In an era of global economic integration, Special Economic Zones (SEZs) have emerged as powerful tools for fostering investment, industrialisation, and export-led growth.

For Ghana, a nation rich in natural resources yet grappling with structural economic challenges, SEZs represent a strategic pivot toward diversification and resilience.

Ghana’s special economic zones, when introduced, are set to be managed primarily under the umbrella of the Ghana Free Zones Authority (GFZA) and potentially the SEZ authority when it is commissioned.

These zones offer tailored incentives to attract foreign direct investment (FDI) while boosting local manufacturing and services. As Ghana positions itself as the gateway to West Africa under the African Continental Free Trade Area (AfCFTA), SEZs are poised to play a pivotal role in achieving sustainable development goals. This article explores the evolution, structure, impacts, and future of Ghana’s SEZs if considered as a national policy.

What then are Special Economic Zones (SEZs)? These are clearly demarcated geographical areas within which governments facilitate industrial activity through infrastructure support, fiscal incentives and a regulatory regime that is distinct from that prevailing in the rest of the economy. 

They are widely used around the world as key economic policy tools, especially in developing economies. These geographically designated areas of a country are set aside for specifically targeted economic activities, supported through special arrangements (that may include laws) and systems that are often different from those that apply in the rest of the country. SEZs are designed as instruments of trade, investment and spatial industrial policy.

A Brief History: From Inception to Reform

Ghana’s journey with SEZs began in the mid-1990s, amid broader economic liberalisation efforts following structural adjustment programs. The GFZA was established on August 31^st, 1995, under the Free Zones Act, 1995 (Act 504), with legislative instrument LI 1618 providing the operational framework. Operations commenced in August 1996, aiming to create export-oriented enclaves that leverage Ghana’s stable democracy, strategic location, and competitive workforce.
The initial focus was on export processing zones (EPZs) to address trade imbalances and unemployment. Over the years, the model evolved to include multi-purpose industrial parks, incorporating technology and logistics hubs. By the early 2020s, these industrial parks had demonstrated resilience, particularly during the COVID-19 pandemic, where firms in these zones maintained higher operational continuity and sales performance compared to those outside.

However, critiques highlighted institutional overlaps and limited sectoral diversity, prompting calls for reform. A landmark development in 2025 is the draft Special Economic Zones Bill, currently under public consultation by the Business Regulatory Reform (BRR) unit of the Ministry of Trade, Agribusiness and Industry (MOTAI).

The bill is presently pending cabinet approval before it can be referred to parliament. This bill seeks to consolidate and modernise the framework, promoting “regulatory innovation and reform” for industrial transformation. The GFZA publicly endorsed its passage, emphasising its potential to streamline operations and align with AfCFTA objectives. If enacted, it could expand SEZs beyond traditional manufacturing into high-value areas like green technology and digital services.

THE LANDSCAPE: KEY INDUSTRIAL ZONES AND THEIR FOCUS AREAS.

Ghana’s SEZs will be strategically located to capitalise on infrastructure like ports, airports, and railways. As of 2025, the GFZA oversees four primary zones, spanning over 7,000 acres, with additional enclaves under development. These are not isolated “islands” but integrated industrial parks accessible to both registered firms and external investors, a unique feature of Ghana’s policy that enhances spillover effects. SEZs will typically be located in areas with particular resources and historical sectoral strengths. 

• Tema Export Processing Zone (TEPZ): Ghana’s flagship industrial park, covering 1,200 acres in Tema, just 24 km from Kotoka International Airport and adjacent to the country’s largest seaport. Established in 1997, it hosts over 50 companies in manufacturing, assembly, and logistics. Infrastructure includes factory shells, a dedicated power grid, water reservoirs, and a one-stop regulatory shop for customs, immigration, and environmental clearances. TEPZ focuses on agro-processing, textiles, and pharmaceuticals, contributing significantly to non-traditional exports.

• Ashanti Technology Park (Boankra Industrial Park): Spanning 1,099 acres in the Ashanti Region, 20 km from Kumasi, this zone is geared toward ICT and innovation. It borders the proposed inland port and Kumasi-Accra railway, making it ideal for a “cyber village” in software development, data processing, and biotechnology. As of 2025, it’s attracting investments in business process outsourcing (BPO) and light manufacturing, with plans for cocoa processing facilities.

