Free Zones have contributed significantly to Ghana’s economic growth – Trade Minister
Ms Hanna Tetteh, Minister of Trade and Industry, has described the Ghana Free Zones scheme as a programme that had created value and economic growth stressing that it needed to be encouraged, strengthened and sustained.
She said the scheme had contributed significantly to job creation, employment, revenue generation, boosted industrial activities rather than draining the national resources.
Ms Tetteh was speaking on Thursday at a press briefing organised by the Ghana Free Zones Board (GFZB) as part of its 15th Anniversary Celebrations.
She observed that more than 29,000 Ghanaians were employed in 208 companies operating under the Free Zone scheme.
Ms Tetteh said last year, a total amount of $67.5 million was paid to the employees under the Free Zone enterprises, adding that “out of the amount, $11.32 million was paid as social security with $6.4 million being paid as income tax”.
She stressed that the 2010 figures alone demonstrated that the scheme had deepened the country’s economy.
Ms Tetteh said the idea of setting up a free zone or economic port was to attract manufacturing and processing export businesses to operate in a cost-effective way for socio-economic development.
She said a free economic zone or free port was a designated area where companies received relaxed customs, immigration, visa and taxation jurisdiction with the aim of encouraging development.
Ms Tetteh reiterated the need for a review of the Free Zones Act to enhance its effectiveness.
Mr Dan Abodakpi, a former Minister of Trade, who extolled the contributions by the GFZB and stakeholders, expressed the hope that Ghana would transform into an industrial hub of the continent within the next five years.
Mr Samuel Okudzeto Ablakwa, a Deputy Minister of Information, noted that Ghana’s democratic credentials, including respect for the rule of law and human rights, abundant natural resources, friendly and conducive business environment were factors that had contributed towards attracting foreign investment.
Alhaji Amadu Sorogho, Chairman of the Parliamentary Select Committee on Trade, Industry and Tourism, said the committee members would pay a working visit to the Tema Export Processing Zones to acquaint themselves with the activities of companies operating at the enclave when parliament reconvened.
Mr Kwadwo Twum Boafo, Acting Executive Secretary of GFZB, denied allegations that his outfit cleared saloon vehicles for free zones enterprises.
He said GFZB had set up an operational audit department to assess and inspect licensed free zone companies for compliance.
The Ghana Free Zones Scheme is an integrated programme to promote processing and manufacturing of goods through the establishment of export processing zones and to encourage the development of commercial and service activities at seaport and airport areas.
Source: GNA