Foreign investors in Ghana have expressed strong dissatisfaction with the Mahama-led National Democratic Congress (NDC) government following the imposition of a 7 percent levy on all foreign currency withdrawals and transfers by commercial banks.
According to the new directive, any transfer or withdrawal made in foreign currency attracts an automatic 7 percent deduction, a move investors say is crippling their businesses and eroding confidence in Ghana’s investment climate.
> “If you transfer one million dollars from your account to your shareholders, the government automatically deducts 7 percent from your transfer — that’s US$70,000 gone instantly. This is absurd, and the government must do something about it,” one angry investor, who preferred to remain anonymous, told our reporter.
Several foreign business operators have indicated that the policy has caused them huge financial losses, with some describing it as “punitive and anti-investment.”
> “Many investors have decided to suspend all foreign currency transactions for now. There are even multinational institutions that are unable to repatriate their profits due to so-called technical challenges,” another investor lamented.
Historical Background
The 7 percent foreign currency levy was first hinted at in mid-2025 as part of government’s broader effort to raise domestic revenue and stabilize the cedi against major international currencies. The policy was formally implemented in October 2025, following parliamentary approval of a new fiscal amendment bill that sought to regulate the movement of foreign exchange and curb speculative trading in the financial sector.
The Ministry of Finance argued that the measure was necessary to preserve foreign reserves, discourage capital flight, and ensure that multinational companies retain part of their earnings locally. Officials also claimed the revenue generated from the levy would help fund social programs and infrastructure projects.
However, business groups, including the Ghana Chamber of Commerce and Industry (GCCI), the Association of Foreign Investors in Ghana (AFIG), and several European and Asian business councils, have strongly opposed the move. They argue that the policy sends the wrong signal to international investors at a time when Ghana is struggling to attract foreign direct investment and rebuild economic confidence after years of fiscal instability.
Economic Implications
Analysts warn that the levy could lead to a sharp decline in foreign inflows, increase the cost of doing business, and encourage informal or offshore financial practices among corporations. Some experts also predict potential layoffs in the mining, energy, and manufacturing sectors, where large volumes of transactions are conducted in foreign currencies.
A recent report by the Ghana Investment Promotion Centre (GIPC) indicated that foreign direct investment dropped by nearly 18 percent in the third quarter of 2025 compared to the same period in 2024 — a decline some economists partially attribute to investor uncertainty surrounding the new policy.
Calls for Review
Stakeholders have called on the Mahama administration to reconsider or suspend the levy and engage with the private sector on a more balanced framework. Several embassies representing key investor nations are said to have requested clarifications from the Ministry of Finance and the Bank of Ghana regarding the legal basis and operational details of the policy.
Despite mounting pressure, government officials maintain that the measure is temporary and will be reviewed after the first quarter of 2026 once its impact is fully assessed.
