“Twelve of those companies received approval for duty exemptions to the tune of GH¢34million. A total of 154 districts out of the 260 districts are taking advantage of the programme”, minister of finance, Ken Ofori-Atta revealed during the 2020 midyear budget review last Thursday.
Additionally, construction of 36 small-scale processing factories out of the entire 58 projects under the Enable Youth One District One Factory (1D1F) initiative will begin in August this year in 36 districts across the country.
Plans are underway to start construction of the whole projects – being jointly financed by Ghana and the African Development Bank (AfDB) – within the next six months with an amount of US$200,000 earmarked for every one of the 56 projects.
These processing facilities would be owned by youth groups together with the districts that are going to be trained to manage and maintain them. This is often expected to make sure that the youth are made a part of the 1D1F programme. However, with regards to IDIF factories currently under construction, completion schedules have largely been suffering from the impacts of the Coronavirus pandemic that has seriously disrupted global trade and investment activities.
Meanwhile, efforts have commenced to spot strategic investors to partner Government in its 1D1F Initiative by establishing factories within the districts that lack active business promoters.
The government claims that it’s already provided resources to support business promoters to determine 1D1F projects in some districts which did not attract investment on commercial terms under the programme. Importantly, the Coronavirus pandemic has presented new opportunities for 1D1F- supported companies in various sub-sectors of industry, including, garments and textiles enterprises that might engage within the production of private Protective Equipment (PPEs); also as for producers of processed foods, fruit juices, pharmaceuticals among others.
Travel restrictions and disruption of worldwide supply chains created by the Coronavirus pandemic have reinforced the necessity for Ghana to create local production capacity for import substitution in line with Government’s industrialization drive.