Volume 33, Issue 1, June 2021, Pages 77–89
George Asumadu1, Daniel Abayaakadina Atuilik2, and Joseph Yensu3
1 Department of Accountancy and Accounting Information Systems, Kumasi Technical University, Kumasi, Ghana
2 Department of Information Technology, Heritage Christian University College, Accra, Ghana
3 Department of Entrepreneurship and Finance, Kumasi Technical University, Kumasi, Ghana
Original language: English
Copyright © 2021 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The purpose of this paper is to examine the extent to which the free zone enclaves have succeeded in raking in foreign direct investments for Ghana. It further reviews the performance of companies operating in these free zones and the challenges militating against their optimal performance. The researchers used a combination of descriptive and data mining research methodology. Data was gleaned from published report from the Ghana free zones Authority, the Ghana Investments Promotions Council, the Bank of Ghana, United Nations Conference on Trade and Development and the World Bank. It emerged that, there is considerable difficulty in land acquisition because of Ghana’s land tenure system. Nonetheless, there has been progress in the drive to attract FDI through free zone enclaves. However, there are some companies in the free zone enclave that are dormant. It also emerged that, the percentage of Free Zone Enterprises contribution to total Foreign Direct Investment inflows in Ghana has been trending negatively recently. It is therefore recommended that, Ghana Free Zones Board simplifies the legal framework in which free zone companies operate such as easing land acquisition procedures, providing flexible tax payment structure and giving exemptions for certain strict labor laws. It is also suggested that the Ghana Free Zones Board considers creating zones with sectoral specialization rather than the current multi-activity-oriented nature of the free zones governed by a highly opportunistic «take all» approach, typical of developing economies.
Author Keywords: Ghana Free Zones, Stand-Alone Enterprises, Specialisation, Economies, Foreign Direct Investment, Ghana.
George Asumadu1, Daniel Abayaakadina Atuilik2, and Joseph Yensu3
1 Department of Accountancy and Accounting Information Systems, Kumasi Technical University, Kumasi, Ghana
2 Department of Information Technology, Heritage Christian University College, Accra, Ghana
3 Department of Entrepreneurship and Finance, Kumasi Technical University, Kumasi, Ghana
Original language: English
Copyright © 2021 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
The purpose of this paper is to examine the extent to which the free zone enclaves have succeeded in raking in foreign direct investments for Ghana. It further reviews the performance of companies operating in these free zones and the challenges militating against their optimal performance. The researchers used a combination of descriptive and data mining research methodology. Data was gleaned from published report from the Ghana free zones Authority, the Ghana Investments Promotions Council, the Bank of Ghana, United Nations Conference on Trade and Development and the World Bank. It emerged that, there is considerable difficulty in land acquisition because of Ghana’s land tenure system. Nonetheless, there has been progress in the drive to attract FDI through free zone enclaves. However, there are some companies in the free zone enclave that are dormant. It also emerged that, the percentage of Free Zone Enterprises contribution to total Foreign Direct Investment inflows in Ghana has been trending negatively recently. It is therefore recommended that, Ghana Free Zones Board simplifies the legal framework in which free zone companies operate such as easing land acquisition procedures, providing flexible tax payment structure and giving exemptions for certain strict labor laws. It is also suggested that the Ghana Free Zones Board considers creating zones with sectoral specialization rather than the current multi-activity-oriented nature of the free zones governed by a highly opportunistic «take all» approach, typical of developing economies.
Author Keywords: Ghana Free Zones, Stand-Alone Enterprises, Specialisation, Economies, Foreign Direct Investment, Ghana.
How to Cite this Article
George Asumadu, Daniel Abayaakadina Atuilik, and Joseph Yensu, “Contribution of Stand-Alone Enterprises in Ghana Free Zones in Attracting Foreign Direct Investment,” International Journal of Innovation and Applied Studies, vol. 33, no. 1, pp. 77–89, June 2021.
