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.
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.
He added that a total of 232 factories were also at various stages of completion under the scheme.
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 government providing the enabling environment and support”.
More to follow…