Ghana Investment Promotion Authority Bill 2025 Removes Default Arbitration Right for Foreign Investors
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TL;DR
- Ghana's new investment bill removes the default statutory right to international arbitration for foreign investors.
- Future access to arbitration will require a written arbitration clause or protection under a BIT.
- The bill replaces automatic arbitration with a default option for mediation and creates a formal grievance mechanism.
- Investors must ensure their agreements include express arbitration provisions to maintain arbitration access.
Overview
The Ghanaian parliament has passed the Ghana Investment Promotion Authority Bill, 2025, which alters the dispute resolution framework for foreign investors by removing the default statutory right to international arbitration. The bill is intended to modernize Ghana's investment regime but introduces stricter requirements for arbitration access.
What Happened
Ghana's longstanding investment framework, previously governed by the 2013 act, provided foreign investors with a statutory right to submit investment disputes to arbitration under UNCITRAL rules, without needing a bilateral investment treaty or a specific contract clause.
The new bill, passed in March 2025 and pending presidential assent, eliminates this default right. Instead, investors may only pursue arbitration if protected under an applicable BIT or if their investment agreements expressly include an arbitration clause.
For investors from countries lacking a BIT with Ghana, the change is significant, requiring explicit negotiation and documentation of arbitration mechanisms in their contracts.
The bill now provides mediation as the default dispute resolution option under the Alternative Dispute Resolution Act, 2010, and establishes a three-month grievance process facilitated by the new Ghana Investment Promotion Authority (GIPA).
Context
Ghana is recognized as one of Africa's most attractive and stable destinations for foreign investment, partially due to its mineral resources and reputation as a business gateway in West Africa.
The legislative revision aims to align domestic investment law with both the African Continental Free Trade Agreement (AfCFTA) obligations and other recent Ghanaian legal reforms.
Why It Matters
- Foreign investors can no longer rely on a statutory fallback right to international arbitration and will need to secure such rights either by qualifying under a BIT or by including clear arbitration provisions in their contracts.
- The revision enhances Ghana's investment regulation but increases the importance of careful dispute resolution planning for cross-border investors.