President John Mahama has underscored the Northshore Apparel Hub as a pivotal example of how his government’s ambitious 24-hour economy initiative is poised to stimulate job creation, bolster production, and accelerate Ghana’s export earnings,” stated the President during the opening ceremony of the hub. The initiative’s core objective is to create a dynamic manufacturing landscape, particularly for young individuals, and to enhance Ghana’s competitiveness in the global market.
“This is an example of what our vision, the 24-hour economy initiative, is designed to achieve,” President Mahama declared, emphasizing the holistic approach to economic development. Northshore Apparel Hub is expected to house several shifts, offering a significant increase in employment opportunities for young people and boosting production output. According to the President, the company’s operations are designed to generate substantial revenue through exports, contributing significantly to Ghana’s foreign exchange earnings.”
The initiative encompasses two key strategic goals: job creation and increased export earnings. The President explicitly stated that the 24-hour economy is intended to generate employment and stimulate export growth. Specifically, the Northshore Hub is anticipated to generate 2,000 jobs, representing a substantial contribution to Ghana’s workforce.
“North Shore is expected to run several shifts, and it means that several more young people will get jobs to do,” the President stated, highlighting the direct impact of the initiative on youth employment. The initiative is not solely focused on apparel; it’s part of a broader wave of factories and businesses adopting multiple shifts under the 24-hour economy framework. The President further emphasized that this initiative is expanding beyond North Shore, with several other factories planned to operate simultaneously, creating further employment opportunities for Ghanaians across the country. The initiative also facilitates the benefits of the Free Zones regime, allowing businesses to access incentives and support, including tax exemptions on plants and equipment. The President explained that the current tax regime offers lower rates for manufacturers establishing operations in rural and northern areas of Ghana, and provides a lower tax rate to manufacturers located in the northern part of the country.”
Furthermore, the President announced plans to introduce a net-metering framework, a critical component of the initiative, to encourage the use of solar power. The legislation will allow companies with solar power plants to supply excess electricity to the national grid, creating a mechanism for revenue generation. The President explained that this system will allow companies like North Shore to net meter with the national grid, calculating electricity credits based on produced power. The system will be particularly beneficial for companies that generate electricity through solar power, as it will enable them to benefit from the grid’s excess capacity, which will be measured by the amount of electricity they supply.”
President Mahama also highlighted the establishment of a tax incentive program for manufacturers located in rural and northern parts of Ghana. The current tax regime provides lower rates to manufacturers that establish operations in rural areas and the northern part of Ghana, and to manufacturers who locate in the northern part of Ghana. He explained that the current tax regime gives a lower tax rate to manufacturers who go to rural areas and to manufacturers who locate in the northern part of Ghana, making it an effective tool for bolstering Ghana’s economy.”
“The government intends to introduce this system soon,” the President concluded, reiterating the government’s commitment to bolstering Ghana’s economic prospects through targeted investments and policy initiatives.
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Source: MyJoyOnline
