President John Mahama says he will meet with the Ministry of Trade, Agribusiness and Industry and the Free Zones Authority next week to address concerns from industries operating under the Free Zones scheme over provisions in the new Customs Act.
The meeting, which will take place after the Finance Minister returns from the World Bank and International Monetary Fund meetings, is expected to resolve concerns that the new law rolls back some of the incentives enjoyed by businesses operating under the scheme.
President Mahama said the government is committed to resolving the concerns and ensuring that industries received the support they needed to grow.
He added that the government would meet the relevant institutions next week to discuss the matter.
The President gave the assurance during a visit to textile manufacturer DTRT, where he reiterated the government’s commitment to supporting local industries and creating jobs.
He said, “I know that there has been some new legislation under the new Customs Act, which the Free Zones industries are complaining about because it has rolled back some of the incentives they received. We are holding a meeting next week, when the Minister of Finance returns from the World Bank and IMF Spring and Autumn Meetings. We are holding a meeting with the Ministry of Trade, Agribusiness and Industry and the Free Zones Board Authority in order to resolve the issues you have complained about”
President Mahama also announced plans to invest two billion dollars annually in sectors with the potential to create jobs, including textiles and garments, under the government’s New Economy Programme.
He said the textile and garment industry align with the government’s 24-hour economy agenda because of its capacity to provide employment for thousands of people.
The President further disclosed that the government would finance the construction of three additional textile factories next year in partnership with the private sector.
He said the government would support industries with the right incentives to enable them to expand and create more employment opportunities.
President Mahama commended DTRT for its growth, noting that the company has expanded from about 500 employees when he first visited its factory in Accra to more than 6,000 workers, most of them women.
He recalled that many of the company’s initial workers were recruited from among head porters and trained with support from the Youth Employment Agency.
The President said the company’s expansion demonstrated the potential of the textile and garment industry to create jobs, particularly for women.
He also expressed the government’s support for domestic investors, emphasising that local businesses would receive the same attention as other investors. President Mahama said a new DTRT factory under construction was expected to employ 5,000 people per shift and operate across three shifts.
He expressed confidence in the project and said he intended to return next year to commission the facility. The President added that the government would subsidise training to reduce the cost of starting operations for businesses and help industries develop the skilled workforce they need.