ghana free zones board

GhanafreezoneBoard

AnnualReport20121

GHANAFREEZONESBOARD

ANNUALREPORT

&

AUDITEDACCOUNTS

2012

FINALREPORT

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VISIONSTATEMENT

TofacilitateavibranteconomyinGhana,drivenbyawell-integratedbusinessenvironmentwithworldclasscapacityforcompetition,technologicalinnovations,businessgrowth,

economicdiversityanddevelopment

MISSIONSTATEMENT

TohelptransformGhanaintotheGatewaytoWestAfricabycreatinganattractiveandconducivebusinessenvironmentthroughtheprovisionofcompetitiveFreeZoneincentivesandoperationofanefficient“one-stop-shop”forthepromotionandenhancementofdomesticand

foreigninvestment.

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CONTENTS

Pages1.0 OVERVIEWOFGHANAFREEZONESBOARD 1.1 Introduction 1.2 FunctionsoftheBoard 1.3 Concept 1.4 Purpose 1.5 Strategy 1.6 Achievements 1.7 MembersoftheBoard 2.0 EXECUTIVESUMMARY

3.0 REVIEWOFOPERATIONS 3.1 HumanResourceDepartment 3.2 Marketing,Promotion&PrDepartment 3.3 ProjectEvaluation&LicensingDivision 3.4 Estate&EnclaveDevelopmentDepartment 3.5 MonitoringDepartment 3.6 InformationTechnologyDepartment 3.7 LegalDepartment

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

5.0 FINANCIALREVIEW 5.1 Revenue 5.2 Expenditure

6.0 CONSTRAINTS

7.0 CONCLUDINGREMARKS

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APPENDICES

Page

Appendix1 FreeZoneEnterprisesLicensedIn2012

AppendixII OccupancyatTemaEPZ/MPIPin2012 AppendixIII ListofcompaniesvisitedforOperationalAuditin2012

AppendixIV CapitalInvestedByFreeZoneEnterprises2012 AppendixV Production Schedule Of Manufacturing And Services Enterprises

2012

AppendixVI ImportScheduleOfFreeZoneEnterprises2012

AppendixVII ExportScheduleOfAllFreeZoneEnterprises2012

AppendixVIII EmploymentScheduleOfFreeZoneEnterprises2012

AppendixIX Salary/WageScheduleOfFreeZoneEnterprises2012

AppendixX Vat/DutiesPaidOnLocalSalesByFreeZoneEnterprises2012

AppendixXI Training Schedule Of Free Zone Employees (Ghanaian Nationals)2012

AppendixXII SocialSecurityScheduleOfEmployeesOfFreeZoneEnterprise2012

AppendixXIII IncomeTaxScheduleOfFreeZoneEmployees2012

AppendixXIV AuditedAccounts

TABLES

TableI RegistrationofCompanies TableII Employment TableIII Production TableIV Export TableV CapitalInvested TableVI EmploymentDistributionbySector

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1.0OVERVIEWOFGHANAFREEZONESBOARD

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

1.2FUNCTIONSOFTHEBOARDThefunctionsoftheBoardarestipulatedasfollows:

q Grantlicencestoapplicants;q Assist applicants for licences under Act 504 by providing services for obtaining other

relevantlicences,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.

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

q Attractionofforeigndirectinvestment;q Creationofemploymentopportunities;

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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 2012 was 308, the yearlydistributionfrom1996/97to2012isasfollows:

YEAR NO.OFCOMPANIES1996/97 81998 111999 62000 112001 142002 252003 372004 23

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2005 212006 292007 282008 262009 72010 202011 252012 17Total 3081.6.2Employment

TotalemploymentcreatedundertheFreeZoneProgrammeasattheendof2012was30,383,theyearlydistributionofwhichisasfollows:

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

1.6.3ProductionAnnualproductionvalueofFreeZonesCompaniesin2012wasUS$877.08M.Theyearlyfiguresfrom1996/97to2012areasfollow:

YEAR PRODUCTION(US$M)1996/97 1.40.001998 158.501999 162.20

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2000 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 877.08Total 8,394.65

1.6.4.TotalExport

Annual total export value of licensed Free Zone Enterprises from 1998 to 2012amountedtoUS$11,934.93.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 1,830.30Total 11,934.93

1.6.5CapitalInvested

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DuringtheyearunderreviewUS$247.51Mwas invested invarioussectorsof the freezone programme. The cumulative amount of capital invested in free zones since theinceptionof theprogramme in 1996/97 to the endof 2012 stands atUS$2,405.45M.Thebreakdownofinvestmentsovertheyearsisasfollows:

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 247.51Total 2,405.45

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1.7MEMBERSOFTHEBOARD

Hon.HannaS.Tetteh

(Minister of Trade &Industry)

Chairperson

Mr. Kwadwo TwumBoafo

Ag.ExecutiveSecretary

Mrs.GiftyAnku

Member

Mr. Raymod NeequayeKotey

Member

Mr.HumphreyQuaye

Member

HajiaLaadiAyiiAyamba

Member

MrsFlorenceHutchful

Member

Hon. Alhaji Ibrahim DeyAbubakari(MP)

Member

Ms. Sheila Acquah-Asare

Member

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2.0EXECUTIVESUMMARY

FreeZonesBoard(GFZB)continuedreflectionsonachievementssofarchalkedandwaystoimprovestrategiesandfocusonitsmandateofattractingexportorientedinvestmentsintoGhana

Followingtheunfortunatelossofoneofitsmembers,Mr.JoelHydein2011,theBoardhadtocontinuedischarging its responsibilities for the lastof its tenurewithonlyeight (8)membersjustasitdidinthelastquarterof2011.

TheGhanaFreeZonesBoard(GFZB)continuedreflectionsonachievementssofarchalkedandwaystoimprovestrategiesandfocusonitsmandateofattractingexportorientedinvestmentsintoGhananotwithstandingnumerouschallengesconfrontingthefreezoneprogrammesglobally.

TheGFZBhasfiftyninehighlyqualifiedandengagedstaffthatdrivesitsobjectivesandactivitiesat the secretariat for theperiodunder review.Thenumber ismadeupof Twenty-three (23)Female and Thirty-six (36) male staff members. This includes the Executive Secretary & hisdeputy,six(6)HeadsofDepartments/Managers,thirtythree(33)seniorofficersandeighteen(18)juniorofficers.

TheyearunderreviewsawtheMarketing,Promotion&PRdepartmentdisseminatedliteratureontheGhanaFreeZonesProgrammetopotentiallocalandforeigninvestorstoeducatethemabouttheincentivesoftheGhanaFreeZonesProgrammeandhowlocalcompaniescouldbenefitontheFreeZonesProgramme.ThedepartmentcollaboratedwiththevariousgovernmentalagenciestopromoteGhanalocallyandinternationallyasthepreferredinvestmentlocationwhereinvestmentisguaranteed.

The Board received thirty-three (33) new applications from prospective investors and had abacklogof five (5)applicationsfrom2011whichbroughtthetotalnumberofapplicationsforconsideration to thirty eight (38). Out of this number the Board approved seventeen (17),declinedfour(4),deferredeleven(11)andsix(6)arependingconsideration.

ThetotalnumberoflicensedfreezoneenterpriseswiththeBoardwentuptoTwohundredandThirty-Four (234) at the end of 2012 from the end of 2011 number of Two hundred andseventeen(217).

The Board did not acquired new export processing zone during the year under review,therefore the number of export processing zones remained at four (4). The number ofcompanieslocatedattheTemaExportprocessingzone(TEPZ)duringtheyearincreasedfromfortyfive(45)inthepreviousyeartofiftytwo(52).

The firstphaseof the constructionofon-site stormdrainat theTEPZ/MPIPbyMessrsChinaHualong Construction Company was completed and handed over to the Board. Design and

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construction supervision contract of the second phase of the on-site drainage network wasawardedtoMessrsABPconsultLtd.

TheBoardduringtheyearcommissionedtheLandsCommission(Sekondi-Takoradi)toresurveythe Sekondi EPZ to enable the Board determines the actual size of the area. TheBoard alsorequestedArchitecturalandEngineeringServicesLtd(AESL)toupdatetheSekondiEPZperviousValuationReportof January2004whichresulted inanewvalueofGH51,535,498.00cedisascompensationtolandlords.

TheMonitoringdepartmentsoughttostepupitsactivities in2012bysettingseven(7)majorobjectives. Theobjectives cover trainingworkshops for free zoneenterpriseoperating in theSouthern,Central,WesternandNorthernzonesofthecountry,atleasttwomonitoringvisitstoeachenterprise, streamline exemption application approval process, and capacity buildingofmonitoring officers.OneHundred and six-five, (165), representing 70%of licensed free zoneenterpriseswerevisitedtoensurethattheycomplywiththefreezoneActanditsRegulations.

Duringtheyear,thedepartmentintroducedanAudittrailformwhichcapturesthedata,timeandthenameoftheofficerwhoworkedontheapplicationatanyparticularpointintime.Thishelped to check delays in the flow of approval process of applications. As a result of that,applicationssubmittedforexemptionspeedilyprocessed.

Thedepartmentcontinuedcollaborativeworkswithotherfrontlineagenciessuchascustomsand Domestic Tax Revenue Division and National Technical Monitoring committee, (NTMC).Relevantinformationabouttheoperationoflicensedfreezonesenterprisesweresharedwiththeteam.

Duringtheyear2012,theinformationTechnologyDepartmentoftheGhanaFreeZoneBoardundertook the following major activities, some of which are: Server upgrading to eliminateinterruptiontoenhanceperformance,adoptionofnewcapturingofquarterlyreturnsdataintofreezoneEnterprisedatabasewhichhelpedtoclearabacklogofdata,facilitatedGFZBtojointhe Ghana Government IT infrastructure provided by the National Information TechnologyAgency(NITA),reconfiguredcomputersatthesecretariattoensureonthelocalareanetwork(LAN) and the internet, procured and installed an accounting software for the secretariat,regularlyupdatedtheGFZBwebsitetoprovideup-to-dateinvestmentinformationaboutfreezoneprogramme,updatedthefreezoneenterprisedatabaseformonitoringandmanagementdecisionmaking.

GhanafreezoneBoard’swebsitewasadjudgedtheBestwebsiteexportprocessingzoneatthe2012 world free zone convention held in London United Kingdom in December 2012. Thewebsitewasjudgeonthevisualimpact,depthandclarityofinformation,userfriendlinessandsiteguidance.

