Located in West Africa and bordered by Togo, Burkina Faso and the Ivory Coast, Ghana is a thriving nation with a stable democracy and is considered one of Africa’s fastest-growing economies. Rich in natural resources such as gold, diamonds, manganese, and oil, the country is also the second-largest chocolate producer in Africa. Ghana has grown strong over the years, diversifying its economy to avoid dependence on non-renewable sources.
Aside from its natural resources, the country is also open to Foreign Direct Investment (FDI), with its main investors being Australia, China, the Netherlands, South Africa, and the UK. The country’s eagerness to welcome other foreign investment is also evident in the fact that it provides numerous tax rebates, tax holidays, and tax exemptions to foreign businesses.
The benefits of expanding to Ghana do not stop here either, as the country offers other incentives to foreign companies looking to expand their activities to Ghanian shores.
|Income of a Trust||25|
|Company principally engaged in the hotel industry||22|
|Company engaged in the export of non-traditional exports||8|
|Financial institutions from loans granted to farming enterprises||20|
|Financial institutions from loans granted to a leasing company||20|
|Manufacturing companies located in regional capitals (except Accra & Tema)||18.5|
|Manufacturing companies located outside Accra, Tema and the regional capitals||12.5|
|Free Zone Enterprises after 10 years tax holiday (on domestic sales)||25|
|Free Zone Enterprises after 10 years tax holiday (on export of goods and services)||15|
|Petroleum income tax||35|
|Mineral income tax||35|
Ghana is nothing if not rich in natural resources. Gold, diamonds, oil, gas, timber, cocoa, bauxite, manganese, and silver… All these raw materials can be sourced in the country, providing great opportunities for business and investment.
Since Ghana has diversified its economy, it also has several other industries that make for lucrative investments, notably the real estate industry, the financial services sector and the manufacturing sector.
Ghanaian media can be a powerful tool for companies to use, especially for advertising purposes. The media in Ghana comprises numerous lively television and radio stations, newspapers, and other media outlets which engage local and foreign audiences in conversations about all facets of the nation.
Additionally, Ghana is regarded as a reference in West Africa as it houses many internationally recognized ICT companies. As a result, Ghana’s media offers a favourable environment for businesses to flourish.
Education is central to development in Ghana. From 2017 to 2020, the Ghanaian government doubled the public education budget, going from $2 billion to almost $4 billion.
As long as education is given such a share of the government’s annual spending, Ghana’s educational institutions will continue to grow in number and quality, attracting tertiary students from not just Ghana but also from all over West Africa. This allows companies in Ghana access to a sizable pool of highly qualified graduates and students who pass through the country’s educational system.
Additionally, English is Ghana’s official language, with many Ghanaians also speaking a few other indigenous languages. This English language proficiency will prove beneficial for businesses, especially ones with international clients.
However, one issue businesses may run into as they set up their own entity is compliance with local law. This includes employee hiring practices, employee benefits, payroll systems, and tax remittance among others. All these aspects of having a labour force may weigh on businesses as they try to grow in a new market. Not to mention that failure to comply with the law carries serious sanctions.
Companies may avoid any such risks by partnering with a PEO (Professional Employer Organisation) if they already have an entity in Ghana. This third party will enter into a joint-employment agreement with the company in question, assisting with hiring, payroll, benefit administration, compliance and human resources. This agreement allows companies to put all their focus on their business growth rather than on daily operations and maintenance.
Expanding to another country and exploring new markets is a challenging task, even when it is to a country as stable and receptive to investment as Ghana. Africa HR Solutions’ PEO (Professional Employer Organization) offer is perfect for businesses that already have a local subsidiary in Ghana.
But for those companies that are only now considering entering the Ghanaian market, an EOR (Employer of Record) may just be the ideal solution. EORs allow companies to operate in a foreign country without a local entity – helping them to save time and money by avoiding complex legal procedures. EORs also take on the responsibility of payroll, human resources, hiring, tax remittances and compliance with local law.
Thanks to our many local experts in Ghana, we are able to ensure a dedicated service to our clients, one that is sensitive to local traditions and customs and that fully complies with local regulatory frameworks.