Challenges Facing Ghana’s AfCFTA Aspiration: Legal Hurdles and Regulatory Framework Analysis

The African Continental Free Trade Area (AfCFTA) has been hailed as a game-changer for the continent, promising to boost intra-African trade and economic growth. However, Ghana’s efforts to fully leverage this historic trade agreement are facing significant obstacles, according to a new report.

The report, titled “A Situational Analysis of Ghana’s AfCFTA Preparedness and a Review of the Legal, Policy, and Regulatory Framework,” was a collaborative effort by the University of Professional Studies Law School and top law firms. It delved into Ghana’s legal landscape and identified key hurdles that could impede the country’s success in the AfCFTA market.

One major issue highlighted in the report is the existing regulations governing foreign direct investment in Ghana. Requirements such as mandatory registration with the Ghana Investment Promotion Centre (GIPC) and a $500,000 minimum capital requirement for expatriates could deter foreign businesses from participating in the AfCFTA.

Moreover, restrictions on foreign ownership and utilization of land and real estate were identified as significant barriers, particularly for sectors like agriculture, tourism, and real estate development that rely heavily on land.

The report emphasized the urgent need for harmonization of laws, regulations, and standards across the African continent to facilitate seamless trade. In Ghana specifically, inconsistent and overlapping regulations, bureaucratic procedures, lack of transparency, and inefficient coordination among government agencies were cited as challenges that could increase costs for businesses and hinder trade facilitation within the AfCFTA framework.

While Ghana has made efforts to align its legal framework with AfCFTA obligations, the report concluded that overcoming these obstacles is crucial for the country to fully benefit from the trade agreement. As Ghana strives to navigate these legal hurdles, the future of its participation in the AfCFTA remains uncertain.