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DOING BUSINESS IN GHANA: OPPORTUNIES IN TOURISM INFRASTRUCTURE DEVELOPMENT PRESENTED BY DR. PETER ANKRAH DIRECTOR, FINANCE, ADMINISTRATION & MIS DIVISION,

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Presentation on theme: "DOING BUSINESS IN GHANA: OPPORTUNIES IN TOURISM INFRASTRUCTURE DEVELOPMENT PRESENTED BY DR. PETER ANKRAH DIRECTOR, FINANCE, ADMINISTRATION & MIS DIVISION,"— Presentation transcript:

1 DOING BUSINESS IN GHANA: OPPORTUNIES IN TOURISM INFRASTRUCTURE DEVELOPMENT PRESENTED BY DR. PETER ANKRAH DIRECTOR, FINANCE, ADMINISTRATION & MIS DIVISION, GIPC 27 TH JULY, 2010. PRESENTED BY DR. PETER ANKRAH DIRECTOR, FINANCE, ADMINISTRATION & MIS DIVISION, GIPC 27 TH JULY, 2010.

2 INTRODUCTION This presentation will cover the following: The mandate of the Ghana Investment Promotion Centre {GIPC} Opportunities in Tourism infrastructure Development I nvestment benefits, incentives and guarantees under Act 478 and LI 1817 2

3 3 MANDATE OF THE GHANA INVESTMENT PROMOTION CENTRE The GIPC is the central Agency of the Government of Ghana charged with the responsibility of encouraging, promoting and facilitating investments in the Ghanaian economy and providing support services to both existing and prospective investors. We hold the hands of the investor (both local and foreign) from the beginning through establishment and operation of the business. We also liaise with other Agencies on behalf of the investor to minimize red tape Policy advocacy role on behalf of the private sector

4 4 INSTITUTIONAL INFRASTRUCTURE FOR INVESTMENT PROMOTION The GIPC has jurisdiction over all sectors of the economy except: Minerals and mining --------Minerals Commission; Petroleum {exploration and production} ----------- The Ministry of Energy and The Ghana National Petroleum Corporation {GNPC}; It should be noted that all services relating to mining and petroleum are, however, handled by the GIPC. Free Zone activities----------Ghana Free Zones Board {GFZB}. Portfolio investment------ Ghana Stock Exchange {GSE}. Divestiture of state-owned enterprises-------Divestiture Implementation Committee {DIC}.

5 5 THE INVESTMENT ACT 478 Investor friendly, liberalized and transparent investment law which was promulgated in 1994 and it is currently being reviewed to make it even more investor- friendly

6 6 INVESTMENT OPPORTUNITIES The Investment Act (GIPC ACT478) allows foreign investors to invest in virtually any area of their choice, either as wholly foreign owned enterprise or as joint-venture partnership with Ghanaians except the following activities: 1 ) Petty trading or hawking {small scale trading} 2} Operation of Taxi Service and Car hire service. A non-Ghanaian may undertake this service Provided he/she has a fleet of 10 new vehicles 3}All aspects of Pool Betting Business and Lotteries except Football Pools and Casinos; 4}Operation of Beauty Salons and Barber sho ps.

7 OPPORTUNITIES IN TOURISM INFRASTRUCTURE DEVELOPMENT Tourism is one of the 8 priority sectors identified by the GIPC for promotion. Opportunities: TOURIST ACCOMODATION- 3 -5 Star Hotels, Guests Houses and Hostels Multi and single Hotel Resorts at beach and lake sites Motels on major tourist routes Highway Rest Stops ranging from small scale with facilities for parking, washrooms and basic refreshment to medium scale with all the above facilities plus Cafteria, Shops, Fuel and auto Servicing 7

