The Ghana Free Zones Authority has appealed to President John Dramani Mahama to review provisions of the Value Added Tax (VAT) and Customs laws, saying they have eroded incentives available to free zone enterprises and affected the Authority’s revenue and financial projections.
The Authority’s Chief Executive Officer, Dr Mary Awusi, made the appeal during the sod-cutting ceremony for the Afienya Industrial Park, where she raised concerns about the impact of the changes on investor confidence and Ghana’s competitiveness as an investment destination.
“Of particular concern are provisions of the new Customs Act, [and] VAT Act, which have eroded some of the incentives and benefits traditionally available to free zone enterprises,” she said.
Dr Awusi said the provisions had also affected the Authority’s revenue sources and financial projections, warning that uncertainty over investment incentives could discourage existing and prospective investors.
“The competitiveness of free zones depends on predictable, stable, and consistent investment policies,” she said, adding that investors needed confidence in the regulatory framework before making long-term investment decisions.
She urged the President to ensure that the relevant provisions of the VAT and Customs laws were reviewed and aligned with the Free Zones Act and the broader objectives of the free zones scheme.
The review, she said, would help restore policy consistency, protect investor confidence and strengthen Ghana’s position in attracting export-oriented businesses.
The appeal comes as the Authority begins developing the Afienya Industrial Park, Ghana’s second nationally developed industrial park under the Free Zones Authority.
The proposed park covers approximately 1,238 acres and is expected to accommodate businesses in manufacturing, agro-processing, textiles and apparel, pharmaceuticals, logistics, technology and renewable energy.
Dr Awusi said 14 companies had already been allocated land within the park, even before development had commenced.
However, she said the project would require substantial financial resources, noting that the Authority’s internally generated funds would not be sufficient to provide all the necessary infrastructure.
The Authority is therefore seeking support from government, development partners, donor institutions and private investors to accelerate the park’s development.
Dr Awusi also said the Tema Export Processing Zone was fully occupied, highlighting the need for additional serviced industrial land to accommodate businesses seeking to establish or expand operations in Ghana.
As of the second quarter of 2026, the Free Zones Scheme had licensed 334 enterprises, generating 78,155 direct jobs and more than 84,000 indirect jobs, according to the CEO.
Exports from free zone enterprises reached $3.1 billion in 2025, while approximately $2.34 billion had been recorded by the second quarter of 2026.
The proposed review of the VAT and Customs laws could have implications for how free zone incentives are applied. The specific provisions requiring amendment and the government’s response to the Authority’s appeal were not detailed in her address.
