Some 50 companies that have expressed interest in government’s ‘One District, One Factory’ (1D1F) programme are expected to start operations before the end of 2018.
Senior Minister, Osafo Maafo says he has been reliably informed by the Trades Ministry that the companies have gone through the appraisal process and have been approved to begin production in various sectors.
Giving details on the progress of the programme at the Graphic Business/Stranbic Breakfast Meeting in Accra Tuesday, the Minister said the government has not forgotten about the policy and that serious work is being done to ensure its fruition.
He said the Ministry has received 781 expressions of interest out of which 632 have been reviewed and 332 are currently being processed for financial support.
“So far 15 projects have been approved for implementation under the 1D1F…we expect that by end of this year, 50 of those which have been appraised will be in production,” he added.
The Akufo-Addo-led administration is seeking to transform the economic fortunes of the country by undertaking a massive industrialisation campaign which will equip and empower communities to utilise their local resources in manufacturing products that are in high demand both locally and internationally.
The initiative, otherwise known as district enterprises, is to establish medium-to-large-scale factories or industrial enterprises that have the potential to fundamentally affect the economy of the districts.
Among other things, the district enterprise is aimed at supporting existing companies, while creating new ones to create employment, as well as add value to the country’s natural resource base.
Already, the government has released GHS465 million for the commencement of the one-district-one-factory project.
Another GHS256 million for the revamping of 100 private commercially viable and distressed companies throughout the country has also been released.
A number of banks have committed to supporting the programme financially.
The Senior Minister mentioned that GCB Bank has agreed to make available GHS1 billion while UBA will support with GHS 880 million.
The others are, adb, GHS200 million; EXON Bank, GHS103 million; UMB, GHS440 million and Societe Generale Ghana have agreed to support with GHS25 million.
“We continue to count and other banks are discussing with us,” Mr Maafo added.
He, however, indicated that the banks themselves will decide on the specific programme they want to support, not the government. “The projects will have to be appraised by the banks because the 1D1F is all in the domain of the private sector, not the government.
“What the government has decided is that it will absorb 50 percent of the interest rates of these 1D1F companies so that determining what is bankable will be done by the professionals. When you have been appraised, shortlisted and you have qualified, the cost of money to you will be shared between the government and yourself,” he disclosed.
Source: myjoyonline.com
Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority. |
Please, good citizens of Ghana, do not allow yourself to be blinded by baseless party politicking of loose polemics, propaganda, and populism. The 1D1F is a well-thought policy to encourage private investment in the Economy. To this end, the Government is creating an environment whereby the banks are encouraged to lend monetary capital to the private investors at half the interest cost, that is a commendable and ambitious policy. Private innovational skills and most especially the youthful ones will be freely courageous to unfold their capability without too much risk of financial burdens and handicaps. The idea, in the first place, is very remarkable and it is indeed not very material how many industries are established at a particular point in time. As it stands now if NPP Administration is able to get 20% of such companies so established, operational in her two terms of Governance, that would be a big success and the impact would be felt remarkably. And It's chain-effect would go a long way to create the political space for very long-term continuity of projects and policies of the kind. You see, the two-term mandate is too short space for you to appreciate the maturity of positive microeconomic indicators in the absence of the social interventions like SHS. So NPP is doing the right thing no matter how the challenges are, so long as they are on course and fixing the challenges as they pop up, it is fine. Then, the luxury of abundant political power-space is not on their side. And indeed, not on the side of any political party in power in any given space.
@ Joel, you have money paaaoo. But you lack the accademic language for business, Know that nobody or government can just walk into an bank and ask it start giving out out money basabasa as you think now, Anyway I don't blame you.
Joel you are mad and stuuupid
Thai is why the business proposals are being appraised by the lending banks. It is a loan.
What is Senior Minister saying that GCB Bank has agreed to make available GHS1 billion while UBA will support with GHS 880 million.Am about to withdraw all my savings from GCB Bank and UMB. Will equally advice friend, colleagues and family members to do same
PLEAS CAN YOU SPECIFICALLY MENTION THE FACTORIES AND THEIR LOCATIONS?
ANOTHER NDC PROPAGANDIST asd, STOP YOUR ***barred word***
Please Mr Osafo Marfo can you leave the government since you are too old to allow our president govern the country. Your ideas are old and archaic. Please allow our honest Fin Min and the vice president do their job