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The legal department with the assistance from the attorney generals’ department ablyrepresentedGFZBinallcivilsuits inwhichitwasparty.ThedepartmentdriftedcontractsandagreementinGFZB.Alllandrelatedwerehandlebythedepartment.

Total capital invested by free zone enterprises amounted to US$247.51 million while thecumulatedcapital investedsince the inceptionof theprogramme ie1996/7 to2012stoodatUS$2405.45million.

The value of production by free zone enterprises by the year under review amounted toUS$169.11whilethevalueofexportthesameamountedtoUS$1830.30million.

Totalemploymentfiguresatoftheyear2012was30383comprising29511nationalsand872expatriates. Total salaries / wages was US$76 840 550.26 with Ghanaian employee earningUS$58139094.34andexpatriateearningUS$18701455.92.

Totalduties/leviespaidonsalesintothelocallymarketasattheendof2012amountedtoUS$6390786.23whileatotalofus$1621752.68wasspentontrainingGhanaianemployees.

Also, Free Zone Enterprises paid a total amount of US$8,927,317.97 in Social SecuritycontributionswhilstUS$10,298,964.99was paid as income tax in respect of their employeesduringtheyearunderreview.

The Board’s total income generated in 2012was ElevenMillion, Seven Hundred and Eighty-Eight Thousand, Four Hundred and Eighty Ghana Cedis, (GHC11,788,480) as against SevenMillion, Four Hundred and Thirty-One Thousand, Five Hundred and Thirty-Four Ghana Cedis(GHC7,431,534)in2011.Thisrepresentsa58.6%increaseoverrevenuegeneratedin2011.Theincrease was mainly due to levies and penalties against companies who failed to operateaccording to the board’s regulations, increased sale of Forms, payment of license fees andrenewaloflicences.

Constrainwhichhinder theboard’s smoothoperationduring the reporting year are: inactiveonline application submition and tracking on the GFZB website, lack of clear legilativeinstrument on various penalty point to be applied whenever free zones enterprises fail tocomplywith rules and regulations of the free zoneswhich ismaking it very difficult for theboard to apply the necessary sanction. Lack of adequate and continuous capacity buildingprogrammesonregulatoryandmonitoringactivitiestoenhancetheperformanceofthestaffoftheboardintheirwatchdogroles

Going forward, theBoardexpects in theensuing year todeploy strategicmarketingplans toattractmore investments in to the country, andalsoensure strict compliance tooperationalregulationsbyFreeZonecompanies.REVIEWOFOPERATION

3.1HUMANRESOURCEDEPARTMENT

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TheHRteamsaspartofbuildingonitsgainsovertheyearsdecidedtofocusonstrategicemployeesmanagementtailoredatsupportingtheuniquegoals,corporateculture,andobjectivesoftheorganization.GFZBbelievesthatitssuccessasanorganizationdoesnotonlyrelyonhiringqualifiedcandidates,butalsoeffectivehumanresourceplanningandmanagementisrequiredatallstagestoensureemployeegrowthandsatisfaction.Employeesatisfactionisvitaltothesuccessofanyorganizationbecauseofitsdirectimpactonproductivityandcreativity.Thiscombinationofhighsatisfactionandmaximumproductivityamountstoemployeeengagement.ForwhichreasontheHRteamdecidedonthefollowingasobjectivesfortheyear2012.

• TrainingandDevelopmentneedsassessment• Recruitment• EmployeeOrientation• PerformanceManagementandappraisal• RewardingManagement• EffectiveCommunication/Feedback• HRsystemimplementations

3.1.1RecruitmentGFZBrecruitmentstrategyistoattractindividualswhoshareitsvalues,andbelievesinitscourse.Ourselectionprocessensuresthatwecarefullyidentifybehavioralcompetenciesinadditiontomandatorytechnicalskills.Wethroughthisprocessengagedten(10)newemployeesincludingaHumanResourceManager,two(2)driversandseven(7)AssistantOfficersforvariouspositionsaslistedbelow:

• AssistantPublicRelationsOfficer

• AssistantMonitoringOfficer

• AssistantEstateandEnclaveOfficer

• AssistantI.Tofficer

• AssistantMarketingOfficer

• AssistantAccountOfficer(2)

All of these officers have successfully gone through the probation period and are nowconfirmed staff of the GFZB. Interviews were conducted for the position of an operationalaudit officer. However we are yet to engage their services. For the same period underconsideration,ourfour(4)nationalservicepersonnelwerereplacedbysixnewonce,attheendoftheirservice.Thesixareforthe2012/2013serviceyear.

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3.1.2TrainingandDevelopment

GhanaFreeZonesBoardisacompanythatpridesitselfwithattractingandretainingpassionateandhighlyskilledemployees.Insupportofthesevalues,thecompanyhasfosteredacultureoflearningandongoingprofessionaldevelopmentthroughtheimplementationofseveraluniquetrainingprogrammesandopportunitiesforitsemployeesbothinhouseandoutofthecountry.Thesecretariathaswithinthisperiodprovidedtraininganddevelopmentopportunitiesforitsstaffmember toenhance their levelofproductivityand support staffpersonaldevelopment.Nine (9) out of the twenty (20) training courses and programmes attended by staff wereorganized by credible training institutions outside the country. This is a well-planned anddeliberateapproachforstafftogainaninternationalperspectiveandapproachtodoingtheirwork.ThisconfirmsGFZBbelieveinprofessionalismandbestpractice.The in-house trainings are designed to help staff master skills that are used in everydayactivitiesbutnotalwayscoveredinstandardtrainingprograms.Belowisatableoftraininganddevelopmentalcoursesattendedduringtheperiodunderreviewbyvariousemployees.Course/Programme Beneficiaries Duration Institution

5th Annual HumanResourcesSummits

HROfficer 1week BudgetConferences,SouthAfrica

Advance Executivesecretaries and PA’sskills developmentinternationalsymposium

4Secretaries 1week BudgetConferences,SouthAfrica

Customs procedures,new programmes andsecurityissues

SeniorI.TOfficer 1week Kofi AnnanInstitute

ForensicAudit 2OperationalAuditors 2days Kumasi

InternationalCombating of fraud inGovernment Businessand Civil Society andorganization

Accounts Officer andInternalAuditor

1st-4thMay,2012 SouthAfrica

Simplified MS ExcelTools for practical

Principal Accountant 1day FiestaRoyal

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Accounting andAccountOfficer

DefensiveDriving 2Drivers 1week Armed ForcesInstitute

Facilities ManagementSkills

Estate and EnclaveOfficer

2weeks MDPI

Report Writing andCommunicationSkills

3 Monitoring andregistryStaff

1week MDPI

DevelopingOrganizational Valuesand Customer Service(In-housetraining)

15Selectedstaff GFZB GFZB

“5th World WomenLawyers’Conference”

Solicitor 2days London

Project Investment,AnalysisandAppraisal

1ApplicationProcessingOfficer

5days Pretoria–SouthAfrica

ResearchManagementCourse

ResearchOfficer 1Week PretoriaSouthAfrica

EffectiveMarketingCommunication

Applicationprocessingofficer

1week MDPI

e-GovernmentLeadershipCapacityBuildingProgramme

SeniorI.TOfficer 2weeks GIMPA

RoadSafetyandTransportationAccess

ChiefDriver 10days R.S.T.CTrainingSchool

EffectiveStoresandInventoryManagement

Asst.Account/storesOfficer

4days CBMConsult

IPSAS,FinancialStatementFraudandCorporateGovernanceWorkshop

InternalAuditorandOperationalAuditor

5days PAN,SouthAfrica

ExecutivePA ExecutiveSecretary 5days LondonCorporateTraining

EncouragingStaffperformanceandRewardSystems

Asst.HROfficer 10days GlobalTrainingConsult,London

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3.1.3 Promotion

Therewasnopromotionthisyear.

3.1.4 StaffStrength

TheGFZBcanpride its selfof fiftynine (59)highlyqualifiedandengagedstaff thatdrives itsobjectivesandactivitiesatthesecretariatfortheperiodunderreview.Thenumberismadeupof Twenty-three (23) female and Thirty-six (36) male staff members. This includes two (2)executives, six (6) Heads of Departments/Managers, thirty three (33) senior officers andeighteen(18)juniorofficers.

3.1.5EmployeeOrientation

GhanaFreeZonesBoardappreciatestheimpactthatawell-structuredorientationprocesscanhaveonnewemployees,andtheirabilitytosuccessfullyintegrateintotheworkplaceandhelpthem start off on the right foot. The HR department has created a detailed EmployeeOrientation Programme that helps new employees learn about basic workplace operations,whatisexpectedofthemandwhattheyshouldinreturnexpectfromtheorganizationwiththeassistanceofreceivingdepartments.

3.1.6PerformanceManagementandAppraisal

The Secretariat has completed all education and training necessary to kick start theperformanceappraisalprocessofemployees.Supervisorsandmanagersalikehasbeentakenthroughtheappraisalprocesstoenablethemassesstheperformanceofteammembers.Thepilotfacewassupposedtotakeoffattheendoftheyear.It isexpectedtocomewithallthetensionandanxietyassociatedwithappraisals;howeverwehavemeasuresinplacetoaddressandrespondtoallconcernsthatwillariseduringtheexercise.

3.1.7HealthandSafety

Aspartofeffortstoensureahealthyworkforce,thesecretariatorganizesannualhealthandfun activities to promote employee well-being and ultimately impart on productivity.Employeesembarkedonahealthandfitnessexcursionearlyintheyearasawayofsocializingand engaging in some form of fitness exercise. Employees came back well refreshed andenergizedforthetaskahead.Acorporatehealthscreeningexercisewasorganizedforallstaff.Theseexerciseproducedareportthatindicatedseverallifestylerelatedillnessesthatmembersofstaffneedtoadjusttheirlifestyletoaddress.

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3.1.8Challenges

Someof the challenges facedby thedepartment indelivering itsmandateswere the lackofenforceable organizational structures, late submission of training report from staff includingmanagers,orthecompletefailuretosubmittrainingreportsafterseveralreminders.

Transferofknowledgewasalsoanissue,mostofthetrainingsattendedwerenottaskrelatedandthereforedonottranslatetoenhanceproductivity.

