GHANA FREE ZONES BOARD ANNUAL REPORT AUDITED ACCOUNTS

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AnnualReport20141

GHANAFREEZONESBOARD

ANNUALREPORT

&

AUDITEDACCOUNTS

2014

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VISIONSTATEMENT

To facilitate a vibrant economy in Ghana, driven by a well-integrated business environmentwith world class capacity for competition, technological innovations, business growth,economicdiversityanddevelopment.

MISSIONSTATEMENT

To help transform Ghana into the Gateway to West Africa by creating an attractive andconducivebusinessenvironmentthroughtheprovisionofcompetitiveFreeZoneincentivesandoperationofanefficient“one-stop-shop”forthepromotionandenhancementofdomesticandforeigninvestment.

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CONTENTS

Pages1.0 OVERVIEWOFGHANAFREEZONESBOARD 1.1 Introduction 5 1.2 FunctionsoftheBoard 5 1.3 Concept 5 1.4 Purpose 5 1.5 Strategy 6 1.6 Achievements 6 1.7 MembersoftheBoard 102.0 EXECUTIVESUMMARY

11

3.0 REVIEWOFOPERATIONS 13 3.1 HumanResourceDepartment 13 3.2 Marketing,Promotion&PrDepartment 17 3.3 ProjectEvaluation&LicensingDivision 23 3.4 Estate&EnclaveDevelopmentDepartment 24 3.5 MonitoringDepartment 26 3.6 InformationTechnologyDepartment 27 3.7 LegalDepartment

29

4.0 DATAANALYSIS 31 4.1 InvestmentCapitalSchedule 31 4.2 ProductionScheduleOfManufacturingAndServiceEnterprises 31 4.3 ImportScheduleOfCommercialEnterprises 31 4.4 ExportScheduleOfAllEnterprises 32 4.5 EmploymentScheduleOfAllEnterprises 32 4.6 Salary/WageScheduleOfAllEnterprises 32 4.7 Vat/DutiesPaidOnSalesIntoTheDomestic/LocalMarket 33 4.8 TrainingScheduleOfAllEnterprises(GhanaianNationals) 33 4.9 SocialSecurityScheduleOfFreeZoneEmployees 33 4.10 IncomeTaxScheduleOfFreeZoneEmployees

33

5.0 FINANCIALREVIEW 33 5.1 Revenue 33 5.2 Expenditure 34

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6.0 CONSTRAINTS

7.0 CONCLUDINGREMARKS

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APPENDICES

Page

Appendix1 FreeZoneEnterprisesLicensedIn2014 35

AppendixII CapitalInvestedByFreeZoneEnterprises2014 37AppendixIII Production Schedule Of Manufacturing And Services Enterprises

201437

AppendixIV ImportScheduleOfFreeZoneEnterprises2014 38

AppendixV ExportScheduleOfAllFreeZoneEnterprises2014 38

AppendixVI EmploymentScheduleOfFreeZoneEnterprises2014 39

AppendixVII Salary/WageScheduleOfFreeZoneEnterprises2014 39

AppendixVIII Vat/DutiesPaidOnLocalSalesByFreeZoneEnterprises2014 40

AppendixIX Training Schedule Of Free Zone Employees (Ghanaian Nationals)2014

40

AppendixX SocialSecurityScheduleOfEmployeesOfFreeZoneEnterprise2014 41

AppendixXI IncomeTaxScheduleOfFreeZoneEmployees2014 41

AppendixXII AuditedAccounts 42

TABLES Page

TableI RegistrationofCompanies 6TableII Employment 7TableIII Production 7TableIV Export 8TableV CapitalInvested 9TableVI EmploymentDistributionbySector 32

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1.0OVERVIEWOFGHANAFREEZONESBOARD

1.1INTRODUCTIONTheFreeZoneAct(1995),Act504,waspassedon31stAugust,1995forthepromotionofeconomicdevelopment, toprovide for the regulationofactivities in free zonesand forrelatedpurposes.ThereisestablishedbythisActaBoardwhichistheGhanaFreeZonesBoard.

1.2FUNCTIONSOFTHEBOARDThefunctionsoftheBoardarestipulatedasfollows:

q Grantlicensestoapplicants;q Assist applicants for licenses under Act 504 by providing services for obtaining other

relevantlicenses,permitsandfacilities;q Examine and recommend for approval, proposals relating to the development and

activitiesofthefreezones;q Monitor the activities, performance and development of Free Zone Developers and

EnterprisestoensurecompliancetotheFreeZoneActandanyother lawsrelevanttofreezoneactivities;

q Registerandkeep recordsanddataon theprogrammesofdevelopers,operatorsandenterprisesinfreezones;

q Performsuchotherfunctionsasareincidentaltotheforegoing.

1.3CONCEPTTheGhanaFreeZonesProgrammeisprivatesectordriven.Government’srole is limitedto facilitating, regulating and monitoring activities of Free Zone Enterprises andDevelopers.

TheProgrammeisdesignedprimarilytopromoteprocessingandmanufacturingofgoodsand services through the establishment of Export Processing Zones (EPZs), structuredeitherasenclavesorsingle-factoryenterpriseschemes.TheProgrammealsoencouragesthe development of commercial and service activities in and around seaports andairports.

Under theGhanaFreeZonesProgramme, thewholeofGhana isaccessible topotentialinvestorstolocateinandproducegoodsandservicesprimarilyforexport.

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1.4PURPOSEThe main objective of the Free Zones Programme is the promotion of economicdevelopmentthroughthefollowingmeans:

q Attractionofforeigndirectinvestment;q Creationofemploymentopportunities;q Increaseinforeignexchangeearnings;q Provision of business opportunities for foreign and local investors to undertake joint-

ventures;q Enhancementoftechnicalandmanagerialskills/expertiseofGhanaians;q Transferoftechnologyanddiversificationofexports.

1.5STRATEGYThe main strategy of the Board is to market Ghana as a destination of choice forinvestmentsthathavepotentialtogenerateexports.Otherstrategiesinclude:

q ProvisionofattractiveincentivestofacilitatethesettingupoffactoriesandbusinessesinGhana

q Elimination of all bureaucratic and procedural obstacles in the establishment and/oroperationalphaseoffreezonesprojects.

q Encouraging and supporting the linkage of local and foreign free zone investmentsthroughjointventurearrangements.

q Facilitationoftransactionsbetweenfreezoneinvestorsandlocalindustriestomaximizethevalueadditionofexportablecommoditiesinthenationaleconomy.

q PromotionofskillsdevelopmentandimprovedexpertiseofGhanaianemployeesinfreezoneenterprises.

q Encouraging the development and growth of the export sector, through emphasis onvalueadditiontolocalresources.1.6ACHIEVEMENTS

1.6.1RegistrationofCompanies

Since the inceptionof the free zonesprogramme, anumberof companieshavebeenlicensed under the scheme in order to benefit from the incentives that render themcompetitiveandalsogivethemtheopportunity toreacha large internationalmarket.The Ghana Free Zones Board has progressively registered new companies each year.Total number of registered free zone companies as at 2014 was 352; the yearlydistributionfrom1996/97to2014isasfollows:

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YEAR NO.OFCOMPANIES1996/97 81998 111999 62000 112001 142002 252003 372004 232005 212006 292007 282008 262009 72010 202011 252012 172013 302014 14Total 3521.6.2EmploymentGenerationTotal employment generated under the Free Zone Programme as at the end of 2014was30,271theyearlydistributionofwhichisasfollows:

YEAR EMPLOYMENT1996/97 3,4831998 3,9681999 5,5232000 6,8952001 7,4452002 9,4592003 14,0712004 23,9282005 28,3342006 25,7732007 28,8802008 28,5952009 28,9362010 29,7982011 30,0802012 30,383

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2013 31,0052014 30,271

1.6.3ProductionValue

Annual production value of Free Zones Companies in 2014 wasUS$2,200.18M. Theyearlyfiguresfrom1996/97to2014areasfollow:

YEAR PRODUCTION(US$M)1996/97 1.401998 158.501999 162.202000 134.402001 103.602002 222.502003 286.502004 348.702005 602.902006 506.602007 478.602008 1,116.002009 821.002010 1,329.002011 1,195.672012 1,069.112013 1,126.312014 2,200.18Total 11,913.17

