Ghana acts as gateway to a huge sub-regional market of over 250 million people for the manufacturing and marketing of pharmaceutical and other medical supplies. An entrepreneur can set up a chemical and pharmaceutical processing plant within the manufacturing sector as well as venture into the Health Service Delivery sub-sector within the infrastructural facilities sector. The need to attract investors into the pharmaceuticals sub-sector has become so imperative in view of challenges brought about by diseases such as HIV/AIDS, malaria, etc.
Advantages of the Sector in Ghana
Ghana has comparative advantage in the manufacturing of pharmaceuticals and other medical products to meet the needs of the West African Sub-region. Ghana also has pharmacy schools which adequately train requisite personnel for the pharmaceutical sub-sector. Cost of manpower within the sub-sector is reasonably low.
Investment Incentives within the sub-sector
- Customs import duty exemptions for plant and machinery imported for investment within the sub-sector.
- Corporate Tax Rate of 32.5%
- Income tax rate applicable to a company listed on the Ghana Stock Exchange is 30%
Pharmaceutical companies located in regional capitals other than Accra and Tema have 25% tax rebate. When located elsewhere a tax rebate of 50% is granted
Free Zones Incentives Scheme
- 100% exemption from payment of direct and indirect duties on all imports for production. 100% exemption from payment of income tax on profits for 10 years and shall not exceed 8% thereafter;
- Total exemption from payment of withholding taxes from dividends arising out of free zone investments. Up to 30% of annual production of pharmaceutical products are permitted for sale in the local market.
- Free zones investments are protected against nationalization and expropriation.
Investment Guarantees
- The constitution of Ghana provides absolute guarantee to all companies established in the country.
- Ghana is signatory to the MIGA convention;
Recommendation
Ghana’s Pharmaceutical sub-sector is accessible to all potential investors from Switzerland with very attractive incentive packages. There exists a vibrant corps of local investors in the sub-sector ready to partner potential investors to take advantage of the huge West African market, using Ghana, the most politically stable country in West Africa, as gateway to the sub-region.