The reason why major tire companies find foreign investments attractive can be seen in the agreement which Firestone reached with the government of Ghana on Dec. 8, 1967.
Firestone Gnana Ltd. agreed to invest $3,128,000 in putting a Czechoslovak built tire plant in Bonsaso back into operation in return for:
A 10-year income-tax exemption.
A 5-year property-tax exemption.
A 10-year exemption from customs taxes, import duties, sales taxes and purchase taxes.
Unrestricted export licenses and a 10-year exemption from export duties.
Adequate import licenses.
Protection against importation of Firestone-type tires for five years (except when Firestone was unable to supple the local market).
Protection for five years against importation of Firestone-type tires on assembled vehicles.
Bank overdraft privileges in the local currency equivalent to not less than $1 million.
A Bank of Gnana loan in the local currency equivalent of $2.9 million.
An immigration quota allowing 50 non-ghanian Firestone employes to remit up to 50 percent of their salaries in dollars to the United States.
Firestone received a controlling, 55 percent equity interest in the new company, In 1977, the government of former president Gen. I. K. Acheampong issued a special decree exempting Firestone ghana Ltd. from a 1975 law requiring ownership of most large industries.