This report assesses the extent to which the recommendations of the Investment Policy Review (IPR) of Ghana, completed in 2003, have been implemented. Since then, the Government of Ghana has committed to a wide range of reforms to improve the business environment, promote private sector development and increase the impact of foreign direct investment on the economy.
With respect to the business environment, overall the record of implementation of the recommendations by the Government of Ghana is good. For example, it has achieved substantial progress with the implementation of a new Labour Act and clarifying the role of the National Labour Commission. The Government has also undertaken comprehensive land reforms but is yet to adopt a revised investment code. In terms of investment promotion, the efforts have been directed towards targeting sectors and at enhancing delivery services to promote private sector development through foreign and domestic investors seeking opportunities outside of Accra. While policies have generally been well conceived, their implementation was however not always consistent. In this regard, the report points towards the need of addressing key investors´ concerns, including access to finance, inadequate infrastructure, bureaucracy, work ethics and corruption.
The reforms implemented along with global favourable economic conditions have led to a steady increase in FDI inflows into Ghana since 2003 with steep increases reported between 2006 and 2008. While the recent economic slowdown will have affected negatively these inflows starting in 2009, the new discovery of oil and gas presents Ghana with opportunities to develop this sector as an engine for growth and an accelerator for economic development. In addition, the Government´s commitment to continue with the reforms should further improve the investment framework and the attractiveness of Ghana as an investment destination.