[ 2017-05-22 ]

Minister of Trade and Industry, Alan Kyeremanten

Government to invest 30% only in 'One-District One-Factory' - Alan Kyeremanten
The Minister of Trade and Industry, Alan
Kyeremanten, has disclosed that, the government is
willing to invest not more than 30 percent equity,
if required, in any of the proposed “One
District One Factory” projects.

According to the Trade and Industry Minister,
investing only 30 percent equity in its flagship
policy initiative, is to ensure that the “One
District One Factory” initiative remains a
private sector driven project.

“From the government’s perspective, the
financing of each project would be based on the
shareholding structure which is effected in the
business plan. So, a promoter of each project will
have the authority to decide the equity structure
of the company. If the promoter wants to own it
100 percent, that will be the ideal situation.

“But if you require government support of the
project in terms of financing the project, then
government would become a strategic partner and
invest not more than 30 percent equity in that
particular project. This is to ensure that, the
one district one factory initiative remains a
private sector driven project,” the Minister
added.

Mr. Kyerementen was speaking at the Ghana National
Chamber of Commerce’s (GNCC) industrial forum
held under the theme: “Leveraging On The ‘One
District One Factory’, Policy Indicative For
Private Sector Growth”.

He said the programme seeks to address the
challenges of severe poverty and under development
among rural communities through the establishments
of institutional framework which is expected to
attract the private sector investments to the
rural areas of the country.

The project which is under the District
Industrialisation Project (DIP) is a key component
of the industrial transformation agenda of the NPP
government.

It was designed as a comprehensive programme for
rural industrialization, involving the setting up
pf at least one medium to large scale factory in
each of the administrative district of Ghana while
the party, led by President Akufo-Addo, said it
was optimistic it will help reduce unemployment in
the country.

The Trader and Industry Minister who disclosed
that the “One District One Factory” policy
would be launched in June this during the second
National Policy Summit (NPS), said the policy
would create more than one million jobs for the
youth of this country which is expected to end the
rural to urban migration which has choked major
cities like, Accra, Kumasi and Takoradi.

He said the cost of each project can only be
determined on the basis of the projections that
are made in the Business Plan.

“However, as a broad rule subject to what is
provided in the business plan, it is envisaged
that the project on the average will cost between
$1million to $5 million. The point is that you are
looking at a landmark project and the bigger that
better as it can fundamentally affect the fortunes
of the districts and the Ghanaian economy at
Large,” the Minister stated.

Meanwhile Mr. Kyeremanten told the forum that, the
governments expect to invest between $200,000 to
$500,000 on existing companies that will be
convicted or adopted to be part of the “One
District One Factory”.

But according to him, since it is envisaged that a
significant number of projects may be agro
industrial projects, government will provide
specific incentives for the production and supply
of quality, competitively priced, agricultural raw
materials as inputs into the processing activities
of the DEP.

This will include support to farmers based
organisations in the form of extension services,
provision of farm inputs, machinery and equipment,
and access to credit.

On his part, the President of the GNCC, Nana Dr.
Appiagyei Dankawoso I, said thought the policy
seeks to stimulate industrialization by ensure
equitable distribution of industries across the
country, there was little clarity with its
implementation hence the need for the forum by the
GNCC.

According to him the GNCC which he heads was of
the firm conviction that this policy is laudable
and laudable and worthy of pursuit for the
sustained economic growth and social improvement
of the country.

Source - thebftonline.com

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