We only distributed GHS14 million from the Ghana Exim Bank to 48 firms, not 60 – Trade Ministry

The Ministry of Trade and Industry has corrected that it has supported 48 rather than 60 companies, with a total disbursement of GHS14 million through the One District-One Factory (1D1F) Initiative.

The Minister, Mr K.T Hammond, told parliament that the earlier figure given to the House in March this year, was an error.

“Mr Speaker, the ministry had, in March 2022, inadvertently stated to this House that 60 1D1F companies had been supported by the Ghana Exim Bank,” he first recalled.

“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 and the ministry renders an unqualified apology to the House,” Mr Hammond corrected.

Background

The One District-One Factory (1D1F) initiative is the vision of President Nana Addo Dankwa Akufo-Addo to change the nature of Ghana’s economy from one which is dependent on import and export of raw materials to one which is focused on manufacturing, value addition and export of processed goods. These raw materials are largely found in the districts and would have otherwise gone waste.

The initiative is private sector-led. The government creates the necessary conducive environment for the businesses to access funding from financial institutions and other support services from government agencies to establish factories.

Ghanaian entrepreneurs will, thus, own the companies, operate them and bear all the risks and rewards thereof.

On 25 August 2017, the president launched the 1D1F programme at Ekumfi in the Central Region.

He then cut sod for the commencement of the first factory, a pineapple/fruit processing factory at Nanabeng in the Central Region.

The 1D1F initiative seeks to achieve the following:

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