SEARCHING FOR A MORE CONDUCIVE INVESTMENT LOCATION?
Ghana, your preferred investment destination
Why invest in Ghana?
Ghana offers unique advantages including:
A stable political environment within the West African sub region
Abundant, adoptable and easily trainable labour force
A competitive daily minimum wage rate
No restrictions on issuance of work and residence permits to Free Zone investors
Excellent sea and air connections with Europe and USA
Strategic and central location with West Africa providing access to market of 250
Agro-food Processing (cocoa, cashew nuts, fruits)
Textile/Apparel Manufacturing (garment, shoes, bags)
Information and Communication Technology (ICT) (data processing, call centres,
Light Industry/Assembling Plants
The extensive and generous incentives packaged in the Free Zone Act (1995) for
investors interested in developing and operating free zone enclaves and single-
factory free zones in Ghana include:
100% exemption from payment of direct and indirect duties and levies.
100%exemption from payment of income tax on profits for 10 years.
100% ownership of shares by any investor
There are no conditions or restrictions on: repatriation of dividends or net profit.
Up to 30% of annual production of goods and service could be sold on the local market.
Unlimited expatriate quota.
GHANA FREE ZONES BOARD
Ghana’s Free Zones was established to develop Ghana into a hub for manufacturing and processing through value addition for export. The Programme focuses on development through exports, to encourage both local and foreign investors to produce goods and services for export-oriented development. Through this, Ghana can gradually, move away from an exporter of raw materials to an exporter of value added goods and services to enable her compete keenly with other emerging economies to gain an entrenched position in the global marketplace.
The objectives of Ghana’s Free Zones as provided for by the Free Zones Act 1995 (Act 504) are as follows:
Promotion of economic development
Attraction of Foreign Direct Investment
Creation of employment opportunities
Increasing foreign exchange earnings
Provide business opportunities for local and foreign investors
Transfer of technology
Enhancement of technical and managerial expertise of Ghanaians
Free zones have become increasingly popular as trade promotion policy instruments, especially in developing countries, to the point where in some developing countries a large proportion of their exports originate in free zones. In 1992, the World Bank defined export-processing zones as ‘fenced-in industrial estates specializing in manufacturing for exports that offer firms free trade conditions and a legal regulatory environment’. This concept has evolved and rules on domestic sales and the physical delimitation of the zones have in some cases become more flexible. Nevertheless, the objectives pursued by countries that use free zones have remained constant. These objectives include: development of disadvantaged regions, generating income and employment, attracting investment – especially foreign direct investment, and promoting technology transfer. The objectives listed above are usually incentives to companies and firms operating in those zones. These incentives are commonly of a physical nature (tax breaks and exemptions), regulatory nature (flexible rules on importation and labour).
When looking at the benefits granted to enterprises operating in a free zone, it is difficult to generalize since the different types of incentives and benefits of a free zone can vary from country to country or even within countries. Nevertheless, some benefits and incentives can be identified as:
Exemption in payment of import duties and charges on all imported
goods usually in the form of machinery, raw materials and all inputs for
Total or partial exemption from the payment of direct and/or indirect taxes
Full or partial exemption from payment of fees and charges payable to the government in connection with exports.
Governments may directly or by entrusting a private company, provided goods or services to enterprises located in a free zone at prices below those paid in the rest of the market.
The main idea of establishing Ghana’s Free Zones is to develop Ghana into a hub for manufacturing and processing through value addition for export. The Free Zones Programme focuses on development through exports, to encourage investors (both Ghanaian and Foreign) to produce goods and services for export-oriented development.
Through this, Ghana can gradually, move away from an exporter of raw materials to an exporter of value added goods and services to enable her compete keenly with other emerging economies and entrench our position in the global marketplace.