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1.6.4.TotalExport

Annual total export value of licensed Free Zone Enterprises from 1998 to 2014amountedtoUS$26,563.33.Thebreakdownisgivenbelow:

YEAR VALUE(US$M)1998 145.401999 184.082000 165.072001 291.032002 174.302003 414.012004 627.402005 509.992006 522.812007 779.902008 1,286.912009 1,667.572010 1,690.702011 1,966.722012 1,830.302013 12,268.182014 2,360.22Total 26,563.33

1.6.5CapitalInvestedDuringtheyearunderreviewUS$167.47Mwas invested invarioussectorsof the freezone programme. The cumulative amount of capital invested in free zones since theinceptionof theprogramme in 1996/97 to the endof 2014 stands atUS$2,684.90M.Thebreakdownofinvestmentsovertheyearsisasfollows:

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TableV

YEAR VALUE(US$M)1998 117.181999 80.632000 43.822001 163.522002 41.512003 160.542004 131.322005 185.902006 151.832007 114.032008 315.842009 214.832010 212.332011 224.642012 247.512013 279.452014 167.47Total 2,852.37

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1.7MEMBERSOFTHEBOARD

Hon.HarunaIddrisu

(Minister of Trade &Industry)

Chairman

Mr. Kwadwo TwumBoafo

ExecutiveSecretary

Mrs FlorenceHutchful

Member

Mrs.GiftyAnku

Member

Alhaji MahamaAdams

Member

Ms.AnitaDeSosoo

Member

Mr. KwabenaYeboah

Member

Ms. Eugenia Jackson-Cofie

Member

Mr. William AdoteiAddo

Member

Ms.KatherineOduro

Member

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2.0EXECUTIVESUMMARY

TheGhanaFreeZonesBoardovertheyearshasconsistentlyfollowedpoliciesdirectedtowardsthepromotionoftheFreeZonesschemeandenhancingtheeconomybytheencouragementoflocal and foreign investors. To this end it has created a liberal but soundly based regulatoryregimetomonitoractivitiesoffreezoneenterprisestoensurecompliance.

Theyearunder reviewsawtheGhanaFreeZoneBoard (GFZB,)with thecollaborationof theregulatoryagencies,successfullyorganisingtwo(2)stakeholderforaforFreeZoneEnterprisesoperating in the Southern and Northern zones of the country and to discuss pertinentoperationalissues.

GFZB recruitment strategy is to attract individuals who share its values, and believes in itscourse. Ourselectionprocessensuresthatwecarefully identifybehaviouralcompetencies inaddition tomandatory technical skills. Therewere twelve (12) new recruitments in the year2014. Nine (9) Assistant Officers, one (1) driver, one (1) Janitor and one (1) Gardener toaugmenttheexistingstaff,moreespeciallybecausesomestaffmovedfromtheSecretariattotheTemaEnclaveofficewhichwasopenedinJulythisyear.

Inabid to createanicheasaone stop shop investment centre for investors, theBoardhasagreed to build a five (5) storey ultra-modern complex at the present location of the office,whichisexpectedtohouseallofitsancillaryoffices,aswellasprovideofficeaccommodationforallfutureagencies.OperationsattheHeadofficewerethereforerelocatedtoatemporaryrentedpremisetoallowforcommencementoftheconstructionofthemodernheadoffice.TheBoardalsocommencedoperationsatitsmultipurposeandrelationshipofficeblockwithintheTema Enclave upon completion of renovation works. The Board received proposals fromVanguard Properties Ltd to develop the Proposed Community 21 Land into a world classresidential estate. A combined team of National Security, Police and the Board successfullyundertooktheejectionofallillegaltenantsatthecommunity21Land.

In yearunder review, the Investor Support ServicesDepartment sawan improvementof themarketingactivitiesandcommitmentofthedepartmenttobeproactiveinthedischargeofitsduties.Thefocuswason investmentpromotionactivities includingparticipation intradefairsand exhibitions, local promotion, advertising, targeted investment promotion missions, andinvestoraftercare.The Board received Twenty Six (26) new applications fromprospective investors.Out of thisnumber,theBoardapprovedFourteen(14),deferredSix(6),Two(2)weredeclinedandFour(4)werepending.Thistranslatedintoacapital investmentamountof OneHundredandThreeMillion, Thirty Eight Thousand Ghana Cedis, (GHS 103,038,000.00) and a total of SevenThousandandNinety,(7,090)employmentgeneratedinGhana.

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The Legal department with assistance from the Attorney General’s Department ablyrepresentedGFZB inall civil suits inwhich itwasaparty. TheDepartmentdraftedcontractsandagreementsinvolvingGFZB.Alllandrelatedtransactionswerehandledbythedepartment.Totalcapital investedin2014alonebyFreeZoneEnterprisesamountedtoUS$167.47MillionwhilethecumulativecapitalinvestedsincetheinceptionoftheProgrammei.e.1996/7to2014stoodatUS$2,852.37Million

The value of production by Free Zone Enterprises for the year under review amounted toUS$2,200.18Million while the value of export for the same year amounted to US$2,360.22Million.

Total employment figures as at the end of the year 2014 was 30,271 comprising 28,908nationals and 1,363 expatriates. Total value of salary/wages for the year under review wasUS$115,250,306.93 with Ghanaian employees earning US$75,173,166.58 and expatriatesearningUS$40,077,140.35

Total duties/levies paid on sales into the local market as at the end of 2014 amounted toUS$10,619,615.56 whilst a total of US$4,854,888.14 was spent on training Ghanaianemployees.

Also, Free Zone Enterprises paid a total amount of US$10,564,752.04 in Social SecuritycontributionswhilstUS$19,313,254.97 waspaid as income tax in respect of their employeesduringtheyearunderreview.

Total income generated in 2014 was Thirty-One Million, Eight Hundred and Eighty-NineThousand, Four Hundred and Thirty-Seven Ghana Cedis, (GHC31,889,437) as against 2013amount of Fifteen Million, Six Hundred and Forty-Three Thousand Ghana Cedis,(GHC15,643,000). This represents a 103.9% increase in revenue generated over 2013. Theincreasewasmainly due to levies and penalties on companieswho do not complywith theboardoperationalregulations,increasedsalesofForms,LicenseFeesandrenewals.

Excess income over expenditure was Eighteen million and Seventy-Four thousand, FiveHundredandTwoGhanaCedis (GH¢18,074,502) in2014as against Sixmillion, FiveHundredandSixty-Ninethousand,SevenHundredandSixty-NineGhanaCedis(GH¢6,569,769)in2013.

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3.0REVIEWOFOPERATION

3.1ADMINISTRATIONDEPARTMENT

ThisreportseekstocapturethemajoractivitiesoftheAdministrationdepartmentoftheGhanaFreeZonesBoard (GFZB) in2016.TheAdministrationdepartmentamongother thingshas themandatetoadvisemanagementongeneraladministrativepoliciesincludingstaffrecruitment,transport, welfare,medical,pension,securitypolicies,collationandproductionoftheannualbudget to the board, facilitate staff appropriate training, staff performance appraisalmechanism to enhance and determine the potential of individual staff for promotional andtarget setting purposes. Its directly supervises the operations of the Human Resources,TransportandStoresUnits.3.1.1HumanResourceUnitTheHumanResourceteamaspartofbuildingonitsgainsovertheyearsdecidedtofocusonstrategic employeesmanagement tailored at supporting the unique goals, corporate culture,andobjectivesoftheorganization.GFZBbelievesthat itssuccessasanorganizationdoesnotonly depend on hiring qualified candidates, but also effective human resource planning andmanagement is requiredatall stages toensureemployeegrowthand satisfaction.Employeesatisfaction is vital to the success of any organization because of its direct impact onproductivity and creativity. This combination of high satisfaction and maximum productivityamountstoemployeeengagement,forwhichreason,theHRteamdecidedonthefollowingasobjectivesfortheyear2014whichwasworkedonquarterlythroughouttheyear.

Ø TrainingandDevelopmentneedsassessmentØ RecruitmentØ EmployeeOrientationØ EmployeeMotivationØ HealthandSafetyØ HRsystemimplementationsØ UpholdingConfidentiality,Accountability,andTrust.

