Investment : Cape Coast Metropolitan

Published on 2015-08-19

Investment : Beach

The Cape Coast municipality is an exciting blend of old and new, urban and rural, traditional culture and cosmopolitan culture. This has created vast opportunities for private sector entrepreneurship, which is assured of the full unwavering backing of the Municipal Assembly itself.

Despite the relatively urban nature of the municipality, farming thrives in the northern part of the district, where it is the main source of livelihood, while fishing is a major activity along the southern coastline. The 1984 census indicates that about 10.5% of the economically active population were engaged in farming and fishing.

Major crops cultivated in the district include maize, of which 5,661 metric tonnes were produced in 1996, cassava (1996:36,745 metric tonnes) and cocoyam. Cash crops cultivated in the district include citrus, cocoa and oil palm. All this means that production could be significantly expanded if irrigation techniques are applied.

Since market demand is relatively buoyant for fishing, food crops and cash crops alike, private investors engaging in modern farming and fishing are assured of ready markets for their produce as long as they are offered for sale at competitive prices.

The compact nature of the municipal area and especially its dominance by Cape Coast central markets of Kotoburaba and Kotoka capture the bulk of commodity flows from the hinterland farming communities and part of the coastal fishing communities. Another market at Anofo, also at Cape Coast, controls the fish trade.

Other satellite markets include Abura Market and small selling centres at Adisadel, Kwaprow and Pedu. Apart from Ameem Factory and Pan Saw Mill, there are no significantly large industrial establishments in the municipality.The Ameem Factory is involved in the manufacture of soap and brake bands.

Considering the strong effective purchasing power in the municipality, this leaves ample opportunity for industrialists to set up shops. Importantly, the area has a huge pool of skilled manpower, complete with technical and engineering skills. There are several small scale enterprises located throughout the municipal area.

These include soap making, oil extraction (coconut, palm kernel and palm oil), garages, quarrying, and services such as sewing, barbering and hairdressing. Entrepreneurs thus have no shortage of raw and intermediate industrial inputs and ancillary support services.

GHANA’S INVESTMENT CLIMATE

High Ponits of Climate
Ghana with her stable, multi-party democratic environment, a market liberalizing policy, current divestiture programme and ‘Gold Age of Business’ policy declaration by the government have all contributed to underscore her commitment to private sector initiative.

Added to these, is Ghana’s promulgation of the Ghana Investment Promotion  Centre (GIPC) Act with transparent procedures, availability of a stock exchange and other emerging financial institutions. Ghana also has quota-free access to the USA and European markets for developing strong private sector advocacy bodies such as the Private Enterprises Foundation (PEF) and the Private Sector Advisory Group.

Coupled with all these is the introduction of monetary and banking sector reforms, and the financial sector adjustment programme which have all contributed to transfer non-performing assets of some state-owned banks to the Non-Performing Assets Recovery Trust to enable banks to recapitulate – leading to reduction in corporate taxes for most business activities.

Role of  GIPC
The Ghana Investment Promotion Centre (GIPC) has been established to, among other things, encourage and promote investment in the Ghanaian economy as well as initiate and support measures that will enhance local and foreign investment in the country.

The GIPC’s other functions include to initiate, organize, and participate in promotional activities like exhibitions, conferences, seminars and stimulate investment; and provide as well as disseminate up-to-date information on incentives and support services.

Investor’s Benefits and Guarantees
The range of investment incentives and benefits provided under the GIPC Act 478 (1994) and managed by the GIPC include:-

  1. Customs / import duty administered by the Customs Excise Preventive Service (CEPS);
  2. Tax incentives administered by the Internal Revenue Service (IRS);
  3.  Tax holiday for such investors as Real Estate Developers, Rural Banks, Agro-industries, Air / Sea Transport Operators, and Manufacturing Enterprises;
  4. Relief for Investors of unintended obstacles imposed by previous legislation;
  5. Liberalisation of imports and foreign exchange, easy remittance of dividends, profits and fees abroad;
  6. Reduction in company taxes in the manufacturing sector; and
  7. Ghana as a member of the Multilateral Investment Guarantee Agency of the World Bank, provides guarantee against non-commercial risk for investment.

Establishment of Regional Investment Promotion Centre (RIPC) of Ghana
To further enhance its effectiveness and setting up various Regional Investment Promotion Centres to act as its ‘antennae’.
The RIPCs are expected to assist in identifying, coordinating, packaging marketing the investment opportunities and purposefully support the private entrepreneurial projects in the region.

