Delegation France

8/6/2019 Delegation France

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Presented by

MR. EDWARD B. ASHONG-LARTEY

DIRECTOR, MARKETING& PUBLIC RELATIONS DIVISION

GHANA INVESTMENT PROMOTION CENTRE (GIPC)

1

PRESENTATION ON INVESTMENT

OPPORTUNITIES IN GHANA

TO

BUSINESS DELEGATION FROM FRANCE

16th JULY, 2011


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The country has witnessed five peaceful elections since 1992

Continuous, stable multi-party political environment since 1992

Continuous macro-economic stability

Competitive corporate tax rates in the sub region

Fast developing financial infrastructure, institutions and services

Abundant supply of skilled and trainable labourProximity to both the European and American markets

GHANAS INVESTOR FRIENDLY

ENVIRONMENT


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ECONOMIC OUTTURNS FOR 2010 AND

TARGETS FOR 2011

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Economic Indicators 2010

Targets

2010

Outturns

2011

Targets

GDP (CIA est.) -- $36.58 billion(2009) --

GDP (GSS) -- $44 billion(2010) --

GDP per capita(GSS) -- US$1,380 --

Real GDP Growth 6.5% 5.9% 7.0% (excluding oil)

12.3% (including oil)

GDP sector contribution

Agriculture

Industry

Service

--

----

32.4%

25.7%

32.8%

--

----

Inflation(End of Year) 9.2% 9.13%(as at March 2011) 8.5%

Reserves (Months of

Imports Cover)

2.5 3.2 3.0(not less)

Source: 2011 Budget Statement, Ministry of Finance and Economic Planning


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GHANA INVESTMENT PROMOTION

CENTRE

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The Ghana Investment Promotion Centre (GIPC) is a

government agency re-established in 1994 under Act

478 to promote and facilitate investment in all sectors

of the economy with the exception of core mining and

petroleum activities.


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GHANA-FRANCE

RELATIONS

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Ghana and France have enjoyed cordial relations, with France playing key role in

Ghana's infrastructure development, particularly water and sanitation. The AFD has

supported water projects in Northern Ghana.

In January 2006, Ghana and France developed the Ghana-France Partnership Frameworkfor Development.

In October, 2010 the GIPC participated in the Chocolate fair in Paris.

Societe Generale Internationale (SGI) was the key advisor in the AngloGold and Ashanti

Goldfields merger.

Bilateral Investment Treaty(BIT) signed between Ghana and France in 1999


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In the area of Education, The development of Francophonie is also ensured

through the network of Alliance Franaise in Ghana. Present in 140 countries and

with a network of over 1000 committees, the Alliance Franaise is an association

created in Paris in 1883 to promote French language and culture.

Established in Ghana since 1957, it is represented in the country today by the five

local committees in Accra, Kumasi, Takoradi, Tema and Cape Coast. They are

autonomous, non-lucrative associations, affiliated to Alliance Franaise of Paris.

GHANA-FRANCE

RELATIONS-contd

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France has supported Ghana over the years in the area of Agricultural and

Agronomic Research, Water and Sanitation, Budgetary support and Private

sector Development through PROPARCO


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SECTOR

TOTAL NO. OF

PROJECTS

TOTAL ESTIMATED VALUE OF

PROJECTS US$

AGRICULTURE213 770,617,919.64

BUILDING/CONSTRUCTION285 2,835,385,887.17

EXPORT TRADING187

62,076,437.26

GENERAL TRADING570

1,211,684,062.74

LIAISON198

23,073,049.43

MANUFACTURING 892 7,993,516,364.45

SERVICE1009

2,461,259,444.52

TOURISM352

180,752,429.62

TOTAL3,706

15,538,365,594.83

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TOTAL REGISTERED PROJECTS

(SEPT 1994 MARCH 2011)


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REGISTERED FRENCH INVESTMENTS

(SEPT 1994 MARCH 2011)

SECTORAL DISTRIBUTION OF FRANCE ONLY REGISTERED PROJECTS BY GIPC

FROM SEPT 1994 TO MARCH 2011

SECTOR NO. O PROJECTS TOTAL ESTIMATED COST US$

AGRICULTURE 5 56,994,000.00

BUILDING/CONST 2 905,000.00

EXPORT TRADE3 604

,000.00

GENERAL TRADING 5 2,182,763.38

LIAISON 6 6,930,000.00

MANUFACTURING 17 13,843,564.00

SERVICE 26 15,910,426.15

TOURISM 15 1,479,158.97

TOTAL 79 98,848,912.