3.1.2RecruitmentGFZB recruitment strategy is to attract individuals who share its values, and believes in itscourse. Ourselectionprocessensuresthatwecarefully identifybehaviouralcompetencies inaddition tomandatory technical skills. Therewere twelve (12) new recruitments in the year2014. Nine (9) Assistant Officers, one (1) driver, one (1) Janitor and one (1) Gardener toaugmenttheexistingstaff,moreespeciallybecausesomestaffmovedfromtheSecretariattothe Tema Enclave officewhichwas opened in July this year. As stated in Article 5 (i) of theCondition of Service, all new staff members who were employed during year, signed adeclarationpledgingtoobserveastrictcodeofsecrecyinrespectoftheaffairsoftheGFZB.

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3.1.3TrainingandDevelopmentThereisanimperativeneedtodevelophumanresourceineveryorganizationtoenhancethecapacityofthepersonneltodelivertheirassignedroles.GhanaFreeZonesBoardisacompanythat prides itself with attracting and retaining passionate and highly skilled employees. Insupport of these values, GFZB has fostered a culture of learning and on-going professionaldevelopment through the implementation of several unique training programmes andopportunitiesfor itsemployeesboth incountryandoutofthecountry. Intheyear2014,thesecretariatcontinuedtoprovidetraininganddevelopmentopportunitiesforitsstaffmemberstoenhancetheirlevelofproductivityandsupportstaff’spersonaldevelopment.TwentySix(26)staff attended training in their various fields. Below is a tableof training anddevelopmentalcoursesattended2014.

COURSE/PROGRAMME BENEFICIARIES DATEATTENDED

NUMBEROFSTAFF

Public FinancialManagement for Non-financialManagers.

AssistantOfficer 27/01/14to07/02/14

1

Dynamic OfficeManagement andAdministration

SecretaryandRegistrar 24/02/14to28/02/14

2

Computerized Auditing &AccountingSystems

ComplianceOfficers 03/03/14to14/03/14

3

Dynamic OfficeManagement andAdministration

Secretaries

07/04/14to11/04/14

3

Strategic Records &InformationManagement

AssistantOfficers 19/05/14to23/05/14

2

IT Audit, InformationSecurity & Risk InsightsAfrica

SeniorOfficer 19/05/14to21/05/14

1

Project and EnvironmentalManagement


1

Advance ProjectManagement


1

EnvironmentalManagement andDevelopment


1

Effective Human Resource Manager 06/05/14 1

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Management to08/05/14

Taxation Policy andManagement

AssistantManagerAssistantOfficers

16/06/14to20/06/14

12

Protocol, Etiquette andEventsManagement

AssistantOfficer

02/06/14to06/06/14

1

Advance TreasuryManagement

Headoffinance

07/07/14to18/07/14

1

Financial Analysis,BudgetingandReporting

AssistantOfficer

30/07/14to05/08/14

1

SupervisorySkills

AssistantOfficer

04/08/14to08/08/14

1

Payroll and PensionManagement

Officer

03/09/14to10/9/14

1

Construction ProjectManagement

Head Of Estate AndEnclave

23/10/14to05/11/14

1

Construction ProjectManagement

HeadOfProcurement 23/10/14to05/11/14

1

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3.1.4 PromotionPromotionmeans growth and rise up the professional ladder. Promotions assignworkers tojobsbettersuiting theirabilitiesandquicklymoveuptalentedworkers.Promotion isusedtorewardpastemployee’sefforts,promoteinvestments inspecifichumancapitalandlowerjobturnover.Goodperformance leadstopromotion. Incentives, rise insalary,employeebenefitsetc.giventoemployeesgivethematremendoussenseofsatisfaction,butthemostimportantmotivatingfactor,whichrejuvenatesanemployeewithmoreenthusiasmandresponsibility,is“Promotion”.Itissaidthatonlyagrowingpersonisseenasasuccessfulperson.Itisinsupportof the above-mentioned values that GFZB encourages promotion of its deserving staff.Promotion in GFZB is based on qualification, efficiency, on the-job experience, sense ofresponsibility, initiative, general behaviour, cooperation, interest in the GFZB’s affairs,leadership qualities, special aptitude, punctuality and such other factors as the GFZB maydeterminefromtimetotime.Therewasnopromotionduringtheyearinreview.3.1.5StaffStrengthGFZB ended the year with Sixty five (65) highly qualified and engaged staff that drives itsobjectivesandactivitiesatthesecretariat.ThenumberismadeupofTwentyFive(25)femaleandForty(40)malestaffmembers.

3.1.6EmployeeOrientationGhana Free Zones Board continues to give orientation to new staff as they come in since itappreciatestheimpactthatawell-structuredorientationprocesscanhaveonnewemployees,andtheirabilitytosuccessfullyintegrateintotheworkplaceandhelpthemstartoffontherightfoot. The HR unit has created a detailed Employee Orientation Programme that helps newemployees learnaboutbasicworkplaceoperations,what isexpectedof themandwhat theyshouldinreturnexpectfromtheorganisationwiththeassistanceofreceivingdepartments.

3.1.7MotivationThegoalistomotivateemployeeswiththerightenvironmentandmanagementpracticesthatbringoutthebestinthemsotheycangivetheirbesttotheorganizationandcustomers.Theboardwill continue to findways ofmotivating staff as it believes thatwhen an employee ismotivatedhe/shewillbecommitted,excited,energizedandpassionateabouttheworkhe/sheisdoingandtheorganizationhe/sheisworkingfor.3.1.8HealthandSafetyEmployeesarethemostvaluableassetsthatanorganizationpossesses. Inthesamewaythatmachinerymustbemaintained,staffhastobelookedafterinsuchawaythattheycanproducetheirbesteffort.Thisinvolvesbutnotlimitedtotheirwelfareandtheirhealthandsafety.Itissaid that a healthyworkforce is likely to be an efficient workforce. There is also the strongbelief that health status, asmeasured bymodifiable health risks (e.g., obesity, tobacco use)

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and/orhealthconditions(e.g.,diabetesandhighbloodpressure),canimpairday-to-dayworkperformance. Considering the impact that health status has on organizational performance,employeewellnessisacriticalfactortoanorganization’sshort-andlong-termsuccess.Itisforthis reason that GFZB continues to reimburse part of employee’s medical bill and pays foremployees National Health Insurance to ease some of the burden on medical bills from itsemployees.InadditionGFZBorganizedahealthscreeningforitsstaff,whereaStateoftheArtandawell-knownmedicalcompanywascontractedtocomeonsitetohavemedicalscreeningdoneonthestafffollowedbyaone-on-onemedicalconsultationwiththecompany’smedicaldirector.Thisgavethestaff theopportunity toknowwhat iswrongwiththemmedicallyandthendothenecessaryfollowups.

3.1.9ConclusionTheHRunitundertheAdministrationdepartmentandthesecretariatatlargearecommittedtopromoting conducive working environment that promotes productivity, creativity and anengagedworkforce.TheHRunitwillcontinuetoworkonachievingitsobjectivesfortheyear.

3.2InvestorSupportServicesTheDepartmentismandatedtoundertakethefollowingactivities:

• IdentifyandImplementtime-framedstrategiesforthepromotionoftheGhanaFreeZonesProgramme.

• OrganizethepreparationandselectivedisseminationofpromotionalliteratureandmaterialsontheGhanaFreeZonesProgrammetopotential localandforeignzoneinvestors

• Prepare and organize in-and out-bound free zone investment promotionmissions/conferences as well as participate in international and local tradefairs/shows/exhibitionswiththeaimtoattractinvestorsintothezone

• Develop andmaintain good relations with licensed enterprises to ensure smoothoperations.

• Provideaftercareservicesforlicensedfreezoneenterprises.• DesignfortheprovisionanddisseminationofcredibleinformationonthefreeZones

programmetothelocalandinternationalmedia• Develop andmaintain close relationshipwith foreign and localmedia houses and

journalists with the object of sponsoring articles, advertisements and otherpublicationsforthepromotionofthefreezoneprogramme.

• Organizediscussionsandeducationalcampaigns inthemediaontheopportunitiesandincentivesunderthefreezonescheme.

• Establishcloserelationswithandorganizelecturesontheessence/prospectsofthefree zonesprogramme forofficials of bothpublic andprivate sectororganizationswhoseactivitiesbearonthedevelopmentoftheprogramme.

