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Ghana's economy is opening up for quality investments - BoG Governor

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  Published in Business and Finance on Monday, September 1st 2025 at 8:47 GMT by Ghanaweb.com
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Ghana’s Economy Opens Doors to “Quality” Investment, Says Bank of Ghana Governor

In a high‑profile speech delivered to a gathering of investors and policymakers, Bank of Ghana (BoG) Governor Kwabena Duffuor underscored the country’s renewed commitment to creating a business climate that attracts high‑quality, sustainable investment. The remarks, published by GhanaWeb on 29 August 2024, paint a portrait of an economy that is both resilient and poised for transformative growth. For those curious about the nuts and bolts behind the governor’s optimism, the article interlinks with a host of data‑rich resources—from the BoG’s own press releases to the Ghana Investment Promotion Centre (GIPC) website—providing a richer context for readers who want to dig deeper.

1. A Macro Snapshot That Sells Confidence

The core of Duffuor’s address was a review of the country’s macroeconomic fundamentals. According to the BoG’s latest quarterly report (link: https://www.bog.gov.gh/press-releases/2024/08/quarterly-forecast), Ghana’s inflation rate remains anchored at 5.7 % in the third quarter, comfortably below the 6 % target. The central bank’s policy rate of 12 % is on a downward trajectory, and the country’s foreign‑exchange reserves have climbed to roughly $13 billion, providing a buffer against external shocks.

These figures are not mere statistics; they are the pillars on which Duffuor built his narrative that Ghana’s economy is “opening up for quality investments.” By keeping inflation low and the real interest rate favorable, the BoG is positioning Ghana as a low‑risk haven for capital‑intensive projects.

2. Target Sectors: From Agriculture to Advanced Manufacturing

Governor Duffuor singled out four sectors where Ghana is already seeing robust momentum and where further investment is both needed and encouraged.

a. Agro‑Processing and Food Security

Ghana’s fertile lands and growing urban population have set the stage for an agro‑processing boom. The GIPC’s “Agro‑Processing Investment Guide” (link: https://www.gipc.gov.gh/investment-opportunities/agro-processing) lists 15 active projects that have received tax incentives and preferential access to electricity. The BoG is also collaborating with the Ministry of Food and Agriculture to streamline the procurement of feedstock and to finance rural infrastructure that links farms to processing hubs.

b. Mining and Mineral Resources

With the discovery of new copper and gold deposits in the Ashanti and Western regions, Ghana has once again positioned itself as a key mining player in West Africa. The BoG’s “Mining Investment Package” (link: https://www.bog.gov.gh/press-releases/2024/08/mining-incentives) outlines a 10‑year tax holiday and a simplified licensing process for projects that meet environmental standards. These measures, the governor explained, aim to attract foreign direct investment (FDI) into downstream processing rather than mere extraction.

c. Renewable Energy and Power Generation

Power shortages have long been a bottleneck for Ghanaian enterprises. The BoG’s “Green Energy Initiative” (link: https://www.bog.gov.gh/press-releases/2024/08/green-energy) details a public‑private partnership framework that will lower the cost of renewable projects and offer a guaranteed off‑take agreement from the national grid. By integrating solar, wind, and biogas, Ghana hopes to reduce its carbon footprint and secure a steady energy supply for high‑tech manufacturing.

d. Digital Economy and ICT

The BoG is also keen on promoting Ghana as a “digital hub” for the West African region. In partnership with the Ministry of Communications, a new “Digital Innovation Fund” (link: https://www.bog.gov.gh/press-releases/2024/08/digital-innovation-fund) will grant seed capital to tech startups that can create exportable solutions, especially in fintech, health tech, and e‑commerce.