3.1.9Achievements

TheHRdepartmentaspartof itsmandateto implementsstructures thatwill in turnsupportthesecretariattoachieveitsobjectives,hasworkedtoensurethatcertainbasicadministrativeprocesseswereinplacetoenhancethesmoothrunningofthesecretariat.Amongthemare:

• Thedevelopmentofastructuredorientationprogramthatwillreiteratethecorevaluesandcodeofconductofthesecretariattoincomingstaff.

• DevelopedacomprehensiveEmployeeBiodataformtocapturevitalinformationonitsworkforce.

• Developedauserfriendlyleaveapplicationform.

• ReviewingofcertainHRpolicies

• Introducedasimplebutdetailedtrainingreportingformat.

• Introduced an exit interview process that when well implemented will make us alearningorganization.

3.1.10HumanResourceProgrammeFor2013

The Department intends to focus on performance management program with emphasis onperformanceappraisalandtherestructuringoftheSecretariattoensureanengagedworkforcethatwillgiveoffitsbest.

TheHRdepartmentandthesecretariatatlargearecommittedtopromotingconduciveworkingenvironmentthatpromotesproductivity,creativityandanengagedworkforce.

• Designinganddeliveringtraining.• Performance/appraisal• RewardingandMotivatingemployees

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• Evaluation• Feedback• HRsystemimplementations• LegalissuesandTeamperformance

3.2MARKETINGDEPARTMENT

In the year 2012 theMarketing, Promotion & PR Department continued its core activity ofpromoting export oriented investment and managing the image of the Ghana Free ZonesBoard.

ThedepartmentdisseminatedliteratureontheGhanaFreeZonesProgrammetopotentiallocaland foreign investors to better inform them on the offering of the Ghana Free ZonesprogrammeandhowlocalcompaniescouldbenefitonthefreeZonesProgramme

ThedepartmentcollaboratedwithvariousgovernmentalagenciestobetterpromoteGhanaasthepreferredinvestmentlocationwhereinvestmentisguaranteed.

ThedepartmentalsorepresentedtheGFZBontheinstitutionalplanningcommitteesforvariousprogrammesthatwerespearheadedbytheMinistryofTradeortheGovernmentofGhana.

Themainobjectivesfortheyear2012were;

Ø MergethetwoexistingdocumentariesØ OrganizeaforumforallHeadsofFreeZoneEnterprises.Ø OrganizetheFreeZoneExpobytheendoftheyearØ OrganizetheLocalExhibitionsandInternationalMissionasstatedintheTravelBudget

andanythattheSecretariatmaybeinvitedtowiththeapprovaloftheAg.ExecutiveSecretaryorhisdeputy

TheDepartmentthereforeengagedinthefollowingactivities:

3.2.1LocalFairsThedepartmentparticipatedinthefollowinglocalfairs:

Ø 16thInternationalTradeFairinAccra.Ø 3rdNationalPolicyFairinAccra,Ø 4thRegionalPolicyFairinSunyani,BrongAhafoRegionØ 5thRegionalPolicyFairinSekondi/Takoradi,WesternRegionØ 6thRegionalPolicyFairinKoforidua,EasternRegionØ OutreachprogrammeinTamale,Wa,KumasiandKoforidua

3.2.2InternationalFairsTheBoardparticipatedinthefollowinginternationalfairs:

Ø 3rdFreeTradeZoneConference&exhibition(FTZNigeria2012)

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Ø AfricaInvestmentForum

3.2.3InvestmentpromotionMissionsThedepartmentembarkedonseveralinvestmentpromotionmissionsandbusinessforasuchas:

Ø GlobalVillage,DubaiØ 8thCIIEximBankConclave,IndiaØ NationsBrandingandinvestmentExpo,NetherlandsØ 2ndEditionoftheAnnualInvestmentMeeting(AIM),UnitedArabsEmirates(UAE)Ø 7thU.S-AfricaTradeandInvestmentForum,ChicagoUnitedStatesofAmericaØ TheWorldExpo2012,Yeosu.Ø 81stInternationalTradeFairinIzmir,Turkey.Ø 2ndAfricaSingaporeBusinessForum,Singapore.Ø SalonDuChocolat,France.

DuringtheabovementionedinternationalmissionsandlocalforarepresentativesoftheGFZBinteracted with business persons, potential investors, Free Zone Operators Heads ofGovernment institutions from countries all over the world and local people who visited theGFZBstandsatthelocalfairswhichtookplaceinGhana.

RepresentativesoftheBoardwereprivilegedtomakepresentationsatselectedprogrammes.TheGFZBdocumentarywasalsoairedonvariousoccasions.

In the year 2012 the department interacted with over 5000 persons during the local andinternationalprogrammesmentionedabove.

ThedepartmentdidnotonlypromoteGhanaandtheGFZBitalsopromotedfreezonelicencecompanies whenever there was an opportunity. The department was interested in ensuringthat theFreeZonecompanieswhere linked topotentialbuyers toenable themexpand theirbusiness or simply keep in business. Notable amongst these was done during the Salon DuChocolatFair.TheGFZB‘sparticipationaimedatattractingpotentialinvestorsandalsopromotecocoaprocessingcompaniesregisteredunderthezones.

In theyear2012theBoardreceived invitations fromdiplomaticmissions inGhanaandotherGovernmentalandNonGovernmentalInstitutionstomeetvariousdelegationswhohadcometothecountrytoexplorebusinessopportunitiesinGhana.

The Board met delegations from Finland, Tunisia, Thailand, United States, South Korea,Pakistan,Chileandafewothers

3.2.4PromotionalMaterials

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Thedepartmentprinteddifferentbrochures for local and international fair toenable it carryout its core activity smoothly. The department ensured the Promotional material wereconstantlyuptodatewithaccurateandreliableinformationonGhana.

ThedepartmentalsosuppliedbrochuresonrequesttotheEmbassyofGhanainTelAviv,Israel,Embassy ofGhana in Turkey,Ministry of Trade for various programmes and the InformationServicesDepartmentforonwardtransmissiontoGhana’sMissionsabroad.

An estimated amount of 7000 brochures were distributed in the year 2012. This includedbrochurestranslatedandprintedinvariouslanguagessuchasArabic,FrenchandKorean

For the year 2012 the department also printed attractive roll up banners for specificprogrammesandinvariouslanguages.Oldandbrokenrollupbannerswereeitherrepairedorcompletelyreplaced.

3.2.5DocumentaryThe Board was also featured in the above mentioned documentary which sort to promoteGhanaandhighlighttheopportunitiesavailabletopotentialinvestors.

ThedocumentarywasairedoninternationaltelevisionnetworkstomarketGhanaaswhole.

3.2.6EnquiriesThedepartment intheyear2012receivedabout1000enquiries.This includestelephonecall,emailsandwalk-in.

The department encouraged most walk-in enquirers to purchase the Free Zone applicationforms. It also committed itself to ensuring that it offered adequate handholding services toenablepotentialinvestorswhoshowedsomeseriousnessgothroughtheapplicationprocess.

Thedepartmentcontactedpersonswhohadmadeenquiresatvariousprogrammesorwalkedinviaemailandtelephonetocheckiftherewasanyassistancethedepartmentcouldgiveandiftheywerefacinganychallengeswithregardstotheirintentiontoacquirealicence.

Lastly thedepartmentalsoprovided informationon request to institutionsand individuals inGhanaandabroadforresearchandacademicpurposes.

3.2.7InvestorAftercareThe department during the year 2012 did have not have its routine schedule for investoraftercare. It ishoped that itwould liaisebetter in2013with themonitoringandoperationalauditdepartmenttoorganizeinvestoraftercareservicestoexitingFreeZonesEnterprises

3.2.8Wayforward

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Fortheyear2013thedepartmentaimstostepupitspromotionalactivities locally. Itaimsateducating Ghanaian companies on the benefits of operating in the zones and how localcompanies can also benefit from the programme by supplying raw material to companiesoperatinginthezonesinorderfortheprimaryaimofsettinguptheFreeZonestocreateejobforthelocalstoberealized.

Thedepartmentwouldparticipateinanumberofinternationalfairsandlocalfairs.

Fortheyear2013thedepartmentaimstoprepareadequatelyforalllocalsfairsbygettingtheadequatepromotionalmaterialintimeandinrightquantitiesbeforethemission.

The various brochures and roller up banners would also be translated and printed in theappropriatelanguageforspecificmissionstoenabletheBoardmarketGhanaandcommunicatethebenefitsoflocatingintheGhanaFreeZoneseffectivelytopotentialinvestors.

ThedepartmentwouldprocureforattractivecorporategiftstobedistributedduringfairsandexhibitionandtobegiventosomevisitorstokeepassouvenirwhentheyvisittheSecretariat.Itwouldbeintheformofscarves,pens,stickerpadsandgiftbags,baseballcaps,men’stieetc

Intheyear2013thedepartmentplanstopublishsectorspecificbrochuresontheService,OilandGas,Agrofoodprocessing,EnclavedevelopmentandICTsectors.Theproposedbrochureswouldprovidesalientinformationforpotentialinvestorstobeeducatedontheopportunitiesi,the agencies responsible for certain permits andwhat is required to register a business in aparticularsector.

Thedepartmentintheyear2013wouldredesignitgenericbrochuretoincludepicturesandhavethegeneralinformationonGhanaupdated.

DuetoincreasingdemandforinformationontheFreeZonesandthedepartment’sregularparticipationinfairsandexhibitionsthereisalsotheneedtoprintminiatureforlocalfairsandoutreachprogrammes.

TomakethesecretariatandtheTemaExportProcessingZonemoreaccessible,thedepartmentwouldcollaboratewiththeEnclaveandEstateDepartmenttorebrandtheentranceofthesecretariatandtheTEPZThedepartmentwouldalsohaveitsofficeredecoratedandaflatscreenTVboughttoenableitshowthedocumentarytosmallgroupswhentheyvisit.

Thedepartmentdeemsitnecessarytopublishtheapprovedlistinsmallquantitiesbi-annuallyandoffer it for saleduring fairsandexhibitionsandwhen requestedasopposed tohaving itprintedonplainpapertosavetimeandmoney.

Thedepartment intheyear2013wouldorganizeaneveningsoireeto interactwithHeadsofAgencies,Ministers,membersofthediplomaticcorps ,andrepresentativesofregisteredfreezoneenterprises.ThemainaimwouldbetopromotethegarmentsectorbyhavingafashionshowwhichwouldshowcasethegarmentsthatareexportedoutofGhana.Thiswouldbegiven

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thenecessarypublicitywiththeaimofattractingmoreinvestorsintothegarmentsector.Fundwouldberaisedbythedepartmenttopayforthevenue,publicityandrefreshment.

