 working days.
(i) Application Forms (US$100.00)
(ii)Licensing Fees:
Business Initial Renewal/Year
Manufacturing US$2,000.00 US$1,600.00
Commercial US$5,000.00 US$4,000.00
Service US$3,000.00 US$2,000.00
Development US$4,000.00 US$3,000.00
B. Labour Issues/Employment
The Labour Act, 2003 (Act 651) regulates employment and labour issues in Ghana. This Act amends and consolidates all
laws relating to labour, employers, trade unions and industrial relations. It provides for the protection of employment
and remuneration; general conditions of employment; the employment of persons with disability, women and young
persons. It also provides for the establishment of National Tripartite Committee, National Labour Commission and
mechanisms for the settlement of industrial disputes.
The Value of Labour
The National Tripartite Committee, comprising the Minister responsible for Labour, representatives of the Government,
employer’s organizations and organized labour, determines the national minimum wage. Currently, the daily minimum
wage is ¢11,200.00 (US$1.27). Another financial obligation of the employer is the payment of a statutory monthly
contribution of 12.5% of employee’s basic salary to the Social Security and National Insurance Trust (SSNIT).
The following are some other fees and charges expected in the case of the employment expatriates resident in Ghana
(a) Ghana Immigration Service
(i) Res. Permit/Person (ECOWAS) - ¢250,000 (US$28.40)
(ii) Resident Permit/Person – Others - ¢500,000 (US$57.00)
(iii)Re-Entry Permits (Single/Multiple) -US$40.00/100.00
(b) Ghana Investment Promotion Centre
(i) Automatic Quota (per person) - US$300.00
(ii)Additional Quota (per person) - US$1,200.00
(iii)Replacement of Quota (per person) - US$500.00
© Ghana Free Zones Board
(i) Resident Permit/Person/Year - US$200.00
C. Taxes
Companies operating in Ghana are liable to pay varied levels of taxes depending on the sector of operation and
whether the company is listed on the Ghana Stock Exchange. Taxable profits are based on profits declared in audited
accounts subject to adjustments made for capital allowances.
Income tax incentives are provided under the Income tax Decree, 1975 (SMCD5) as modified by the Internal Revenue
Act, 2000 (Act 592) and further amended by Act 622 of 2003.
1. Income Tax rates applicable to resident individuals are:
Chargeable Income Rate of Tax
Not exceeding ¢1,500,000 Nil
Exceeding ¢60,000,000 ¢10,125,000
The income tax rate applicable to non-resident individuals is 20%.
D. Utilities
(a) Electricity
The Electricity Company of Ghana (ECG) is responsible for the distribution of electricity within all but northern Ghana.
Application Procedure:
Investors need to apply by letter to the ECG, which must specify the following, among others:
- Where the company will be located;
- A site plan of the area (as obtained from Town & Country Planning)
- Total load required
- Processes to be used in the production activity; and Number of shifts
Following receipt of the letter, the ECG makes a visit to the site to determine the nearest source of supply and to
assess the cost of the connection. Before installation can be effected, the investor typically pays 100% of the
installation costs. The ECG generally has the required equipment in stock and installation typically occurs immediately
thereafter.
Installation costs vary depending on a number of factors and are calculated by the ECG. Rates payable for electricity
consumption for both industrial and domestic purposes are approved by the Public Utilities Regulatory Commission
(PURC).
For further information, contact:
The Managing Director
Electricity Company of Ghana
P. O. Box 521
Accra – Ghana
Tel: (+233-21) 676747; 676727
Fax: (+233-21) 666262
Email: ecgho@ghana.com
(b) Telecommunications
i. Landline Telephone Services:
There are two (2) network operators of landline telephone services in Ghana, namely Ghana Telecom Limited and
WESTEL. Ghana Telecom is by far the larger of the two operators. WESTEL currently deploys only 3,000 lines as against
Ghana Telecom’s 400,000 lines.
Application Procedure:
Investors are required to apply to and complete a Form requesting telephone services (business/residential) giving
his/her particular including site location.
A site survey will be carried out by Ghana Telecom to enable estimation of materials required. The cost of the services
is dependent on the location and materials, among others.
