GIPC Act 865 review to deepen local participation, create jobs                                

By Elizabeth PUNSU, Kumasi

The Ghana Investment Promotion Centre (GIPC) is set to review provisions of GIPC Act, 2013 (Act 865) as part of measures to protect local investors and expand employment opportunities for Ghanaians, particularly in the retail sector.

Head of the GIPC Ashanti Zonal Office, Michael Okyere, disclosed this during an interview with journalists on the sidelines of a Transparency International forum held in Kumasi.

Mr. Okyere expressed optimism that a revised Act 865, combined with stronger collaboration among local businesses, will help deepen Ghanaian participation in key sectors of the economy while creating sustainable jobs for citizens.

He noted that although the law already restricts foreign participation in certain segments of the retail trade, enforcement alone is not sufficient to guarantee meaningful local benefits – hence the need for a targetted review of key requirements.

“There are many foreigners in the retail business and we are not staying aloof. GIPC is actively protecting domestic investors. Act 865 is clear in reserving parts of the retail space for Ghanaians, but beyond that we also have investment thresholds which act as safeguards,” Mr. Okyere said.

Under the current framework, foreign investors seeking to operate in the retail sector are required to commit a minimum capital of US$1million and employ at least 20 skilled Ghanaians. According to Mr. Okyere, these thresholds are being reassessed to strengthen local job creation.

He explained that while the minimum capital requirement will expectedly be reduced to about US$500,000, employment obligations will be tightened to ensure more direct benefits for the local workforce.

“We are looking at increasing the employment levels. So even if the capital requirement is reduced, there will be stricter conditions on employment. There will also be a clear ratio – one expatriate to one Ghanaian – before an expatriate work permit is granted, with at least 90 percent of the workforce being Ghanaians,” Mr. Okyere emphasised.

He stressed that the proposed measures are intended to strike a balance between attracting investment and safeguarding local enterprise, noting that many countries adopt similar protective mechanisms tailored to their domestic economies.

On the opinion that foreigners should only engage with wholesale – as is being done in especially South Africa – Mr. Okeyere cautioned: “Other countries do this, but we should not copy blindly. When policy is being enacted, there must be broad consultation with market players so we can design something that truly works for Ghana”.

Beyond regulatory reforms, he urged local investors to rethink their approach regarding ownership and collaboration. He observed that the tendency for investors to insist on sole ownership often limits growth and competitiveness.

“Many local investors want to own everything themselves – 100 percent of something that is not producing. We are encouraging them to join forces, team-up and take full advantage of the provisions in our laws,” he said.

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