Private Sector Development- Promoting Sustainable Export Processing Zones (SEPZ) The World Bank, the Norwegian Agency for Development Cooperation (NORAD), and ACET are collaborating on a program to support private sector development and growth in G20 Compact with Africa countries, starting with Ghana. The project is on the manufacturing sector, given the relevance of manufacturing to economic transformation and the industry’s ability to generate sustainable, explosive growth. To support this agenda in 2020, the ACET program will focus on three work streams: (1) promoting the development of sustainable export processing zones (SEPZ) aligned with Ghana’s industrial policy; (2) supporting local content through the integration of small- and medium-sized enterprises (SMEs) in the global supply chain and value-chains of large enterprises; and (3) supporting the integration of local SMEs in the promotion of SEPZ.

Q4 2020
The Ghana Free Zones Board has been engaged as a key partner for the SEPZ – EPZ Landscape Assessment and Benchmarking Study which started this quarter. Interviews with members of the Free Zones have been scheduled and are ongoing. Expert reviewers were also engaged to evaluate our studies and provide insights.

Additional stakeholders including the Association of Member Companies in the Free Zones, the Ministry of Trade and Industry and Ghana Export Promotion Authority have been identified with preparations for engagement in session.

As an outcome of the September Strategy session, we have completed a study on the impact of EPZs on the implementation of the AfCTA and vice versa. The draft report has been reviewed and is undergoing finalization by our consultant. Plans for using the report to engage interested parties around the AfCTA implementation has been designed. 

Q1 2021
(1) Benchmarking Study - Research is ongoing to benchmark good practices regarding the alignment between Ghana’s EPZ and sustainable infrastructure, practices, and firms. Production of a draft study report is in progress and will be informed by the recommendations from the AfCTA study completed last quarter, and the landscape assessment. Next steps include external reviews followed by a validation study with key stakeholders. Prior to this the team also completed a landscaping assessment to inform the benchmarking study. 
(2) SEPZ Model and Retrofit: This activity will support the retrofitting of an existing EPZ into an SEPZ as a test case for development and subsequent replication. Aligned to the activities above, ACET will also support efforts to crowd-in additional investment, however this phase has not yet started. In the interim, ACET will develop a model framework for an SEPZ to be socialized with African countries.

Q2 2021
1) Landscape Assessment and Benchmarking Study – During the second quarter of 2021, the team completed the Benchmarking Studies. The draft reports for the landscape assessment and the benchmarking research have been finalized, gone through two external reviews and the comments from the reviews have been absorbed into the final report. The reports are undergoing final editorial for publications.

Validation Workshop: On 10 June 2021, ACET convened a workshop and policy dialogue on “Sustainable Export Processing Zones as a feasible approach for job creation” at The African Regent Hotel- Ghana. The workshop hosted key stakeholders from the Ministry of Trade and Industry (MOTI), the Ghana Free Zones Authority (FZA), Ghana Investment Promotion Centre (GIPC), Foreign, Commonwealth and Development Office (FCDO), private sector and development institutions. Also present were three critical reviewers and discussants drawn from academia, CSO (Civil Society Organizations) and Government of Ghana Economic Management Team. Various media houses in attendance interviewed and featured the topical discussions at the event on their platforms. 

Impact – The Ghana Free Zones Authority (FZA) is undertaking a review of the Free Zones Act and Regulations. The FZA and MOTI revealed their reference to the report as a strong basis for the upcoming review of the ACT and other relevant legislative instruments. The parties have also indicated the need for ACET to drive the implementation of the recommendations by championing and moderating further dialogues.

(2) SEPZ Model and Retrofit: This activity will support the retrofitting of an existing EPZ into an SEPZ as a test case for development and subsequent replication. Aligned to the activities above, ACET will also support efforts to crowd-in additional investment, however this phase has not yet started. In the interim, ACET will develop a model framework for an SEPZ to be socialized with African countries.

Q3 2021
In Q3, the landscape assessment and the benchmarking study were finalized for publication. Planning activities for next phase of the project has been completed and preparations to recruit a consultant for the project has commenced.
 
Policy Uptake/Impact 
ACET has initiated a discourse with the Ghana Free Zones Authority on supporting ongoing review of the Free Zones Act and Regulations.  

2) SEPZ Model and Retrofit: This activity will support the retrofitting of an existing EPZ into an SEPZ as a test case for development and subsequent replication. Aligned to the activities above, ACET will also support efforts to crowd-in additional investment, however this phase has not yet started. In the interim, ACET will develop a model framework for an SEPZ to be socialized with African countries. 

Q4 2021
(1) Landscape Assessment and Benchmarking Study: These study reports were finalized and disseminated among key stakeholders in Q3 2021
 
Policy Uptake/Impact 
In November, a call from ACET to support the Ghana Free Zones Authority (GFZA) on the review of the Free Zones Act and Regulations was approved. The GFZA has also confirmed the landscape assessment and the benchmarking study reports have been instrumental and a major input for the review exercise

2) SEPZ Model and Retrofit: This activity will support the retrofitting of an existing EPZ into an SEPZ as a test case for development and subsequent replication. Aligned to the activities above, ACET will also support efforts to crowd-in additional investment, however this phase has not yet started. In the interim, ACET will develop a model framework for an SEPZ to be socialized with African countries. This is a program to promote the development of sustainable export processing zones (SEPZ) aligned with the government of Ghana’s One Region, One Park (1R1P) policy. This sub-component will focus on two key activities: (1) diagnosis and evaluation of current export processing zone (EPZ) ecosystems and benchmarking against good practices regarding the alignment between Ghana’s EPZ and sustainable infrastructure, practices and firms; and (2) support to retrofitting of an existing EPZ into an SEPZ as a test case for development and subsequent replication. Aligned to the activities above, ACET will also support efforts to crowd-in additional investment. In first-quarter 2020, ACET began project management and resource planning and stakeholder engagement, and initiated a landscape assessment and benchmarking study.To date, terms of reference (TORs) have been developed and a consultant engaged to lead this work.  The team has since completed the inception report.

In September 2020, ACET organized a Private Sector Development Strategy retreat in Ghana to review program objectives and initiate preparation towards the development of a strategic and operational plans. Present were internal and external stakeholders from both private and public sectors.

In Q3, we initiated a work with the International Senior Lawyers Project (ISLP) to review various legal/regulatory aspects and studies of the PSD work. Other project activities have been on external stakeholder engagements and recruitment of a portfolio coordinator.

ACET has contracted the Ghana Free Zones Board as a key partner for the SEPZ – EPZ Landscape Assessment and Benchmarking Study. 

As an outcome of the September Strategy session, we will undertake a study on the impact of EPZs on the implementation of the AfCFTA and vice versa. The scope/TOR is being amended to extend the consultant’s engagement. Expert reviewers are also being engaged to review our studies and provide insights. The team has reached out for further discussion with the AfCFTA Secretariat.