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Background:

This dissertation will focus on the
Ghana Investment Promotion Centre Act 2013 (act 865), which repealed and
replaced the Ghana Investment Promotion Centre Act 478 of 1994. The 2013 Act
set out rules regarding the following: enterprises
reserved for Ghanaians, enterprises eligible for foreign participation and
minimum foreign capital requirements, incentives for special investment,
investment guarantees, and guarantees against expropriation. It also
established the Ghana Investment Promotion Centre which is a government agency
that currently coordinates and monitors all investments in the country in all sectors
except mining and petroleum. The functions of the Centre outlined in the legislation
do not differ substantially from those set forth under the 1994 Act. In terms
of attracting foreign investment some of the specific functions are to:

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·        
Formulate investment promotion policies and
plans, promotional incentives and marketing strategies to attract foreign and
local investments in advanced technology industries and skill-intensive
services which enjoy good export market prospects;

·        
Initiate, organise and participate in
promotional activities such as exhibitions, conferences and seminars for the
stimulation of investments, to present Ghana as an ideal investment destination;

·        
Collect, collate analyse and disseminate
information about investment opportunities and sources of investment capital,
incentives available to investors, the investment climate and advise upon
request on the availability, choice or suitability of partners in joint venture
projects;

·        
Identify specific projects and prepare project
profiles on investments and joint venture opportunities in Ghana and attract
interested investors for participation in those projects; and

·        
Bring about harmonisation in investment policy
formulation through coordination of the activities of all other institutions
and agencies.

Under the Ghana Investment
Promotion Centre Act, 2013 (Act 865), any enterprise in which there is foreign
participation is required to register with the Ghana Investment Promotion
Centre (GIPC). Where the company is wholly owned by non-Ghanaians, there is a
minimum capital requirement of US$500,000; where the company is partly owned by
f non-Ghanaians the minimum capital requirement is US$250,000; and where the
company is owned by non-Ghanaians and is to go into trading activities, a minimum
capital requirement of US$1,000,000.

The government of Ghana has made
increasing foreign direct investment a priority, acknowledging the importance
of having an enabling environment for the private sector to thrive, thus
attracting foreign investment. The government has undertaken regulatory and
other reforms to improve the ease of doing business and investing in Ghana.
These reforms are also to deal with issues of bureaucracy, weak productivity,
costly and difficult to obtain financing services, under-developed transport infrastructure,
power and water cuts and an unskilled labour force, all of which hinder foreign
direct investment. Mining and oil exploration are the main sectors that attract
most of the FDI. China, Mauritius, Canada, Lebanon and the United Kingdom are the
main investing countries.

Research Question:

What is the effect of legislation
in Ghana on foreign direct investment and portfolio investment?

Methodology:

This dissertation will require both
a doctrinal approach and a comparative approach in answering its research
questions.

This dissertation will in its first
set of chapters  consider the Ghana
Investment Promotion Act, with the subtopics, Analysis
of the rules and regulations of the act in relation to rules regarding
enterprises reserved for Ghanaians; Analysis of the rules and regulations of
the act in relation to enterprises eligible for foreign participation and
minimum foreign capital requirements; Analysis of the rules and regulations of
the act in relation to incentives for special investment, Analysis of the rules
and regulations of the act in relation to  investment guarantees. Using the doctrinal approach,
the aim of these chapters is to identify and go on to assess any gaps or
uncertainties which may exist within the current legislation in respect of the
aforementioned subtopics. It will then go on to asses any effect these gaps or
uncertainties may have had on foreign investment.

It would then in the next set of chapters
compare Ghana’s legislation with that of Indonesia. The aim would be to analyse
and compare how both have sought to attract as well as regulate foreign
investment and how well it has worked. The reason for choosing Indonesia stems
from the fact that, though Indonesia’s legislations creates many barriers to
investment as compared to Ghana, the country still attracts a large amount of
foreign investment. The focus of the comparison would be on legislation rather
than case law, as there isn’t much case law in relation to the subject in
Ghanaian courts. This dissertation will require a comparative approach as these
set of chapters would examine the questions; are there any gaps in Ghana’s
legislation that have effectively been filled in the legislation of Indonesia
and Would it be in Ghana’s interest to emulate parts of Indonesia’s legislation
with regards to foreign investment?

In line with analysing legislation
in Ghana and its effect on foreign direct investment and portfolio investment,
the dissertation will then go on to look at bodies created by the legislation,
in this case the Ghana investment promotion Centre. Here question that would
form subheadings are as follows How effective is the current GIPC; Should the
GIPC be reformed? and Could legislation on its own be more effective than GIPC.

 In the absence of substantial case law on the
subject the materials to be consulted will be in the form of policy documents,
legislation, journal articles, books, websites, and blogposts. These materials
will be gathered from The Institute of Advanced Legal Studies Library, Westlaw,
LexisNexis and HeinOnline.

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