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Ranked 15th in terms of Value of investments and 11th in terms of

number of investments in the Ghanaian economy


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PROCEDURE FOR STARTING

A COMPANY IN GHANA

Step 1 - Registration with Registrar

General's Department

Incorporate your company at the

Registrar General's Department and

obtain the following :

1. Certificate of Incorporation

2. Certificate to Commence Business

3. Company Regulations

The Registrar Generals Department

takes up to five working days to

complete formalities if all documents

are in order.

Step 2 - Minimum Equity

Contribution

Compliance with GIPC Act 478

regarding minimum equity

requirements either in cash or in kind

as follows:

Joint Venture - US$ 10,000

100% Foreign-Owned - US$ 50,000

Trading Enterprises - US$ 300,000

Step 3 - Registration with GIPC

You registers with

the Ghana Investment

Promotion Centre.

This process takes up to five

statutory working days to

complete, provided all

documents are in order.

Registration with the GIPC

entitles Investor to theIncentives and Guarantees

under the GIPC Act 478

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INVESTMENT INCENTIVES AND

GUARANTEES- PROVIDED

UNDER GIPC ACT 478

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Custom duties exemptions for plant,

machinery, equipments and parts

thereof

Graduated and reasonable corporatetaxes

Location incentives of between 25%-

50% tax rebates for manufacturing

companies

Tax holidays ranging from 5-10 years

depending on sectors

Automatic immigrant quotas

depending on paid-up capital

Other attractive tax concessionssuch as accelerates depreciation

for plant and buildings, five-year

loss carry-over and R & D

expenditure deductibility

Relief from double taxation for

foreign investors and employees

where applicable


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INVESTMENT OPPORTUNITIES

Oil and Gas ServicesOil and Gas Services

EnergyEnergy

InfrastructureInfrastructure

AgricultureAgriculture

ManufacturingManufacturing

TourismTourismICTICT

Financial ServicesFinancial Services

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OIL AND GAS SERVICES

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GHANAS ESTIMATED FIELDSIZE: 400 MILLION BARRELS TOOVER 1 BILLION BARRELS (ALL

IN THE JUBILEE FIELD)

PUMPING OF OIL COMMENCED ON 15

DECEMBER 2010: CURRENT OILPRODUCTIONIS 60,000

BARRELS PER DAY.

THIS IS EXPECTED TO INCREASE TO

120,000 BY JUNE 2011 AND 240,000

BARRELS OF OILPER DAY BY DECEMBER

2011.

CURRENT ASSOCIATED GAS PRODUCTIONIS

60 MILLION CU/FT PER DAY

THIS IS EXPECTED TO INCREASE TO 250

MILLION CU/FT PER DAY BY DECEMBER

2014.


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Other landmark discoveries are Owo, Tweneboa, Mahogany Deep and Odum

in the Deepwater Tano block and West Cape Three Points.

There is also the Dzata.

These discoveries are being appraised at the moment to determine the

potential reserves.

OTHER LANDMARK DISCOVERIES

Reports estimate the Mahogany field to hold between a hundred andfive hundred million barrels of crude.

It currently has five wells on which various appraisal works are being

done.


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Dedicated shore base with a dedicated mini harborRig operationsFuel supplyOnshore support and logisticsOffice accommodation for numerous oil service companiesSupply chain servicesHelicopter and fixed wing aircraft transportationEquipment supply

Supply boats, anchor handling boats, diving vessels, etcTelecommunications, weather forecasting, search and rescue facilitiesRestaurants , catering , vehicle rental and security servicesTransportation/FreightBanking ServicesInsurance Services


Business Opportunities

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LNG pressure vesselsMetal work and fabrication

Petroleum separationConstruction, installation and commissioning of offshore structuresPipeline manufacturing from steelElectrical wiring of platforms and vesselsInstallation and maintenance of instrumentation for production plantsWelding and Joinery

Hookup of structures already built in other countriesAssembling of knocked down structures in yards in GhanaReal estate construction and management


ConstructionOpportunities

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Implementation of a no-gas flaring policy

Local Content Requirements for thePetroleum Sector -- investors will be

expected to utilize a percentage ofGhanaian

human and material resources .