• Sekondi Export Processing Zone (SEPZ, Takoradi): Encompassing 2,200 acres in the Western Region’s oil-rich hub, SEPZ targets heavy industries, warehousing, and metal fabrication. Proximity to the Takoradi Port and natural gas pipelines from Atuabo positions it for downstream oil and gas activities. The zone has seen growth in fabrication for the energy sector, supported by regional infrastructure upgrades.

• Shama Export Processing Zone (Yabiw/Shama Industrial Park): The largest at 2,800 acres in the Western Region, this coastal zone is earmarked for oil and gas downstream operations, with potential for a mini-port linking to Takoradi. It’s also suitable for seafood processing and logistics, leveraging its seaside location just 2 km from existing ports.

• Emerging enclaves include the Dawa Industrial Park in the Greater Accra Region, focused on automotive assembly and agro-industrial activities, bringing the total operational footprint closer to 10,000 acres. These zones prioritise environmentally sustainable projects, excluding extractive industries like crude oil or precious metals.

• The Gomoa Central Special Economic Zone, in fact, an up-and-coming industrial zone spearheaded by Member of Parliament Kwame Asare Obeng, popularly known as Kwame A-Plus, seeks to transform the Central Region into a commercial and industrial hub. Covering more than 21,000 acres of secured, litigation-free land, the project is anchored on four pillars — an eco-recreational park, organic farming zones, a 24-hour business district, and an eco-industrial hub. The main reason that some SEZs achieve a measure of success is that the chief goal is clearly identified and articulated. Where the goal is not properly described and defined, it is much more likely that the SEZ will end up achieving very little of anything. Key to supporting the definition of an SEZ’s objective is national policy. Where an SEZ fits logically into a country’s industrial policy, then the articulation of the SEZ’s goal becomes easy.

PROVEN BENEFITS OF SEZs FOR DEVELOPING ECONOMIES

SEZs are not novel concepts; they have driven economic miracles worldwide. For African nations, including Ghana, they provide tangible advantages. Key benefits include:

• Attracting foreign direct investment (FDI) and Boosting Exports: SEZs create a relaxed regulatory environment that eases doing business and draws foreign investors. In Africa, they have facilitated upgrades in local industries, innovation, and knowledge transfer. For Ghana, this could mean billions in investments, similar to the over US$4 billion already attracted through its free zones program. 

• Job Creation and Skill Development: SEZs generate employment, particularly in manufacturing and services, addressing Ghana’s unemployment crisis. They also promote technology transfer, helping local firms climb global value chains.

• Infrastructure and Urbanisation: These zones stimulate infrastructure development, from ports to energy grids, while supporting urbanisation. In Ghana, this could enhance connectivity in regions like the Ashanti or Northern areas, fostering balanced regional growth. 

• Broader Developmental Impacts: Beyond economics, SEZs improve consumption patterns and welfare without exacerbating inequality, making them a tool for inclusive growth. 

INCENTIVES: A MAGNET FOR INVESTORS

Ghana’s investor-friendly incentives under the Free Zones Act 1995 are designed to offset high setup costs and bureaucratic hurdles. Enterprises must export at least 70% of output (with 30% allowable for domestic sales) and register as limited liability companies, but there’s no minimum capital requirement—only proof of funding and market access.

Monetary Incentives include:

• 100% exemption from import/export duties and levies.

• 10-year income tax holiday on profits, followed by a reduced 8% rate.

• Full relief from withholding taxes on dividends and double taxation protections via bilateral agreements.

Non-Monetary Perks encompass:

• 100% foreign ownership and unrestricted repatriation of profits, dividends, and fees.

• No import licensing or forex controls; foreign currency accounts permitted.

• Streamlined customs and minimal formalities, with guarantees against expropriation.

Priority sectors—such as agro-food processing, ICT, textiles (benefiting from the African Growth and Opportunity Act, or AGOA), pharmaceuticals, and jewellery—receive targeted support. Licensing is efficient: applications are processed in 28 working days, with fees ranging from $3,000–$10,000 initially, renewable annually at lower rates.

