To Believe in Black Stars or Red Dragons?: Comparing the Foreign Direct Investment Climates of Ghana and China

When thinking of overseas business expansion, most think of China. This is for good reason: China commands a lion’s share of foreign direct investment money. It would shock readers to know that there are destinations that are far more suitable for overseas investment than China. It would shock readers even more to know that one of these destinations is in sub-Saharan Africa. Ghana—the Black Star country—has quietly put together a legal regime that is extremely attractive for foreign direct investment. When comparing Ghana’s foreign investment policies to China’s, Ghana’s policies are indisputably more favorable to foreign investors. Ghana offers more incentives, imposes fewer restrictions, and the administrative side is considerably more transparent. This Note will show that the prospective foreign direct investor should look to Ghana as a more hospitable destination for proposed foreign enterprises