Business Times Africa Magazine 2017 /vol 9/ No2 BT2Edition2017_web | Page 25

AKUFO-ADDO'S 'ONE DISTRICT, ONE FACTORY' DRAWS INVESTORS
To address this situation, the ad-
ministration of President Nana Addo
Dankwa Akufo-Addo has rolled
out two major policy interventions,
namely: providing a stimulus package
for industries and the establishment
of a factory in each of the 216 districts
in Ghana.
In line with this, the Ghana-
ian government has approved
GH₵256million for the resuscitating
of 100 commercially viable but dis-
tressed companies.
“One District, One Factory” US$-
3billion pledges
The “one district, one factory”
project is the vision of President Aku-
fo-Addo to set up a competitive indus-
try in all 216 districts of the ten regions
of the 27million-populated country to
boost economic growth and to partly
address the unemployment problem.
Ever since the new government
took over in January 2017, many in-
vestors have expressed their prepar-
edness to partner the government in
the implementation of this novel idea.
In February, the CEO of the Ghana
Investment Promotion Council
(GIPC), Yofi Grant, said investors had
inundated his office to inquire about
the districts industrialisation projects.
“‘The one-district, one-factory’
content has sparked very interesting
discussions and interests from in-
vestors both here and abroad. There
are a lot of people who are now ask-
ing questions about what they can
do, where they can find information
about what is available in the dis-
tricts in terms of raw materials. Some,
too, are asking about demographics.
Some are also asking about incentives
that might be available to investors
once they invest in the rural areas etc,”
Mr. Grant said.
National Coordinator of the One
District, One Factory Secretariat, Gifty
Ohene-Konadu, also told the me-
dia that: “The programme has so far
generated investment pledges and
commitments to a tune of three bil-
lion dollars (US$3billion). These are
pledges made from local and foreign
investors,” she said.
She further stated that a total of
40 business plans are currently being
reviewed, with many coming from the
agro-sector.
According to Mrs. Ohene-
Konadu, financial support for the pro-
gramme will range from US$5, 000 to
US$5 million, depending on project
size and operational categorization;
with an exit plan that allows the gov-
ernment to sell its equity stake on the
Ghana Alternative Market (GAX) after
a five-year period.
She announced that the project
will take-off fully by mid-2017, with
ten factories expected to be inaugu-
rated to mark the official commence-
ment.
Other policy initiatives
Besides the district factories
project, government has outlined a
programme dubbed: ‘Accelerated
Programme for Industrial Transfor-
mation’ to serve as a blueprint to set
the industrial sector on the path of
growth.
Speaking at the maiden edition
of the National Policy Summit (NPS)
organised by the Ministry of Informa-
tion and the Business and Financial
Times (BFT), Alan K. Kyerematen,
Minister of Trade and Industry, said
that government has developed ten
key elements, which includes provid-
ing stimulus package for industries,
creating a friendly business environ-
ment, building export market, among
others, to drive this agenda.
“First is what we call the stimulus
package for existing local industries.
There are exiting industries in Ghana
that are potentially viable but are
operationally distressed for various
reasons. And so, government seeks
to provide a stimulus fund to support
these distressed companies.
The second is what we describe
as the one district one factory. We are
committed to work with the private
sector to ensure that all 216 districts
in the country, at least, one commer-
cially viable medium to large scale in-
dustrial enterprise is established. And
we hope that industry will be able to
fundamentally affect the economy of
each district,” he said.
“We are also going to promote ag-
gressively export development. In this
regard, we have access to the market
of Europe through the EPA, we have
access to United States through the
AGOA, and initiative to make Africa
one continental free zone.
While we build our export market,
we will also improve our domestic
retail market; support aggressively
the growth of our small and medi-
um enterprises through a number
of initiatives; and to develop a busi-
ness-friendly regulatory environ-
ment,” Mr. Kyerematen added.
The country’s economy has long
relied on cocoa and gold for its export
revenue, neglecting other essential
cash crops.
A report by the Guardian, UK,
shows that: “plummeting global
commodity prices have pummelled
Ghana’s economy. Export revenues
for oil, gold and cocoa declined from
$8.2bn (£5.8bn) between January and
September 2014 to $5.8bn a year lat-
er.”
Government aims to diversify the
economy by roping in other com-
modities that will shift focus from the
traditional export commodities; and
develop the domestic market.
“The third one is what we call stra-
tegic anchor industries. As a country,
we have depended on cocoa and gold
which accounts for about 85 percent
of our export revenues. We want to
diversify to other areas and so these
strategic anchor industries are meant
to do that,” Mr. Kyerematen said.
Mr. Kyerematen further stated that
government will support SMEs and
continue engaging the private sector
to ensure that policies formulated are
linked to the growth of the industrial
sector.
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