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• Provide necessary information for general enquiries and interestedindividuals/groupsvisitingthesecretariat.

• Undertakeanyothersuchactivitieswhicharelikelytocontributetothepromotionoftheprogrammeandtheimageoftheorganizationasawhole.

In yearunder review, the Investor Support ServicesDepartment sawan improvementof themarketingactivitiesandcommitmentofthedepartmenttobeproactiveinthedischargeofitsduties.Thefocuswasinvestmentpromotionactivitiesincludingparticipationintradefairsandexhibitions,localpromotion,advertising,targetedinvestmentpromotionmissions,andinvestoraftercare.3.2.1LocalFairs/OutreachProgrammeThe Ministry of Foreign Affairs has instituted an inter-institutional planning committee tocoordinateallinternationalandlocalparticipationattradefairsandexhibition.TheGhanaFreeZonesBoardhasnominatedarepresentativetoserveonthecommittee.Someagencieswithrepresentatives on the board are, FAGE, GEPA, Ghana Chamber of Commerce, Ministry ofTrade,EDAIF,GIPCetc.

For themost part the year 2014, all activities were coordinated with the abovementionedagencies to ensure that there was collaboration between agencies to maximize efforts toincreaseinvestmentintothecountryandmostimportantlypromoteexportorientedactivities.

3.2.2InternationalFairs/InvestmentpromotionMissionsTheunderlistedfairsandmissionswereembarkedonduringtheyearunderreview:

• 4th Round of Ghana-Turkey Joint Trade and Economic Committee CooperationNegotiationsatAccraInternationalConferenceCentreon14thApril,2014.

TheNegotiationwassignedbytheMinisterofTradeandindustry,HonourableHarunaIddrissuandhisTurkishcounterpart.

• MeetthePressattheMinistryofInformation-April15th2014

TheGhanaFreeZonesBoard(GFZB)wasinvitedbytheMinistryofTradeandIndustrytoattend theMeet-the-Press seriesorganizedby theMinistryof InformationandMediaRelationsonApril15th2014.Aspartof theprogramme,theGFZBtogetherwithotheragencies under theMinistry of Trade and Industrymounted amini exhibition for theMinister’sinspectionandacquaintancewiththeboard’scurrentachievementsaswellasto disseminate information on the programmes and activities of the board to invitedguestsandthemedia.

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• Pan-African Conference on Inequalities in the Context of Structural Transformation-28thto30thApril2014

TheMinistryofTradeandIndustryorganizedathree-dayhighlevel,multi-StakeholderAfrican Conference on Inequalities from 28th -30th April 2014 at the AICC. TheGhanaFree Zones Board mounted a mini exhibition to showcase the Ministry’s policies,programmes,activitiesandachievementsovertheyears.

• 9thInternationalTurkish-AfricanCongress

The 9th International Turkish-African Congress with its main theme “Sectoral andFinancial Transformation in Africa: Opportunities & Risks” was organized by TASAMAfricanInstituteinIstanbulfrom24th-25thApril2014.

The congress was attended by various ministries and undersecretaries form Turkey,AfricanUnion,Expert Institutions,Africa’sprominent regionaleconomicorganizations,financialinstitutions,AfricanChamberofCommerceandIndustry,InvestmentIncentiveCenters,FreeEconomicZones(includingtheGhanaFreeZonesBoard),BusinessWorldUmbrella Organizations, Consulting Corporations, Investment Companies andMissionRepresentatives of African Countries in Ankara. Representatives from variousinternationalorganizationsalsoattended.In 2000Africawas called as “Hopeless Continent”, in 2011 itwas re-called as “RisingContinent” which was regarded as a result of change and transformation. Theimportance Direct Foreign Investment and Remittances by African Diaspora to thecontinent were reported. It was mentioned that the amount of Direct ForeignInvestmentwas9.6billiondollarsin2000whichhasrisento50billiondollarsin2012.Itwas pointed that this growth rate was as a result of Chinese, Indian and BrazilianinvestmentsinAfrica.

• WorkingvisittotheEmbassyofGhanainBrussels,Belgium,theAfricanCaribbeanand

PacificGroupofStates’officeinBrusselsandtheEmbassyofGhanainDenHaag,theNetherlands.

At theEmbassyofGhana inBrussels, the ISSManager,metandhelddiscussionswithMr.PatrickAmosPokuandAbdulRahmanAdamMinisterCounsellor,CommercialandHead of Chancery respectively. This meeting was to create and foster businessrelationships between Belgian entrepreneurs and businessmen as well as GhanaiansresidinginBelgiumthroughtheEmbassyandtheGFZB.TheISSManageralsoexplainedtheFreeZonesprogrammeandtheimminentincentivesthatpotentialinvestorswouldbenefitfromiftheylocatedtheirbusinessestoGhanatooperateaslicensedFreeZonesCompanies.

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• MeetingWiththeBlackIvyGroupLLC-4thApril2014

TheGFZBwasinvitedbytheMinisterofTradeandIndustry,HonourableHarunaIddrissuforabriefingonameetingwithBlackIvyGroupLLC.BlackIvyisaninvestmentcompanybasedinMarylandtheUnitedStatesofAmerica,whichisinterestedinthedevelopmentoftheGFZB’sdesignatedlandbankinShamaintoamulti-purposeindustrialpark.

• WorldTradeCentreAccraPromotionalSeminar-TradeandInvestmentMissiontotheU.S.A-13thMay2014

The GFZB participated in a promotional seminar on the, 13TH May 2014, on theupcomingtradeandinvestmentmissiontotheUnitedStatesofAmerica.Thistradeandmission was organized under the auspices of WTC Accra with support from the U.SEmbassyinGhana,theAmericanChamberofCommerce,Ghana.

ThepurposeofthemissionwastointroducebothGhanaianandAmericanfirmstotheirrespective markets and prospective partners in the areas of education, agriculture,health,transportation,mining,electricity,textiles,footwear,Informationtechnology,oilandgas,energy, realestate,constructionand infrastructure, telecommunication,autoparts,amongothers.

• W.T.O.TradeReviewCommitteeMeetingsattheMinistryofTradeandIndustry

TheGhanaFreeZonesBoard,(GFZB)togetherwithotherrepresentativesfromvariousMinistries, Departments and Agencies (MDAs) was part of the Trade Policy ReviewCommitteethatheldseriesofmeetingsattheMinistryofTradeandIndustry.GambiaInvestmentandExportPromotionAgencyDelegation-15thMay2014

The Ghana Investment Promotion Centre hosted a twomember delegation from theGambiaInvestmentandExportPromotionAgencyfrom12THto16THMay2014.Theduohadcometounderstudythecentre’soperationstolearnbestpracticesandapplysameto their programmes, activities and policies in the Gambia. The delegation helddiscussions with relevant Ministries, Departments and Agencies including the GhanaFreeZonesBoardon15thMay,2014.

• Invitationto75thNationalExportersForum-28thMay,2014

TheGhanaFreeZonesBoardattendedthe75THNationalExporters’Forumon28THMay,2014 at theMain Auditorium of theGhana Trade Fair Company, La, Accra. OriginallyknownastheExporters’Forum,theNationalExporters’Forum, institutedin1987, isaplatformforfinding‘on-the-spot’solutionstochallengeexportersfaceintheirbusinessandalsoto informandeducateexportersonnewprogrammesandpoliciesrelatedtoexport.Issueswereraisedaboutthenon-issuanceoflicencestoGhanaianinvestorswhowantedtooperatewithinthefreezones.ThisstatementwasregardedaserroneousandthenecessarycorrectionwasmadetoclearthemisconceptionamongsomeGhanaians.

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• TimewithIndustryPlayersorganizedbyGhanaTradeFairCompanyLtd.(GTFC)

TheGhanaFreeZonesBoardattendedtheTIMEWITHINDUSTRYPLAYERSprogrammewhichwasorganizedby theBoardandManagementof theGhanaTradeFairCo. Ltd.TheprogrammewaslaunchedattheGhanaTradeFairCentre,MainAuditoriumonthe3rdJuly2014.

The programmewas aimed at interacting on the prospects of the rebranding of theactivitiesofGhanaTradeFairtobenefitofourcorporateentities.

