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Economy

Licenses of 8 Free Zones firms revoked

The Ghana Free Zones Board (GFZB) has revoked the licenses of eight companies operating in the country's free zone enclaves for non-performance and non-compliance to regulations set by the Board. This leaves about 208 companies operating currently in the free zone enclaves with 47 located in the Tema Free Zone area. The Executive Secretary of the Free Zones Board, Kojo Twum Boafo, told the B&FTin an interview in Accra on Wednesday that the companies - whose names were not made known - were delisted when he took office in 2009. This means the latest list of companies sacked from the enclaves add to the previous delisted companies, which includes the Malaysian firm, Business Focus. "Some companies have been delisted because of non-performance and their own problems. But we are seeking to optimize what they do. "As of now, we have more than 208 companies in the free zones so we are doing well. "Well the problem with Business Focus predated me. But I know the issue went to court and those issues have been dealt with. As we speak, I think Business Focus is not part of the free zones anymore," said Mr. Twurn Boafo. Established about 15 years ago, the Ghana free zone programme is aimed at attracting multi-national companies into Ghana to propel the government's export-led development programme. By regulation, all free zone companies exports 70 per cent of their produce while 30 per cent is sold on the local market. Data gathered by the B&FT indicates that the free zone programme has as of the end of 2009 brought in US$2.98 billion in Foreign Direct Investment creating 28,433 jobs in the enclaves. Mr. Twum Boafo told the paper that the success of the free zone scheme has pushed the government to develop another free zone enclave in Sekondi in the western region to take advantage of the mineral deposits in the area. The enclave, which will take about five years to complete, is being done with support from the China Development Bank. "It is going to take advantage of some of the alumina deposits. Developers are in and they have set up offices in the country. We are within the final phase of getting that development started," Mr. Twum Boafo said. Without letting in the cost of the new free zone enclave project added he said, "I don't want to quote figures now but it is a substantial figure."

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.