Environmental Health and Safety Plan(EHS) -- A comprehensive environmental

health and safety policy for this sector is

being developed.

Measures against negative impact of sector on the

communities in the catchment area include:


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ENERGY

Governments major energy policy(electricity) - Universal access to

electric power by 2020.

Current Status is -1980 mw, and itis governments policy to increase to5000 mw by 2015.

Current electricity penetration is60% and 100% penetration is

expected to be achieved by 2020.

To fill the 3000 mw demand,government is ready for

partnerships with private sector.

CONSTRUCTIONOF SUNON ASOGLI

POWER PLANT, GHANA

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ENERGY

Pursuing a renewable energy generation target of 10% of total

production and the renewable resources to be promoted include solar,

wind, mini-hydro and bio fuels.

The first 133MW of the 400MW Bui Hydro project is expected to be

commissioned by the end of 2011, with the total installed capacity of

400MW being commissioned by end of 2012.

Government of Ghana is actively promoting Independent Powerproducers in the country. Major projects:

-Sunon-Asogli Power Plant-200MW

-Tema Osonor Plant Ltd- 126 MW and eventually to 300 MW

-Kpone Thermal IPP Project-220 MW

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ENERGY

Energy services provision (energy audits & energy managementstrategies, electrical load management, boiler efficiency/heat recovery,

refrigeration and air conditioning systems, fuel substitution)

Energy manufacturing companies to supply energy-monitoringequipment

Alternative decentralized sustainable energy system to be deployed in

remote and deprived communities

Solar energy systems for schools in off-grid communities

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INFRASTRUCTURE

Roads

Public Housing And

Property Development

Rail Transport AndPorts

HERITAGE TOWERS, ACCRA ACCRA-TEMA RAILWAY LINESSILVER STAR TOWER AREA, ACCRA

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INFRASTRUCTURE ROADS

Provision of efficientand effective mass

transport facilities in

all regions of Ghana.

Construction of tollroad and rapid transit

route in cities

encouraged.KWAME NKRUMAH CIRCLE (BY NIGHT), ACCRA

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a. Construction

Residential (low cost housing, high rise luxury apartments, retirement villages)

Industrial (light industrial parks, warehousing facilities)

Commercial (regional shopping centres/malls, office accommodation, storage)

b. Production and marketing of construction equipment and building materials

INFRASTRUCTURE PUBLIC HOUSING &

PROPERTY DEVELOPMENT

VILLAGIO APARTMENTS

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Level of Investment Est. Cost of Deficit at US$7.5 billionDeficit = 1,000,000 unitsAnnual Demand = 140,000 unitAnnual supply = 40,000 unitsLevel of Investment required = US$ 7.5bn


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INFRASTRUCTURE RAILWAYS &

PORTS

Rehabilitation of existing railway infrastructure mainly tracks, bridges , signals andtelecommunication systems.

Modernization of existing railway, expansion to cover whole country especiallylinking south to the north.

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Expansion and modernization of Tema

and Takoradi ports US$ 1.5 billion

Creation of Inland Port at Boankra,

near Kumasi (heart of country)

Creation of river port at Buipe,

Northern Region (on the Volta river) TEMA PORT


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AGRIC AND AGRO PROCESSING

Production of agricultural inputs: fertilizers,pesticides and fungicides

Storage facilities: avoidance of high post-harvest losses and low returns for farmers and

processors

Developing irrigable land through irrigation.Ghana has potential irrigable area of 346,000

hectares, only 10,000 hectares has been

developed

Technological and support services: supplyand installation of cold chain equipment,packaging , factory building technology

Distribution services: post-production servicesin transport, packaging and cold vans

