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