With 278 projects incorporated under government’s flagship One District, One Factory (1D1F) initiative in 136 districts, attention of the programme’s secretariat this year will be turned to the remaining 124 untapped districts across the country, Head of 1D1F at the Ministry of Trade and Industry, Kofi Addo, has indicated.
Speaking to the B&FT, Mr. Addo said the secretariat’s interests and plans for 2022 are in those districts without 1D1F projects, with the Trade Ministry resolving to aggressively pitch investment prospects in unexploited districts to financiers. “That’s going to be the major drive for this year,” he said.
The secretariat said out of the 278 incorporated 1D1F companies captured at the end of December 2021, 106 companies are in full operation and 148 are under construction, with 24 projects in the pipeline.
Strategy and action plans for the 24 pipeline projects, according to Mr. Addo, are ready and awaiting funds for construction to begin.
With 260 administrative districts in Ghana, Mr. Addo revealed that some have more than one factory, with new applications still coming in for those districts which have already been captured. “The strategy is to convince investors to venture into those virgin districts that are yet to be tapped, given they have the necessary investment potential,” he said.
Though the initiative is constantly attracting foreign interest and participation, more than 50 percent of local industries are currently participating.
But Mr. Addo, emphasised that despite opportunities for foreign participation, government’s aim is for the initiative to be Ghanaian-driven with room for joint-ventures.
The secretariat said a breakdown of industry specific and high-interest sectors of investment within the programme include manufacturing – steel and vehicle assembly plants, agro processing, poultry, meat and paper products.
Data on performance breakdowns of 1D1F companies from the Trade Ministry indicate a 40.6 percent participation for agro-processing companies: 43.9 percent being manufacturing companies, 7.9 percent as meat processing (livestock, poultry and fish) and 7.6 percent representing others.
Trade Minister Alan Kyerematen, in July 2021, told Parliament that government since inception of the programme had successfully mobilised loans for over 100 1D1F companies from participating financial institutions (PFIs), to the tune of GH¢2.69billion, on the back of interest the subsidies – of which GH¢1.66billion had already been disbursed.
This amount, he said, has been leveraged through the disbursement by government of GH¢260.9million to de-risk loans and support interest payments.
Source: BFT Online