Thedepartmentwouldproduceanewdocumentarytoimproveuponitscurrentdocumentaryas to enable it advertise theGFZB to the generalGhanaian public and potential investors. Itwould feature thenewministerof trade,GFZB’sday todayactivities, client interactionsandindividualclienttestimonialsofGFZBservices

3.3 PROJECTEVALUATIONANDLICENSINGDIVISION

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

The Board received thirty three (33) new applications from prospective investors and had abacklogof five(5)applicationsfrom2011whichbroughtthetotalnumberofapplicationsforconsideration to thirty eight (38). Out of this number the Board approved seventeen (17),declinedfour(4),deferredeleven(11)andsix(6)arependingforconsideration.

3.3.1ApprovedApplications

Thelicensedcompaniesweremadeupof1fromtheservicesectorrepresenting5.9%and16from themanufacturing sector representing (94.1%).Details of the approved companies andtheirrespectivesectors/subsectorsareattachedasAppendixI.

3.3.2DeclinedApplications

TheBoarddeclinedfour(4)applicationsforreasonsthatsomeofthecompaniescouldnotsatisfytherequirementsforfreezoneapplication,whilstothercompanies’businessactivitiesdidnotfallinlinewiththefreezoneprogramme.

3.3.3PendingApplications

Therearesix(6)applicationspendingforconsideration.Thecompaniesandtheirnatureofbusinessareasfollows:

NameofCompany NatureofBusinessGablinFoodsLtd ProductionofchocolatepowderSerengetiHoldingsLtd Financialadvisoryservices

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DatacomTelecommunicationLtd TelecomservicesDernanSalt&TradingCo.Ltd SaltminingandprocessingEcoRoofingCo.Ltd ManufacturingofroofingsheetsLindraSeafoodLtd Processingofcannedtuna

3.3.4DeferredApplications

The companies that were deferred did not have enough documents to support theirapplications.TheBoardhasrequestedthecompaniestoprovidetheadditionaldocumentsfortheprocessingoftheapplications.Theseareaslistedbelow:

NameofCompany NatureofBusinessSolarHarvestLtd CommercialfarmingRainTradeLtd ManufacturingofroofingsheetsTrendsetterEngineeringW/A ManufacturingofsubseaequipmentInternationalWarehousingCompanyLtd WarehousingAvnashIndustriesLtd PalmoilprocessingEnclavePowerCompanyLtd PurchaseanddistributionofpowerVikingOffshoresupportservices OilfieldsupportservicesHalliburtonInternationalInc OilfieldsupportservicesNsawamCanneryLLC CanningoffruitsandvegetablesLindraSeafoodLtd ManufacturingofcannedtunaAfiaPetroleumResourcesLtd Processingofcrudeoilintopetroleum

products

3.3.5Challenges

Ø Impatientinvestorsfollowingupontheirapplicationsafter28workingdays.Ø InactiveonlineapplicationsubmissionandtrackingontheGFZBwebsite

3.3.6Wayforward/Objectivesfor2013

The issuance of licence to prospective investors under the free zone scheme requires aneffective evaluation of the projects submitted as well as other supporting documents toascertain their veracity. In view of this, the department is recommending that a pre/postevaluationvisitbemadetoallcompaniesthatapplyforfreezonelicence.Theobjectivesofthisvisitareasfollow:

Ø Familiarizationofcompaniesoperations;

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Ø To be sure that the company is a reality so that the Board can make an informeddecision;

Ø HelptheMonitoringandOperationalAuditdepartmentsintermsofdirectiontothenewcompaniesafterlicensingformonitoring/auditingoftheiroperations.

3.4 ESTATE&ENCLAVEDEVELOPMENTDEPARTMENT

TheEstate&EnclaveDevelopmentDepartmentismandatedtospearheadtheBoard’sleadingstrategy of developing declared sites for free zone operations into enclaves and industrialparks.ThisDepartmenthasitskeyfunctionsasthefollowing:

1. PlanningandmonitoringofinfrastructuredevelopmentprojectstoupgradetheBoard’senclavestoworldclassindustrialestatesforinvestmentgrowth.

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

3. Enforcementofestatedevelopmentandproductionstandardstoensuregoodindustrialharmonyandenvironmentalsafety.

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

3.4.1ExportProcessingZonesThenumberofdeclaredFreeZonesEnclavesstillstandsatfour(4);

• TemaExportProcessingZone(EPZ)• SekondiEPZ• ShamaEPZ• AshantiEPZ

3.4.1.1TemaExportProcessingZone

v WATER/ELECTRICITYCONNECTIONSDuringtheyearofreporting,theunderlistedcompanieswithintheMultipurposeIndustrialPark(MPIP) applied for water and electricity connections to their premises and were dulyconnected.

• AvnashIndustriesLtd• Liberty&JusticeSewing• EPZcanteen• NationalICTPark

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Asat2012,theoccupancyrateattheExportProcessingZoneisasfollows;

MultipurposeIndustrialPark(MPIP) - TwentyFive(25)CompaniesGFZBBufferZone - Six(6)CompaniesInternationalLandDevelopmentCompany(ILDC) - Fifteen(15)CompaniesOctoglowLtd - Six(6)CompaniesTotal - Fifty-two(52)Companies

v UTILITY

Supply of Water and Electricity to the Tema Export Processing Zone during the period wassatisfactory.

v SECURITYTheSecretariatincollaborationwiththeKponeDivisionalPoliceprovidedPolicepatrolservicesto the tenants. This greatly reduced the incidence of theft and vandalization of plant andequipmentattheTemaEPZ.

Ø OTHERACTIVITIES

a. ENCROACHMENTATTEMACOMMUNITY21LANDS

DuringthereportingperiodtheTemaCommunity21FreeZonesresidential landcameunderseriousencroachmentbysomeresidentsofAshiaman.Theencroachersclaimedthat,thelandhas been assigned to them by Ashiaman Municipal Assembly, (AshMA) and the Regent ofAshiaman to be used as amarket. TheGFZBwith the assistance of the TDC Task Force/ thePolice/Militarywasabletoejectalltheencroachers.TheAshiamanMunicipalAssemblyandtheRegent lodged several complaintsat theMinistryof LocalGovernment&RuralDevelopmentandtheMinistryofSocialWelfareandEmploymentagainsttheBoard.Inall theserepresentation, theMunicipalAssemblyandtheRegentwerecondemned for theencroachment,andweretold tostayoff the land,becauseGFZBwastherightfulowner.TheSecretariaterectedwarningpostsalongtheboundariesandothervantagepointsofthelandtowarnagainstencroachment.TheSecretariatfencedtheareaoffwithachainlink.

b. CONSTRUCTIONOFSTORMDRAINATTEPZ/MPIP

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The first phase of the construction of On-Site Storm Drain at the TEPZ/MPIP which wasundertakenbyMessrsChinaHualongConstructionCo.wascompletedandhandedovertotheBoard.

Meanwhile,theDesignandConstructionSupervisioncontractofthesecondphaseoftheOn-sitedrainagenetworkwasawardedtoMessrsABPConsultLtd.TheConsultantssubmittedtheirInceptionreportinFebruary2012.

FundingforthefirstphaseconstructioncontractwasprovidedbyEDIFwhilstthesecondphasewasbyMSMEProject,allundertheMinistryofTrade&Industry.

SEKONDIEXPORTPROCESSNGZONE(EPZ)

1. RE-SURVEYOFSEKONDIEPZ

WiththeBoardrealizationofsomeencroachmentontheSekondiExportProcessingZone,theLandsCommission(Sekondi-Takoradi)wascommissionedtoresurveytheSekondiEPZtoenablethe Board determine the actual size of the area. The re survey will also help identify theboundariesofthevarioustraditionalchiefswhoselandfallswithintheSekondiEPZ.

2. UP-DATEOFVALUATIONOFTHESEKONDIEPZ

During theperiodunder review, theBoardagain requestedArchitecturalandEngineeringServicesLtd (AESL) toupdate itspreviousValuationReportof January2004.TheupdatedValuation Report of February 2012 gave the compensable value of the Sekondi EPZ asGH¢51,535,498.00.

3.5MONITORING/OPERATIONALAUDITDEPARTMENTS

Themonitoringdepartmentcontinued itswatchdogroleofensuringcompliancebyfreezoneenterprises and developers of the rules and regulations as stipulated in the Free Zones Act1995,Act504andRegulations(L.I1618).Inpursuanceofthisrole,thedepartmentundertookvariousactivitiesintheyear2012ofwhichthemajoronesarediscussedbelow:

3.5.1OBJECTIVESFOR2012Ø Toorganisetrainingseminarforallfreezonescompaniesinthefollowingsector

divisions, Accra Sector (Greater Accra, Eastern, Northern and Volta Region),KumasiSector (AshantiandBrongAhafoRegion)andTakoradiSector (WesternandCentralRegion).

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Ø To be able to monitor and visit all the Free Zones Companies at least twicewithintheyear.

Ø To provide one-on-one training for liaison officers of some of the free zonecompaniestoensurecomplianceifnecessary.

Ø Tostreamlinetheprocessesforscrutinizingapplicationforexemptionstoavoiddelays.

Ø ToembarkonanyotheractivitiesasrequestedbytheBoardorManagement.Ø Tobuild the capacityof theofficers in thedepartment throughattachment to

FreeZonesoperatorsinothercountries.

3.5.2ACHIEVEMENTS3.5.2.1MonitoringVisitsToLicensedCompanies

In the year 2012, about 70% of licensed companies were visited to audit theiroperationsandalsoensurethat,itconformstotheFreeZonesActandRegulations.

Thespecificpurposesofthesevisitswereasfollows:

Ø To authenticate and audit appropriate documents supporting the quarterlyreturnssenttotheBoard.

Ø Toascertainthe levelofcomplianceby licensedcompanies,withtherulesandregulationsgoverningtheiroperations.

Ø To seek justification for exemption applications submitted by various licensedcompaniesandtoauthenticatetheusageoftheitemsforwhichtherequestforexemptionweremade.

Ø To identify and assist in addressing any operational difficulties facing licensedcompanies.

In the course of these visits, operators were educated on the Free Zones Act andRegulations andwere advised and directed as to how to conduct their operations inordernottoinfringeonthelaws.