The RIPCs are also charged with identifying viable projects and entrepreneurs.  To this end, they are to package the projects into bankable ones and nurture them to a level where they can either stand on their own or be effectively linked up to either backward or forwards with the foreign direct investors either as input suppliers or sub-contractors or in joint venture relations.

Thus, the functions of the RIPCs include:-

  • To disseminate information on the investment policies, the legal and regulatory framework and the business operating conditions of the country and the region;
  • To undertake or cause to be undertaken, the identification of District, Municipal and Regional investment opportunities;
  • To prepare or assist in the preparation of sector profiles and bankable projects for promotion;
  • To develop and adopt marketing strategies, including fairs and investment for a to promote these sector profiles and projects;
  • To advise and direct entrepreneurs and project proponents to relevant agencies in and outside the regions for services and the facilitation of their project implement;
  • To advise the business community in the Region about the source of finance for their projects and the technical assistance packages available for project support;
  • To identify and encourage the granting of District and Region – specific concessions and incentives to attract investment projects into identifiable locations; and
  • To serve as the clearing house for all Regional Investment issues and to monitor and evaluate the impact of the investment projects in the Region.

CCMA and the CRIPC
The CCMA in recognition of the anticipated benefits available have set up a Desk Office to handle all issues relating to operationalisation of the Central Region Investment Promotion Centre (CRIPC).

To this end, the Investment Promotion Desk Office at the CCMA have evolved a Cape Coast Municipal Investment priority Plan (CCMIPP), which sees to prioritize critical and strategic sectors and specific Regional locations for special and enhanced concessions and incentives. The rationale is to consolidate the Municipality’s position as the tourism and education gateway to both the Western Region and the rest of the Central Region.

Indeed, the production and distribution of this trade, investment, education and tourism promotion brochure is just the beginning of an aggressive drive being pursued by the CCMA to re-position the Municipality as the most desired alternative destination in the country.

Investor’s Key Facts
All person entering the country must possess valid travel document including passport, laisser-passer and other permits establishing their identity, and issued by international agencies recognized by the Government of Ghana such as ECOWAS, UN and its specialized agencies, the World Bank and the African Development Bank.

Visitors entering Ghana require Entry Visas which can be obtained from a Ghana Embassy, High Commission or Consulate abroad.  Where Ghana has No Consular or Diplomatic representation, a Visa could be obtained by an application to the nearest Ghana authorized British Diplomatic Mission or Consulate.  Ghana Entry Visas may be issued on arrival if the director of Immigration has prior notification from travelers or their sponsors.

Citizens of ECOWAS countries are exempted from Visa requirements.  Kenya, Malaysia, Singapore, Egypt and Hong Kong are special administration regions whose nationals require no Entry Visas.  Also free from Visas requirement are holders of German and Cuban diplomatic service passports and persons in direct air / sea transit.

Nationals from the Commonwealth, Eastern and Southern African countries may obtain visas at point of entry in Ghana or Ghana Mission Consulate abroad. Persons wishing to undertake an occupation for reward or employment must be within an authorized immigrant quota zones. All investors to Ghana must register with the GIPC and the CRIPC. 

Application for the extension of a visa or automatic quota must be accompanied by a supporting letter from the GIPC and or CRIPC confirming his / her status. On Tax Rebates, the GIPC Act 478 (1994) provides a range of investment incentives, benefits and guarantees to various categories of investors under different taxes.  These include a tx rebate of 25% to be enjoyed by manufacturing industries in the regional capitals othe than Accra and Tema while 50% will be enjoyed by those outside regional capitals.

For Corporate Tax, all sectors receive 35% except for income from non-traditional export (8%) and hotels (25%). Concerning Income Tax Exemptions, all exemptions will apply for the provision of accommodation for employees on farms, building, timber, mining and construction sites.

Some Investment Opportunities:
01    Poultry and Poultry Feed
02    Hospitality Industry
03    Fish Cannery
04    Cold Storage Plants
05    Aqua culture Development
06    Establishment of Crafts Village
07    Development of Fishing Harbour
08    Casttle Ranching
09    Bee Keeping
10    Snail Farming
11    Mushroom Farming
12    Warehousing
13    Real Estate Development
14    Vegetable Oil Factory
15    Home Financing
16    Cassava Chips Production
17    Cashew Nut Production
18    Black Pepper Production
19    Citrus Juice Factory
20    Cassava Flour Production
21    Sweet Potato Production