• RoundtableDiscussionwiththeHeadofUNIDOITPOItaly-4thJune,2014

GhanaFreezonesboardwas invitedtoattendroundtablediscussionwiththeheadofUnidoITPOItalyon4THJune,2014at10:00attheWorldTradeCentre.ThePurposeofthemeetingwastodeliberateonapossiblecountrypresentationtotheItalianbusinesscommunityinRomeon31STOctober2014.TheObjectiveofthecountrypresentationistoshowcasetheinvestmentopportunitiesinGhanatoItalianinvestors.

• WorkshoponHarmonizationofInvestmentandInvestmentRelatedProceduresandPolicies

TheGIPC invited theGhanaFreeZonesBoard tobepartofaworkshop toharmonizesome sectionsof theGIPCActon investment and investment relatedprocedures andpolicies.

• 4thNationalHealth,Environment&SafetyConference&Exhibition2014

The Ghana Free Zones Board was invited by the Ministry of Trade and Industry toparticipate in the 4th National Health Environment and Safety Conference andExhibition.Aspartoftheprogramme,theboardtogetherwithotheragenciesmounteda stand to engage with the general public while educating them on the Free Zonesprogrammesandactivities.

• InternationalStarforLeadershipinQualityAwardByBidGroupOne-June20thAnd21st,2014

GhanaFreeZonesBoard,chosenbySelectionCommitteeofBIDqualityandInnovationAward,receivedtheInternationalStarforLeadershipinQualityinPlatinumcategoryintheyear2014forcommitmenttoQualityandExcellence.

The2014InternationalQualityAwardswerepresentedbyBusinessInitiativesDirectionsand BID Group One in the Hyatt Paris Etoile, Palais des Congress Convention Hall inParis,France.TheEventwaspresidedbyJoseE.Prieto,PresidentandCEO,alongwithoutstandingpersonalitiesfromthebusinessworldanddiplomaticcorps.

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TheAwardwaspresentedduringtheInternationalISLQConventionheldbyBIDGroupinParisonJune20thand21st,2014.TheGhanaFreeZonesBoardwaspresentedbytheInvestor Support Services Manager (Hajia Hanatu Abubakar) and Madam KatherineOduro,aboardmemberoftheGFZB.

• PressBriefing-26thJune2014

TheGhanaFreeZonesBoardorganizedapressbriefingon26thJune2014toinformthegeneralpublicabouttheInternationalStarforLeadershipinQualityawardwhichwasintherecognitionoftheBoard’shardworkandsterlingperformance.Subsequently,therewas a stream of publications from both the print and electronic media. The mediahousespresentatthepressbriefingincluded

3.2.3PromotionalMaterialsThedepartmentprintednewbrochurestomeettheincreasingdemandofinformationonthefreezonesaswellas thedepartment’s regularparticipation in fairsandexhibitions.Thenewbrochures were updated with information on the economy of Ghana and the cost of doingbusiness.

Thedepartment supplied itsdiaries and calendars to the information servicedepartment foronward transmission to Ghana missions abroad and some were directly given to selectedmissionthathostedinvestmentprogrammes.3.2.4EndofYearDinnerDanceTheGhanaFreeZonesBoardorganisedanendofyeardinnerdancetobringall stakeholderstogether for a fruitful interaction as well as inform them and the general public about theachievementsof theBoardover theyears.TheExecutiveSecretaryof theGFZBalsooutlinedsomeprospectsfortheyear2014whichhadresultedfrominvestmentpromotionmissionstheBoardhasembarkedonwithintheyear.Notableamongtheprojectsmentionedwere:

• BlackIvy’sWestParkprojectinShama,• Adenyapoultryproject,• BPMPackagingCompany• 1stAfricanConferenceoftheWorldFederationofFreeZones(FEMOZA)

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3.2.5EnquiriesThedepartmentintheyear2014receivedover1,150enquiries.This includestelephonecalls,emailsandwalk-ins.

The department contacted persons who had made enquires to check if there was anyassistance thedepartment could give and if theywere facing any challengeswith regards totheirintentiontoacquirealicense.

Lastly thedepartmentalsoprovided informationon request to institutionsand individuals inGhanaandabroadforresearchandacademicpurposes.

3.2.6InvestorAftercareThedepartmentduringtheperiodvisitedafewofthenewlylicensedGFZBenterprisestoverifyiftheywerefacinganychallengesandalsoiftherewereobstacleshinderingthemfromstartingoperations.TheywereencouragedtocomplywiththeFreeZonesActandanyotherstatutoryrequirements.

3.2.7WayforwardFDI programs must be organised in Ghana for students in Tertiary Institutions studyingmarketing, International Relations and International trade courses to benefit from existingpracticalities.

GFZBmustdiscussthepossibilityofsettingupabranchofBusinessLocationInternationalofficeinGhanatoenablethetwo institutionscollaboratetoorganiseayearlyConference/SeminarforLicensedFreeZonesCompaniesinGhana.Thiscollaborationcouldgeneratesomefundsforthesecretariat.

3.3 PROJECTEVALUATIONANDLICENSINGDIVISION

TheApplicationProcessingDepartmentisinchargeofcollatingandevaluatingallapplicationsreceived at the Secretariat from prospective investors by ensuring compliance with therequirementsspecifiedintheFreeZoneRegulations(1618).

The Ghana Free Zones Board received Twenty Six (26) new applications from prospectiveinvestors.Outofthisnumber,theBoardapprovedFourteen(14),deferredSix(6),Two(2)weredeclinedandFour(4)werepending.

3.3.1ApprovedApplicationsThelicensedcompaniesweremadeupofNine(9)fromthemanufacturingsector,Two(2)fromtheservicesectorandThree(3)fromthecommercialsector.Detailsoftheapprovedcompaniesandtheirrespectivesectors/subsectorsareattachedasAppendixI.

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3.3.2RevocationofLicenseTheBoarddidnotrevokeanylicensein2014.Asattheendof2014,thenumberofactiveapprovedcompaniesstoodatTwohundredandSixtyTwo(262).

3.3.3PendingApplicationsTherearefour(4)applicationspendingforconsideration.Thecompaniesandtheirnatureofbusinessareasfollows:

NAMEOFCOMPANY NATUREOFBUSINESS

BelmetGhanaLimited SteelManufacturingforTheOil,GasandMarineIndustry

EnclaveClinicLimited ProvisionofHealthServicesWestAfricaCocoaProcessingLimited ManufacturingofCocoaButterandLiquor

AmorisaManufacturingLimited ProcessingandPackagingofCashewNutsandKernels

3.4 ESTATE&ENCLAVEDEVELOPMENTDEPARTMENT

3.4.1Introduction

The Estate and Enclave Development Department is mandated to spearhead the Board’sleading strategy of developing declared sites for free zone operations into enclaves andindustrialparks.ThisDepartmenthasitskeyfunctionsasthefollowing:

1. PlanningandmonitoringofinfrastructuredevelopmentprojectstoupgradetheBoard’senclavestoworldclassindustrialestatesforinvestmentgrowth.

2. Coordination of utility supplies and services to ensure maximum productivity by

operators.

3. Enforcementofestatedevelopmentandproductionstandardstoensuregoodindustrialharmonyandenvironmentalsafety.

4. Promotion of enclave sites and industrial parks as choice locations/destinations for

foreigndirectinvestmentsandindustrialbusinessgrowthhubs/poles.

5. ManagementofBoard’sproperty-Secretariatbuilding,equipmentservicing(airconditioners,fireextinguishersetc).

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3.4.2OperationalActivitiesTemaExportProcessingZone

v Water/ElectricityConnectionsDuring theperiodof reporting, theunderlistedcompanieswithin theMultipurpose IndustrialPark(MPIP)appliedforwaterandelectricityconnectionstotheirpremises.TheDepartmentdulycoordinatedwiththeGhanaWaterCompanyLtd(Tema)andGRIDCo/AVHermonLtdtoconnectthemtotheutilities.Thecompaniesare;

• CenturyIndustriesLtd• MelcomLtd• RitikaLtd

CurrentlytheoccupancyrateattheExportProcessingZoneisFifty-nine(59);MultipurposeIndustrialPark(MPIP) - TwentyFive(31)CompaniesGFZBBufferZone - Six(6)CompaniesInternationalLandDevelopmentCompany(ILDC) - Fifteen(15)CompaniesOctoglowLtd - Six(7)Companies

OutstandingPaymentofPremium/GroundRentforLand

TheDepartmentinconsultationwiththeAccountsandLegalDepartmentcompiledthelistofalldebtors in relation to land allocation at the Tema Enclave. Defaulterswerewritten to settletheirindebtedness.

v GeneralWaterSupplyToTepz/MpipDuring the period under review, the general water supply to the TEPZ/MPIP improvedsignificantlyduetothegoodworkingrelationshipbetweentheDepartmentandGhanaWaterCompanyatTema.

v MonthlyMeterReadingTheDepartmentandMessrsAVHermonhavebeentakingthemonthlypowerconsumptionoftheindividualenclavetenantsandpreparingthebillsforthemforpayment.

