Ghana announces tax incentives for Belgian investors

The Deputy Minister of Trade and Industry, Mr Herbert Krapa, in a keynote address at an information session on Business Opportunities in Ghana, said the incentives include renewable corporate tax holiday of five years after commencement of operations; total exemption from payment of withholding taxes from dividends; and a waiver of import duties and levies on equipment, machinery, plants parts and raw materials.

Other incentives, he added, would include relief from double taxation for foreign investors and employees; guarantees and repatriation of dividends, and guarantee against nationalisation and expropriation of investments.

Mr Krapa said this at the session organised for a delegation of Belgian investors on Monday.

Meanwhile, the Ministry of Finance has since 2019 laid before Parliament, an exemption bill expected to be reviewed, passed and implemented by the year 2022.

The exemption bill after undergoing several reviews, is expected to help the country reduce revenue loss to the State as a result of exemptions granted to investors.

The Deputy Minister indicated that the country was relying on strategic investment into critical sectors of the Ghanaian economy, and in particular, areas where Ghana continued to enjoy comparative advantage to boost domestic production and export diversification.

He said the sectors include agriculture, automotive, manufacturing, consumer goods, and infrastructure, and pledged the commitment of the Ministry and its agencies to work closely with Belgian policymakers and investors “to unlock the many trading opportunities that exist between us, whilst continuing to improve the business and investment climate”.

“Government will ensure that it continues to develop and promote policies that are business-friendly whiles taking proactive steps to address existing challenges,” he said.

The Deputy Minister of Foreign Affairs and Regional Integration, Mr Kwaku Ampratwum-Sarpong, also said that as a sign of goodwill towards deepening ties, the government was ready to support the Belgian government to establish an Embassy in Accra.

“The prominence of economic diplomacy in the discourse of Ghana’s foreign policy is not mere rhetoric. Rather it’s a viable strategy to actively seek markets for Ghanaian goods and service abroad,” he said.

Mr Yofi Grant, the Chief Executive Officer (CEO) of the Ghana Investment Promotion Centre (GIPC), called on investors to consider the limitless opportunity Ghana was offering in terms of the natural resource pool, large labour force, political stability and geographic advantage of being located at the centre of the globe.

The Ambassador of Belgium to Ghana, Mr Michael Wimmer, said Belgium as one of the 15 largest importing and exporting nations and a contributor to 50,000 jobs in the country was committed to helping the “Ghana Beyond Aid” Agenda.

“The visit of this mission is a sign of trust and commitment to do more and work together to build relationships” he added.