The investor is informed of cost and after the payment the service will be provided, almost immediately thereafter.
For further information, contact:
The Managing Director
Ghana Telecommunications Company Limited
Tel: (+233-21) 200200
Fax: (+233-21) 221002
Website: www.ghanatel.net
i. Mobile Telephone Services:
Currently, there are four (4) cellular phone service providers, namely SCANCOM, MILLICOM, Ghana TELECOM (GT) and
KASAPA (formerly CELLTEL).
Connecting to mobile operators is through dealers and dealer agents, who are found in many cities and towns.
© Water
The Ghana Water Company Limited is responsible for the management (i.e.production and distribution) of pipe-borne
water in most urban areas and towns. The Community Water & Sanitation Programme also assists in the management
of potable water communities in smaller towns and villages in the districts.
To be connected to water, an investor must follow the following procedures:
-Investor needs to apply by completing the relevant application forms and paying the relevant fees;
-Through the District Offices of the GWCL, the area will be inspected, a drawing, size and pressure of the nearest pipe
be determined;
-The applicant must pay the cost of connection in full before connection is effected.
For further information, contact:
The Managing Director
Ghana Water Company Limited
Post Office Box M. 194
Accra – Ghana
Tel: (+233-21) 666781-7
Fax: (+233-21) 663552
d) Postal and Courier Services
The Ghana Post Company Ltd, operating as a public company, runs branches throughout the country and competes
with private courier services.
There are seven (7) courier service providers in Ghana. The list of companies and their contacts are as follows:
Company
Telephone
Fax
Location/Email/Website
BKB Couriers (Ghana) Limited
(+233-21) 221817; 221801; 243498; 247380
(+233-21) 231625
324/4 Faanofa Street; Accra;
Email: bkb@idngh.com www.bkbcouriers.co.uk
DHL (Ghana) Ltd
(+233-21) 221552; 229722; 221647; 227035
(+233-21)
C.913/3 North Ridge, Crescent Road; Accra
EMS
(+233-21) 668137-8
Private Mail Bag, General Post Office; Accra
Federal Express (FEDEX)
(+233-21) 257921-2; 223852; 666659; 663725
(+233-21) 257928
No. 60 Mango Tree Ave.; Asylum Down; Accra
Email: iasghana@idngh.com
iasghana@netplux.com
Website: www.fedex.com
TNT Express Worldwide
(+233-21) 773825; 775936
Trinity House, Ring Road; Accra
United Parcel Service (UPS)
(+233-21) 762509-10
Danquah Circle, Osu – Accra Email: Antrak@africaonline.com.gh
Website: www.ups.com
Universal Express
(+233-21) 774225; 765350
Kotoka International Airport; Accra
Commercial Bank Credits available to Private Enterprises
Agricultural Development Bank
Barclays Bank of Ghana
CAL Merchant Bank
Ecobank
Fidelity Group
First Atlantic Merchant Bank
General Leasing & Finance Co. Ltd
Ghana Commercial Bank
Ghana Leasing Company
http://www.ghanaclassifieds.com/gfzb/
Association of Ghana Industries
AGI is the leading business organisation in Ghana. It serves as a mouthpiece for the manufacturing and services sector
and carry out proactive support services with the view to contribute substantially to the growth and development of
industry in Ghana.
http://www.agi.org.gh/members.htm
Land Ghana has a total land area of 238,537 km2 (92,100 sq. miles) stretching 672 km north to south and 357 km east
to west. Its physical size makes it about the same size as Great Britain. Out of a total land area of 23 million hectares,
13 million hectares (57%) is suitable for agricultural production, and 5.3 million hectares (39%) of this is under
cultivation.
Climate
Ghana has a tropical climate. The temperature is generally between 21-32°C (70-90°F). There are two rainy seasons,
from March to July and from September to October, separated by a short cool dry season in August and a relatively
long dry season in the south from mid-October to March. The north, also with tropical climate, is dry and falls partly
within the Sahelian zone. Annual rainfall in the south averages 2,030 mm, but varies greatly throughout the country,
with the heaviest rainfall in the south-western part.
