The Managing Director of the State Transport Company (STC), Nana Akomea has stated that although each district in the country does not have a factory, there has been remarkable progress in industrialising the economy under the government's 1 District 1 Factory (1D1F) programme.

He has therefore urged the country's youth to secure the progress made by re-electing President Akufo-Addo for a second term.

Addressing a press briefing on Monday in Accra, Nana Akomea disclosed that as of July 2020, 76 factories comprising 28 new factories and 48 existing ones had benefited from 1D1F to expand their production units.

"Ladies and Gentlemen, even though we do not have a factory in each district, the progress achieved in industrializing Ghana by President Akufo Addo’s government cannot be beaten, in the history of the fourth republic," Nana Akomea said.

"This is the most determined push to achieve an industrial economy for Ghana, since President Nkrumah. Ghanaians, particularly the youth, must vote for this determined effort to secure for ourselves an Industrialized Country that produces and sell for exports and the local market, chocolate instead of cocoa beans, gold trinkets/ornaments instead of the raw metal, aluminium ingots instead of bauxite, cassava and potato chips alongside raw cassava and potato, yam chips alongside yam, processed pepper alongside raw pepper, canned tomatoes alongside the raw produce, fragrant rice instead of raw unprocessed rice etc.

"The people of Ghana, particularly the youth must take steps to secure for ourselves an industrial economy by voting overwhelmingly for President Akufo Addo and the NPP, No 1 on the ballot. This industrial push, coupled with free SHS and the systematic digitization of Ghanaian social and economic processes, will very soon secure for ourselves a country were no youth is uneducated, with a vibrant industrial economy and a modernized digital society".

He added that a total of 232 factories were also at various stages of completion under the scheme.

"As of July 2020, 76 1D1F factories are in operation of these, 28 are new factories, while 48 are existing factories that have taken advantage of the 1D1F scheme to expand and add on new production units. In all, a total of 232 factories are also at various stages of completion," Nana Akomea said.

Slow process

He admitted that the rigorous procedure to select the beneficiary factories was slow but this was essential because the government of President Akufo Addo was determined to avoid the mistakes of the past which arose from poor feasibility and viability studies which led to the collapse of state factories in the past.

He said after passing the viability assessments, the private factories become eligible for government waivers including; duties and levies on imported raw materials/machines, a five-year corporate tax holiday, subsidy on loan interests, free technical assistance and extension of infrastructure such as roads, electricity and water.

"The model being employed by President Akufo Addo is a new one, away from the traditional and straight forward use of public funds, (whether borrowed or raised through taxation) to set up factories," Nana Akomea said.

"Instead of the predominant use of public funds, the factories are being set up by private business/entrepreneurs with the government providing the enabling environment and support".

Selection process

He said the process for selecting the companies who will benefit from the 1D1F waivers begins when a private entrepreneur submits a proposal to the 1D1F Secretariat.

When the proposal passes the test of the government evaluation team it is referred to a private financial institution for evaluations of bankability i.e. sound technical, financial and market basis and hence eligible for bank’s financial support.

"After passing evaluation for viability/bankability, the private entrepreneur/factory become eligible for government support including the waivers".