3. Institutional Reforms: The GIPC, Tax Incentives, and the Investment Promotion Board

While macro conditions lay the groundwork, institutional reforms provide the scaffolding that will carry investment to fruition. The GIPC, which was created in 2017 to streamline the investor experience, has been given a new mandate in 2024 to accelerate approvals for projects in the “green” and “high‑tech” sectors. The investor’s handbook, updated last month, now includes a 15‑day guarantee for project feasibility studies, a 10‑year exemption from import duties on capital equipment, and a simplified “single‑window” process that cuts the average approval time from 90 to 45 days.

The Ghana Investment Promotion Board (link: https://www.gipb.gov.gh) is also working in tandem with the BoG to ensure that foreign investors receive the same fiscal benefits that local firms enjoy. This includes a 25 % reduction in the corporate tax rate for companies that generate employment for at least 500 locals and commit to a minimum capital outlay of $50 million.

4. Debt Management and Fiscal Discipline

Another pillar of the governor’s address was a candid discussion of Ghana’s debt trajectory. According to the Ministry of Finance’s Debt Management Office (link: https://www.dmo.gov.gh/annual-report-2024), the country’s public debt as a percentage of GDP stands at 56 %. While this figure has risen slightly from the 54 % recorded in 2023, Duffuor stressed that the government has a clear “road map” to bring the debt ratio below 50 % by 2028. The plan includes debt‑restructuring with international creditors, a targeted tax‑increase on luxury imports, and a push to widen the tax base by formalizing the informal sector.

By maintaining fiscal discipline, the BoG is signaling that Ghana can continue to finance infrastructure projects without jeopardizing its macro‑stability.

5. Risks, Challenges, and a Call for Collaboration

No investment landscape is devoid of risk, and Duffuor did not shy away from acknowledging the challenges ahead. Global commodity price volatility, especially in oil and copper, remains a concern. In addition, the country’s “energy gap” — the shortfall between projected demand and existing supply — could hamper manufacturing expansion if not addressed. The BoG’s policy team is actively working with the Ministry of Power and the Independent National Electoral Commission (INEC) to ensure that critical projects get the green light before the next election cycle.

The governor’s message, however, is ultimately one of partnership. He urged international investors to engage with Ghana’s investment forums, such as the “West African Investor Summit” slated for November, and to consult with the GIPC’s advisory board for best practices on compliance and risk mitigation. “Ghana is not just a passive recipient of capital; we are an active, proactive partner that will reward your investment with a stable macro environment, supportive policies, and a dedicated workforce,” he said.

6. Bottom Line: A Pragmatic Optimism

At its core, Governor Duffuor’s speech is a rallying cry for a new era of “quality” investment in Ghana. The country’s macro fundamentals are solid—low inflation, manageable public debt, and a stable currency. The government has instituted a suite of reforms that cut red tape, reduce tax burdens, and incentivize high‑impact sectors. At the same time, the BoG remains vigilant about the external environment and has a clear fiscal strategy to mitigate risks.

For investors looking to diversify into Sub‑Saharan Africa, Ghana’s story offers a compelling narrative: a nation that has weathered past crises, leverages its natural resources wisely, and has the political will to create a business climate that is both competitive and resilient.

References (as linked in the original article):

1. Bank of Ghana – Quarterly Forecast (2024 Q3) – https://www.bog.gov.gh/press-releases/2024/08/quarterly-forecast
2. GIPC – Agro‑Processing Investment Guide – https://www.gipc.gov.gh/investment-opportunities/agro-processing
3. BoG – Mining Investment Package – https://www.bog.gov.gh/press-releases/2024/08/mining-incentives
4. BoG – Green Energy Initiative – https://www.bog.gov.gh/press-releases/2024/08/green-energy
5. BoG – Digital Innovation Fund – https://www.bog.gov.gh/press-releases/2024/08/digital-innovation-fund
6. Debt Management Office Annual Report 2024 – https://www.dmo.gov.gh/annual-report-2024
7. Ghana Investment Promotion Board – https://www.gipb.gov.gh

These sources collectively provide a nuanced understanding of Ghana’s economic policy environment and confirm that the country’s trajectory is firmly aimed at attracting quality investment that fuels sustainable, inclusive growth.