SUBSIDIES
NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE
GATT 1994
AND ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES
AND COUNTERVAILING MEASURES
Ghana
The following communication, dated and
received on 25 September 2025, is being circulated at the request of the
delegation of Ghana.
_______________
The following
communication is submitted in accordance with the requirements of Article 25 of
the Agreement on Subsidies and Countervailing Measures (SCM Agreement).
1._
GHANA
FREE ZONES PROGRAMME
1. Title of the Subsidy Programme
Incentives for Free
Zones Enterprises
2. Period Covered by the Notification
2021‑2024
3. Policy Objective and/or Purpose of the Subsidy
The Ghana Free
Zones Program aims to promote economic development through:
a)_ Attraction of export oriented foreign direct investments.
b)_ Creation of employment opportunities.
c)_ Increasing foreign exchange earnings.
d)_ Provision of business opportunities for foreign, local investors and
joint ventures.
e)_ Promotion of technological transfer and diversification of export.
f)_ Enhancement of technical and managerial expertise of Ghanaians.
4. Background and Authority for the Subsidy
Legislation
The program
operates under the;
a)_
Free Zone Act, 1995 (Act 504)
b)_ Ghana Free Zone Regulations, 1996 L.I (1618)
Authority:
It is administered by the Ghana Free Zones
Authority (GFZA), an agency under the Ministry of Trade, Agribusiness and
Industry and responsible for regulating and overseeing operations within
designated free zones.
5. Form of the Subsidy
The subsidy is
available in the following form as prescribed by the law;
1)_
Free zone developers and
enterprises granted licenses under this Act shall be exempted from the payment
of income tax on profits for the first ten years from the date of commencement
of operation.
2)_ The income tax rate after ten years shall not exceed a maximum of 15
per cent.
3)_
A shareholder shall be exempted
from the payment of withholding taxes on dividends arising out of free zone
investments.
4)_
A foreign investor may take and
hold a maximum of 100 per cent of the shares in any free zone enterprise.
5)_
A domestic investor may take
and hold a maximum of 100 per cent of the shares in any free zone enterprise.
6)_
Foreign and domestic investors
shall have equal status within the export free zones.
7)_
Customs Duty Exemptions: 100%
exemption from payment of direct and indirect duties and levies on all imports
for production and exports from free zones.
The non‑monetary incentives offered include;
1)_ No import licensing requirements and minimal
customs formalities. Also, Free Zones investments are guaranteed against
nationalization and expropriation.
2)_ 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.
3)_ 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.
4)_ 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.
6. To Whom and How the Subsidy is Provided
The subsidy is available to licensed
free zone enterprises operating within designated export processing zones or as
single factory enterprises.
7. Amount of the Subsidy
The information regarding the amount of
subsidy provided is not available.
8. Duration of the Subsidy
The duration as prescribed in the law, companies
operating under the free zones program enjoy the benefits of all incentives
until licensed is revoked.
9. Statistical Data Permitting an Assessment of
the Trade Effects of the Subsidy
·_
Export revenue from free zones
averages USD 1.6 billion annually.
·_
The programme has created over
30,000 direct jobs and about 500,000 indirect jobs.
·_
Sectors benefiting include agro‑processing,
textiles and garments, electronics, and logistics services.
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