GFZA targets creation of green Special Economic Zones to further drive FDI
The Ghana Free Zones Authority (GFZA) according to its Chief Executive Officer (CEO), Ambassador Mike Oquaye Jn., is looking to prioritise the creation of green special economic zones (SEZ) in the country.
The creation of green SEZs he noted, is to further drive foreign direct investment (FDI) into the country.
Speaking at the 3rd Annual Investment Week 2022, Ambassador Mike Oquaye Jn. averred SEZs are considered as one of the most powerful policy tools to attract regional value chain (RVC) and Global Value Chain (GVC)-linked investments among developing countries such as Ghana.
According to him, Ghana, like India and China must leap-frog the rest of the world and make its SEZs green as it is the country’s next step to prosperity.
“I have just returned from a meeting of Africa Economic Zone Organization (AEZO), held in Abuja, Nigeria. The focus of the meeting was on the theme “Economic resilience, green growth and industrial transformation;”. Sustainability is becoming a topical issue and the SEZs have been identified to be the model and a starting point for the rest of the continent.
“There was no doubt that there is intense competition among developing countries to attract regional value chain (RVC) and Global Value Chain (GVC)-linked investment, using various policy tools of which the SEZ is considered the most powerful.
“The next step to Prosperity is therefore the SPECIAL ECONOMIC ZONES,” he quipped.
“Firstly, we must leap frog the rest of the world and make all SEZ’s green. No carbon footprints like in India or China etc., we must invest more in recycled waste and water, eco-friendly buildings as well as solar energy among other renewable energy options.
“As a way forward, green development will be a priority in developing new free zone enclaves, under the Ghana Free Zones Agency in charge of SEZs,” he added.
According to Ambassador Mike Oquaye Jn., there are currently 217 active free zone enterprises.
Cumulatively, the free zone enterprises have made export earnings of over US$27 billion employing about 33,000 people directly with over 31,000 being Ghanaians.
Special economic zones (SEZs) have long been touted as an effective way to ramp up foreign direct investment (FDI), increase trade and provide jobs for developing and developed countries alike.
SEZs come in many forms, but they are usually geographically limited areas where companies enjoy tax benefits and other legal privileges, set up in order to attract foreign investment and boost employment.
In Africa, the first SEZ was unveiled in Mauritius in 1970, followed by Ghana and Senegal towards the end of the decade. According to UNCTAD’s Handbook on Special Economic Zones in Africa, by 2020 there were 237 SEZs in Africa in 38 of the continent’s 54 countries.
