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As I was speaking to a fellow entrepreneur Kiprono Felix Kiptum, he explains what he found when he visited an EPZ in Athi River, Kenya
Well you may wonder what an EPZ is! According to Wikipedia, export processing zone (EPZ) is an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties.
“Well in Kenya, anyone can set up an EPZ anywhere in the country – all that is needed is a little land (even 1 acre) and an application licence of $5000 per year” said Kiprono Felix Kiptum of pesaDroid
Mr. Kiptum continued to mention that Companies inside the EPZ get a 10 year tax holiday and they do not pay for VAT or duty even when they import raw materials (except for vehicles and fuel). They are allowed to sell 20% of their stuff locally.
EPZ are organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade. It is a region where a group of countries has agreed to reduce or eliminate trade barriers.
If an EPZ is to be set up in your county, what products do you think you can export?
Photo Courtesy of ONE.org Flickr