8 OPPORTUNITIES IN TOURISM INFRASTRUCTURE DEVELOPMENT Tourist Information Shops in major Tourist Centres and border entry Points Tourist Transport Services such as Tourist Taxis, Air Taxis, Car hire at major tourist locations as well as Cruise Boats on the Volta Lake for leisure, game fishing etc Tourist Travel Services such as Tour Guiding Services, Tour handling Services and Tour Operators Specialized Financial Services such as Credit Card Agents or Discount Houses to offer credit to pay bills at areas which do not accept credit cards, tourism Rental Services for the rental of catering, camping and picnic accessories as well as mobile phones and toilets Tourism Medical Services for various types of health services such as Tourism health insurance companies and ambulance service for tourists including the flying doctor concept to service remote tourist sites 8

9 OPPORTUNITIES IN TOURISM INFRASTRUCTURE DEVELOPMENT Food and Beverage Services including Fast food Restaurants and specialty Restaurants Entertainment spots such as Pubs, Discotheques Night- Clubs, Casinos and Amusement Parks Leisure and Sports including World-class golf Courses for international Tournaments, Theme parks, Marinas for sport fishing, yachting, skiing, sailing and surfing, as well as sports Centres in Cities offering a wide range of indoor & outdoor activities Meeting facilities such as Multi purpose Convention, Conference and Exhibition Centres Shops such as Souvenir shops, supermarkets, shopping arcades, shopping Malls and Duty-free shops 9

10 INVESTMENT BENEFITS, INCENTIVES AND GUARANTEES The investment law provides generous and attractive incentives, benefits and guarantees in all sectors of the economy including Tourism. In the special case of Tourism infrastructure, a Legislative Instrument for the promotion of Tourism, L.I 1817 was promulgated in 2006. The L.I has identified within the entire Tourism sector, various activities with incentives for promotion 10

11 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 These are: ACCOMODATION ESTABLISHMENTS including hotels, motels, resorts, guest houses, catering rest houses, serviced flats and apartments, holiday apartments and other accommodation establishments as categorized and licensed by the Ghana Tourist Board. Applicable Incentives and Benefits: 11

12 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 Exemption from payment of Customs import duties,VAT and other related charges on machinery, equipment, appliances, furniture & fittings in pre- approved quantities as ff: i.Refrigerators/deep freezers, ii.Television sets iii.Audio visuals and video equipment iv.Air conditioners v.Public address system vi.Furnishing including carpets, bedding and fixtures vii.Fans viii.Bedside & lounge audio visuals and video equipment ix.Crockery x.Industrial ovens, cooking ware and cutlery xi.Computers, printers and servers xii.Courtesy minibus, passenger or transit vehicles and delivery vans xiii.Fitness and healthcare equipment, and xiv.Office equipment. 12

13 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 Tax holidays of 4-10yrs depending on the star rating and location of project. 4yrs for establishments below 2 star in Accra 5yrs for establishments below 2 star in regional capitals 7yrs for establishments below 2 star elsewhere 5yrs for establishments 2,3,4,5 star in Accra 7yrs for establishments 2,3,4,5 star in regional capitals 10yrs for establishments 2,3,4,5 star elsewhere Other relevant incentives or benefits that are generally applicable to enterprises under the Ghana Investment Promotion Centre Act 1994, (Act 478 13

14 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 CATERING ESTABLISHMENTS including fast food, specialized restaurants and other catering establishments as categorized and licensed by the Ghana Tourist Board. Applicable Incentives and Benefits: 14

15 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 Exemption from payment of Customs import duties, VAT and other related charges on machinery, equipment, appliances, furniture and fittings in pre-approved quantities as ff: –Air conditioners –Crockery and cutlery –Refrigerators/deep freezers –Furnishing including carpets –Industrial ovens, cooking ware (industrial cookers, microwave ovens, deep fryers) –Computers, printers and servers –Public address system –Television sets –Office equipment, and –Delivery vans 15

16 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 Tax holidays of 3-5yrs depending on location of project. 3yrs for establishments in Accra or within 30km radius from Accra 4yrs for establishments in regional capitals 5yrs for establishments elsewhere 16

