Minister of Trade and Industry, Alan Kyerematen has disclosed the pledge by some Chinese financial institutions to make a $400 million financial support available towards the implementation of the Ghana government’s flagship ‘One District, One Factory’ (1D1F) programme.
The Chinese institutions, he mentioned, are to lend the $400 million to the local banks for onward lending to the 1D1F players.
The local banks identified by the Chinese institutions are GCB Bank, Ghana Eximbank, Ecobank, and Stanbic Bank.
The Minister made the announcement at a media briefing in Accra to update the public on the implementation of the 1D1F initiative.
Misconception about 1D1F
The Minister indicated that the 1D1F initiative is not about setting up state-owned enterprises.
He said contrary to the misconception that government was supposed to set up public enterprises under the initiative, government was only supporting private players to set up enterprises in the districts.
Private sector-led initiative
According to him, 1D1F is private sector-led and facilitated by government.
He explained that as part of the facilitation, government was helping to provide tax incentives and facilitate credits, among others.
Supporting existing companies
Reacting to arguments on why government was supporting companies already in existence through the 1D1F policy, he said there was nothing wrong in helping firms already in existence to grow further.
52 Existing companies in 1D1F
He said that was why out of the 181 factories that have been established, 129 are new companies under the 1D1F while 52 of them are already in existence.