Some shortfallswere also detected in the books of some companies aswell as someinfractionsofthelawandrecommendationsweremadeinvariousmonthlyreportsfortheconsiderationbytheBoard’sCommitteeonMonitoring.Theseledtosanctioningofsomecompanies.

3.5.2.3ExemptionsTakenWithoutTheUseOfAppropriateGFZBForm9

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Inthecourseofthemonitoringexercises,somelicensedcompanieswerefoundtohavecarriedoutsometransactionswithoutrecoursetotheusageoftherequiredGFZBform9s.SuchdefaultingcompaniesweremadetopayforthecostoftheseForm9sand insome cases made to pay appropriate penalties. The monitoring officers in all caseseducatedthesecompaniesontheirobligationtouseappropriateGFZBForm9tocoverallformsoftransactions.

3.5.2.4TrainingSeminarforFreeZonesCompanies

ThedepartmentcarriedouttrainingseminarinAccraforcompaniesinfour(4)regionscomprisingGreaterAccraEastern,NorthernandVoltaRegions.

TheseminarwasfocusedontheroleandresponsibilitiesofFreeZonesoperatorsundertheFreeZonesprogramme,thefilingofquarterlyreturns,therolesofGhanaRevenueAuthority(CustomsandDomesticTaxrevenuedivisions)andGhanaImmigrationServiceamongotherissues.

The seminar was well attended by the companies. The training also offered theopportunity for the companies to voice their grievances and problems; however theresourcepersonswereabletoprovidesolutionstotheirconcerns.

Thedepartmentcouldn’torganizethetrainingseminarforcompaniesintheKumasiandTakoradisectorsduetosomechallenges.Itwasagreedthatthetrainingseminarswouldbeorganizedinthefirstquarterofyear2013fortherestofthecompanies’.

3.5.2.5One-on-OneTrainingforLiaisonOfficers

Duringtheyear,ten(10)liaisonofficersofsomefreezonescompaniesweregivenone-on-one trainingon the StandardOperatingProcedures, how toprepare theQuarterlyReturnsandhowto fill thevariousForm9s.Theywerealso taken throughtheir rolesandresponsibilitiesundertheFreeZonesprogramme.

3.5.2.6StreamlineTheProcessesOfApplicationForExemption.

As part of themajor activities of the department, thus the day-to-day scrutinising ofapplicationssubmittedbyfreezonescompaniesforexemption.Therewasthereforetheneedtostreamlinetheprocessesthattheapplicationsgothroughbeforeapprovalcouldbegiventoavoiddelaysintheprocess.

In view of that, the department introduced what is term as “Audit trail” whereby adesignedformwhichcapturesthedate,timeandthenameoftheofficerwhoworked

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ontheapplicationatanyparticularpointintimeisattachedtoeachoftheapplicationthatisbeingsubmittedforprocessing.

This over the period has helped check the delay in the follow of work and thoseproblemswereaddressed.Asaresultofthat,applicationssubmittedforexemptionarespeedily processed. This audit trial has also helped the department to access thequantumofapplicationsworkedonbymonitoringofficersatanygiventime.

3.5.2.6InactiveCompanies

Inthecourseoftheyear2012,somedormantandinactivecompanies’wereseparatedfrom the active ones. In view of this, an auditwas conducted on the companies andrecommendationsmadetotheBoardfordelistinginthefirstquarteroftheyear2013.

However, some the companies that were found to have operated in contrast to therulesandregulationsgoverningthefreezonesprogrammewerecautioned.

For the period under review, two (2) companies voluntarily opted out due tooperationaldifficultiesandtheappropriatefront-lineagenciessuchasGhanaRevenueAuthority(CustomsandDomesticTaxRevenuedivisions)andtheNationalTechnical&MonitoringCommittee(NTMC)werenotifiedforappropriateaction.

3.5.2.7CollaborationWithOtherFrontLineAgencies

The department continued with its collaborative work with other front line agenciessuch as Customs and Domestic Tax Revenue Divisions and NTMC. The departmentshared information continuously with these agencies especially Customs Division andNTMCon theoperationsof licensedcompanies. Officersof thedepartment,whoaremembers of the National Technical Monitoring Committee, collaborated with theCommittee to conduct financial audit in few selected companies since the committeefaced some challenges due to the new structure of the Ghana Revenue Authority.However, with those few selected companies thatwere audited, therewere findingsmade with regards to short collections and infractions of the law and reports wereissuedtotheHeadsofvariousfrontlineagenciesforappropriateremedialactionstobetaken.

3.5.2.8DepartmentStaffStrengthandTraining

Over thepastyears, therehasbeenconsciouseffort toaugment thestaff strengthofthe department and for the year 2012, one Officer was employed to augment themonitoringroleofthedepartment.Anofficerfromthemarketingdepartmentwasalsoassigned to thedepartmentduring theperiod.Unfortunatelyone teamwasdissolved

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duetotechnicalreasonsbuttheremainingtwoteams(TeamA&TeamB)wereusedtocarryoutallthemonitoringactivitiesofthedepartmentfortheperiod.

Thedepartmentconductedin-housetrainingforthemonitoringofficerstorefreshtheirmindsandalsobeabreastwith their responsibilities inawayandmanner toconductmonitoringexercises.

3.5.2.9RevenueGenerationMeasures

TheGhanaFreeZonesBoardisaPublicServiceentitybutunfortunatelyitisnotundergovernmentsubvention.ItisthereforeimperativefortheBoardtogeneraterevenuetomeetitscapitalandrecurrentexpendituresthroughvariousingeniousinterventions.Fortheyear2012,variousmeasureswere instituted to shoreup the revenuebaseof theBoard. Thesemeasures include the strict enforcement of the penalties and sanctionsspeltoutintheAct504andRegulationL.I1618,andotheroperationalmeasuresgearedtowardsincreaserevenuebasefortheBoard.

3.5.3CHALLENGESFACED

Ø CapacityBuildingandStaffStrengthTheregulatoryandmonitoringactivitiesarequitedynamicandthiscallsforcontinuouscapacity building programmes for staff of the department through formal academicprogrammesand internationaltrainingexposuresandattachments.Thiswill invariablyenhancetheperformanceofthestaffofthedepartmentintheirwatchdogrole.

Ø PenaltyPointsThedepartment is facingthechallengeofnothavingaclearLegislative Instrumentonvarious penalty points to be applied whenever Free Zones enterprises fail to complywiththerulesandregulationsoftheFreeZoneswhichismakingitverydifficultforthedepartmenttoapplythenecessarysanctions.

3.5.4WAYFORWARD2013

Themonitoringdepartmentwillcontinueitswatchdogroleintheyear2013toensuringcompliance by free zone enterprises and developers of the rules and regulations asstipulatedintheFreeZonesAct1995,Act504andRegulations(L.I1618).

ThedepartmentwillalsoincreaseitscollaborateeffortswithotherfrontlineagenciestoenhancethemonitoringofactivitiesoflicensedfreezoneoperatorsandalsostrengthentheregulatoryroleoftheBoard.

Finally, each licensed free zone companywill be visitedat least twicewithin the year2013 for monitoring exercise. These visits will be used by the Officers to audit the

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activitiesof the companies, assess their compliancewith theActandRegulationsandlastly,educate thecompanieson theirobligationsand responsibilitiesas licensed freezonecompanies.

3.5.5TARGETSFOR2013

Since the activities of the department are recurrent, the department will adopt thesame objectives of the preceding year with fewmajor additional objectives for year2013.

Ø TovisitallFreeZonesCompaniesatleasttwicewithintheyear.Ø Toorganisetrainingseminarforallfreezonescompaniesinthefirstquarterof

theyearinthefollowingsectordivisions:• February,2013-KumasiSector(AshantiandBrongAhafoRegion)• March,2013–TakoradiSector(WesternandCentralRegions)• March,2013 -AccraSector (GreaterAccra,Eastern,NorthernandVolta

Region).Ø To collaborate with the operational audit department to synchronise the

activitiesofthetwodepartmenttoensurethatcompaniescomplyfullywiththerulesandregulationsoftheFreeZonesLaw

Ø To continue providing one-on-one training for liaisons officers of some of thefreezonecompaniestoensurecompliance.

Ø ToembarkonanyotheractivitiesasrequestedbytheBoardormanagement.Ø Tobuild the capacityof theofficers in thedepartment throughattachment to

FreeZonesoperatorsinothercountries.

3.6INFORMATIONTECHNOLOGYDEPARTMENT3.6.1KeyFunctions

InformationTechnology(IT)hasbecomeakeybusinessfunctionforalmosteveryorganizationand most have great expectations of their investment in IT for the future benefits to theorganization.Duringtheyear2012,theInformationTechnologyDepartmentoftheGhanaFreeZonesBoardcontinuedtoperformitskeyroleofprovidingefficienttechnicalsupporttoallstaffandalsoensuredthatallcomputersandtechnologysystemswerecurrentandrunsmoothly.Othermajoractivitiesthattookplaceintheyearmentionedincluded:

• ServerUpgrade.Ourservershostmanymission-critical informationwhicharevitalto the Board, so ensuring they stay up and running without interruptions is animportantpriority.Inviewofthisamajorupgradewasmadetothefive(5)serverswhichhasenhancedtheirperformanceandmadethemmorerobustandlesspronetofailures.Theupgradewasasfollows:

o RAMof1GBforeachserverwasincreasedto4GBo Harddiskspacewasincreasedfrom72GBto250GBforeachserver

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o Powersupplyunitforeachserverwasreplaced.o The Operating Systems were upgraded from Windows Server 2003 to

WindowsServer2008• A new approach to capturing Quarterly returns data into Free Zone Enterprises

databasewasemployedresultinginclearingofbacklogofdata• GFZB joined the Ghana Government IT infrastructure provided by the National

InformationTechnologyAgency(NITA)• As a result of the new ICT infrastructure, the IT department reconfigured all the

computersattheSecretariattoensureconnectivityontheLocalAreaNetwork(LAN)andtheinternet

• New computers were procured by the Board and distributed to staff both at theSecretariatandTakoradioffice

• ProcuredandinstalledanAccountingSoftwarefortheSecretariat.Trainingofstafftobecompletedbythevendor.

