Free zones concept needs holistic review -- AGI boss

President of the Association of Ghana Industries (AGI) Mr. James Asare-Adjei is calling for a holistic review of the law governing operations of free-zone companies to allow indigenous companies benefit from the concept.

Speaking to B&FT in an interview in Accra, he said for the concept to achieve its core objective -- which is to ensure an export-driven economy -- local companies must be allowed to access the incentives provided by the free-zones concept to make them more competitive to produce more for both local and foreign markets.

The Ghana Free Zones Board (GFZB) was established in 1995 by an Act of Parliament -- the Free Zone Act, 1995 (Act 504) -- to enable the establishment of free-zones in the country for the promotion of economic development, and to provide for the regulation of activities in free-zones among other reasons.

Mr. Asare-Adjei said need for the review is even more critical especially when some multi-national firms operating in the free-zones enclave are flouting the regulation that requires them to export at least 70 percent of their products to foreign markets, thereby posing a threat to local businesses.

“The review will ensure that local companies can also take advantage of these incentives to make them more competitive. Monitoring has shown that most of these multi-national firms operating in the enclave do not adhere to the regulation that enjoins them to export at least 70 percent of their products to foreign markets, and this tends to be a disincentive to local companies,” he said on the sidelines of an interactive session between Ghanaian trade associations and a business delegation from Switzerland.

“If we are having the challenge of not having many indigenous companies setting up in the enclave, and by extension are not enjoying such incentives, then it stands to reason that we need to review the law that governs its establishment,” he added.

The Swiss business delegation, led by Marie-Gabrielle Ineichen-Fleischs, was in the country to explore business opportunities for Swiss companies as well as to strengthen bilateral relations between the two countries.

The Ghana Free Zones Programme is designed to promote processing and manufacturing of goods through the establishment of Export Processing Zones (EPZs), and encourage the development of commercial and service activities at sea and airport areas.

By Patrick PAINTSIL and Richard Annerquaye ABBEY | B&FT Online | Ghana