GHC1.8 billion disbursed to 1D1F companies – Trade Minister

Companies that expressed interest to participate in the One District One Factory (1D1F) programme are set to benefit from a GH2.4 billion government support.

A total amount of GHS1.8 billion has so far been distributed by Participating Financial Institutions (PFIs) to the identified companies.

Minister of Trade and Industry, Alan Kwadwo Kyeremanten disclosed this during question time in Parliament.

A question that stood in the name of the member for Kumbungu, Ras Mubarak, asked whether any funds have been released and disbursed to individuals or companies interested in the 1D1F programme and who the beneficiaries are.

Mr. Alan Kyeremanten indicated that the Ministry, in collaboration with the selected Participating Financial Institutions (PFIs) has provided financial support to 172 companies under the 1D1F programme since 2017.

According to him, the Ministry has so far disbursed GH¢191,561,056.48 to the PFI, who have leveraged this amount with additional funding and then released to the beneficiaries as interest subsidies or counterpart financing for loan facilities.

The Minister explained that the 1D1F programme is a Public-Private-Partnership (PPP) programme that advertised for interested companies to apply.

A determination, he said, was subsequently made with regards to which of the companies deserve to be included in the programme to be given financial support.

He explained that the Trade and Industry Ministry does not give direct financial support to any of the shortlisted companies as the questioner sought to suggest but rather to the PFIs who then release the funds to the beneficiary companies.

The 1D1F programme is a key component of the Industrial Transformation Agenda of the President Nana Aklufo-Addo Government.

The Government’s role in this programme is to facilitate the establishment of District Enterprises by creating the enabling environment including the provision of infrastructures such as access roads, water and electricity.

The programme is a private sector-led initiative which means that factories to be established under the programme will be owned and managed by private investors.

The government can, however, invest up to 30% equity in enterprises that require its participation.

The programme aims at establishing at least one medium to large scale factory in all the 254 Districts in the country.

This means that a District could have more than one factory depending on its resource base.

The emphasis on medium to large scale is due to the fact that the enterprises to be established are expected to impact positively and significantly on the economies of the Districts including the creation of jobs, stable income for the residents and improved livelihoods.

Sourced from: omanfmghana.com