• ContinuedtooperatetheGCNetSystem• Ensureddatasecurityandbackedupofimportantdata• RegularlyupdatedtheGFZBwebsitetoprovideup-to-date investment information

inthefreezones.• Updated the Free Zone Enterprises’ database for monitoring and management

decisionmaking• Managedtheinternetconnectivityandoperatedthecorporateemailsystem• ManagedthenetworkinfrastructureattheSecretariat

3.6.2SoftwareDeployment

FouroftheservershavebeenrebuiltwithinstallationofWindowsServer2008.Inaddition,awebdrivenapplicationdatabasehasbeendevelopedforthecollationofactivitiesofthefreezoneenterprises.Withthedevelopmentofthenewdatabase,theITdepartmentensuresthatdataiscapturedontimelybasistoproviderealtimeinformationonfreezoneinvestors.

An accounting packagewith features like general ledger, account receivable/payable, payrolland human resource management software has been procured and installed to addressoperationalrequirementsrangingfromaccounting,budgetingandothercashtransactions.Theprojectisnearcompletion.

3.6.3InformationTechnology(IT)SkillsOfPersonnel

MostemployeesoftheBoardhavereceivedbasictrainingonInformationTechnology(IT)andare able to use the IT equipment at their disposal for their daily job functions. The IT

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departmentisworkingongatheringothertrainingneedsofstafftofactorinto2013year’sstaffcapacitydevelopment.

3.6.4OPERATIONOFTHEGCNET

Since the introduction of the newweb enabled eMDA application on 12thOctober 2009 byCEPSandGCNet,grantingofexemptionsbytheBoardhasbeenveryfastandefficient.Thenewsystem has eliminated the waiting time between granting of provisional approval and finalapprovalintheoldsystem.

ThewebenabledeMDAapplicationisaccessibleonanycomputerconnectedtoourLocalAreaNetwork (LAN). However, only approved users continue to access GCNet informationwith asecuredusernameandpassword. Paymentof processing fee through theGhanaCommercialBankandECOBANKhasbeenquitesmooth.

Ontheaverageabouttwenty-five(25)exemptionsaregrantedthroughtheGCNetsystemdaily.

3.6.5GFZBWEBPORTAL

Ghana Free ZonesBoard’swebsitewas adjudged theBestWebsite of a Free Zoneor ExportProcessingZoneatthe2012WorldFreeZonesConventionheldinLondon,UnitedKingdominDecember 2012. The websites were judged on the Visual impact, Depth and clarity ofinformation,Userfriendlinessandsiteguidance.TheGFZB’swebsitewhichwasre-vampedin2011wasbuiltonWeb2.0platformandhasalotofgoodfeaturestoboastofwhichhasearnedtheBoardtheaward.ThewebportalisbeingusedtopromotetheactivitiesoftheBoardandattractpotentialexportorientedenterprisestoGhanaundertheFreeZoneAct.Thewebportalserves as a one-stop-shop for inquires and a source of useful information aboutGhana FreeZonesprogrammeaswellasabilitytosubmitFreeZoneEnterprise(FZE)applicationson-line.

Theportalwouldalsofacilitatetheissuanceofelectronicformsandtheelectronicsubmissionof applications for license by FZEs wishing to undertake various business transactions. AllcircularsfromtheBoardtotheFreeZoneEnterpriseswouldbemadeavailableonlineandcouldbe accessed through the web portal. The Free Zone Enterprises are being trained on theeffectiveuseofthePortaltosubmittheirquarterlyreturnsonline.

3.6.6GFZBe-LIBRARY

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The IT department is designing an information portal to gather information scattered onvarious workstations into a centralized database resource centre. This would enable staffaccess document/information from one central location without having to comb throughvariousworkstations.

3.6.7WAYFORWARD

Recent trends show thatmajority of organizations are redefiningmarketing by incorporatingmobile marketing techniques into their marketing campaign strategy, simply because itprovideshighrateofreadability.ItisinthisdirectionthattheITdepartmentproposesthattheBoardutilizestheBulkSMStechnologytosendvitalinformationthroughtextmessagestoFreeZoneEnterprises.

Again, the IT department intends to incorporate document management system in itsoperationinyear2013budget.

In-housetrainingforstaffontheuseoftheFreeZonesEnterpriseDatabasehasbeenplannedtotakeoffintheyear2013.

Training for all Free Zone Enterprises on the online submission ofQuarterly returns shall beintensified.

Upgradingofusers’MicrosoftOffice2007toMicrosoftOffice2010shallbeimplemented.

ItisthehopeofthedepartmenttoapplythestateofthearttechnologytodrivethebusinessoperationsoftheBoard.

3.7LEGALDEPARTMENT

3.7.1IntroductionThe Legal Department offered in-house legal counsel and related services to the GoverningBoardandSecretariatofGhanaFreeZonesBoard(GFZB)duringtheyearunderreview.The department with assistance from the Attorney General’s Department ably representedGFZBinallcivilsuitsinwhichitwasaparty.TheDepartmentwasalsoresponsiblefordraftingcontracts and agreements involvingGFZB. All land related transactionswere handled by thedepartment.3.7.2 LandMatters

Thegreatestchallenge,facingthedepartmentemanatesfromlandrelatedtransactions.

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About60%of casespending in courtare land related. The reasons for litigationhaveeitherbeen non- payment of accrued rent by sub lessees of GFZB or GFZB’s inability to paycompensationforsomeofitslandsbanks.

a. TemaExportProcessingZoneGFZB owes Lands Commission an amount in excess of One Million Ghana Cedis(GH¢1,000,000.00) in rent. This indebtedness has arisen mainly because LandsCommissionhasbeenconsistentlychargingGFZBforrentonoverhundredacresoflandhousingwastestabilizationpondsattheTemaExportProcessingZoneforthepastthirteenyears.SeveralappealstoLandsCommissiononthesubjectforawaiveror reduction in rent in respect of this parcel have not yielded the desired result.Unfortunately for GFZB, the area housing the waste stabilization ponds and theadjourningparcelsof landcannotbe leasedto freezoneenterprisesasa resultofnotbeingsuitabilityforoccupationduetoenvironmentalconcerns.GFZBisdesirousofanamicableresolutionofthismatter.Another reason for GFZB’s indebtedness to Lands Commission stems from thefailureoflicensedfreezonedeveloperstopayaccruedrentonlandgrantedtothecompanies by GFZB for development into industrial estates. The departmenttogetherwiththeAttorneyGeneralsDepartmentispursuingtwoofsuchfreezonedevelopers.Oneofthemisnegotiatinganoutofcourtsettlementandpaymentbyinstallments.

b. Non-paymentofcompensationdueonlandbanks

Amounts presented by Government valuation institutions (Land ValuationDepartmentAndArchitectural& Engineering Services Ltd.) representing assessedvalueon landbanks suchas theCommunity21–Tema,Ashanti TechnologyPark,andSekondiExportProcessingZonesarewaybeyondwhattheGFZBSecretariatcansettle from its internally generated funds. Central Government’s intervention isurgentlyneeded.Article20ofthe1992Republicanconstitutionprovidesforpromptpaymentoffairandadequatecompensationtopersonswithinterestinorrightoverproperty being acquired by the State for the public good. GFZB’s inability to payassessedcompensation for the listed landbankshasderailed theprocess towardscompulsory acquisition of the areas. This state of affairs has given rise toencroachment of the declared free zones. The Ejisu Traditional Council, owner oflandearmarkedfortheAshanti technologyParkhas for instancefiledasuitat theLandsDivision of theHigh Court in Kumasi for an order compellingGFZB and theGovernmenttosettleassessedcompensationdue.

4.0DATAANALYSIS

4.1INVESTMENTCAPITALSCHEDULE

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ThetotalcapitalinvestmentmadebylicensedFreeZoneEnterprisesduringtheyearamountedtoUS$247.51million, an increase of 10.2% over the 2011 figure ofUS$224.64million. Thecumulativeamountofinvestmentcapitalinthefreezonessinceinceptionoftheprogrammein1996/97totheendof2012nowstandsatUS$2,405.45million(refertoappendixvi)

4.2PRODUCTIONSCHEDULEOFMANUFACTURINGANDSERVICEENTERPRISESTheex-factoryvalueofproductionforFreeZoneEnterprisesinthemanufacturingandservicesectorduringtheyearamountedtoUS$877.08millionrepresentinga26.6%decreaseoverthe2011figureofUS$1,195.67million(Refertoappendixvii)

4.3IMPORTSCHEDULEOFCOMMERCIALENTERPRISESCommercialFreeZoneEnterprisesimportedsemi-finishedandfinishedgoodsatatotalvalueofUS$71,675,211.25 for re-packaging and re-export to the ECOWAS region and beyond. Thisrepresentsan increaseof114%overthepreviousyear’sfigureofUS$33,387,984.98 (RefertoAppendixVIII.)

4.4EXPORTSCHEDULEOFALLENTERPRISESTotal ex-factory value of exports of all Free Zone Enterprises (manufacturing, Service andCommercial)amountedtoUS$1,830.30millionrepresentingandecreaseof6.9%overthe2011figureofUS$1,966.72million(RefertoAppendixIX)

4.5EMPLOYMENTSCHEDULEOFALLENTERPRISESThemost important contribution of the Free Zones Programme to the economyofGhana isemployment creation. At the end of the reporting year, the employment figure ofGhanaiannationalsemployedbytheFreeZoneEnterprisesreached29,511.Thisrepresentsan increaseof1.0%overthe2011figureof29,216

Thedistributionofnationalemployeesaccordingtogenderindicatesthat22,901i.e77.60%weremalewhereas6,610i.e.22.40%werefemale.

ThenumberofexpatriatesemployedbyFreeZoneEnterpriseswas872representing2.87%oftotalemployment.ThetotalemploymentgeneratedbytheFreeZonesProgrammeasat2012was30,383(RefertoAppendixX).

DistributionofemployeesintheFreeZonesProgrammebysectorisshowninthetablebelow:

Table

Sector NumberemployedDeveloper 20

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Manufacturing 28,172Service 1,677Commercial 504

4.6SALARY/WAGESCHEDULEOFALLENTERPRISESThefreezonesprogrammecontributesgreatlyintheeconomicempowermentoftheGhanaianworkforce.Totalvalueofsalary/wagesfor2012amountedtoUS$76,840,550.26adecreaseof18.75%overthe2011figureofUS$94,583,775.00

The total salary/wage paid to Ghanaian Nationals working with Free Zone EnterprisesamountedtoUS$58,139,094.34.Thisrepresentsadecreaseof18.98%overthe2011valueofUS$71,758,676.00. Expatriates working under the free zones programme earnedUS$18,701,455.92(RefertoAppendixXI).

