President John Dramani Mahama has reaffirmed the government's commitment to reviewing the Customs Act. This review aims to protect Free Zones incentives, safeguard investments, and strengthen investor confidence.
This commitment comes as Ghana seeks to position itself as a competitive manufacturing and export hub. The government's focus is on driving industrial growth and expanding employment opportunities. This initiative directly supports the broader industrialisation and 24-Hour Economy agenda.
The protection of Free Zones incentives is crucial for attracting and retaining foreign direct investment. Ghana's Free Zones Act, 1995 (Act 504), established these zones to promote economic development through export-oriented manufacturing. Previous reviews and amendments to the Customs Act, such as the Customs Act, 2015 (Act 891), have often sought to balance revenue generation with investment promotion. Ensuring the stability of incentives is vital for businesses operating under this scheme, which contribute significantly to non-traditional exports.
President Mahama made this statement during a tour of Dignity DTRT, a Ghanaian-owned garment manufacturing company. Dignity DTRT operates under the Free Zones Scheme. The company is preparing to commission a new manufacturing facility. This facility is expected to create over 15,000 jobs and operate around the clock. This expansion will significantly strengthen Ghana's garment manufacturing capacity and export potential. The President highlighted that this expansion underscores the role of Ghanaian entrepreneurship and domestic investment in driving industrial growth and creating jobs.
The government's pledge signals a proactive approach to addressing concerns from investors and businesses within the Free Zones. Unclear or inconsistent application of customs regulations can deter investment. A clear, protective Customs Act will provide certainty for companies like Dignity DTRT. This certainty is essential for long-term planning and capital expenditure decisions. The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, and the Chief Executive Officer of the Ghana Free Zones Authority, Dr. Mary Awusi, accompanied the President during his visit, underscoring the inter-ministerial support for this policy direction.
The review of the Customs Act will likely involve consultations with various stakeholders. These include businesses, industry associations, and customs officials. The goal is to create a legislative framework that supports both investment growth and national revenue objectives. The outcome of this review will be closely watched by both domestic and international investors. It will indicate Ghana's seriousness in maintaining a business-friendly environment. The successful implementation of a revised Act could attract more companies to set up operations in Ghana's Free Zones. This would further boost exports and job creation, aligning with the government's economic transformation goals.
Protecting Free Zones incentives is a key component of Ghana's strategy to become a manufacturing hub. The 24-Hour Economy agenda aims to maximise productivity and economic output. Companies operating around the clock, like the expanded Dignity DTRT facility, are central to this vision. The government's commitment to legislative reform demonstrates its dedication to fostering a stable and attractive investment climate. This move is expected to reinforce investor confidence and encourage further domestic and foreign investment in the industrial sector. The creation of 15,000 jobs by a single company highlights the potential impact of such policies on the labour market.