Free Zone Enclave policy being reviewed- Agyepong

Accra, March 3, GNA - The Free Zone Enclave policy instrument is currently being reviewed to allow government's involvement in the provision of the requisite facilities to attract more prospective investors.

This would shift the policy from its original status of making the enclave strictly private sector-driven to one that would allow the Free Zone Company itself to assist in the provision of the needed facilities and infrastructure for investors.

Mr Kwadwo Agyepong, Acting Executive Secretary, Ghana Free Zone Board who announced this at a day's seminar on Wednesday said "the private sector led policy had not achieved the expected results, besides we have realised that if we stick to it we are not going to see the kind of developments we want as a country.

"We at the Free Zone Company are worried about the slow pace of populating the enclave, therefore we can't stick to this particular approach," he explained.

Mr. Agyepong said out of the 121 companies that have registered with the Board, 112 are currently in operation.

One hundred and seventy-eight hectares out of the 1,200 hectares of the enclave acquired at the Tema-Aflao road had been reserved for the President's Special Initiative (PSI) project, he said.

Elaborating on the qualification of a free zone enclave member, Mr Agyepong said the policy also gives a window of opportunity to companies that were outside the enclaves but met all the requirements of the Board.

"This means that the entire nation is considered as an enclave provided a company is able to export the 70 per cent of its level of production and also meet other requirements," he added.

He said in 2003, production value at the Zones was 166 million dollars attracting Value Added Taxation of three million dollars. A company that qualifies as a Free Zone member enjoys benefits such as 100 per cent exemption from payment of direct and indirect levies and duties on all imported inputs, and payment of income tax for a maximum of 10 years.