4.7VAT/DUTIESPAIDONSALESINTOTHEDOMESTIC/LOCALMARKETTotal duties/levies paid on sales into the local market amounted to US$6,390,786.23 representing an increase of about 29.7% on the previous year’s figure of US$4,927,029.13(RefertoAppendixXII)

4.8TRAININGSCHEDULEOFALLENTERPRISES(GHANAIANNATIONALS)Under the free zone regulations at least 1%of the total annual salary/wagebill of free zonecompaniesshouldbespentonthetrainingofGhanaiannationalsemployedinthecompanies.In 2012, a total amount of US$1,621,752.68 was spent on training national employeesrepresenting 3% of the total salary wage bill indicated above. Even though the minimumrequirement was achieved, only 80 Free Zone Enterprises actually offered training to theiremployees.(Ref.AppendixXIII)

TheBoardneedstotakestepsintheensuingyeartoensurethatmoretrainingprogrammesareimplementedforGhanaianstaffworkingunderthefreezones.

4.9SOCIALSECURITYSCHEDULEOFFREEZONEEMPLOYEESIn 2012,131 Free Zone Enterprises contributed a total ofUS$8,927,317.97 in Social SecuritycontributionstotheSocialSecurityandNationalInsuranceTrust.(Ref.AppendixXIV)

4.10INCOMETAXSCHEDULEOFFREEZONEEMPLOYEES

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Inthereportingyear,131companiescontributedatotalofUS$10,298,964.99inIncomeTaxinrespectoftheiremployees.(Ref.AppendixXV)

5.0FINANCIALREVIEW

ThefinancialpositionoftheBoardasat31stDecember2012isasfollows:

5.1REVENUE

Totalincomegeneratedin2012wasElevenMillion,SevenHundredandEighty-EightThousand,FourHundredandEightyGhanaCedis,(GHC11,788,480)asagainstSevenMillion,FourHundredandThirty-OneThousand,FiveHundredandThirty-FourGhanaCedis(GHC7,431,534)in2011.Thisrepresentsa58.6%increaseoverrevenuegeneratedin2011.Theincreasewasmainlydueto levies and penalties on companies who do not comply with the board operationalregulations,increasedsalesofForms,LicenseFeesandrenewals.5.2EXPENDITURE

Totalexpenditure in2012amountedtoSixMillion,TwoHundredandThirty-ThreeThousand,Eight Hundred and Eighty Ghana Cedis (GH¢6,233,880) as against Four Million, Sixty-ThreeThousand, Twenty-One Ghana Cedis (GH¢4,063,021) in 2011. The marginal increase inexpenditurewasmainlyduetoincreaseinadministrative&otherexpenses.

Excess income over expenditurewas Fivemillion, Five Hundred and Fifty-Four thousand, SixHundred Ghana Cedis (GH¢5,554,600) in 2012 as against Three million, Three Hundred andSixty-Eightthousand,FiveHundredandFourteenGhanaCedis(GH¢3,368,514)in2011.

TheAuditedAccountsisattachedasAppendixXVI.

6.0CONSTRAINTS

There was still no physical development at the three (3) designated enclaves in Boankra,SekondiandShamathusaffectingtheBoard’sabilitytoattractinvestorsintotheseenclaves.

TheunreliablesupplyofutilitiesalsoaffectedtheoperationsoflicensedFreeZoneenterprises.The Board faced a major challenge in this respect, especially with regard to the companieslocatedwithintheTemaExportProcessingZone.

Furthermore, the Marketing/Promotion Division could not implement all its scheduledinvestment promotionmissions / activities due to lack of sufficient funds. The DepartmentcouldalsonotimplementactivitiesintheMarketingCommunicationPlanduringtheyear.

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TherewasdelayintheimplementationoftheManagementInformationSystemtosupporttheoperationsoftheBoard.

ThecommunicationsnetworkinfrastructuremadeofLocalAreaNetworks(LANs)andinterfacesforaWideAreaNetworks (WAN)throughwhichvarioususersgainaccesstothe InformationSystems of the GFZB were under-utilized. Most users hardly used the corporate email forcorrespondence.

Another major challenge was converting andmerging three separate databases on licensedFreeZonecompanies intoonecentralizeddatabase (i.e.FZMS).With theassistanceofPersolSystems Limited, the contracted software developers, the IT Department was somewhatsuccessfulinthedatatransfer.

Again,therewereconstraintsinimprovingtheoperationalenvironmentattheTemaEPZwithregardto:

§ Arrangingwithoperatorsandhawkerstoprovideanduselitterbinsandorganiserefusecollection.

§ Landscapingimprovementaroundtheentrance,§ EnsuringpropermaintenanceofvergelawnsplantedbyILDCandPSI.§ Monitoringproperlocationofdirectionalsignsbyoperatorssoastoavoidclutter.§ Failureofcontractorstomeetthedeadlinesforthecompletionofprojects§ Peoplewithoutpermitsmanagingtoaccesstheenclavewhichposesthreattosecurity

attheenclave.Also,theSecretariatfacedthechallengeofnothavingaclearLegislativeInstrumentonvariouspenaltypointstobeappliedwheneverFreeZonesenterprisesfailtocomplywiththerulesandregulationsmakingitverydifficulttoapplythenecessarysanctions.

Again, the inability of the Board to raise the requisite funds for payment of compensationassessedbyLandsCommissiononlandbanksmakestheBoardpredisposedtosuitsinstitutedbyclaimants.

TheBoardwasalsoconfrontedwithillegallyarmedoccupants(landguards)onitsCommunity21 land.Thisposedaserious threatofbodilyharmtoofficers, representativesandagentsoftheBoard,whomayinthecourseofexecutionoftheirduties,havetophysicallyworkontheland.

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7.0CONCLUDINGREMARKS

SubstantialprogresswasmadeintheimplementationoftheFreezonesProgrammeduringtheyearunderreviewinspiteoftheconstraints.Theboardwilladoptinternationalbestpracticesandstrategiesofattractingbothdomesticandinternationalinvestmentsmovingintonextyeartoachievebetterresults.

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Appendices

AppendixI-FreeZoneEnterprisesLicensedIn2011

NAMEOFCOMPANY NATIONALITY SECTOR/SUBSECTORVegproGhanaLtd British/Kenyan Manufacturing

(Commercialfarming,horticulturalcrops)HasanInvestmentGhanaLtd Chinese Developer

(SekondiExportProcessingZone)EntranceIndustriesGhanaLtd Ghanaian Manufacturing(Pharmaceuticalproducts)PBC–SheaLtd Ghanaian Manufacturing(sheabutter)

AirLiquideAfricaServicesLtd French Manufacturing(medicalandindustrialgases)

UnifruitLtd Ghanaian Manufacturing(processingpineapple)ServairGhanaCompanyLtd Ghanaian/

FrenchService(Airlinecateringandrelatedservices)

WorldClothingCompanyLtd American Manufacturing(Garmentmanufacturing)KimminicOilLtd Ghanaian Manufacturing(CrudeVegetableOilInto

biodiesel)ShebuIndustriesLtd Ghanaian/Dutch Manufacturing(Sheanutintosheabutter)

BlackstarFoodsLtd Ghanaian Manufacturing(processingcashewnuts)

StarlightWestAfricaNaturalResourcesLtd

French Manufacturing(Processingnaturalplantsproducts)

AbellonCleanenergyGhanaLtd Indian Manufacturing(woodpelletsandsolidbiofuel)

TakoradiRenewableEnergyLtd French/Ivorian Manufacturing(woodchips)CCTRopesandTwines Ghanaian Manufacturing(Ropesandtwines)RiderSteelGhanaLtd Chinese Manufacturing(steelproducts)WadAfricanFoodsLtd Ghanaian Manufacturing(FruitProcessing)CanadaOpticalLaboratoriesLtd British-Canadian Manufacturing(opticallenses)S.F.InternationalCommodityCo.Ltd

Chinese Manufacturing(colouredsteelproducts)

AgronaCompanyLtd Dutch Manufacturing(fruitProcessing)EcologisticsLtd Ghanaian-Italian Manufacturing(palmoilprocessing)ChidwellLtd British Manufacturing(bulkfragrance

compounds)GhanaOilPalmDevelopmentCompanyLtd

Ghanaian-Belgian

Manufacturing(Palmoilprocessing)

GNFoodsLtd Ghanaian-Chinese

Manufacturing(tomatopaste)

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AppendixII-OccupancyatTemaEPZ/MPIPin2011

NO.

NAMEOFCOMPANY

ACTIVITY/PRODUCT

STATUS

1 3FGHANALIMITED PROCESSINGOFSHEANUTSANDOTHEROILSEEDS

OPERATING

2 BARRYCALLEBAUT COCOAPROCESSING OPERATING

3 BEARMACHINESW/ALIMITED MANUFACTURE OF FOOD PROCESSINGMACHINE/EQUIPMENT

TESTRUN

4 CARGILLGHANALIMITED COCOAPROCESSING OPERATING

5 COMMODITY PROCESSINGINDUSTRIESLTD.

COCOAPROCESSING OPERATING

6 DECORPLASTLIMITED HOUSEHOLDPLASTICWARE TEST TRIAL OFEQUIPMENTS

7 DISCTRONIC MANUFACTURINGLIMITED

DVD,VCD,CDSMANUFACTURING SUSPENDEDOPERATIONS

8 G.C.BIOCHEMICALSLTD CHEMICAL EXTRACTION FROM MED.PLANTS

STARTUP

9 GHANA SPECIALTY FATSINDUSTRIESLTD

SHEABUTTERPROCESING OPERATING

10 HUFRA-COMPU-TECHSLTD MACHINERY&MECHANICAL PRECISIONPARTS

OPERATIONSUSPENDED

11 GLOBALGARMENTS GARMENTMANUFACTURING OPERATIONSUSPENDED

12 PREMIERQUALITYLTD GARMENTMANUFACTURING OPERATIONSUSPENDED

13 LUCKY1888 GARMENTMANUFACTURING OPERATING

14 REDSEAHOUSINGSERVICES(GH)LTD

PREFABRICATEDBUILDING OPERATING

15 SITOSGHLTD WAREHOUSING/COMMERCIAL OPERATING

16 ILDC ENCLAVEDEVELOPMENT OPERATING

17 OCTOGLOWGHANALIMITED ENCLAVEDEVELOPMENT OPERATING

18 NICHIECOCOAINDUSTRIESLTD PROCESSINGOFCOCOALIQUOR OPERATING

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19 REBECCAFASHION MANUFACTURING OF SYNTHETIC HAIRPRODUCTS

OPERATING

20 B.DASSOCIATES

COCOAPROCESSING TEST TRIAL OFEQUIPMENTS

21. A-Z PETROLEUM PRODUCTSGHANALTD

LUBRICANTSANDTANKFARMING PROCESSINGLANDDOCUMENTS

22. MINISTRYOFCOMMUNICATION ICTPARK PROCESSINGLANDDOCUMENTS

23. SANBAOPHARMACEUTICALSLTD PHARMACEUTICALS BUILDINGFACTORY

24. BLOWPACKLIMITED MANUFACTURING TAKE AWAYCONTAINER

PROCESSINGLANDDOCUMENTS

25. COMMODITIES PROCESSINGINDUSTRIESLTD

COCOAPROCESSING OPERATING

26.

