The Chief Executive Officer (CEO) of Ghana Free Zones Authority (GFZA), Amb Michael Oquaye Jnr, has called for support from relevant stakeholders to help Increase our Exports to earn the needed foreign exchange to stabilize the Cedi.
Thus, for him, the country is currently grappling with a balance of trade deficit and the depreciation of our national currency, for that matter, we must increase our exports to earn the needed foreign exchange to stabilize the cedi.
He indicated that an export-led industrial growth is one of the most appropriate strategies to achieve economic development; this has been the mandate of the GFZA. Thus, the importance of the Free Zones program in reversing our balance of trade deficit and the depreciating cedi is vital.
The GFZA recognizes the potential of the AfCFTA in attracting market-seeking
investments and encouraging local businesses to export to the African market. The AFCFTA presents Ghana with the opportunity to export to Africa, with an estimated market size of 1.3 billion people.
In pursuing an export-led industrial growth strategy and the enormous opportunities AFCFTA and the world at large provide, the problems of unemployment, low export earnings, lack of value addition to our natural resources, lack of diversification of our export products, and being an insignificant player in the continental and global value chains can be solved.
Speaking at media breifing for 2022 investment week celebrations on the theme “GFZA: Championing Export-Led Industrial Growth in the Context of AFCFTA and World Trade.” The theme was chosen to reflect the government’s focus on export-led industrialization and the Africa Continental Free Trade Area Agreement (AFCFTA) implementation.
The media briefing is the first activity of the Investment Week celebration. The essence of this briefing is twofold. Firstly, he updated the media on the achievements of the GFZA and the plans for the coming year, which they expect media to convey to the good people and business community of Ghana and the activities scheduled for the weeklong investment celebration.
According to Lawyer Michael Oquaye Jnr, despite the adverse effects of global happenings on businesses worldwide, Ghana not being an exception, the GFZA has chalked up some significant successes Regarding their achievements.
He revealed that 39 new companies have been licensed since he took over as Chief Executive Officer. “These companies are expected to inject an estimated capital of US$230 million into the economy. In addition, the estimated export earnings from the 39 companies is USS 529 million from an estimated production value of US$ 436 million.”
The GFZA Boss address made know that the cumulative exports from the Free Zones enterprise since the program’s inception stood at USS 27 billion as of 2020. Currently, the total number of active companies is 217. Out of the 217 active companies, 72 are wholly owned Ghanaian companies, representing 3396; 74 are wholly foreign-owned companies, representing 34%, and 71 are joint ventures, representing 33%.
This is an indication that Ghanaian companies also have the potential to take advantage of the free zone incentives and make a mark in the international market.
Report By Bernard K DADZIE