Free Zones Board offers incentives to investors

Free Zones (fin)
Story: Boahene Asamoah



The Ghana Free Zones Board (GFZB), has positioned itself to provide the needed infrastructure and efficient services to investors within the enclave.
The board offers both monetary and non-monetary incentives which have gone a long way to achieve some level of success for the country.
The monetary incentives offered include: 100 per cent exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones; 100 per cent exemption from payment of income tax on profits for 10 years and shall not exceed eight per cent.
The board again offers total exemption from payment of withholding taxes from dividends arising out of free zone investments and also offers relief from double taxation for foreign investors and employees (currently double taxation agreement ratified with France and The Netherlands).
In the case of non-monetary incentives ; the board exempts investors from import licensing requirements; ensures minimal customs formalities; a 100 per cent ownership of shares by any investor - foreign or national in a free zone enterprise is allowed.
Again, there are no conditions or restrictions on: repatriation of dividends or net profit; payments for foreign loan servicing; payments of fees and charges for technology transfer agreements; and remittance of proceeds from sale of any interest in a free zone investment;
Free Zone investors are also permitted to operate foreign currency accounts with banks in Ghana and at least 70 per cent of annual production of goods and services of Free Zone Enterprises must be exported.
Consequently up to 30 per cent of annual production of goods and services of a free zone enterprise are authorized for sale in the local market
Another important non-monetary incentive is that Free Zone investments are also guaranteed against nationalisation and expropriation.
The Free Zone Act (Act 504) and its implementing regulations also provide relief from various bureaucratic restrictions and other statutory requirements such as expedited investment approval not exceeding 28 working days; unimpeded issuance of expatriate work and residence permits; accelerated on-site customs inspection; and, assurance of wage levels for employees that would not be below the recommended minimum wage prevailing in Ghana at any given time. Other workers' rights and conditions of service have been aligned to the relevant ILO conventions, which have been ratified in the various Industrial Relations legislation of Ghana.
The implementing regulations (LI 1618) of the Act also make it possible for free zone developers and operators to lease land on long-term basis from the Free Zones Board, or propose properties they already own for the creation, development and operation of free zones.