1D1F: 254 Proposals currently under negotiations for possible takeoff – Kyerematen

217 total views, 2 views today

The Minister for Trade and Industry, Alan Kwadwo Kyerematen, has stated that the ministry has received about 700 proposals in connection with the government’s flagship One District One Factory (1D1F) program. He said of the number about 329 have been screened and recommended to financial institutions. About 254 of them are currently being negotiated with the financial institutions for a possible takeoff.

The Minister was updating Parliament on the status of the implementation of the policy so far following a question asked of him by the Honorable Member of Parliament for the Buem constituency, Daniel Kwesi Ashiamah, who wanted to know government’s responsibility in the policy.

With this policy the government aims to establish at least one factory in each of the 254 districts of the country.

Outlining the government’s responsibility in the 1D1F policy in Parliament on Wednesday, Mr. Kyerematen said the government’s core responsibility is to create an enabling environment for the industries to thrive; emphasizing that the policy is largely a private sector led initiative. He said the government has a responsibility to ensure its implementation is successful.

He noted that among the responsibilities of the government is to identify both local and foreign financial institutions to provide financing support to entrepreneurs under the initiative as well as facilitating negotiations with participating financial institutions for medium and long term financial support.

According to him government will invest “not more than 30 per cent equity in district enterprises where required” and “ensure timely release of budget allocation meant to support the district enterprise with infrastructure such as power, water and access to road.”

In terms of access to market, Mr. Kyerematen said government would facilitate negotiations with both local and foreign off-takers, facilitate negotiations with public sector organisations as anchor customers using the local content policy.

He said “Government will use the Ghana Export Promotion Authority and Ghana missions abroad to support the development of export markets for companies established under the programme.”

Other responsibilities of the government, according to the Trade and Industry Minister include reviewing existing profiles of the natural resource endowments of each region and identify business promoters and potential investors interested in participating in the 1D1F initiative.

Mr. Kyerematen said government will review and select business plans and proposals submitted by potential investors that respond to the eligibility criteria proposed under the initiative as well as monitor the status of implementation of each district enterprise project against key performance indicators.

In a related question asked by the MP for the Keta constituency, Richard Quashigah, on the implementation plans for the 1D1F, Mr. Kyerematen said the cost of each project would be determined on the basis of the business plan.

“Mr. Speaker, it is envisaged that on the average, [the cost] would range between US$1 million and US$10 million,” he said.

He said since a significant number of 1D1F projects are agro-industrial projects, government will

provide incentives for the production and supply quality, competitively priced agricultural raw materials as inputs into the processing activity of the projects.

“Mr. Speaker, the responsibilities of the government enumerated above indicates that it is playing a significant role in the implementation of the programme” Mr. Kyerematen stated.

Source: Jeorge Wilson Kingson || ghananewsonline.com.gh


Ghana News Online

The primary function of GhanaNewsOnline.com.gh is to gather, process and distribute news about Ghana and Africa to the World. To serve as a News Agency with the mandate to present complete, in-depth objective and impartial information, news, and features rooted in investigative journalism.

Leave a Reply

Your email address will not be published. Required fields are marked *