17 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 TRAVEL AND TOUR ESTABLISHMENTS including operation of a fleet of tourist coaches and/or buses and car hire services. Applicable Incentives and Benefits: 17

18 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 Exemption from payment of Customs import duties, VAT and other related charges on machinery, equipment, appliances, furniture & fittings in pre-approved quantities as ff: i.Cars and tourist coaches to be used by operators ii.Air conditioners iii.Furnishing including carpets iv.Computers, printers and servers, v.Office equipment vi.Server for galileo system and radio communication equipment. 18

19 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 Tax holidays of 3-5yrs depending on location of project. 3yrs for establishments in Accra or within 30Km radius from Accra 4yrs for establishments in regional capitals 5yrs for establishments elsewhere 19

20 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 CONFERENCE AND CONVENTION ESTABLISHMENTS: including management and operation of international conference centres. Applicable Incentives and Benefits: 20

21 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 Exemption from payment of Customs import duties, VAT and other related charges on machinery, equipment, appliances, furniture & fittings in pre- approved quantities as ff: i.Cars and tourist coaches to be used by operators ii.Air conditioners iii.Furnishing including carpets iv.Computers, printers and servers, v.Office equipment vi.Server for galileo system and radio communication equipment. vii.Audio visual and video equipment. 21

22 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 Tax holidays of 3-5yrs depending on location of project. 3yrs for establishments in Accra or within 30Km radius from Accra 4yrs for establishments in regional capitals 5yrs for establishments elsewhere 22

23 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 RECREATION AND ENTERTAINMENT ESTABLISHMENTS: including night clubs, amusement Centres, themes parks, casinos, provision of facilities for hand gliding and paragliding, water skiing, surfing, yachting and boating, cruising, angling and other marine and water based recreational facilities. Applicable Incentives and Benefits: 23

24 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 Exemption from payment of Customs import duties, VAT and other related charges on machinery, equipment, appliances, furniture & fittings in pre- approved quantities as ff: i.Air conditioners ii.Furnishing including carpets iii.Computers, printers and servers iv.Office equipment v.Audio visual and video equipment, and vi.Cars and vans to be used by the operators and organizers. 24

25 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 Tax holidays of 3-5yrs depending on location of project. 3yrs for establishments in Accra or within 30Km radius from Accra 4yrs for establishments in regional capitals 5yrs for establishments elsewhere 25

26 INVESTMENT BENEFITS AND INCENTIVES UNDER LI 1817 STRATEGIC OR MAJOR INVESTMENT PROJECTS: In the case of Strategic or major investment whose capital outlay is above US$30 million, provision has been made in the Investment Law for the investor to negotiate additional or special incentive packages with the Government through the Board of the Ghana Investment Promotion Centre and with the approval of the President of Ghana 26

27 27 OTHER INVESTMENT INCENTIVES AND BENEFITS UNDER GIPC ACT 478 Work and Residence Permits for foreign shareholders and employees are tied to the paid-up capital as follows: US$10,000 paid up capital 1 automatic quota US$100,000>US$500,000 paid up capital 2 automatic quota US$500,000 and above paid up capital 4 automatic quota

28 28 INVESTMENT GUARANTEES UNDER GIPC ACT 478 There are also Investment Guarantees which include: Repatriation in freely convertible currency of profits, dividends, payments in respect of loans etc Guarantee against expropriation of private enterprises by Government Ghana is a member of MIGA {Insures against non- commercial risks} Investment Promotion and Protection Agreements (IPPA) or Bilateral Investment treaties (BITS) which protect foreign investments and Double taxation Agreements signed with several countries {23 Countries-BITS} Commercial courts have been established to fast track the adjudication of commercial and business cases in the country Ghana Arbitration Centre for amicable resolution of disputes.

29 CONCLUSION Ghana is open for business Government is committed and supportive The GIPC is ever prepared to assist in the development of any specific Tourism projects you may wish to undertake either now or in the near future. I thank you for your attention 29


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