If you’re thinking of doing business in, or exporting to Ghana, here’s all you need to know…<\/p>\n
<\/p>\n
What are the pros and cons of exporting to Ghana?<\/h2>\n
The UK is one of the largest foreign investors in Ghana. And with bilateral trade in goods and services totalling \u00a31.05 billion, Ghana is the UK\u2019s fifth largest export market in Sub Saharan Africa.<\/p>\n
The strengths of the Ghanaian market include…<\/p>\n
- \n
- expanding stock market<\/li>\n
- well developed financial and legal services<\/li>\n
- comparatively well developed infrastructure compared to most west African countries<\/li>\n
- availability of skilled and trainable labour<\/li>\n<\/ul>\n
And the benefits of exporting to Ghana include…<\/p>\n
- \n
- immediate access to all ECOWAS<\/abbr> markets<\/li>\n
- English is the official business language and widely spoken<\/li>\n
- 100% foreign ownership permitted<\/li>\n
- judicial system based on English common law principles<\/li>\n
- large consumer base with a growing middle class<\/li>\n
- developing as a regional hub for opportunities in other west African markets<\/li>\n
- export-free zones where goods traded with other countries are exempt from customs duties and some laws<\/li>\n<\/ul>\n
On the downside, corruption \u00a0is a possible pitfall when doing business out there (Ghana ranks 56 out of 168 on the corruption index), and other issues include…<\/p>\n
- \n
- erratic power supply nationwide<\/li>\n
- obstructive bureaucracy<\/li>\n
- high unemployment and poverty<\/li>\n
- underdeveloped capital market<\/li>\n
- macroeconomic instability with some International Monetary Fund (IMF) restrictions on government spending<\/li>\n
- a poor (but improving) social infrastructure<\/li>\n<\/ul>\n
Scams can also be a big problem in Ghana, so never send goods on the strength of a cheque received or credit card details, especially if you’ve had no prior dealings with the business in question, and also look out for the following…<\/p>\n
- \n
- request for contract registration or pre-qualification advance fees also known \u2018419 fraud\u2019<\/li>\n
- transfer of funds from fictitious, over-invoiced or failed contracts<\/li>\n
- promise of phantom contract or supplies<\/li>\n
- sale of crude oil at below market prices<\/li>\n
- invitation to share property or inheritance<\/li>\n
- request for invitation letter for company representative to visit UK<\/li>\n
- request for bank details or bank accounts<\/li>\n
- cheque payment fraud or credit card fraud<\/li>\n<\/ul>\nIf you\u2019re doing business in Ghana, you\u2019ll need a reliable and cost-effective teleconference<\/a> provider to help keep in touch when travelling isn\u2019t an option. Here\u2019s\u00a0How to set up a conference call between the UK and Ghana<\/a>.<\/em><\/div>\n\n
And remember, you can now screen share and video conference, using Crankwheel<\/a>.<\/p>\n<\/div>\n
How does tax work in Ghana?<\/h2>\n
A double taxation agreement exists between the UK and Ghana, so tax isn\u2019t paid twice \u2013 once in each country \u2013 on exported goods and services.<\/p>\n
The level of tax a company pays in Ghana is determined by its locations, the sector it operates in, and whether or not its listed on the Ghana Stock Exchange. The main taxes and rates include:<\/p>\n
- \n
- Corporate Tax<\/strong> – general rate is 25%<\/li>\n
- Income tax<\/strong> – rates are between 0% and 25%, depending upon annual earnings.<\/li>\n
- Capital Gains Tax<\/strong> – 15%<\/li>\n
- Valued Added Tax<\/strong> (VAT) – 20%, with some exemptions<\/li>\n<\/ul>\n
How will I be affected by customs in Ghana?<\/h2>\n
Ghana currently uses the Harmonized System (HS) Customs Code to classify goods, which means goods arriving in the country may be subject to import duty, VAT, special tax and import excise duty. Taxes\u00a0that are assessed on the basis of weight, value or volume are subject to change each year.<\/p>\n
- Income tax<\/strong> – rates are between 0% and 25%, depending upon annual earnings.<\/li>\n
- Corporate Tax<\/strong> – general rate is 25%<\/li>\n
- immediate access to all ECOWAS<\/abbr> markets<\/li>\n
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