AFRICA AUSTRALIA INFRASTRUCTURE CONFERENCE

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1 AFRICA AUSTRALIA INFRASTRUCTURE CONFERENCE 2-3 September, 2013, Melbourne, Australia Infrastructure Investment Opportuni2es in Ghana Presented By Mrs. Mawuena Trebarh Chief Execu2ve Officer Ghana Investment Promo2on Centre 1

2 Presenta2on outline Ghana - Overview Ghana s Compe22ve Advantages GIPC Total Registered Australian Projects Key Infrastructure Investment Sectors Investment Procedures Investment Incen2ves and Guarantees Some Ghanaian- Australian Success Stories Contact Details Conclusion 2

3 Ghana - Overview Lower middle income economy 2012 GDP of $40.68 billion & West Africa s second- largest economy and market. GDP growth rate of 7.9% (2012) Income per capita US$ 1,570 (2012) Popula2on million labour force Over 60% employed with 11% unemployment rate Strong and sustained economic growth over the last 10yrs GDP annual growth rate of 6.5%; this includes the temporary slowdown to 4% in 2009 and the quick rebound to 14.4% in

4 Ghana - Overview Strong economic growth has been accompanied by significant increases in FDI inflows into the country From 2006 to 2010, FDI into Ghana increased at a compound annual growth rate of 41%, from $636 million to $2.527 billion. Over the last 2 years, there was tremendous increment of 46%, from $2.527 billion to $6.821 billion. Rank 3rd among top five recipient of Foreign Direct Investment into Africa for 2011 with US$3.2 billion FDI inflows (World Investment Report (WIR) 2012) 4

5 Ghana - Overview Economic Indicators 2012 Oueurns GDP (GSS) GHC73.1 billion (US$40.86 billion) 2013 Targets GDP per capita(gss) US$ 3, US$ 3, Real GDP Growth 7.9% 8 % GDP sector contribu<on Agriculture Industry Service 22.7% 27.3% 50.0% Infla<on 8.8 % (average for 2011) 8.9 %(Average for 2012) Reserves (Months of Imports Cover) 3.0 months (US$ 5,348.9 million) Source: 2013 Budget Statement, Ministry of Finance and Economic Planning/ Ghana StaAsAcal Service 5

6 Ghana s Competitive Advantage Ranked the most business- friendly environment in West Africa - World Bank. Sound Macro- economic and Poli2cal Stability Excep2onal track record in the sub- region. 14.4% economic growth in 2011, and forecasted 6-7% growth for next five years - IMF IMF Average Forecasted Growth Rates, % 4.8% 5.8% 6.4% 7.9% Generous investment incen2ves including tax holidays and customs exemp2ons. Ghana s unique geographically posi2on as the closest country to the centre of the earth provides the capacity to develop a good hub for intra- African market. 6

7 GIPC The Ghana Investment Promo2on Centre (GIPC) is a government agency re- established in 1994 under Act 478 to promote, coordinate and facilitate investment in the Ghanaian economy. Our func<ons include: Investment advisory services Joint venture search Iden2fica2on of specific projects for investment promo2on Grant of investment incen2ves and provision of investor support services Registra2on of technology transfer agreements Nego2a2on of Bilateral Investment Trea2es 7

8 Total Australian Registered Projects By GIPC (Sept 1994 June 2013) SECTOR TOTAL NO. OF PROJECTS TOTAL ESTIMATED VALUE OF PROJECTS US$ AGRICULTURE 1 75,000 BUILDING/CONSTRUCTION 1 168,000 EXPORT TRADING 1 - GENERAL TRADING 1 865,000 LIAISON 3 100,000 MANUFACTURING 8 2,571, SERVICE 25 45,956, TOURISM 8 1,166, TOTAL 48 50,901,

9 Energy UpliKing our Ci<es Housing Commercial Buildings Water & Sanita<on Public Transport Systems GHANA Key Infrastructure Investment Opportuni2es Metro Mass Transit Intercity Transport Interna<onal Gateways Sea Ports Airports Freights Roads Railways Broadband Technology Educa<on Online Learning Ins<tu<ons 9

10 Infrastructure Opportuni2es are available for Public Private Partnership (PPP) Government of Ghana priority set of investments for the period Sector US$ million Electricity 3,883 Roads 5,497 Ports 674 Railway 2,832 Water supply & sanita2on 1,110 Total 13,996 10

11 Summary of Infrastructure Investment Plans (Power & Transport):

Energy Government s major energy policy (electricity) - Universal access to electric power by 2020.