TOPINDUSTRIESLTD. PLASTICANDPACKAGINGPRODUCTS OPERATING

27. ONEGHANALOGISTICSLTD. MANUFACTURING PACKAGINGCURTAINS


28. VEHRADTRANSPORTLTD. HAULAGE/LOGISTICS/FREIGHTHANDLING

BUILDINGFACTORY

29. SIKELELELTD. HEALTHPRODUCTS BUILDINGFACTORY

30. LEWADIS

COMMERCIAL BUILDINGFACTORY

31.

HOMEFOODSLTD. FOODPROCESSING PROCESSINGLANDDOCUMENTS

32. ALPHACOMMODITIESLTD. COCOAPROCESSING PROCESSINGLANDDOCUMENTS

33. POLYPETLTD. PLASTICPRODUCTS PROCESSINGLANDDOCUMENTS

34. KGMINDUSTRIES PLASTICHOUSEHOLDWARES PROCESSINGLAND

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DOCUMENTS35. COMETGHANALTD WAREHOUSING BUILDING

FACTORY

36. ARVNASHINDUSTRIESLTD. FURNITURE PROCESSINGLANDDOCUMENTS

37. ELARLTD. FLEXIBLEPACKAGINGMATERIALS PROCESSINGLANDDOCUMENTS

38. UNIWELLLTD WAREHOUSING PROCESSINGLANDDOCUMENTS

39. ELECTROABOUSAMRACOLTD GENERAL ELECTRICAL REWINDINGMOTORSANDGENERATORS


40. POTRODOMINTPVT EXPORTATIONOFCASHEWNETS,SHEARNUTSETC


41. SUCCESSPLASTICSLTD MANUFACTURE AND TRADE INHOUSEHOLDPLASTICPACKING


42. MARSINTERNATIONAL

PROVISION OF INNOVATIVE RECORDSMANAGEMENT


43. AFRIC-AMERICAN TRADEX CO.LTD

FOODPROCESSING SUSPENDEDOPERATION

44.

S.F INTERNATIONALCOMMODITYCO.LTD

COLOUREDSTEELTILES BUILDINGFACTORY

45.

RAILIT TOTAL TRANSPORTATIONGH.LTD

WAREHOUSINGOFANTIVIRALDRUGS OPERATING

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MPIPOCCUPANCY

COMPANYNAME TYPEOFACTIVITY OPERATIONALSTATUS

1. XARA DEVELOPERS GH.LTD.

PROCESSING LANDDOCUMENTS

2. BLOWPACKLTD MANUFACTURING TAKE AWAYCONTAINERS


3. NICHECOCOALTD PROCESSINGOFCOCOALIQUOR

TEST-TRIALOFEQUIPMENTS

4. TOPINDUSTRIESLTD PLASTIC AND PACKAGINGPRODUCTS

OPERATING

5.

ONE GHANA LOGISTICSLTD

MANUFACTURING PACKAGINGCURTAINS

BUILDINGWAREHOUSE

6.

VEHRADTRANSPORTLTD HAULAGE/LOGISTICS/FREIGHTHANDLING

BUILDINGWAREHOUSE

7.

SIKELELELTD HEALTHPRODUCTS BUILDINGFACTORY

8. RIDGEENERGY PROCESSING LANDDOCUMENTS

9.

COMETGHANALTD WAREHOUSING BUILDINGFACTORY

10. LEWADIS WAREHOUSING BUILDINGFACTORY

11. HOMEFOODS FOODPROCESSING PROCESSINGDOCUMENTS

12. AVNASHINDUSTRIESLTD FURNITURE BUILDINGFACTORY

13.

ALPHACOMMODITIESLTD COCOAPROCESSING PROCESSING LANDDOCUMENTS

14. POLYPETLTD PLASTICPRODUCTS PROCESSING LANDDOCUMENTS

15. ELARLTD FLEXIBLEPACKAGINGMATERIALS PROCESSING LANDDOCUMENTS

16. KGMINDUSTRIES PLASTICHOUSEHOLDWARES PROCESSING LANDDOCUMENTS

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BUFFERZONE

COMPANYNAME TYPEOFACTIVITY OPERATIONALSTATUS

1. UNIWELL PROCESSING LANDDOCUMENTS

2. A-Z PETROLEUMPRODUCTSGHANALTD

LUBRICANTS AND TANKFARMING


3. ELECTROABOUSAMRACOLTD

GENERAL ELECTRICALREWINDING MOTORS ANDGENERATORS


4. POTRODOMINTPVT EXPORTATIONOFCASHEWNETS,SHEARNUTSETC


5. SUCCESSPLASTICSLTD MANUFACTURE AND TRADE INHOUSEHOLDPLASTICPACKING


6. MARSINTERNATIONAL

PROVISION OF INNOVATIVERECORDSMANAGEMENT


7.

IMEXCOINVESTMENTS WAREHOUSING PROCESSING LANDDOCUMENTS

8. FNJINVESTMENTS TANKFARMS PROCESSING LANDDOCUMENTS

17. SANBAOPHARMACEUTICALSLTD

PHARMACEUTICALS BUILDINGFACTORY

18. LUCKY1888 GARMENTS OPERATING

19. GLOBALGARMENTS GARMENTS OPERATING

20. PREMIERQUALITYLTD GARMENTS SUSPENDEDOPERATIONS

21. OAKBROOKLTD GARMENTS SUSPENDEDOPERATIONS

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AppendixIII–ListofcompaniesvisitedforOperationalAuditin2011(a) ACCRA/TEMA1. BomartFarms(b)WESTERNREGION2. DanicaPlastics3. HomeFoodsLtd1.Wienco4. Gravita2.Samartex5. ArrowNetwork3.UnicontrolCommodities6. Socomex4.JohnBitar7. NewrestCatering5.MondialVenner8. Lewadis9. FlemingoInternational10. RedSeaHousing11. F.AFally12. ARNManufacturing13. SitosCommodities14. VehradImports&Exports15. IntelligentCardProduction16. Pakmart17. NonFerrousMetals18. AsanskaJewellery19. L’oreal20. PraiseExports21. AirLiquideServices22. Busylab23. Interpack24. E-processInternational25. GoldRecovery26. GhanaFlowers27. SterlingInternational28. MyrocFoodProcessing29. MahobHoldings30. KponeLobsters31. ContinentalExports32. Lubcon33. 3F(GH)Ltd34. EdwardSnell

AppendixIV-CapitalInvestedByFreeZoneEnterprises2011

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AppendixV–ProductionScheduleofEnterprises2011

AppendixVI-ImportScheduleOfFreeZoneEnterprises2011

0.00

20.00

40.00

60.00

80.00

100.00

120.00

COMMERCIAL MANUFACTURING SERVICE DEVELOPER

6.28

102.23114.25

1.88

AMOUNT(US$M)

SECTOR

CAPITALINVESTEDBYSECTORS-2011

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00


2.31

1,156.58

30.46 6.31AMOUNT(US$M)

SECTOR

PRODUCTIONSCHEDULEBYSECTORS-2011

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AppendixVII-ExportScheduleOfAllFreeZoneEnterprises2011

-

50.00

100.00

150.00

200.00

250.00

300.00


71.68

283.98

24.65

71.68

AMOUNT(US$M)

SECTOR

IMPORTSSCHEDULEBYSECTORS-2011

-200.00400.00600.00800.00

1,000.001,200.001,400.001,600.001,800.00

COMMERCIAL MANUFACTURING SERVICE

64.09

1,795.42

99.53AMOUNT(US$M)

SECTORS

VALUEOFEXPORTSBYSECTORS-2011

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AppendixVIII–EmploymentScheduleofFreeZoneEnterprises2011

AppendixIX-Salary/WageScheduleOfFreeZoneEnterprises2011

0

5000

10000

15000

20000

25000

30000

Developer Manufacturing Service Commercial

16

27,970

1,596 498NO.EMPLOYED

SECTOR

EMPLOYMENTDISTRIBUTIONBYSECTORS-2011

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00


5.78

71.80

16.29

0.09AMOUNT(US$M)

SECTOR

SALARY/WAGESCHEDULEBYSECTORS:2011

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AppendixX-Vat/DutiesPaidOnLocalSalesByFreeZoneEnterprises2011

AppendixXI-TrainingScheduleOfFreeZoneEmployees(GhanaianNationals)2011

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50


1.55

3.30

0.08AMOUNT(US$M)

SECTOR

VAT/DUTIESPAIDONLOCALSALESBYSECTOR-2011

-100,000200,000300,000400,000500,000600,000700,000800,000900,000

1,000,000


75,169

974,095

149,899

AMOUNT(US$)

SECTORS

TRAININGCOSTBYSECTOR-2011

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AppendixXII-SocialSecurityScheduleOfEmployeesOfFreeZoneEnterprise2011

AppendixXIII-IncomeTaxScheduleOfFreeZoneEmployees2011

0.001.002.003.004.005.006.007.008.00


0.15

7.94

1.440.01AM

OUNT(US$M)

SECTOR

SOCIALSECURITYCONTRIBUTIONBYSECTOR-2011

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00


0.32

7.70

4.20

0.02AMOUNT(US$M)

SECTOR

INCOMETAXPAIDBYSECTOR-2011

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AppendixXIV-AuditedAccounts

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