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3.4.3OtherActivities

a. DevelopmentOfCommunity21IntoAWorldClassResidentialEstate A proposal on the above subject was presented to the Board from Vanguard Properties

Development and the Governing Board of the Ghana Free Zones Board has finalizednegotiationswiththeVanguardPropertiesLtdtodeveloptheProposedCommunity21Landintoaworldclassresidentialestate.

b. Security

TheDepartmentwillliketoreportthat,duringtheperiodunderreview,thepolicepatrolinandaroundtheTEPZisstillon-going.ThishasdrasticallyreducedtheincidenceofvandalisationandstealingofpartsofplantandequipmentwithintheTEPZ.

c. ConstructionOfPerimeterFenceWall

The finalphaseof thepreparation towards theawardof contract toconstruct theperimeterfencewallhascommenced.

d. RenovationWorksontheAdministrationBlockatTEPZTheDepartmentwill liketoreportthat, therenovationworksontheadministrationblock inTema has been completed. Also, weeds in and around the enclave have been cleared toenhancethefaceliftoftheenclave.

e. EstablishmentofFireStationattheTemaEPZDuringtheperiodofreporting,theDepartmentbegandiscussionswiththeTemaRegionalFireServiceDepartmentfortheestablishmentofafirestationtoservetheTEPZanditsenvirons.The Board has been assured of an allocation of a Fire Tender, Recovery Trucks and anAmbulance to that effect. Meanwhile, plans are far advanced to renovate a pre-fabricatedbuildingownedbytheBoardtotheFireDepartmentforitsuseattheTEPZ.

f. EstablishmentofABankThe Secretariat, during the reporting period also started discussions with Zenith Bank andEcobankfortheestablishedofabankingfacilityattheTEPZ.

SekondiEpz

1. Re-SurveyofSekondiIndustrialPark

With the Board realization of some encroachment on the Sekondi Industrial Park, the LandsCommission(Sekondi-Takoradi)werecommissionedtore-surveytheSekondiIndustrialParktoenabletheBoarddeterminetheactualsizeofthearea.There-surveywillalsohelpidentifythe

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boundariesofthevarioustraditionalchiefswhoselandfallswithintheSekondiIndustrialPark.The Department will like to report that the re-surveying of the Sekondi EPZ has beencompleted.

ProposedGuestHouseatKumasi

TheBoardgaveapprovalfortherenovationofanexistingMinistryofTrade&IndustryGuestHouse in Kumasi to be used by the Board. A teamofQuantity Surveyors took a preliminaryassessment of the whole building in Kumasi and submitted their report to the Board. TheDepartmentisnowawaitingthecostestimatesfromcontractorsforthesaidwork.

3.5COMPLIANCEDEPARTMENT

ThecorefunctionsoftheDepartmentweretoensurecompliancebyFreeZoneEnterprisesasenshrinedintheFreeZonesAct1995,(Act504)anditsregulations(L.I1618).

ThefollowingactivitieswerecarriedoutbytheComplianceDepartmentintheyear.

3.5.1In-houseTrainingSeminarAtwodayin-housetrainingseminarwasorganisedforComplianceOfficersoftheDepartment.Topicsdiscussedincludedinterpretationoffinancialstatementsandauditreportwritingskills.

Participantsweretakenthroughvariousstagesofprocessingapplicationsforexemption.

ReviewofGFZBform9swascarriedoutwithaviewofrefiningandredesigningtheformstomeet current situation. Some changes were proposed and recommendations made tomanagementforconsiderationandamendment.

3.5.2SeminarforFZEsAspartoftheDepartmentworkplanfor2014,atrainingseminarwasorganisedforFZEsintheGreaterAccra,Eastern,CentralandAshantiregions.Thepurposewastoupdatethecompanieson issues relating to their operations. Resource persons were drawn from the GhanaImmigrationService,DomesticTaxandCustomDivisionsoftheGhanaRevenueAuthority(GRA)andofficialsfromthesecretariat.

3.5.3CapacityBuildingTen (10) compliance officers attended training programmes in auditing and computerisedaccountingsystem,andauditofcomputerbasedfinancialsystems.

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3.5.4AuditTheDepartmentcarriedoutauditonOneHundredandThirteen(113)FZEsassummarisedbelow:

QUARTER NO.FIRST(1ST) Nil

SECOND(2ND) 30THIRD(3RD) 44FOURTH(4TH) 39

TOTAL 113

3.6INFORMATIONTECHNOLOGYDEPARTMENT3.6.1KeyFunctionsThe IT department strives in providing infrastructure for automation and governance for the use ofnetwork and application software to assist in providing operational units with the functionality theyneed. Other major activities that took place during the year under review include but notlimitedto:

• Procurement, installation andmanagement of licensed Antivirus software for theBoard.

• OperationoftheGCNetSystem• Regularbackupofimportantdata• RegularupdateoftheGFZBwebsitetoprovideup-to-dateinvestmentinformationin

thefreezones.• OngoingupdateofinformationabouttheFreeZoneEnterprisesformonitoringand

managementdecisionmaking• Providingthecapacityforoperatingapplicationsdevelopment,storingandsecuring

theelectronicinformationtheBoardowns,andprovidingdirectoperatingassistanceinsoftwareuseanddatamanagementtoallfunctionalareasattheSecretariat.

• Management of the internet connectivity and operation of the corporate emailsystem

• ManagementofthenetworkinfrastructureattheSecretariat

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3.6.2ProcurementandConfigurationofICTEquipmentThefollowingitemswereprocuredduringtheyearunderreview.Theywereconfiguredanddistributedtostaff.

ITEM QUANTITYLaptopComputers 5PersonalComputers 15UPS 15HeavyDutyScanner 1LCDProjector 1

ThedepartmentupgradedsomeoftheolddesktopcomputersfortheNationalServicePersonnelwhoseserviceswereextendedtouseattheSecretariat.

3.6.3SoftwareDeploymentThe Board revitalized the implementation of accounting software with payroll and Human Resourcefunctionality. The Sage Pastel software has been installed on all the Accounting staff computers andtraining has also been completed. Training on the software has been completed with capturing ofoutstandingdataongoing.It isenvisagedthatthenewpayrollsoftwareshallbeusedtogeneratestaffsalariesfromJanuary2015.

3.6.4ConstructionofaLocalAreaNetworkinnewlyRentedOfficeTheBoardawardedthecontractofnetworkingthenewlyrentedofficebuildinganditwascompletedinSeptember. The IT department supervised the installation of the Local Area Network and internetconnection at the new offices. CAT 6 cables as well as Gigabit Ethernet were used to increase datatransmission rates up to 1000Mbps. A team at the Secretariat inspected the network infrastructurebeforethecontractorhandedovertotheBoard.TheSecretariatmovedintotheofficeinOctober.

3.6.5TrainingonuseofGCNet/GFZBWebPortalTheITunitparticipatedinthetrainingseminarorganisedbytheCompliancedepartmentforFreeZoneEnterprisesinKumasi.InvestorsweretakenthroughtheoperationoftheGCNetandcommonmistakestheymakeinthesubmissionofexemptionaswellastheuseofGFZBwebportalforonlinesubmissionofquarterlyinvestmentreturnstotheBoard

3.6.6GFZBInternetBandwidthUpgradeThe Board approved the upgrade of internet bandwidth from 1Mbps to 3Mbps at the Secretariatresultinginincreaseininternetspeedtoensurethatefficientonlineservices(egelectronicapprovalofexemptionthroughtheGCNetsystem)wereprovidedtoourcherishedclients.

