Ministry of Trade and Industry will introduce a more sustainable package to that can be harnessed by Free Zones companies as a cushion against the harsh impact of the Covid-19 pandemic, Chief Executive Officer of the Ghana Free Zones Authority (GFZA), Michael Okyere Baafi, has disclosed.
“Because of the lockdown situation we had in the country, most of the companies that operate within the free zones enclave were asked to stop producing and manufacturing.”
Speaking as a co-panelist on GPHA’s Eye on Port programme on the State of Ghana’s Export and Free Zone Sectors Amid COVID-19 Beleaguered Global Economy.
He explained that the companies who operate in the Free Zones enclave are mostly multi-nationals whose capital base are quite huge and therefore requires immense commitment from government in order to support them with stimulus packages.
“Businesses under the free zones are not small businesses but capital intensive. Therefore, they may not need monies 200, 000 to cushion them in business. They may need something huge. I’ve been told that the Ministry is trying to come out with a new package to cater for that.”
Indigenous Participation in Free Zones
The CEO of the Ghana Free Zones Authority emphasized that he has been championing the drive for more indigenous companies to establish in the free zones and called for Ghanaians who can meet the requirements to establish within the free zone enclaves.
“We have realized that most of the free zones doing well are multinational companies so we have decided to encourage local investors to do business in the free zones. And we are also encouraging the local companies in the free zones to do more as we are giving them some advantages over their competitors,” he said.