Why You Don’t Need $ 500,000 to Do Business in Ghana
Nobody wishes more than I that Ghana and Germany were on a par. But let us be honest, both countries are two different worlds in many ways! If we limit ourselves to the business climate in this comparison, Ghana still has a long way to go, despite the enormous progress made in recent years.
A law that foreign investors repeatedly criticize is the ‘GIPC Law’. This states that a foreign company must bring $ 500,000 equity before it can do business in Ghana. A foreign company with sales intentions even must bring $ 1,000,000 in equity.
This law, as annoying as it may be for foreigners, was passed for good reasons namely, to protect Ghanaian micro-businesses and Ghanaians.
In order to find a solution to this problem for foreign companies, let us dare another comparison. The one between the Chinese investors and let us say the German investors.
The competition with Chinese products was raised at almost all the events on Ghana that I have attended in Germany. The success of the Chinese products is certainly due to the economic situation in Ghana, which is why most decisions are based on the price.
In my opinion, there is also a significant difference between the Chinese and the German investor. The questions they ask are radically different. German investors are asking if they can do it the way they know from Germany. Because, as is well known, it is said: “Am deutschen Wesen, mag die Welt genesen…!” (With the German being the world may recover)
Chinese investors, however, are asking how to do it in Ghana and are in some inglorious examples such as Galamsey (illegal mining), even better than Ghanaians. We can learn from these comparisons.
There are easy and legal ways to do business in Ghana without having to bring $ 500,000 or $ 1,000,000.
Let glocal companies like ADMINEX help you! We will support you in transforming your global vision into local business. We call it the Real World Business.