Standards, training and certification; capacitybuilding for management and market-oriented

enterprises; market intelligence research ,

agricultural finance and insurance

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Large scale farming of cropsSupply of machinery to establish

hatcheries for day-old chicks

Floriculture: cultivation of exotic

flowers, potential in national, regional

and European Union market


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MANUFACTURING AND INDUSTRY

Food processing

Cocoa processing

Pharmaceuticals

Textiles and garments

Wood processing and manufacturing

Salt production

Production of electrical wirings and

electronic products

GHANAIAN KENTE CLOTH

PAPSO DRINKS

PHARMACY

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Tourist Accommodation --(multi-hotel resorts, single-hotel

resorts, business hotels, lodges

and inns, motels, hostels, camping

sites)

Tourist Information ShopsTourist Transport ServicesTourist Travel ServicesTourism Financial ServicesTourism Medical Services

Food and Beverage ServicesEntertainmentLeisure and SportsShopping

Meeting Facilities

TOURISM

KINTAMPOWATERFALLS

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INFORMATION COMMUNICATION

TECHNOLOGY

Category No. Operating No. Required

1 National fixed network operators 2 2

2 National Mobile cellular operators 5 63 Direct to Home (DTH) Satellite Services 8 13

4 Internet Service Data Providers 29 165

5 VSAT Data Operators 57 176

6 Public/Cooperate Data Operators 25 99

7 FM Stations 84 140

8 TV Stations 8 free-to-air5 pay/view

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Education: software development,networking, VSAT, telecom and IT

Engineering

Production of Business Solutions(software and networking services)

Business Processing OutsourcingSupply of High-TechTelecommunication Equipments

Back Office Operations ( especially forFinancial Institutions)

Telephony rural and fixed linesInternet Service Provision Service

INFORMATION COMMUNICATION

TECHNOLOGY

BUSYINTERNET, ACCRA28

Transaction ProcessingManufacturing, assembling and supplyof computers and accessories

VSAT servicesE-commerce and Legal DatabaseServicesLogistics Management Services andMedical Transcription Services


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FINANCIAL SERVICES

Opportunities

Universal banksDevelopment banksInsurance companiesReinsurance companiesMortgage finance institutionsLeasing companiesVenture capital companiesHire purchase companiesExport finance companies

Investment banksMutual fundsInvestment trustsSavings and loans companies

Organization Number

Banks 27

Rural and Community Banks 135

Non-Bank Financial

Institutions

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Forex Bureaux 273

Insurance Companies 17

Re-insurance Companies 2

Insurance Brokers 35

GSE Listed Companies 38

GSE Licensed Stockbrokers 18

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UNDER GIPC ACT 478

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Custom duties exemptions for plant,

machinery, equipments and parts

thereof

Graduated and reasonable corporatetaxes

Location incentives of between 25%-

50% tax rebates for manufacturing

companies

Tax holidays ranging from 5-10 years

depending on sectors

Automatic immigrant quotas

depending on paid-up capital

Other attractive tax concessions

such as accelerates depreciation

for plant and buildings, five-year

loss carry-over and R & D

expenditure deductibility

Relief from double taxation for

foreign investors and employees

where applicable


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UNDER GIPC ACT 478

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Full repatriation of dividends and net profit attributed to

investment

Transfer of funds in respect of servicing of foreign loans

Guarantee against expropriation ( also enshrined in the

Constitution of Ghana)

Remittance of proceeds in the sale or liquidation of

investment


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INCENTIVES FOR

SPECIAL INVESTMENT

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For the purpose of promoting identified strategic or

major investments, the Board in consultation with theappropriate agencies as the Board may determine and

with approval of the President, negotiate specific

incentive package in addition to the incentive provided

under section 23 & 24 of the GIPC Act.


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The Chief Executive OfficerGhana Investment Promotion Centre (GIPC)

Postal Address: GIPC, P. O. Box M193

Ministries, Accra, Ghana

Location: Public Services BuildingMinistries, Accra, Ghana

Tel: +233 302 665125-9

Fax: +233 302 663801

Email: [email protected]

Website: www.gipcghana.com

CONTACT

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THANK YOU FORYOUR ATTENTION

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Documents

Delegation France