Topography Ghana is not a mountainous country, but has some highlands and some steep escarpments in the middle
portions and isolated places in the northern parts. The land is relatively flat and the altitude is generally below 500m,
with more than half of the country below 200m. The Volta River basin dominates the country's river system and includes
the 8,480km2 Lake Volta (the largest artificial lake in the world), formed behind the Akosombo hydroelectric dam.
The coastal area consists of plains and numerous lagoons near the estuaries of rivers.
Vegetation In terms of vegetation, the north is predominantly savannah and the middle section (extending to the south
-western part) is typical rainforest, while the coastal section has thicket interspersed with savannah.
Historical Background
The name Ghana originates from an African empire, which was located around River Niger between 400 and 1240AD.
The period between the 15th and 19th Centuries witnessed a power struggle for the country amongst European nations
for fortunes in gold and ivory, following the advent of the Portuguese who discovered gold in 1471 and built Elmina
Castle in 1482. The other Europeans were the Dutch, Swedes, Danes, Prussians and the British. The battle for control
and supremacy over the land culminated in the building of many forts and castles, which were used not only as trading
posts but also as dungeons for the infamous slave trade. It is significant to note that out of the about forty-three (43)
forts and castles in West Africa, thirty-three (33) are in Ghana alone.
Out of these about twenty five (25) are in good condition, including Elmina and Cape Coast Castles and Fort St. Jago,
all three of which are recognised by UNESCO as World Heritage Monuments.
Ghana, formerly called the Gold Coast, became independent from British colonial rule on March 6, 1957. It was the first
black African colony to achieve independence.
Ghana has been aptly described as “ a bird watcher’s paradise, an eco-tourism haven, a cultural delight a heritage lover’s
passion and an adventurer’s dream” (Mr. Jake Obetsebi Lamptey, March 2004). The country has held and continue to
hold out a lot of attractions notably:
Resources ·
Rich mineral resources such as gold, diamonds,manganese, limestone, bauxite, iron ore as well as various clays and
granite deposits. In 1999, Ghana produced 2,620,096 million ounces of gold and 684,033.4 carats of diamonds.
(Ghana is the second largest producer of gold in Africa).
Extensive forests, which are arguably the best managed in West Africa (with 252 permanent forest reserves in the rain
forest zone alone. In total about 11% of Ghana is defined as forest.). Ghana is the second largest producer of cocoa in
the world. It is also the third largest producer of timber and the second largest exporter of wood and wood products in
Africa
· Rich marine fishing resources (tuna and game fishing);
· Beautiful landscape, inviting sunshine, pristine beaches, exotic wildlife and exciting national parks and game
reserves;
· Rich culture and tradition and a world acclaimed warmth and hospitality of its people.
The People There are 56 Ghanaian dialects, of which Akan, Dangbe, Ewe,Kasem, Gonja, Dagare, Gas, Dagbani and Nzema
are the major languages.
The official language of the country is English, but French and Hausa are two major foreign languages spoken in the country.
Religion Ghana’s constitution guarantees freedom of religion. The 2002 Population Census indicates that Christianity, Islam
and Traditional Religion are the major faiths practiced in Ghana with the following representation: Christianity (68.8%),
Islam (15.9%) and traditional religion (8.5%). A significant proportion (6.1%) has no religious affiliation.
Population Ghana’s population is estimated at about 18.9 million and grows at 2.7% annually. Most of the population is
concentrated in the southern part of the country with the highest density occurring in urban and cocoa producing areas.
The population data by Region, Sex and Capital (administrative towns) are as follows:
· REGION
· POPULATION
· MALE
· FEMALE
· CAPITAL
· Western
· 1,924,577
· 978,176
· 946,401
· Takoradi
· Central
· 1,593,823
· 760,221
· 833,602
· Cape Coast
· Greater Accra
· 2,905,726
· 1,436,135
· 1,469,591
· Accra
· Volta
· 1,635,421
· 790,886
· 844,535
· Ho
· Eastern
· 2,106,696
· 1,036,371
· 1,070,325
· Koforidua
· Ashanti
· 3,612,950
· 1,818,216
· 1,794,734
