Free Zones Authority generates $27billion in exports

The total value of exports since the inception of the Ghana Free Zones Authority (GFZA) currently stands at $27 billion, with the past five years averaging $1.5 billion.

Available data indicate that through the Export Processing Zones (EPZs) of the Authority, cumulative direct investments topped $4 billion as of the end of 2020.

The figure from the GFZA translates into an average annual investment in the region of US$160 million from domestic and foreign sources since the establishment of the GFZA in 1995, a move that forms part of measures aimed at promoting the manufacturing and export base of the country.

Over the course of the investment, value-added in areas such as agro-food processing, floriculture, petrochemicals, textile manufacturing, metal fabrication, and ethnic beauty goods has resulted in a total production value of more than $21 billion.

During the period under consideration, some 30,000 direct jobs have been created, with an additional 25,000 indirect jobs, the data suggest.

Equitably Ghanaian-focused

In a wide-ranging interview with the media, the GFZA’s Chief Executive Officer, Ambassador Michael A. Oquaye Jnr., dispelled the notion that the GFZA was overly focused on foreign investors, saying that the current regulatory regime ensures “fairness and equity” for both domestic and foreign investors.

According to his organisation’s recent assessments, 65 percent of actively licensed Free Zones enterprises had Ghanaian interest, with 31 percent of those companies being entirely owned by Ghanaians and another 34 percent being joint ventures between Ghanaians and their international partners.

“We have done a very good job over the years in attracting indigenous investment in the operations of the Zone and it is our priority to intensify this drive even further,” Ambassador Ocquaye Jnr. said.

Sensitisation

Key to deepening the participation of domestic players, Ambassador Oquaye Jnr. said there is the progressive increase in knowledge about the numerous opportunities presented by the Authority.

“It is our goal to further enhance local participation, and this will be evident as the year pans out,” he said, pointing to several domestic engagements, including imminent roadshows and its planned 2022 Investment Week programme scheduled for June.

“The average investor in some jurisdictions is fully aware of, and takes advantage of, special economic arrangements. Sadly, it is not so where we are; our awareness is not very pervasive with the business community although growing by the year. We need to be aggressive in our quest to change that narrative. We want to meet as many associations and business groupings as possible and we believe that before the end of the year, people would have a better understanding of the free zones concept and how they can partake in it,” he explained.

Ambassador Oquaye said special emphasis would be given to businesses willing to invest in the Authority’s priority areas, which include, agro-food processing, textile/apparel manufacturing, floriculture, metal fabrication, jewelry production, seafood processing pharmaceuticals, light industry.