The third annual funding week 2022 personal marked the celebrating 26 years of implementing the free zones program this 12 months. We are celebrating this milestone with every week-lengthy occasion to showcase our achievements and prospects to each native and international enterprise individuals and Ghanaians usually. This 12 months’s Celebration is below the theme “GFZA: Championing Export-Led Industrial Growth in the Context of AfCFTA and World Trade.”
Speaking at a information convention held in Accra, the CEO of Ghana Free zone Authority, AMB.Micheal Oquaye below theme was chosen to mirror the federal government’s concentrate on export-led industrialization and the Africa Continental Free Trade Area Agreement (AfCFTA) implementation.
As a rustic, we’re at present grappling with a stability of commerce deficit and the depreciation of our nationwide foreign money. Therefore, we should improve our exports to earn the wanted international change to stabilize the cedi.
According to him, an export-led industrial development is among the most applicable methods to attain financial growth; this has been the mandate of the GFZA. Thus, the significance of the Free Zones program in reversing our stability of commerce deficit and the depreciating cedi is important.
In this regard, the federal government keenly explores the alternatives offered via the AfCFTA. The GFZA acknowledges the potential of the AfCFTA in attracting market-in search of investments and inspiring native companies to export to the African market.
The AfCFTA presents Ghana with the chance to export to Africa, with an estimated market dimension of 1.3 billion individuals.
He was optimistic that in pursuing an export-led industrial development technique and the large alternatives AfCFTA and the world at giant present, the issues of unemployment, low export earnings, lack of worth addition to our pure sources, lack of diversification of our export merchandise, and being an insignificant participant within the continental and world worth chains may be solved.
Mr. Quaye hinted that to attain this goal, we’ve got arrange an AfCFTA desk on the GFZA.
The briefing is the primary exercise of the Investment Week celebration. The essence of this briefing is twofold. Firstly, this briefing is to replace you on the achievements of the GFZA and the plans for the approaching 12 months, which we kindly anticipate you to convey to the nice individuals.
and enterprise neighborhood of Ghana Second y, we wou d | ke to bnef you on the act vities scheduled for the weeklong nvestment celebrat on regardless of the adversarial results of world happenings on busine ses worldwide, Ghana not being an exception, the GFZA has chalked up some important.
He stated that concerning to its achievements, 39 new firms have been licensed since he took over as Chief Executive Officer these firms are anticipated to inject an estimated capital of US$230 muilhon into the financial system In addition, the estimated export earnings from the 39 firms 1s US$ 529 million from an estimated manufacturing worth of USs 436 million.
The cumulative exports from the Free Zones enterprise because the program’s inception stood at US$ 27 billion as of 2020
Currently, the full variety of lively firms !s 217. Out of the 217 lively firms, 72 are wholly owned Ghanaian firms, representing 33%; 74 are wholly international-owned compantes, representing 34%; and 71 are joint ventures, representing 33%
This ts a sign thatlGhanaian firms even have the potential to reap the benefits of the free zone incentives and make a mark within the worldwide! market.
This breakdown as a result of the Free Zones program has been misconstrued as favouring primarily international traders. On the opposite, the program is open to all traders, each international and native. Moreover, with the alternatives that AfCFTA additionally presents, we’re encouraging Ghanaian-owned companies to reap the benefits of the 1.3 billion African markets to broaden their actions.
The impression of those achievements on the financial system can’t be overemphasized.
With regards to the event of the designated SEZs, below my management, the Authority has signed a memorandum of understanding with a non-public developer for the event of about 1,500 acres of land designated in Yabiw/Shama within the Western Region.
The proposed funding is estimated at $250 million to $300 million. It is predicted to supply world-class infrastructure resembling roads, electrical energy with a devoted energy plant, sewage remedy plant, container depot, workplace advanced, and residential advanced, amongst others. In addition, the undertaking, when accomplished, will result in hundreds of jobs and elevated
international change earnings for Ghana.
So far, the positioning has been resurveyed, and the authorized processes has been initiated to gazette the positioning as a Free Zone Industrial Park. | wish to thank HE. President Nana Addo Dankwa AkufoAddo, the Minister for Trade and trade, the Hon. John Alan Kwadwo Kyeremanten, and the Minister in control of the Western Region, the Hon. Kwabena Okyere Darko-Mensah, for his or her fixed assist concerning this unprecedented undertaking.
For evaluation, the Authority has additionally collected information on some key sectors of the Ghanaran financial system, resembling crops and livestock manufacturing, forestry and timber, minerals, and petroleum, current industrial developments, ports and logistics, imports and exports, the price of doing enterprise, and taxes. The information is predicted to allow the developer to ascertain the avatlability of uncooked supplies within the area and nation to make sure sustainable manufacturing by firms. The signing of the principle contract is imminent.
Regarding the designated processing zone within the Ashanti Region, generally related to the Boankra Port or the Greater Kumasi industrial undertaking, compensations for the land and financial actions have been finalized.
Their flagship SEZ, the Tema Export Processing Zone (EPZ), benefited from a World Bank/Ghana Economic Transformation Project, which supplied funding for rehabilitation works throughout the zone, together with the development of roads and a fence wall.
Also, funding was acquired from the German Corporation (GIZ) to supply an e-mobility transport system throughout the Tema EPZ to supply inexpensive transportation for workers throughout the enclave. Furthermore, electrical buses might be procured with the choice of being charged with solar energy to make sure sustainability and cut back carbon footprints in compliance with the SOGs.
The Tema EPZ confronted extreme water provide points. However, in collaboration with the Ghana Water Company, the water provide points have drastically improved from round 30% previous to 75% at current. Currently, the water storage capability on the enclave has additionally been improved.
In addition, the Authority ts in talks with the Ghana Gas Company to produce gasoline on to the Tema EPZ in its place power supply for the businesses. Ladies and gents, | am happy to let you know that these talks have concluded positively and are awaiting implementation This will once more contribute to the “zero carbon footprint”, as beforehand
espoused
Regarding safety, the Authority procured two bikes for the Kpone Police Command to reinforce patrol of the enclave and to reinforce safety. | may even prefer to thank Cocoa Touton, who purchased a further motorcycle for a similar undertaking.
The present pattern in industrial growth is in direction of the event of Special Economic Zones which ts a broader idea than Export Processing Zones
The Ministry of Trade and Industry, which ts our mother or father Ministry, 1s subsequently within the means of deve op ng anSEZ po cy. Hopefu y, the Free Zones idea w Il be rebranded into anSEZ n new thcurrent traits
As you might remember the AfCFTA Agreement a lows items from Specia Economic Zones
SEZs or Export Process ng Zones EPZs) to export to Afr ca below preferentia remedy f t ey meet the principles of ong n Thus free zone enterpnses utd zing native uncooked matenals from spec fica y, or Afnca as a who e, can qua fy to export below the AfCFTA.
By Joseph Nana Yaw Cobbina