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3.6.7NationalInformationTechnologyAgencyOne-StopServiceCentreTheNationalInformationTechnologyAgencyhasallocatedBoothNo.10attheOne-stopservicecentreatVodafoneOfficeatKwameNkrumahCircle,AccratotheBoard.TheultimateobjectiveistoimprovetheperformanceofGovernmentinservicesdeliveryandcreateamulti-channeldeliveryaccessforthepublic. The Centre became operational on 15th October 2014.Management is yet to fully utilize itsfacilities.

3.6.8WayForwardIt is the hope of the department that IT service delivery is improved to impact positively on users’efficiency.

3.7LEGALDEPARTMENT

3.7.1IntroductionTheLegalDepartmentisresponsibleforhandlingandrepresentingtheGhanaFreeZonesBoardinall legalactions inwhich theBoard’s interest isat stakewithassistance fromtheAttorneyGeneral’s Department. The Department offers in-house legal advice to the Board andSecretariat. The Department is responsible for drafting all legal documents such as LeaseAgreements.TheDepartmentalsodealswithrequestsfromlicensedfreezonecompaniesandprospective investors on legal issuesand interpretationof sectionsof theFreeZonesAct,1995(Act504)anditsaccompanyingRegulations3.7.2 LandMatters1.(a)TemaExportProcessingZone(TEPZ)

TEPZwasdeclaredafreezoneareaon17thMay,1996;inaccordancewithSection7(1)oftheFreeZoneAct1995,(Act504).Thelegalimplicationofthedeclarationofanareaasafreezoneisthatoccupancyisrestrictedtoonlyfreezonecompanies.LandsCommissionparceledthewholeofthelandconsistingofOneThousand,TwoHundredacres;intofour(4)Plots(A,B,C&D)andleasedtheplotstoGFZB,subjecttotermsandconditionsincludingpaymentofgroundrent.

PlotA

PlotA ismadeupof approximatelyOneHundredandSixtyAcresof land. FiveHundredAcresof thisparcel of landwasoriginally leasedbyGFZB toBusiness Focus Limited.Business Focus violated someconditionsandtermsofitsSubleaseAgreement.WithsupportfromtheLandsCommissionSecretariat,GFZBre-enteredthelanditgrantedBusinessFocus.FiveHundredAcresofthislandhasbeenleasedtoOctoglowGhanaLimited.

PlotB

ThewholeofPlotB,which isapproximatelyTwoHundredandFourteen (214)acresof landhasbeenleasedtoInternationallandDevelopmentCompany(ILDC).ILDCisalicensedFreeZonedeveloperwiththemandatetodevelopfreezoneareasforoccupationbyfreezoneenterprises.

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1.(b) Multi-PurposeIndustrialPark(MPIP)

Thewhole of Plot D, one hundred and fifty acres of landwithin Octoglow’s concession andmorethanonehundredandten(110)acresofPlotA,havebeenlegallyconvertedintoMulti-Purpose IndustrialParks.Consequently these sites cannowbeoccupiedbycompanieswhicharenot necessarily holders of free zone licenses. A request has beenmade to theAttorneyGeneraltoconvertanadditionalHundred(100)Acresof landwithinPlotA intomultipurposeuse.

1.(c)ProposedAshantiTechnologyParkApproximately One Thousand and Ninety (1,090) acres of land near Boankra in the AshantiRegionwasdeclareda freezone.Compensationduesurfacerightsownershasbeenpaid.Anamount of GH¢60,000.00 has been paid to the Ejisu Traditional Council as part payment onaccountofcompensationassessedandduelandowners.AMemorandumofUnderstandinggrantingtheBoardtherightofwayoverlandearmarkedforAshanti Technology Park has been executed between the Board and the Ejisu TraditionalCouncil.UnfortunatelytheMOUhasbecomeasubjectmatterofasuitwhichispendingbeforetheKumasiHighCourt(LandDivision).

1(d)ProposedShamaExportProcessingZone

A Memorandum of Understanding has been executed between some Chiefs of the ShamaTraditionalCouncilandGFZB.ThedocumentaccordsGFZBtherightofwayandthemandatetolocate investorson the land situateand lying in Shama,pending the completionof statutoryprovisionsoncompulsoryacquisitionof the land. Theareahasnotyetbeendeclareda freezone.TheMinistryofTradehassignedanMOUwithBlackIvyCompanyLimited.PartiestotheMOUhaveagreedtocollaborateandensurethedevelopmentoftheland.

1(e)SekondiExportProcessingZone

LandnearSekondiintheWesternRegionoftheRepublicofGhanawasdeclaredafreezonein1996. The site has been targeted for developmentwithpart of theGovernmentofGhana’sloan from the China Development Bank. A project Implementation Agreement and aConsultancy Agreement have been executed between GFZB and Hasan Investments GhanaLimited.HasanInvestmentswillberesponsiblefordevelopingtheland.A Memorandum of Understanding has been executed between GFZB and Chiefs of thebeneficiarycommunities.TheMinistryofTradeandIndustrywithfundingfromEDAIFhaspaidanamountofGH¢2,500,000.00totheChiefsandcommunitieswherethelandissituateasfirstinstallmentpaymentonaccountofcompensationdue.

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3.7.3 WayForwardGFZBisrequiredtosettleitsfinancialobligationtoTDCtomakehandingoverofthesitetoitspartner, Vanguard Properties Ltd possible. A Joint Venture Agreement and a Shareholders’Agreement should be executed with Vanguard Properties to pave the way for the actualdevelopmentofthesite.

4.0DATAANALYSIS

4.1INVESTMENTCAPITALSCHEDULEThetotalcapitalinvestmentmadebylicensedFreeZoneEnterprisesduringtheyearamountedtoUS$167.47million, a decrease of40.07% over the 2013 figure ofUS$279.45million. Thecumulativeamountofinvestmentcapitalinthefreezonessinceinceptionoftheprogrammein1996/97totheendof2014standsatUS$2,852.37million(refertoAppendixII)

4.2PRODUCTIONSCHEDULEOFMANUFACTURINGANDSERVICEENTERPRISESTheex-factoryvalueofproductionforFreeZoneEnterprisesinthemanufacturingandservicesectorduringtheyearamountedtoUS$2,200.18millionrepresentinga95.34%increaseoverthe2013figureofUS$1,126.31million(RefertoAppendixIII)

4.3IMPORTSCHEDULEOFCOMMERCIALENTERPRISESCommercialFreeZoneEnterprisesimportedsemi-finishedandfinishedgoodsatatotalvalueofUS$67,527,118.80 for re-packaging and re-export to the ECOWAS region and beyond. Thisrepresents adecreaseof6.6%over theprevious year’s figureofUS$72,304,598.41 (Refer toAppendixIV).

4.4EXPORTSCHEDULEOFALLENTERPRISESTotal ex-factory value of exports of all Free Zone Enterprises (manufacturing, Service andCommercial) amounted toUS$2,360.22million representing a decrease of 80.76% over the2013figureofUS$12,268.18million(RefertoAppendixV).

4.5EMPLOYMENTSCHEDULEOFALLENTERPRISESThemost important contribution of the Free Zones Programme to the economyofGhana isemployment creation. At the end of the reporting year, the employment figure ofGhanaiannationalsemployedbytheFreeZoneEnterprisesreached28,908.Thisrepresentsadecreaseof4.0%overthe2013figureof30,111

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Thedistributionofnationalemployeesaccordingtogenderindicatesthat20,744i.e71.76%weremalewhereas8,164i.e.28.24%werefemale.

ThenumberofexpatriatesemployedbyFreeZoneEnterpriseswas1,363representing4.5%oftotalemployment.ThetotalemploymentgeneratedbytheFreeZonesProgrammeasat2014was30,271(RefertoAppendixVI).

DistributionofemployeesintheFreeZonesProgrammebysectorisshowninthetablebelow:

TableVI

Sector Numberemployed

Developer 28

Manufacturing 27,705

Service 2,226

Commercial 312

4.6SALARY/WAGESCHEDULEOFALLENTERPRISESThefreezonesprogrammecontributesgreatlytotheeconomicempowermentoftheGhanaianworkforce.Totalvalueofsalary/wagesfor2014amountedtoUS$115,250,306.93an increaseof38.38%overthe2013figureofUS$83,283,783.56.

