NEEDS AND OPPORTUNITIES FOR INVESTMENT, DEVELOPMENT PARTNERSHIPS IN GHANA AGRIBUSINESS PRESENTATION BY MR. ROBERT AHOMKA

1. NEEDS AND OPPORTUNITIES FOR INVESTMENT, DEVELOPMENT PARTNERSHIPS IN GHANA AGRIBUSINESS PRESENTATION BY MR. ROBERT AHOMKA-LINDSAY CHIEF EXECUTIVE OFFICER GHANA INVESTMENT PROMOTION CENTRE

2. INTRODUCTION The Government of Ghana: • Acknowledges the contribution of the private sector through “The Golden Age of Business”. • Many reforms have been instituted which has positioned Ghana among the top 10 business reformers globally, the 2nd best in Africa and at top spot in West Africa. Some of the reforms are • Introduction of New Labour Law,( Act 251),Creation of Commercial Courts, revision of investment laws, • New educational reforms to enhance human resource development • New economic policies leading to restructuring of the Banking and financial sectors and the rationalisation of tax regimes as well as private sector interventionist schemes – EDIF, Venture Capital Fund etc • Rationalisation of Land acquisition and registration through the LAMP (Land Administration and Management Project) • Restructuring of MDAs to meet the needs of the private sector.

3. SOME EFFECTS OF THE REFORMS • Reduced time and cost of doing business – Ghana ranked 102nd out of 175 countries by the World Banks’ “Ease of Doing Business Report,2006” and 94th in 2007. For 2008, Ghana has been ranked 87th globally, 2nd in Africa (after Egypt) and 1st in West Africa. • Better Industrial relations (Labour Commission established) • Improved access to faster arbitration (Commercial Courts established) • More attractive Investment laws • Continuous improvement of infrastructure • Improved access to credit facilities – Credit rating B+ (by S&P) • Improving access and acquisition of land, (improved from 82 in 2007 to 26 in 2008 according to IFC report – “Ease of Doing Business”) • Good governance. • Regional Integration

4. AGRICULTURAL SECTOR IN GHANA • Dominant sector in the Ghanaian economy • Employs about 60% of the labour force, • Contributes about 40% to GDP • Accounts for over 57% of foreign exchange earnings. • Major Agro Exports • Cocoa • Timber and wood products • Horticultural Crops (Pineapple, Pawpaw, Mango, Vegetables, etc) • Tuna

5. AGRICULTURAL POLICIES Strategy: Modernize agriculture

6. INVESTMENT OPPORTUNITIES IN AGRICULTURAL SECTOR • Agriculture • Crop Production (cereals & légumes) • Poultry production • Aquaculture • Agro Processing • Livestock, feeds and fishmeal • Packaging • Vegetable Oil Meal plants (soyabeans, sunflower, etc) • Cocoa (using sub-standard cocoa beans, cocoa husks and other cocoa waste to produce animal feed, fertilizer, soap, pomade, alcoholic beverages, vinegar, cocoa jam/marmalade) • Agri-Business • Provision of serviced agricultural estates • Irrigation and storage facilities • Mechanized equipment for leasing • Marketing of agricultural produce

7. WHY DO BUSINESS IN GHANA? • A stable multiparty political environment • Economic Stability – Low interest rates; declining inflation; competitive corporate tax rates, etc • Competitive labour cost. • Good and ever improving physical infrastructure • Fast developing financial infrastructure • Availability of relatively low cost of labour and a good supply of skilled and trainable labour. • A large Economic Community of West African States (ECOWAS) market (250 million people).

8. WHY DO BUSINESS IN GHANA? (contd.) • Strategic location in terms of sub-regional, regional and international trade and commerce with excellent sea and air connections, with daily flights to Europe and USA • Quota-Free access to USA & European Union markets. • Proximity to European Union (6 hrs flight time) and USA markets (9 hrs direct flight time). • On-going Privatisation programme • Very peaceful and harmonious with a high degree of personal safety • Warm and friendly people • Fairly high quality of life.

9. WHAT GIPC OFFERS • Corporate Tax • All Companies 25% • Income from Non-Traditional Export 8% • Hotels 22% • Financial Institutions • Income from Loan for farming 20% • Income from Loan for a leasing company 20% • Tax Holiday • Agriculture - cocoa producers’ – exempt • tree cropping-10 years • cattle ranching – 10 years • fish farming, poultry and cash crops – 5 years • livestock excluding cattle and poultry – 5 years • Real Estate Developers – 5years • Rural Banking – 10 years

10. WHAT GIPC OFFERS • Tax Holidays • Tourism – 3-7 years depending on activity and location • Free Zone Enterprises – 10 years and 8% thereafter • Manufacturing companies processing, crops, fish and livestock – 5 years • After the initial 5-year tax holiday period, agro-processing enterprises, which use local agricultural raw materials as their main inputs, shall have corporate tax rates fixed according to their location as follows:      Accra-Tema – 20%     Other Regional Capitals – 10%     Outside Regional Capitals – 0% • All over Northern, Upper East, Upper West Regions – 0%

11. CONCLUSION • The Government of Ghana has made significant efforts to improve the business environment, and I am not surprised that for two consecutive years, Ghana has been ranked among the top 10 reforming countries GLOBALLY. • Both foreign and local businessmen have taken advantage of the enabling environment created to invest in the economy. I hope you will invest soon.

12. THANK YOU