The panelists (left - right): Dr. Frank Adu, Dr. John-Hawkins Asiedu, Mrs. Kosi Yankey Ayeh, Dr. Humphrey Ayim-Darke, Ambassador Mike Ocquaye Jnr, Prof. Holger Görg, and Mr. Alex Dadzawa.
A panel of experts at the national dissemination and policy forum on Special Economic Zones (SEZs) delved into how SEZs can be leveraged to propel Ghana’s economic transformation, offering timely insights to inform the new free zones policy being developed by the government. Moderated by Mr. Bernard Avle, General Manager of Citi FM, the discussion featured a diverse group of experts from industry, government, and academia.
Drawing on key findings from earlier presentations on the Special Economic Zones (SEZs) and Development project, the panelists unanimously underscored SEZs' pivotal role in enhancing job creation and improving wage levels, particularly for women, across diverse sectors beyond manufacturing. They emphasized the importance of integrating value chains to sustain export earnings and promote economic stability.
SEZs as catalysts for employment and wage growth
Ambassador Mike Ocquaye Jnr, CEO of the Ghana Free Zones Authority, highlighted the pivotal role of SEZs not only in job creation and in wage improvement, particularly for women, but also in curbing rural-urban migration. He underscored that SEZ benefits extend beyond manufacturing to include services and the financial sector. Additionally, he called for integrated value chains to aid in retaining export receipts, thereby enhancing economic stability.
The enclave concept and local content integration
Dr. Humphrey Ayim-Darke, President of the Association of Ghana Industries emphasized the importance of the enclave concept, which clusters industries to leverage shared infrastructure and resources. He noted that this approach enhances the retention of export earnings within the country. Ayim-Darke pointed to research findings supporting the cluster benefits of SEZs and suggested that policy should focus on creating vehicles for local content integration to maximize export receipt retention. "You deliberately create vehicles that will create local content and then your main target is to retain most of the export receipts," he stated.
Empowering SMEs within SEZ Frameworks
Mrs. Kosi Yankey Ayeh, CEO of the Ghana Enterprise Agency, underscored the crucial role of Small and Medium Enterprises (SMEs) in job creation. She advocated for the inclusion of SMEs in SEZ policies to boost local production and economic growth. Mrs. Yankey Ayeh emphasized the need for deliberate policies that facilitate knowledge and technology transfer to SMEs, enabling them to enjoy the same incentives as larger firms within SEZs. "If we are able to put our local SMEs in this process and story, then besides improving the number of jobs you create, you are also giving them incentives others enjoy so they are able to grow,” she remarked. She also highlighted the importance of aligning SEZ policies with various stakeholders to strengthen local businesses and local content, thereby minimizing the challenge of repatriating earnings.
Incentivizing export activities
Mr. Alex Dadzawa, Director of Projects at the Ghana Export Promotion Authority, stressed the importance of providing more incentives to encourage companies to increase their export activities. He reiterated the Ghana Export Promotion Authority's support for SEZs as a means to boost the country's export performance.
Linking SEZ benefits to sustainability goals
Dr. Frank Adu, Senior Economist at ACET raised critical questions regarding the attribution of SEZ-related benefits, such as job creation and business performance improvement. He called for a stronger linkage between SEZ outcomes and sustainability goals, urging researchers to clarify whether improved company performance is directly attributable to SEZ policies. "If companies are doing better, is it because they are taking advantage of SEZ rules?" he asked. Dr. Adu also emphasized the importance of enhancing regional value chains to boost competitiveness, a lesson underscored by the COVID-19 pandemic. He concluded by urging policymakers to come up with robust rules governing SEZs.
A new free zones policy for Ghana
Dr. John-Hawkins Asiedu, Technical Advisor of SEZ at the Ministry of Trade and Industry also contributed to the panel, providing crucial insights into the provisions of the new free zones policy being developed by his ministry. His contributions deepened participants' understanding of the specific strategies and policy frameworks essential for optimizing SEZ contributions to Ghana’s economic growth and development.
The panelists collectively underscored the need for robust policy frameworks to maximize the benefits of SEZs. Key recommendations included developing infrastructure, implementing inclusive economic policies for SMEs and female businesses, enhancing wage equity between SEZ and non-SEZ firms, and fostering strong local economic integration.
Participants urge uptake of research insights
The forum concluded with a call to action for policymakers to leverage the insights from the research and panel discussions to craft SEZ policies that drive sustainable economic growth and development.
This is the second article in a two-part series on the national dissemination and policy forum on Special Economic Zones. Read the part 1 here.
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