The Authority is driven by economic diplomacy, which is in tandem with the Ghana’s vision for Industrialization, Job Creation, and Economic Growth.
It was established by an Act of Parliament, The Free Zone Act, 1995 (Act 504), focusing on establishing free zones in Ghana to promote economic development.
It is to regulate activities within free zones and for related purposes.
The Ghana Free Zones Authority is governed by a nine-member Board chaired by the Minister of Trade and Industry.
There are monetary and non-monetary incentives
The monetary incentives offered include;
100% exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones.
100% exemption from payment of income tax on profits for 10 years which will not exceed 15 per cent thereafter.
Total exemption from payment of withholding taxes from dividends arising out of Free Zones investments.
Relief from double taxation for foreign investors and employees where Ghana has a double taxation agreement with the country of the investors or employees.
The non-monetary incentives offered include;
No import licensing requirements and minimal customs formalities. Also, Free Zones investments are also guaranteed against nationalization and expropriation.
100% ownership of shares by any investor – foreign or national – in a Free Zones Enterprise is allowed. Also, Free Zones Investors are permitted to operate foreign currency accounts with banks in Ghana.
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 Zones investment.
At least 70% of annual production of goods and services of Free Zones Enterprises must be exported; consequently up to 30% of annual production of goods and services of a free zone enterprise are authorized for sale in the local market.