GHANA COUNTRY PRESENTATION

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PRESENTATION OUTLINE

• Sub-Sahara Africa’s Growth

• Economic Performance 2015

• Ghana’s Growth Sectors

• Ghana’s Competitiveness

• Ghana’s FDI Drive

• Singaporean Investments in Ghana

• New and Upcoming Projects in Ghana

• Opportunities for Investors

• The Role of GIPC

• Steps to Investing in Ghana

• Investment Incentives

• The Ghana Free Zones Programme

• Conclusion 2

3Credit: Report on Investment Potential of Sub-Saharan Africa by Deloitte, 2014

ECONOMIC PERFORMANCE 2015

•Total: US$ 33.32 billion

•Growth rate: 4.1%GDP

•Total: US $ 31.30 billion

•Growth rate: 5.2%Non-oil GDP

•Total: US$ 2.6 billion

•Foreign Component: US$ 2.32 Billion

•Local Component US$ 351 million

Investments

•Export: US $ 7.75

•Import: US$ 10.09Trade

•Inflation: 17.6 % (Dec 2015)

•Strategic currency reserves:3 months plus

Other macroeconom

ic figures

•Daily Minimum Wage: GHC 7 (US$ 1.75) Social statistics

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GROWTH SECTORS - INDUSTRY

• The 3 main sectors driving the growth of the Ghanaian economy in 2015 are;

• Services – 54.1 % of GDP

• Industry - 26.9 % of GDP

• Agriculture - 19 % of GDP

• The Industry Sector recorded the highest at 9.1 percent and Services at 4.7 %.

• The growth in the industry sector is driven by Construction

Water & Sewerage

Electricity

Petroleum sub-sectors

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GROWTH SECTORS - SERVICES

The growth in the Servicessector is driven by stronggrowth performances in;

• Defense

• Financial services

• ICT

• Education

• Health

• Real Estate

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GHANA’S COMPETITIVENESS

• A stable democracy

• West Africa’s 2nd largest economy andmarket

• Access to 400 million ECOWASMarket

• Best destination for ease of doing business in West Africa - World Doing Business Report 2016

• 4th in the overall ranking of BarclaysAfrica Trade Index 2015, among 31sub saharan countries in terms ofmarket opportunity and openness intrade.

• Accra, Ghana ranks 6th in the Africa’sCities of Opportunity Report 2015 byPwC. The ranking is based on 4 mainindices; Economy, infrastructure,human capital and society &demographics

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GHANA’S FDI DRIVE

100% foreign ownership

Investments are allowed in all sectors of the economy

Joint Ventures are strongly encouraged and promoted

Drive for FDI has been targeted and sector specific

Guided by the principle of translating FDI into tangible results

Ghana has recorded very high project values over the past five years

Average of US$ 4.3 billion investment a year over the period

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SINGAPOREAN INVESTMENTS IN GHANA

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SINGAPORE: Sectoral distribution of registered projects - Sept 1994 to June 2016

Sector No. of Projects Estimated Cost (US$ M)

Agriculture 3203.10

Building/Construction

0 -

Export Trade 52.33

General Trdaing 31.51

Liaison 90.91

Manufacturing 661.93

Service 111,274.38

Tourism 10.08

Total 38 1,544.23

Leading Singaporean Businesses registered in Ghana;• OLAM• WILMAR• PIL (GHANA) LIMITED • JOIL• ALTECO• MAERSK DRILLSHIP IV

SINGAPORE PTE LTD

NEW AND UPCOMING PROJECTS

Appolonia Development – Master plan,

mixed use urban development in Accra

on a 941 hectare land estimated at $267

million.

The first green commercial building in

Ghana. The project estimated cost is

$60million.

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Agriculture and

Agro-Processing

Manufacturing

Tourism

Energy

Oil & Gas

Infrastructure & Real Estate

Financial Services

ICT

INVESTMENT PRIORITY SECTORS

In line with the country’s current needs priority sectors for investments are

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Opportunities for Supplies in

Upstream Sector

Sankofa, TEN and Greater Jubilee due to come on stream from mid 2016 to 2018.

Construction of a dedicated

pipeline from Takoradi to Tema

A dedicated on shore

pipeline to connect the two

port cities of Takoradi and

Tema.

OPPORTUNITIES FOR INVESTORS

LNG Deployment Opportunities

Opportunities exist for the

deployment of LNG infrastructure

to serve the country & sub-

region.

This is to be executed by PPP or

IPP

Ancillary Services

Helicopter & Fixed wing aircraft

transportation.

Mini harbours and warehouses.

Anchor handling boats

Diving vessels

OIL AND GAS

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OPPORTUNITIES FOR INVESTORS

PROJECT 1 – Gas storage and distribution

PROJECT SCOPE The project is to provide wholesale gas storageinfrastructure throughout Ghana to facilitate themarketing and distribution of LPG in Ghana.

Projects involves setting up a 1,000 metric tonsatellite tank farm strategically across the country.

INITIAL CAPITAL OUTLAY US$ 60 million

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Food & Food processing

establishments

Manufacturing of spare

parts for the oil & gas

industry.

