Documents detailing how the newly installed government plans to
implement its manifesto plan- one district one factory have been
revealed.
The documents spell out the implementation plans as well time lines for
the first phase of the roll out of the policy. Indeed, establishment of
factories, under the new policy is expected within the first 100 days of
the new government’s assumption of office.
The aim of this key policy is to ensure that Ghana’s ongoing
industrialization drive spreads to every part of the country, as opposed
to the hitherto situation where the vast majority of manufacturing
facilities are located in the five largest urban areas, namely Accra,
Tema, Kumasi, Takoradi and Tamale.
However, since President Akufo-Addo made the promise last year, during
his
ultimately successful election campaign, major doubts have been cast
over its viability because of government’s tight fiscal constraints and
in part because of the lack of detail provided as to how the plan would
be actually implemented.
But within the first couple of days of the Akufo Addo administration’s
assumption of power, those details are now emerging. Just as
importantly, it has been revealed that implementation is actually
underway with several industries identified and entrepreneurs having
committed to financing them.
The new government has given the go ahead for the one district one
factory implementation to be managed by collaboration between the public
and private sectors through an organization which will specifically be
set up for that purpose.
Crucially, that dedicated organization will only serve as promoter and
facilitator of the key new policy for ensuring nationwide spread of
industrialization and will not be a direct investor in the resultant
industrial projects. Rather, the private sector will provide the
investment although local governments could partner them in this regard
if such an investment of public funds is adjudged prudent and
advantageous.
The dedicated organization itself will have three key objectives. The
first is to reduce the risks inherent in district level
industrialization by providing crucial technical assistance. This will
involve providing a capacity building platform for both investors and
other stakeholders across the value chains on the strengths and
weaknesses of each district. It will also involve ensuring relevant
insurance cover for investors and other participants along the supply
chain to ameliorate their business risks and make them more attractive
to financial service providers, particularly lenders.
The second key objective is to reduce the cost of doing business by
providing shared industry resources and revenues. Importantly, besides
reducing business overheads of individual enterprises, this will also
ensure adherence to best corporate governance practices, a crucial
element in making a success of small scale businesses.
The third key objective is to provide market linkages and access as well
as generating demand for the products being manufactured by
district-located industries. This will guarantee sales revenues which
are crucial for business viability and access to finance.
Crucially, the new organization will partner a host of other
institutions such as Ghana Investment Promotion Centre, providers of
mobile money services, cooperatives, Town &Country Planning
Department, Council for Scientific and Industrial Research, National
Board for Small Scale Industries, GRATIS Foundation, Venture Capital
Trust Fund, the commercial and investment banks, insurance companies,
and of course, the District Assemblies themselves.
It will also partner the Ghana Stock Exchange and its subsidiary Ghana
Alternative Market which will provide an exit channel for investors who
want to cash in their investments for hefty profits over time.
Instructively, several projects have already been identified by private
sector investors who want to take advantage of the one district one
factory policy and some of them are actually already engaged in securing
the requisite equipment for production.
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