purposes. Ghana’s land tenure systems are however being developed to take a more formal form to increase predictability in land ownership and ensure that land acquired in Ghana for private or commercial purposes are free of unknown encumbrances. Taxation on land and transactions involving land is relatively low. In 2017, with the view of promoting investment in the real estate sector, the government removed the tax imposed on the sale of real estate in Ghana. Banking, Finance and Exchange Control To open and operate bank accounts, or conduct any other form of banking business in Ghana, banks normally require companies to produce incorporation documents and their non-Ghanaian workers to show their work and resident permits. Banks also conduct due diligence checks on companies as well as routine know-your-customer (KYC) checks. Foreign exchange transactions and the use of foreign currency in Ghana are regulated by the Foreign Exchange Act, 2003 (Act 723) and Regulations and Notices issued under it. The rules, among other things, permit Ghanaian residents to hold foreign currency in onshore and offshore accounts held with local authorized dealer banks and to make payments in and out of those accounts subject to the submission of certain documentation. The rules also permit the repatriation of interest payments, loan principal repayments, dividends and return of capital by investors through an authorized dealer bank. Dividends and net profits attributable to foreign investments may be transferred through any authorized dealer bank in freely convertible currency of dividends or net profits attributable to a foreign investment, repayment of a foreign loan, payments made in settlement of trade debts and remittance of proceeds of investments and interest attributable to investments. Ghana is a member of the Multilateral Investment Guarantee Agency ( MIGA ) of the World Bank. MIGA aims to provide foreign direct investment into developing countries and thus support economic growth. The Government has also entered into a number of bilateral Investment
The Petroleum (Local Content and Local Participation) Regulations 2013, L.I. 2204 gives preference to indigenous Ghanaian companies participating in the petroleum sector and requires all entities within the industry to incorporate local content components in their activities. An entity shall not be qualified to enter into a petroleum agreement or granted a petroleum licence unless an indigenous Ghanaian company holds at least 5% equity in the enterprise and the interest of that indigenous company shall not be transferable to a non-indigenous company. The regulation also promotes the use of local expertise, goods and services by setting minimum local content levels to be attained. An entity engaged in a petroleum activity that requires legal services in the country shall only retain the services of a Ghanaian legal practitioner whose principal office is located in Ghana. This local content requirement also applies to the use of financial services and insurance. However, where an entity intends to obtain offshore insurance or engage the services of a foreign financial institution, it must obtain the prior written approval of the National Insurance Commission and the Petroleum Commission respectively. Real Estate Land in Ghana is vested in different entities including the state, traditional rulers, families or individuals. However, ascertaining the true ownership of land is not always a straightforward process because, until recently, the informal nature of land tenure systems in Ghana meant that all lands were not registered at a central location. Some lands are also not registered at all. Lands in Ghana are either held under a freehold or a leasehold interest but lesser interests may also be created. Under Ghana’s constitution, non-citizens may not hold land for more than fifty years at a time. A non- Ghanaian who acquires a freehold interest in land will have the interest automatically converted to a 50-year leasehold interest. Under Ghanaian law, an instrument relating to land, before its registration, must be duly executed by the parties and include an oath sworn by the grantor, grantee or one of the subscribing witnesses. The instrument must then be registered to gain full legal effect, as registration constitutes actual notice of the instrument to all persons and for all
36
Made with FlippingBook Online newsletter