Electronic design

& Development

OPPORTUNITIES FOR INVESTORS

MANUFACTURING

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OPPORTUNITIES FOR INVESTORS

PROJECT 2 - Manufacturing of Jute Sacks

PROJECT SCOPE Commercial production of jute sacks for

storing cocoa beans for export and domestic

market

INITIAL CAPITAL OUTLAY US$5 million

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OPPORTUNITIES FOR INVESTORS

PROJECT 3 - Integrated Aluminium Industry

NATURE OF BUSINESS Vertically integrated aluminum industry

PROJECT SCOPE Bauxite refinery, aluminum smelter and

fabrication plant

NATURE OF

COOPERATION SOUGHT

Partnership with Government

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OPPORTUNITIES FOR INVESTORS

ROADS

Road transport - Currently taking up about 98% of freight and 95% of passenger

traffic

• The National mass transport facilities

• Maintenance and improvements

• 54,084km maintenance

• 250 km improvements

• Developments

• Government has introduced new

tolling practices which have paved

the way for BOT systems and other

forms of private sector participation17

PORTS

•Various expansions and

modernizations

• Tema / Takoradi Ports

• Inland port at Boankra, Kumasi

• River port at Buipe

• Air transport operators for

domestic and sub-regional

services

OPPORTUNITIES FOR INVESTORS

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HELPING YOU NAVIGATE THE INVESTMENT LANDSCAPE

The Ghana Investment Promotion Centre (GIPC) is agovernment agency established under Act 865 topromote, coordinate and facilitate investment inthe Ghanaian economy.

Our functions include:

• Investment advisory services

• Joint venture search

• Identification of specific projects for investment promotion

• Grant of investment incentives and provision of investor support services

• Registration of technology transfer agreements

• Negotiation of Bilateral Investment Treaties

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Invest in 3 easy stepsIncorporate, contribute and register

INVESTING IN GHANA

• Step 1 - Register with RegistrarGeneral's Department

• Step 2 - Meet the Minimum EquityContribution

• Step 3 – Register with GIPC

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INCENTIVES AND GUARANTEES

• Graduated and reasonablecorporate taxes

• Automatic immigrant quotas

• Other attractive tax concessions

• Relief from double taxation

• Repatriation of dividends and netprofit

• Transfer of funds in respect ofservicing of foreign loans

• Remittance of proceeds in the saleor liquidation of investment

• Strategic investment incentives22

GHANA FREE ZONES PROGRAMME

Providing a Conducive Investment Environment for Foreign and local Investment

• A government policy implemented to promote export oriented investments

• Established by an Act of parliament

• Designed to promote processing and manufacturing of goods and services for export

• Combines both enclave and single factory enterprise schemes

• The whole Ghana is accessible to potential investors

• The programme is completely private sector driven

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AREAS OF OPERATION

Four areas of operation• Enclave Development

• Manufacturing

• Service

• Commercial/Warehousing

The designated Export Processing Zones (EPZ) are:

• Tema Export Processing Zone

• Sekondi Export Processing Zone

• Shama Land Bank

• Ashanti Technology Park

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EXPORT PROCESSING ZONES

TEMA EPZ FACILITIES

• Total area of 1,200 acres (480 hectares).

- Access and service roads

- Central sewage system

- Water system

- Telecommunication services

- Electricity

• Designated as a multipurpose EPZ

• First class road linking TEPZ to sea port (Tema) and airport (Accra)

• On going construction of railway line to the Tema Port

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EXPORT PROCESSING ZONES

SEKONDI EPZ

• Total acreage of 2,200 (880 hectares) land.

• Area has been earmarked for heavy industries and oil & gas related activities.

• No infrastructural development has taken place yet

• Looking for investors interested in developing the enclave

SHAMA LAND BANK• Located in the Western Region• Total land area is 3000 acres (1200 hectares) of

land• No infrastructural development has taken

place yet• Looking for investors interested in developing

the enclave

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INVESTMENT OPPORTUNITY – ENCLAVE DEVELOPMENT

Investors can invest in any sector of their choice as long as itmeets the requirements of the Free Zones Board.

Enclave Development

• Investment participation can be through build, operate andtransfer (BOT) systems, Joint ventures and sector specificdevelopment.

• Opportunities exist for investors in infrastructuraldevelopment for;• Sekondi EPZ

• Shama EPZ

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INCENTIVES UNDER THE FREE ZONES PROGRAMME

• 100% exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones;

• 100% exemption from payment of income tax for 10 years

• After 10 years it would not exceed 15%

• 100% exemption from payment of withholding taxes

• 100% ownership of shares by foreign or local investors

• No restriction on repatriation of dividends

• Up to 30% of products can be authorized for sale on local market

• Unimpeded issuance of expatriate work and residence permits;

• Free zone investments are guaranteed against nationalization and expropriation.

• .

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SERVICES PROVIDED BY GFZB

• Provides information on investment opportunities in the free zone

• Issues licenses to approved free zone enterprises

• Assists in securing other permits from related agencies

• Provides ready facilities i.e. serviced land and utilities at the Export Processing Zones

• Obtains work/residence permits for expatriates in the free zone

• Provides any other services requested by investors

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CONCLUSION

Ghana is open for Business

There is strong Governmental Support for Foreign & Local

Investors as well as a functional legal framework to ensure the success of every investment.

Think Ghana, Think Endless Possibilities

Think Ghana, Make it Happen

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• T +233 302 66 5125 – 9 F +233 302 66 3801

• E info@gipcghana.com

• www.gipcghana.com

• T +233 302 780535 F +233 302 785037

• E info@gfzb.gov.gh

• www.gfzb.gov.gh

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THANK YOU