Ghana’s Free Zones Strategy and the “Role of China” in It

Abstract

This paper explores the history of free zones in Ghana and Ghanaian policy makers’ related strategy. It looks at the “role of China” in these zones: both in terms of Chinese companies’ presence there, and in terms of reference to a “Chinese model” to develop free zones. On the one hand, the domestic success of special economic zones in China has validated this model and justified the creation of “Chinese SEZs” in a few African countries. On the other hand, despite a significant presence of Chinese investors and companies in Ghana - including one newly established Chinese industrial park - we find that China’s role in Ghanaian free zones is negligible. We attribute this finding, together with the absence of “Chinese SEZs” in Ghana, to a host of variables, including: Ghanaian leaders’ and policy-makers’ strategies, the country’s framework and trajectory with regard to free zones, the business environment, and some missed political opportunities.