One District One Factory

One District One Factory

Throughout the post-independence history of Ghana, successive governments have tried various policies, programmes and initiatives to boost industrialisation in Ghana. There have been no disagreements among successive governments that industrializing the nation is a desirable pursuit.  The nation has had various degrees of success from the industrialization policies of successive governments.

One of the limiting factors to the slow growth of Ghana’s industrial sector has been the seemingly absence of the enabling business environment to drive undustrialization and make firms more competitive. It has an anecdotal tale which suggests that some financial institutions see it as risk free to fund importation than to support firms that are in local manufacturing.

As a way of pinning Ghana on the global map of industrialization, the government by Nana Addo Danquah Akufo-Addo instituted the One District One Factory (1D1F) programme. The 1D1F programme is designed to ensure appropriate incentives and regulations are put in place to create a favourable environment within which businesses can thrive and also protect the interests of shareholders.

The 1D1F programme is a private sector led initiative which means that factories to be established under the programme are owned and managed by private investors. Government can however invest up to thirty percent (30%) equity in such enterprises that require its participation. The programme aims at establishing at least one medium to large scale factory in all the 254 Districts in the country. This means that a District could have more than one factory depending on its resource base. The emphasis on medium to large scale is due to the fact that the enterprises to be established are expected to impact positively and significantly on the economies of the Districts including creation of jobs, stable income for the residents and improved livelihoods.

The priority areas of the 1D1F programme include: input/raw material producer groups; agro processing and business; textiles and clothing; ICT; pharmaceutical and cosmetics; waste management; distribution and trading; and tourism, arts and craft. Following the launch of the programme, a consortium of six banks have pledged a total of GH¢2.57 billion in support of eligible companies. As at January 2020, the 1D1F programme had 181 projects spread over 110 districts across the 16 regions are at various levels of implementation with 58 of them being functionally operational. The 58 1D1F companies in operation had created 10,983 direct and about 43,000 indirect jobs bringing the total to about 54,883.

The plan of the NPP government in 2020 in relation to the remaining 150 districts where no promoter has so far shown interest is to identify and support private sector business operators in those districts.

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