By: Naa Dzagbley Ago
The Ghana Free Zones Authority, GFZA is to embark on more targeted marketing by identifying potential businesses or businesspeople, both locally and internationally, and attract them to locate in the designated Special Economic Zones.
This will not only allow them to enjoy the various business benefits that come with operating within such designated areas, but also enable them to export under the African Continental Free Trade Area, AFCFTA, after meeting the rules of origin.
Speaking to Journalists at the launch of the third Annual Investment Week in Accra, Chief Executive of the Ghana Free Zones Authority, Ambassador Mike Oquaye Junior said the role of the GFZA is crucial if Ghana is to achieve its export-led economic goals.
He said this will go a long way to correct the country’s balance of payment deficit as well as help deal with the continuous depreciation of the local currency, the Cedi.
“As a country, we are currently grappling with a balance of trade deficit and the depreciation of our national currency. Therefore, we must increase our exports to earn the needed foreign exchange to stabilize the cedi. An export-led industrial growth is one of the most appropriate strategies to achieve economic development; this has been the mandate of the GFZA. Thus, the importance of the Free Zones program in reversing our balance of trade deficit and the depreciating cedi is vital.”
He said the GFZA is working assiduously to support government’s efforts in exploring opportunities presented through the AfCFTA, hence the Authority has set up an AfCFTA desk to assist businesses.
“The AfCFTA presents Ghana with the opportunity to export to Africa, with an estimated market size of 1.3 billion people. In pursuing an export-led industrial growth strategy and the enormous opportunities AfCFTA and the world at large provide, the problems of unemployment, low export earnings, lack of value addition to our natural resources, lack of diversification of our export products, and being an insignificant player in the continental and global value chains can be solved. To achieve this objective, we have set up an AfCFTA desk at the GFZA,” he stated.
The week-long celebration slated for 5th to 9th December, is under the theme “GFZA: Championing Export-Led Industrial Growth in the Context of AfCFTA and World Trade.”
Ambassador Mike Oquaye Jr. shared some of the Authority’s achievements following his appointment as getting 39 new companies to receive their licenses, of which these companies are expected to inject an estimated capital of US$230 million into the Ghanaian economy.
He added that, “the estimated export earnings from the 39 companies is US$ 529 million from an estimated production value of US$ 436 million. I am also happy to report that the cumulative exports from the Free Zones enterprise since the program’s inception stood at US$ 27 billion as of 2020. Currently, the total number of active companies is 217. Out of the 217 active companies, 72 are wholly owned Ghanaian companies, representing 33%; 74 are wholly foreign-owned companies, representing 34%; and 71 are joint ventures, representing 33%.”
He said the enumerated achievements is an indication that Ghanaian companies also have the potential to take advantage of the free zone incentives and make a mark in the international market.
He said the free zone enclave is open to all investors, both foreign and local, contrary to misconceptions that it only favors foreign investors.
Amb. Mike Oquaye Junior therefore urged Ghanaian-owned businesses to take advantage of the 1.3 billion African markets to expand their activities.
With regard to earnings of free zones companies, Director, Compliance and Monitoring at GFZA, John Addo Abuga debunked the perception that most of these entities after exporting do not return their earnings back into the Ghanaian economy.
According to him, the Authority works with the Bank of Ghana to ensure that all proceeds accrued from the export made by these enterprises under the GFZA are returned to the country.
“I can assure you that over 70 to 80% of them return their money back to Ghana when they export their products. This is done through their local banks that they have. What happens is that when they export you will see their proceeds logged onto their foreign accounts and this is sent back into their accounts in Ghana for their operations, a situation that is monitored keenly by the Compliance and Monitoring Department,” he said.