The total salary/wage paid to Ghanaian Nationals working with Free Zone EnterprisesamountedtoUS$75,173,166.58.Thisrepresentsanincreaseof27.17%overthe2013valueofUS$59,107,875.83. Expatriates working under the free zones programme earnedUS$40,077,140.35(RefertoAppendixVII).

4.7VAT/DUTIESPAIDONSALESINTOTHEDOMESTIC/LOCALMARKETTotal duties/levies paid on sales into the local market amounted to US$10,619,615.56 representing an increase of about 37.36% on the previous year’s figure ofUS$7,730,918.39 (RefertoAppendixVIII).

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4.8TRAININGSCHEDULEOFALLENTERPRISES(GHANAIANNATIONALS)Under the free zone regulations at least 1%of the total annual salary/wagebill of free zonecompaniesshouldbespentonthetrainingofGhanaiannationalsemployedinthecompanies.In 2014, a total amount of US$4,854,888.14 was spent on training national employeesrepresenting 4,2% of the total salary wage bill indicated above. Even though the minimumrequirement was achieved, only 151 Free Zone Enterprises actually offered training to theiremployees.(Ref.AppendixIX)

The Board is taking steps to ensure that more training programmes are implemented forGhanaianstaffworkingunderthefreezonesbyinstitutingpenaltiesondefaultingenterprises.

4.9SOCIALSECURITYSCHEDULEOFFREEZONEEMPLOYEESIn2014,151FreeZoneEnterprisescontributedatotalofUS$10,564,752.04 inSocialSecuritycontributionstotheSocialSecurityandNationalInsuranceTrust.(Ref.AppendixX)

4.10INCOMETAXSCHEDULEOFFREEZONEEMPLOYEESInthereportingyear,151companiescontributedatotalofUS$19,313,254.97 inIncomeTaxinrespectoftheiremployees.(Ref.AppendixXI)

5.0FINANCIALREVIEW

ThefinancialpositionoftheBoardasat31stDecember2014isasfollows:

5.1REVENUE

Total income generated in 2014 was Thirty-One Million, Eight Hundred and Eighty-NineThousand, Four Hundred and Thirty-Seven Ghana Cedis, (GHC31,889,437) as against 2013amount of Fifteen Million, Six Hundred and Forty-Three Thousand Ghana Cedis,(GHC15,643,000). This represents a 103.9% increase in revenue generated over 2013. Theincreasewasmainly due to levies and penalties on companieswho do not complywith theboardoperationalregulations,increasedsalesofForms,LicenseFeesandrenewals.5.2EXPENDITURE

Totalexpenditurein2014amountedtoThirteenMillionEightHundredandFourteenThousand,Nine Hundred and Thirty-Five Ghana Cedis (GH¢13,814,935) as against Nine Million andSeventy-ThreeThousand,TwoHundredandThirty-OneGhanaCedis (GH¢9,073,231) in2013.The marginal increase in expenditure was mainly due to increase in administrative & otherexpenses.

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Excess income over expenditure was Eighteen million and Seventy-Four thousand, FiveHundredandTwoGhanaCedis (GH¢18,074,502) in2014as against Sixmillion, FiveHundredandSixty-Ninethousand,SevenHundredandSixty-NineGhanaCedis(GH¢6,569,769)in2013.

TheAuditedAccountsisattachedasAppendixXII.

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Appendices

AppendixI-FreeZoneEnterprisesLicensedIn2014

NAMEOFCOMPANY NATIONALITY SECTOR/SUBSECTORNutforGrowthLtd Ghanaian (Manufacturing)

ProcessingofsheanutsadsoyaThelicensedcompaniesweremadeupofNine(9)fromthemanufacturingsector,Two(2)fromtheservicesectorandThree(3)fromthecommercialsector.beansintooilandfats

AlubondWestAfrica Indian/Spanish/Ghanaian (Manufacturing)Manufacturing of compositeglasspanels

China Agric. Science andTechnology DevelopmentLimited

Chinese (Manufacturing)Cotton farming, processing ofcottonandcottonseeds

FabrimetalGhanaLimited Indian/Canadian (Manufacturing)Manufacturingofsteelbars

DignityDTRTLimited Ghanaian-American (Manufacturing)Manufacturingofapparel

DTRTApparelLimited American (Services) Provides technicalandmarketingservices

SwedishEngineeringCompanyLtd.

Ghanaian/Swedish (Manufacturing)Manufacturingofmachineandengineparts

AltecoGhanaLtd. Singaporean (Commercial)Importofglue,sealantandalltypesofadhesives

KeltonGhanaLtd. Ghanaian/Indian

(Manufacturing)Manufacturing of margarine,mayonnaiseandsaladcream

PlatonGasoilGhanaLtd. Ukrainian

(Manufacturing)Oilrefinery

DowCommoditiesLimited Ghanaian CommercialDucatilimitedFormallySprinttmoLimited

Ghanaian Commercial

UniversalPlasticProduct&RecyclingLtd.

Ghanaian (Manufacturing)Plastic recycling &

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manufacturingEnclavePowerCompanyLimited

Ghanaian (Service)ManageanddistributepoweratTEPZ(Temaexportprocessingzone)

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AppendixII-CapitalInvestedByFreeZoneEnterprises2014

AppendixIII–ProductionScheduleofEnterprises2014

-

20.00

40.00

60.00

80.00

100.00

120.00

COMMERCIAL MANUFACTURING SERVICES

3.25

107.24

57.55

AMOUNT(US$M)

SECTOR

CAPITALINVESTEDBYSECTORS-2014

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00


1.71

2,181.66

48.36AMOUNT(US$M)

SECTOR

PRODUCTIONSCHEDULEBYSECTORS-2014

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AppendixIV-ImportScheduleofFreeZoneEnterprises2014

AppendixV-ExportScheduleofAllFreeZoneEnterprises2014

-

100.00

200.00

300.00

400.00

500.00


67.53

459.40

37.32AMOUNT(US$M)

SECTOR

IMPORTSSCHEDULEBYSECTORS-2014

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00


69.04

2,092.81

171.79

AMOUNTINUS$M

SECTOR

VALUEOFEXPORTSBYSECTORS-2014

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AppendixVI–EmploymentScheduleofFreeZoneEnterprises2014

AppendixVII-Salary/WageScheduleofFreeZoneEnterprises2014

0

5000

10000

15000

20000

25000

30000

COMMERCIAL MANUFACTURING SERVICE DEVELOPERS

312

27705

222628

NO.EMPLOYED

SECTORS

EMPLOYMENTDISTRIBUTIONBYSECTORS-2014

-

10.00

20.00

30.00

40.00

50.00

60.00


1.11

59.6154.53

AMOUNT(US$M)

SECTOR

SALARY/WAGESCHEDULEBYSECTORS:2014

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AppendixVIII-Vat/DutiespaidonLocalSalesbyFreeZoneEnterprises2014

AppendixIX-TrainingScheduleofFreeZoneEmployees(GhanaianNationals)2014

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Commercial Manufacturing Service

0.62

7.92

2.07

AMOUNT(US$M)

SECTOR

VAT/DUTIESPAIDONLOCALSALESBYSECTOR-2014

-0.501.001.502.002.503.003.504.004.505.00


0.02

4.59

0.24AMOUNT(US$M)

SECTOR

TRAININGCOSTBYSECTOR-2014

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AnnualReport201444

AppendixX-SocialSecurityScheduleofEmployeesofFreeZoneEnterprise2014

AppendixXI-IncomeTaxScheduleofFreeZoneEmployees2014

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00


0.64

6.26

3.67

AMOUNT(US$M)

SECTOR

SOCIALSECURITYCONTRIBUTIONBYSECTOR-2014

-

2.00

4.00

6.00

8.00

10.00

12.00


AMOUNT(US$M)

SECTOR

INCOMETAXPAIDBYSECTOR-2014

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AnnualReport201445

AppendixXII-AuditedAccounts

GhanaFreeZonesBoard

AnnualReport201446

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AnnualReport201447

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AnnualReport201448

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AnnualReport201449

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AnnualReport201452

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AnnualReport201455

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AnnualReport201456

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AnnualReport201458

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AnnualReport201459

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AnnualReport201461

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Documents

GHANA FREE ZONES BOARD ANNUAL REPORT AUDITED ACCOUNTS