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Ghana’s pending investment legislation aims to dramatically simplify how foreign companies transfer technology and technical knowledge to local businesses, addressing longstanding complaints about bureaucratic complexity that has discouraged international partnerships. Emmanuel Osei, Head of the Technology Transfer Agreement Department at the Ghana Investment Promotion Centre, described the Ghana Investment Promotion Authority Bill 2025 as a major step toward creating a more responsive regulatory framework during a UK Ghana Chamber of Commerce webinar on Friday. The GIPA Bill 2025 is designed to create a more responsive and efficient framework to regulate Technology Transfer Agreements and to promote, facilitate, and regulate technology transfers in Ghana, Osei explained during the virtual session moderated by Theophilus Tawiah, Managing Partner of WTS Nobisfields. The bill seeks to replace the GIPC Act 2013, establishing GIPA as the primary agency responsible for encouraging, promoting, and regulating investments in Ghana. It represents a comprehensive overhaul rather than simple amendments, following advice from the Attorney General after previous revision attempts lapsed with Parliament’s dissolution in January 2025. Technology Transfer Agreements involve transactions where foreign entities provide industrial property rights, technical support services, technical know how, or management expertise to Ghanaian companies for fees. These arrangements serve as critical bridges through which knowledge, innovation, and capital flow into Ghana’s economy, yet many businesses struggle to navigate the complex registration process currently administered by GIPC. Osei acknowledged these challenges during the webinar titled “Technology Transfer Agreements: Updates and Changes,” reaffirming GIPC’s commitment to simplifying procedures and modernizing legal frameworks to attract greater foreign investment. GIPC management has set up a new department for technology transfer administration with the aim of expediting the application process, he revealed. The importance of proper registration extends beyond bureaucratic compliance. When agreements are registered, GIPC can monitor transactions, evaluate whether fees fall within permissible ranges, and ensure local companies genuinely benefit from knowledge transfer rather than simply paying royalties without building internal capacity. However, current regulations create friction points that frustrate both foreign technology providers and Ghanaian recipients. Technology Transfer Agreements must have durations between 18 months and 10 years, with renewals not exceeding five years, requiring companies to repeatedly navigate approval processes even for successful ongoing partnerships. The GIPA Bill 2025 aims to address such inefficiencies while strengthening oversight mechanisms. Among key reforms are efforts to collaborate with banks to ensure that only valid, registered TTAs are used for foreign exchange remittances, closing loopholes that allow unregistered agreements to operate outside regulatory scrutiny. Osei emphasized that compliant agreements must be governed by Ghanaian law and include clear provisions for training local staff. “That is what ensures true knowledge transfer, not just payment of fees,” he stated, distinguishing between arrangements that genuinely build local capacity versus those that merely extract payments while keeping expertise offshore. He cautioned against restrictive clauses such as grant back provisions or exclusivity terms, which aren’t acceptable under Ghanaian law. These restrictions typically prevent local companies from improving upon transferred technology or sourcing alternatives, effectively locking them into dependence on foreign suppliers beyond what’s necessary for legitimate intellectual property protection. Tawiah, the webinar moderator, added that clarity and consistency in compliance shouldn’t be viewed as investment hurdles but rather as enablers of confidence. “The more transparent our systems are, the easier it is for investors to trust the process and for local businesses to benefit,” he remarked. The legislative update ties into government’s broader 24 hour economy agenda. Finance Minister Dr. Cassiel Ato Forson underscored in his 2025 budget presentation the need to revise both the Labour Act and GIPC Act to enable the private sector to adapt to round the clock business operations, targeting investments in logistics, manufacturing, digital services, and business process outsourcing sectors that benefit from extended operating hours. GIPC CEO Simon Madjie has called for active stakeholder participation in shaping the proposed legislation during consultations with public sector representatives, stressing that effective regulation requires listening, building consensus, and ensuring rules actually work for investors and Ghanaians alike. The bill addresses persistent challenges beyond just technology transfer, including fronting, where foreign investors use Ghanaian partners as fronts to circumvent local ownership requirements, and regulatory inconsistencies across government agencies that create conflicting demands on businesses. Current technology transfer regulations date back to 1992, predating the internet economy, mobile technology revolution, and contemporary digital business models that now dominate international commerce. Updating this framework represents an acknowledgment that Ghana’s investment promotion infrastructure must evolve to remain competitive in attracting modern capital flows. The webinar forms part of UKGCC’s Mandatory Regulatory Compliance Series, supporting the chamber’s mission to foster dialogue between private sector actors and regulatory bodies. Such engagement helps ensure that regulations reflect practical realities businesses face rather than theoretical frameworks disconnected from operational challenges. For foreign companies considering technology partnerships with Ghanaian firms, the promise of streamlined processes could prove decisive. Bureaucratic complexity adds costs and delays that make Ghana less attractive compared to regional competitors with simpler approval mechanisms, potentially costing the country valuable investment opportunities and knowledge transfers. Yet simplification alone won’t suffice if enforcement remains inconsistent or corruption undermines formal procedures. The bill’s success ultimately depends on implementation quality, adequate staffing of the new technology transfer department, and whether digital systems can genuinely accelerate approvals rather than simply digitizing existing inefficiencies. Ghana’s experience illustrates broader tensions developing economies face in regulating technology transfer. Governments want to ensure genuine knowledge transfer occurs, protect local companies from exploitative terms, and maintain oversight of foreign exchange outflows through royalty payments. However, excessive regulation discourages partnerships by making compliance too burdensome relative to benefits. The GIPA Bill 2025 attempts to strike this balance through modernized procedures backed by clearer legal authority. Whether it succeeds will become apparent as the legislation moves through Parliament and subsequently gets implemented through regulations, departmental procedures, and actual processing of applications under the new framework. For now, Osei’s remarks signal government recognition that current systems need improvement. The establishment of a dedicated technology transfer administration department and pending comprehensive legislation represent concrete steps toward addressing longstanding frustrations, though businesses will judge outcomes by whether approval timelines actually shrink and regulatory clarity genuinely improves. As Ghana positions itself as West Africa’s investment destination of choice, the efficiency of technology transfer registration could significantly influence whether international companies choose Ghana over regional alternatives for partnerships that drive industrial development, job creation, and knowledge building in strategic sectors.
