Source: newsthemegh.com
The One District-One Factory (1D1F) Initiative has received backing from the Ministry of Trade and Industry for 48 rather than 60 enterprises, for a total of GHS14 million.
The original amount provided to the House in March of this year was incorrect, the Minister, Mr. K.T. Hammond, told the legislature.
He began by recalling that the ministry had accidentally informed this House in March 2022 that 60 1D1F enterprises had received financing from the Ghana Exim Bank.
The ministry extends an unqualified apology to the House, Mr. Hammond clarified, adding, “Mr. Speaker, a further appreciation of the facts and analysis of the various companies and figures showed that it was not 60 but 48 companies.”
The goal of President Nana Addo Dankwa Akufo-Addo’s One District-One Factory (1D1F) plan is to transform Ghana’s economy from one that is reliant on the import and sale of raw materials to one that is centered on manufacturing, value addition, and export of processed goods.
These basic materials, most of which are located in the districts, would have been wasted otherwise.
The private sector is driving the initiative. In order for enterprises to get financial institution finance and other support services from government agencies in order to develop factories, the government establishes the required favorable conditions.
Thus, Ghanaian businesspeople will own the enterprises, run them, and take on all the associated risks and profits.
The 1D1F initiative was introduced by the president at Ekumfi in the Central Region on August 25, 2017.
The first factory, a pineapple/fruit processing facility at Nanabeng in the Central Region, was then set to begin construction after he had cut the sod.
The following goals are pursued by the 1D1F initiative:
Add value to the natural resources of each district and exploit the economic potential of each district based on its comparative advantage.
Ensure even and spatial spread of industries that would stimulate economic activity in different parts of the country.
Create massive employment particularly for the youth in rural and peri-urban communities, and thereby improve income levels and standards of living, as well as reduce rural-urban migration.
Promote exports and increase foreign exchange earnings
Enhance the production of local substitutes for imported goods thereby conserving scarce foreign exchange.