Current Status is - 2,135 mw, and it is government s policy to increase to 5000 mw by 2015.

12 Energy Government s major energy policy (electricity) - Universal access to electric power by Current electricity penetra2on is 74% and 100% penetra2on is expected to be achieved by Current Status is - 2,135 mw, and it is government s policy to increase to 5000 mw by To fill in the gap, government is encouraging Independent Power Producers (IPPs) in addi<on to the 400 mw Bui dam being developed by government. There is s<ll opportunity for IPP to fill the remaining gap which can be a combina<on of Thermal, Hydro and Renewable Energy. 12

Water Project Descrip<on Cost (US$) Kpong & Weija

Rehabilita2on of exis2ng works 460,781,219

1,880,668 Techiman Rehabilita2on of exis2ng works

13 Water Project Descrip<on Cost (US$) Kpong & Weija Barikese & Owabi Rehabilita2on of exis2ng works Rehabilita2on of exis2ng works 460,781, ,482,510 Tamale Rehabilita2on of exis2ng works 1,880,668 Techiman Rehabilita2on of exis2ng works 49,362,179 Abesim Rehabilita2on of exis2ng works 49,482,055 13

14 Road Projects Ghana s road network is well developed and connects all districts and regions. The road network comprises 66,200km of roads, of which 2,192km are feeder roads, 12,400km are urban roads, and 11,628km are trunk roads. Some major Road development projects to be undertaken include; Road Name Accra Takoradi road dualisation Accra Tema Motorway rehabilitation and expansion Elubo-Sunyani Upgrade of national Road 12 (western corridor PHSI) Estimated Cost US$400 million US$300 million US$547 million Source: Government of Ghana Budget Statement, 2013, Ministry of Roads and Transport 14

15 Public Housing & Property Development Deficit = 1.5 million units Annual Demand = 150,000 units; Annual supply = 50,000 units Construc<on Residen2al (low cost housing, high rise luxury apartments, re2rement villages) Industrial (light industrial parks, warehousing facili2es) Commercial (regional shopping centres/malls, office accommoda2on, storage) POTENTIAL PROJECTS FOR PUBLIC PRIVATE PARTNERSHIPS 1 Physical infrastructure (i.e. roads, water, electricity, drains, sewage systems, etc.) on 10,000 acres of land for the private sector par2cipa2on in safe and affordable housing delivery countrywide. 2 Construc2on of 500,000 safe and affordable housing units for home ownership countrywide and rehabilitate, refurbish & maintain Pres2ge buildings countrywide. 3 Build and rehabilitate 70mgd water treatment plants countrywide. Source: Government of Ghana Budget Statement,

16 Railways Rehabilita2on of exis2ng railway infrastructure mainly tracks, bridges, signals and telecommunica2on systems. Moderniza2on of exis2ng railway, (US$ Descrip<on expansion to cover whole country especially linking million) south to the north. Project Railways (rehabilita2o n) Railways (new) Railways (new) Cost ,545 Rehabilitate Western Corridor line (Takoradi- Kumasi) New construc2on between Volta Lake and Tema Port Greenfield railway construc2on from Kumasi to borders of Burkina Faso 16

17 Ports Projects Implementation Expansion and moderniza2on of Tema and Takoradi Ports US$ 1.5 bn Crea2on of Inland Port at Boankra, near Kumasi Crea2on of river port at Buipe, Northern Region (on the Volta River) Mineral Jeey Extended Breakwater Dredging Works Es2mated Cost: US$150m Reclama2on works Quay walls & Pavement Es2mated Cost: US$250m Master Plan Es2mated Cost: US$700m Type of Funding PPP 17