These incentives have proven effective, attracting over $4 billion in cumulative FDI since inception, predominantly in manufacturing and services. Studies show SEZ firms outperform non-SEZ counterparts in productivity and resilience, with positive spillovers to household welfare, including reduced poverty through job creation and higher per capita consumption. 

ACHIEVEMENTS AND IMPACTS: DRIVING GROWTH AMID CHALLENGES

Ghana’s SEZs, when the bill is passed, will be instrumental in Ghana’s economic narrative. Industrial parks have employed over 30,000 people directly, with indirect jobs in supply chains pushing the figure higher. Exports from zones have surged, particularly in non-traditional goods like processed foods and apparel, contributing to a 6.3% GDP growth, led by services and industry. The zones’ flexibility—allowing operations both inside and outside enclaves—has broadened participation, with firms reporting 20–30% higher sales during economic shocks like COVID-19. 

Yet, challenges persist. Critics argue that SEZs can lead to enclaves disconnected from the broader economy, but evidence from well-managed zones shows they can integrate and spill over benefits to surrounding areas. Traditional manufacturing dominates, limiting diversification into high-tech sectors. Infrastructure gaps, such as unreliable power in non-Tema zones, and regulatory overlaps between GFZA and other agencies, hinder efficiency. Recent analyses underscore the need for better enforcement of environmental standards and equitable benefit distribution to local communities.

LOOKING AHEAD: SEZS IN THE AFCFTA ERA

The proposed SEZ Bill signals a bold expansion, introducing guidelines for green incentives and digital integration to align with global sustainability goals. With AfCFTA fully operational, zones like Boankra could become intra-African export hubs, targeting markets in Nigeria and beyond. Experts predict that addressing implementation bottlenecks—through public-private partnerships and skills training—could double FDI inflows by 2030. SEZs are also viewed as part of the strategic instruments to expedite Africa’s industrialisation as well as regional integration, supporting the vision of creating one African Market under the AfCFTA Agreement. The AfCFTA Agreement supports the establishment and operation of SEZs for the purpose of accelerating its development. Special Economic Zones are, in fact, one of the main devices to advance the objectives of the AfCFTA in driving sustainable economic growth, uplifting trade integration, enhancing competitiveness and promoting industrial investment, as well as job creation.

It will be important to highlight a few positive efforts by fellow African countries in this sector, which can be emulated. South Africa’s Industrial Policy Action Plan (IPAP) identifies SEZs as key contributors to economic development. They are growth engines towards the government’s strategic objectives of industrialisation, regional development and employment creation.

Rwanda and Mauritius were singularly successful in achieving clearly articulated aims with their first SEZs. Rwanda wanted to boost employment by producing goods for export. Within three years, 3% of its workforce was employed in the newly established SEZ, while Mauritius succeeded spectacularly in processing and selling sugar to the European Union, boosting both export income and employment. A key distinguishing feature of the Mauritian story was the fact that European processing companies led the process. The government leaned heavily on the private sector to achieve its national development goals and research supports the idea that the best model for ownership or management of SEZs is a combination of public and private.

Many ownership options are available, running the whole gamut from wholly government-controlled to a licensing arrangement with a private entity. One option is for a private investor responsible for the establishment of the SEZ to be given a lease of a set number of years, after which the facility reverts to the government.

CONCLUSION

Ghana is yet to have a special economic zone; industrial parks are loosely referred to as SEZs. But in the future event that SEZs are introduced through the passing of the bill, they will be more than economic enclaves; they will be engines of transformation, blending incentives with strategic vision. Special Economic Zones are more than just tax breaks; they are the laboratories of our future economy. As Ghana navigates 2026 with optimism, embracing SEZs as a national policy could unlock unprecedented growth. By attracting FDI, creating jobs, and driving exports, these zones can propel the country toward middle-income status and beyond. By making SEZs a pillar of national policy, Ghana can break the cycle of commodity dependence and build a resilient, industrialised nation that provides dignified work for its citizens and quality products for the world. The evidence from Africa and globally is clear: when implemented strategically, SEZs deliver. It’s time for Ghana to commit fully, turning potential into prosperity for all its citizens and positioning the nation as the "Gateway to Africa."

The writer is a Private Legal Practitioner at DANEZRA LAW GROUP PRUC) TESANO – Accra