We’ll tackle 1D1F hurdles with a 24-Hour economy – Elizabeth Ofosu-Adjare

The Minister-Designate for Trade, Agribusiness, and Industry, Elizabeth Ofosu-Adjare, has proposed a 24-hour economy as a solution to the challenges affecting the One District, One Factory (1D1F) initiative.

Speaking during her vetting by Parliament’s Appointments Committee, Ofosu-Adjare acknowledged the programme’s successes and outlined the hurdles it faces.

She highlighted raw material shortages as a significant issue for agro-processing factories, compounded by limited access to capital.

Despite government support through subsidized loans and a capped interest rate of 20%, market fluctuations raised interest rates to 55%, leaving a 15% funding gap for businesses. Additionally, the government’s inability to fulfil its promise of covering 10% of the subsidized interest rate further exacerbated the situation.

She proposed transitioning to a 24-hour economy as a practical solution. By maximizing productivity through extended operational hours, the factories could mitigate supply chain challenges and enhance output.

“1D1F is a programme for Ghanaians set up by the government. It has its plus and minuses. For the pluses, the program set up factories where individuals could add value to our raw materials and these agro-producing factories started but because of some challenges, they have not been able to do what was expected of them.

“One of the challenges I have been briefed by the ministry is the fact that these factories lacked raw materials. We all know that one of the challenges in the agro-processing industry is the lack of raw materials. So, these companies have not processed the way the government wanted it to be.

“Also, even though the government supported them with some inputs, they lacked capital or access to the same, and because of that, they have not been able to do their work as expected of them. If you look at the other 1D1F companies that signed onto the programme, their major challenge was the fact that the government capped their interest rate at 20% and promised to pay 10%, which was a very good programme.

“But somewhere along the line, the interest rate shot up to 55%. So, now the problem the company had was who paid for the difference of 15%. Because they have already sold their products. One thing that the government was also not able to do was pay the extra 10% that it promised these factories.

“…So, these are the challenges of that 1D1F but there is always a challenge to our problems. It is good that it has started. Now that we know the challenges, how are we going to solve them? I see the solution to the 1D1F in the 24-hour economy,” she stated.