GHANA Tourism/Sports Na2onal Sports college and

Hospitality services- - (mul<- hotel resorts, single-

motels, hostels, camping sites) Food and Beverage

Mee2ng Facili2es Tourist Informa2on Shops Cultural

Services Tourism Financial Services Tourism Medical

18 GHANA Tourism/Sports Na2onal Sports college and residen2al/ Camping million Hospitality services- - (mul<- hotel resorts, single- hotel resorts, business hotels, lodges and inns, motels, hostels, camping sites) Food and Beverage Services Entertainment Leisure and Sports Shopping Mee2ng Facili2es Tourist Informa2on Shops Cultural Centers Tourist Transport Services Tourist Travel Services Tourism Financial Services Tourism Medical Services Training ins2tu2ons for the Tourism sector Moevenpick Ambassador Hotel, Accra Kintampo Waterfalls 18

Supply of High- Tech Telecommunica2on Equipments Internet Service Provision Service E- Governance project - to provide

19 Services ICT Infrastructure Development of 2 Science and Technology Parks (STPs) in Ghana by 2015 (areas of focus are ICT, Biotechnology and Precision & Engineering) Educa2on: sorware development, networks, telecom and IT Engineering Supply of High- Tech Telecommunica2on Equipments Internet Service Provision Service E- Governance project - to provide centralized informa2on technology and e- services to MDAs as well as metropolitan, municipal and district assemblies. 19

20 Investment Procedures Step 1 - Registration with Registrar General's Department Incorporate your company at the Registrar General's Department and obtain the following : 1. Certificate of Incorporation 2. Certificate to Commence Business 3. Company s Regulations Step 2 - Minimum Equity Contribution for foreigners Compliance with GIPC Act 478 regarding minimum equity requirements either in Cash or in Kind as follows: Joint Venture US$ 10, % Foreign-Owned US$ 50, Trading Enterprises US$ 300, In the passed new GIPC law, the thresholds would be; US$ 50,000 Joint Venture US$ 200, % Foreign owned in specified sectors US$ 1,000,000 Trading Enterprise Step 3 - Registration with GIPC This process takes up to five statutory working days to complete, provided all documents are in order. Registration with the GIPC entitles Investor to the Incentives and Guarantees under the GIPC Act

21 Investment Incen2ves & Guarantees Custom du2es exemp2ons for plant, machinery, equipment and parts thereof Graduated and reasonable corporate taxes Loca2on incen2ves of between 25%- 50% tax rebates for manufacturing companies Tax holidays ranging from 5-10 years depending on sectors Automa2c immigrant quotas depending on paid- up capital US$ 10,000 US$ 100,000 US$ 100,000 US$ 499,999 US$ 500,000 and above Other aerac2ve tax concessions such as accelerated deprecia2on for plants and buildings, five- year loss carry- over and R&D expenditure deduc2bility Relief from double taxa2on for foreign investors and employees where applicable 1 quota 2 quotas 4 quotas 21

22 Investment Incen2ves & Guarantees Full repatria2on of dividends and net profit aeributed to investment Transfer of funds in respect of servicing of foreign loans Guarantee against expropria2on (also enshrined in the Cons2tu2on of Ghana) Remieance of proceeds in the sale or liquida2on of investment Incentives For Strategic Investments For the purpose of promoting identified strategic or major investments, the Board in consultation with the appropriate agencies as the Board may determine and with approval of the President, negotiate specific incentive package in addition to the incentive provided under section 23 & 24 of the GIPC Act. 22

23 Some Ghanaian - Australian Success Stories Company Sector Ac<vity Lycopodium (GH) PTY Ltd Services Engineering and mining consultancy Hooks Limited Tourism Restaurant, entertainment and tourist services Walkabout Lodge Limited Tourism An Eco Lodge for Tourists Intertek Minerals Services Technical and Laboratory services to the mining industry Webb Construc2on West Africa Ltd Building & Construc2on Fabrica2on and construc2on of treatment plants and civil construc2on 23

24 Contact Us The Chief Execu<ve Officer Ghana Investment Promo<on Centre (GIPC) Postal Address: P. O. Box M.193, Accra Ghana Tel: Fax: info@gipcghana.com Website: 24

25 Conclusion GIPC is your prosperity partner for investments in Ghana and Africa The Government of Ghana would welcome the opportunity to partner businesses in Australia for mutual commercial and development benefits for all. 25

26 THANK YOU FOR YOUR ATTENTION 26

POLISH BUSINESS VISIT TO GHANA

POLISH BUSINESS VISIT TO GHANA CONTENT Mandate of GIPC Collaborating Institutions The Ghana Advantage The Investment Environment Key Drivers of the Economy Business Reforms Major Investment Opportunities