Providing a Conducive Investment Environment, Kwadwo Twum Boafo, Ghana Free Zones Program

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Finland – Ghana Business Seminar material 22.4.2014

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Providing a Conducive Investment Environment, Kwadwo Twum Boafo, Ghana Free Zones Program

  1. 1. 24 April 2014 1 GHANA FREE ZONES PROGRAMME: Providing a Conducive Investment Environment PRESENTED BY: Kwadwo Twum Boafo Executive Secretary
  2. 2. GHANA FREE ZONES PROGRAMME • A government policy implemented to promote export oriented investments • Established by an Act of parliament • Designed to promote processing and manufacturing of goods and services for export • Combines both enclave and single factory enterprise schemes • The whole Ghana is accessible to potential investors • The programme is completely private sector driven 24 April 2014 2
  3. 3. AREAS OF OPERATION • Four areas of operation - ENCLAVE DEVELOPMENT - MANUFACTURING - SERVICE - COMMERCIAL/WAREHOUSING 24 April 2014 3
  4. 4. EXPORT PROCESSING ZONES The designated EPZs are: • Tema Export Processing Zone • Sekondi Export Processing Zone • Shama Land Bank 24 April 2014 4
  5. 5. TEMA EPZ FACILITIES • Total area of 1,200 acres (480 hectares). – Access and service roads – Central sewage system – Water system – Telecommunication services – Electricity • Designated as a multipurpose EPZ • A range of property options i.e. office space and serviced land • First class road linking TEPZ to sea port (Tema) and airport (Accra) 24 April 2014 5
  6. 6. SEKONDI EPZ • Total acreage of 2,200 (880 hectares) land. • Area has been earmarked for heavy industries and oil & gas related activities. • No development has taken place yet • Looking for investors interested in developing the enclave • Government is securing CDB funds to provide infrastructure at the site 24 April 2014 6
  7. 7. SHAMA LAND BANK • Located in the Western Region • Total land area is 3000 acres (1200 hectares) of land • No development has taken place yet • Looking for investors interested in developing the enclave 24 April 2014 7
  8. 8. SECTORS • Investors can invest in any sector of their choice as long as it meets the requirements of the Board. Plastic manufacturing, wood processing and all forms of mining are however not allowed under the Free Zones Programme. The focus sectors however are: 24 April 2014 8
  9. 9. Infrastructure Development • Enclave Development • Participation can be through build, operate and transfer (BOT) systems, Joint ventures and Sector specific development • Infrastructure Development • Opportunities exist for investors interested in generation and distribution of water, generation of electric power from thermal and bio-mass plants and development of telecommunications infrastructure 24 April 2014 9
  10. 10. Industry & manufacturing • There are opportunities in: - Textile and garments - Light industry - Fabrication of hand tools and machinery - Jewellery production - Production of Chocolate 24 April 2014 10
  11. 11. ICT sub-sector Areas for investments within this sub-sector include: - Business Process Outsourcing • Data Entry and Processing • Call Centres • Software Development - Hardware Assembly - ICT Infrastructure Development 24 April 2014 11
  12. 12. Agro Processing Sub-sector • Opportunities exist for - Processing of fruits and vegetables - Processing of shea nuts and cashew nuts - Processing of palm oil 24 April 2014 12
  13. 13. Oil and Gas • The Free Zones Board is interested in attracting investments in : - oil refinery and distribution - manufacturing of by-products from oil and gas - manufacturing of chemical inputs and accessories for the petroleum industry. 24 April 2014 13
  14. 14. INCENTIVES • 100% exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones; • 100% exemption from payment of income tax for 10 years • After 10 years - Agro Processing companies outside regional capitals - 0% - Agro Processing companies in regional capitals – 4% - Commercial & service companies, enclave developers – 8% - Manufacturing companies outside regional capitals – 5% - Garment & Textile Companies – 4% - Other manufacturing companies – 6% • 100% exemption from payment of withholding taxes • 100% ownership of shares by foreign or local investors 24 April 2014 14
  15. 15. INCENTIVES • No restriction on repatriation of dividends • Up to 30% of products can be authorized for sale on local market • Unimpeded issuance of expatriate work and residence permits; • Free zone investments are guaranteed against nationalization and expropriation. 24 April 2014 15
  16. 16. MARKET ACCESS • Duty and quota free access to the US market under the African Growth and Opportunity Act (AGOA). • Access to ECOWAS market of about 250 million people • Access to the European Union market. 24 April 2014 16
  17. 17. ADVANTAGES OF LOCATING IN GHANA • Stable political environment • Well trained, abundant and adaptable labour force • Competitive daily minimum wage • No restriction on issuing of work/residence permit • Duty/Quota free access of manufactured exports to USA (AGOA) and EU • Excellent sea and air connection to the USA & Europe 24 April 2014 17
  18. 18. ADVANTAGES OF LOCATING IN GHANA • Strategic and central location within West Africa sub-region with access to 250 million people • Comparatively well developed infrastructure • A dynamic private sector willing to collaborate with foreign partners • A committed and progressive government to private sector participation • A high sense of hospitality and personal safety 24 April 2014 18
  19. 19. SERVICES PROVIDED BY GFZB • Provides information on investment opportunities in the free zone • Issues licenses to approved free zone enterprises • Assists in securing other permits from related agencies • Provides ready facilities i.e. serviced land and utilities at the Export Processing Zones • Obtains work/residence permits for expatriates in the free zone • Provides any other services requested by investors 24 April 2014 19
  20. 20. CONTACT • Visit our Website at » www.gfzb.gov.gh • E-mail » info@gfzb.gov.gh 24 April 2014 20
  21. 21. CONCLUSION • If you are searching for a more conducive investment destinations, consider Ghana and invest under the Ghana Free Zones Programme. With the generous incentives offered and the advantages of locating in Ghana, the business environment is more than ready to provide maximum returns on investment. Ghana has become the preferred investment destination in the West Africa sub-region. 24 April 2014 21
  22. 22. THANK YOU. 24 April 2014 22
  23. 23. COST OF DOING BUSINESS Free Zone Registration • Application Form - US$100.00 • License Fee Activity Initial Fee Annual Renewal Developer US$5,000.00 US$4,000.00 Manufacturing US$3,000.00 US$2,500.00 Service US$4,000.00 US$3,000.00 Commercial US$10,000.00 US$5,000.00 24 April 2014 23
  24. 24. COST OF DOING BUSINESS CONT’D Residence & Work Permit – 1st & 2nd year - US$450.00 – 3rd & 4th year - US$800.00 – 5th Year onwards - US$1,500.00 24 April 2014 24

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