The One District One Factory Initiative as an avenue for job creation

The “One District One Factory, one of the flagship initiatives of the NPP Government is a key component of the industrial transformation agenda. The initiative is designed to set up at least one medium to large scale industrial enterprise in each of the 216 Districts. The goal of the policy is to ensure that Ghana’s industrialisation drive spreads to every part of the country, a departure from the situation where most of the nation's manufacturing facilities are located in the largest urban areas; Accra, Tema, Tamale, Kumasi and Takoradi. A key component of the policy is to add value to the various raw materials grown at the various districts. The project is geared toward creating jobs for the youth and reducing the developmental disparities across the country as well as curb rural-urban migration.

Even though the programme is emanating from the Presidency, it is being coordinated by the One District One Factory Secretariat. The Secretariat is to serve as an interface between the public and private sector partners. Information available indicates that the factories to be established will be private sector led with government facilitating the process. This is a better deal as it lends credence to the cliché that government has no business doing business.

To this end, government must ensure that its engagements with the private companies in the establishment of the factories are based on well thought-out agreements. An aspect of the One District One Factory initiative provides options for local assemblies to partner investors. The question is, do our District Assemblies have the capacity to be involved in such projects? How can citizens be assured that District Assemblies' resources are not dissipated in the name of investing in such ventures?

Projects have been established in this country in the past with heavy government involvement but the outcomes are nothing to write home about. Examples are the starch, sugar, tomato, diary and textile factories which were set up in the past. The issues with the SADA Projects are fresh on the minds of Ghanaians. Report that several potential industries have been identified in the districts and investors have shown commitment to financing them is indeed a good omen for the initiative. This is because the buy-in of investors is key to the success of the programme.

The ‘One District One Factory’ initiative reportedly received a major boost following the signing of an MOU in Beijing, China by Vice President Dr. Mahamudu Bawumia, for a $2 billion [Two Billion Dollar] funding facility between a number of Ghanaian banks and the private sector, led by the Association of Ghana Industries and the Chinese government’s private sector development corporation. Under the agreement, the China National Building Materials and Equipment Import and Export Corporation is to provide 85 percent financing for viable projects recommended by the One District One Factory secretariat. Turkey has also expressed interest in investing in 51 districts.

It is vital for government to take steps to reduce the risks inherent in district level industrialisation by providing crucial technical assistance to the investors. It is also needful for the One District One Factory Secretariat to build the capacity of both investors and other stakeholders across the value chains on the strengths and weaknesses of each district.

Again, the State must help reduce the cost of doing business in the districts by providing reliable shared industry resources like electricity, water, good road and rail networks. Managements of the new factories need to religiously adhere to best corporate governance practices, a crucial element in making small scale businesses successful. Providing market linkages and access as well as generating demand for the products to be produced by the industries are essential.

Focus must not only be placed on creating new factories. Stimulus packages should be provided to existing economically viable but financially distressed companies to revamp them. It is heartwarming to learn that President Akufo-Addo decided to open the first of the 216 factories in Ekumfi in honour of the late former President John Evans Atta Mills who was a native of the Ekumfi District.

Yes! we join the people of Ekumfi and its environs to celebrate the opening of the first One District One Factory in their Community and urged them to contribute their quota to the success of the Pineapple Factory. It is the hope of every Ghanaian that the One District One Factory initiative attracts the right investors for the creation of sustainable jobs.

BY DOMINIC HLORDZI, A JOURNALIST.

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