Ghana has rolled out substantial tax incentives and financial guarantees to attract domestic and international investment in its ambitious 60 billion dollar petroleum hub project in the Western Region.
The Petroleum Hub Development Corporation (PHDC) announced the incentive package as part of government efforts to transform the region into a major energy and petrochemical center. The hub broke ground in August 2024 after PHDC signed a 12 billion dollar agreement with the TCP UIC Consortium for the project’s first phase.
Companies investing in the hub will receive complete corporate income tax exemption for ten years, followed by a maximum rate of 15 percent thereafter. This represents one of the most generous tax incentive packages offered in Ghana’s industrial sector.
The project spans 20,000 acres in the Jomoro municipal district along the Gulf of Guinea coastline. Officials describe it as potentially transformative for Ghana’s energy independence and export capacity. When completed across three phases between 2024 and 2036, the hub will feature three refineries with combined capacity of 900,000 barrels per day, five petrochemical plants, ten million cubic meters of storage tanks, multiple jetties, and port infrastructure.
First phase construction includes a 300,000 barrel per day refinery, a 90,000 barrel per day petrochemical plant, three million cubic meters of storage capacity, and marine port facilities. The consortium developing phase one includes Touchstone Capital Group Holdings, UIC Energy Ghana, China Wuhan Engineering, and China Construction Third Engineering Bureau.
Beyond tax holidays, the government pledged to provide serviced land equipped with roads, utilities, rail access, and basic infrastructure to reduce upfront costs for incoming firms. This infrastructure commitment aims to accelerate project timelines and demonstrate government dedication to the initiative.
The incentive package includes constitutional guarantees protecting profits, ensuring smooth dividend repatriation, and guarding against expropriation. For multinational companies operating across Africa, these legal protections offer security against political and economic uncertainty.
Ghana is leveraging Bilateral Investment Treaties and agreements under the Multilateral Investment Guarantee Agency (MIGA) to provide additional investor protection. These international frameworks shield foreign investors from risks including contract breaches or sudden policy changes.
Companies will enjoy 100 percent exemption on duties and levies for machinery and equipment imports under Free Zone status. The package also allows businesses to carry forward losses, reducing financial pressure during early operational years. Foreign investors can maintain foreign currency accounts with Ghanaian banks and face no restrictions on profit repatriation.
Tax exemptions extend to withholding taxes on dividends arising from hub investments. Foreign employees working at the hub may receive relief from double taxation under existing international agreements between Ghana and their home countries.
The project aims to create 780,000 direct and indirect jobs while generating approximately 1.56 billion dollars in export tax revenue by 2030. Officials project the hub could increase national gross domestic product (GDP) by 70 percent once fully operational.
Charles Owusu, PHDC chief executive officer, has undertaken international missions to Spain, Monaco, and the Canary Islands to market investment opportunities. In November 2024, PHDC presented the project at Monaco’s Super Investor Forum under patronage of Prince Albert II, pitching alongside 22 other companies to global investors.
The corporation established workforce development partnerships with institutions including Canary Consulting & Trading, Aurum Global Partners, and University of Las Palmas. These collaborations aim to prepare Ghanaian workers for technical positions at the hub. In November, PHDC signed a cooperation agreement with FINNOVA Foundation covering sustainable energy, housing, and tourism development frameworks.
Ancillary facilities planned for the hub include schools, hospitals, and communication infrastructure. Officials compare the vision to Fort McMurray in Canada, where an entire city developed around crude oil production.
The hub will operate as a designated free zone area, meaning goods and services can move in and out with minimal customs interference. To qualify for full free zone benefits, companies must export at least 70 percent of their production. The remaining 30 percent sold domestically will be treated as imports subject to regular duties.
Ghana established its Free Zones Authority in 1995 to promote export oriented industries through tax incentives and regulatory simplification. The petroleum hub represents the largest free zone project attempted under this framework.
The petrochemical plants will produce fertilizers, lubricants, cosmetics, and other chemicals using natural gas as feedstock. Phase one includes one petrochemical plant, while phases two and three will each add two additional plants with 90,000 barrel per day capacity.
Dr. Toni Aubynn, who leads PHDC, is scheduled to speak at the Invest in African Energies briefing in Accra on April 14, 2025, where he will outline development strategies and market trends. The event targets investors interested in Ghana’s expanding oil and gas value chain.
Ghana currently processes minimal domestic crude oil despite producing over 1.1 billion barrels of proven reserves and 2.1 trillion cubic feet of natural gas. The country’s existing refineries in Tema have combined capacity of approximately 50,000 barrels per day, but most remain inoperable or underutilized.
The government views the petroleum hub as essential for meeting rising domestic energy demand while generating export revenue. Strategic location near major shipping lanes positions Ghana to serve West African markets through the Economic Community of West African States (ECOWAS) trading bloc and the broader African Continental Free Trade Area (AfCFTA) covering 1.3 billion consumers.
President John Mahama’s administration has emphasized green transition alongside petroleum development, pushing the Ministry of Energy and Green Transition to incorporate cleaner technologies into fossil fuel projects. PHDC officials say the hub will adopt cutting edge technologies to reduce emissions and improve waste management while meeting energy security needs.
Global energy companies increasingly scout stable African destinations for refining, petrochemical, and storage operations. Ghana hopes its combination of tax holidays, infrastructure support, international guarantees, and financial freedom will position the hub as the continent’s preferred energy investment destination.
