Business News of Thursday, 5 October 2017
At least 173 factories are ready to be rolled out as part of the government’s flagship One-district One-factory initiative, Deputy Trade and Industry Minister, Robert Ahomka Lindsay has revealed.
According to him, all the 173 projects will be carried out by private businesses with support from the government.
Speaking on the Citi Breakfast Show on Thursday, Mr. Ahomka Lindsay said about 600 applications has been received from various businesses in and outside the Ghana as well as 457 business plans.
“For some time now, we have been receiving expressions of interest from various businesses in and outside Ghana. As of yesterday [Wednesday], we had received close to 600 expressions of interest and we have received from that, 457 business plans.”
He added that the ministry has set up a technical support group to review all business plans from the potential investors and establish their viability.
The Deputy Trade Minister revealed that, the support group has so far concluded that 173 of the business plans are viable, and largely positive to be considered for the roll-out of the program.
“We have formed a technical support group and we have reviewed 435 business plans. Of those 435 business plans, 173 are what you can term as bankable.
They are in 95 districts and wholly private,” Ahomka Lindsay said.
The Deputy Minister told CBS Host Bernard Avle that, majority of businesses being considered were locally owned, and that the government is ready to accord them the necessary support.
He noted that, in spite of the government’s interest in local participation, it requires them to step up to meet the requirement in order to be shortlisted.
Ahomka Lindsay said the selected businesses were making their independent financial arrangements which include loans and equity.
He however noted that, the government was supporting them through a number partnerships it had formed with banks including UMB and GCB.
Sectors of focus
The Deputy Minister revealed that, most of the business plans received were in the agro-processing industry.
“Of that 173, 46% are in agro-processing, and 36% are manufacturing,” he said, adding that 65% of the projects were expansions of existing factories that had collapsed, or were under-functioning, while 35% were entirely new projects.
The one-district one-factory program is one of the government’s key policy initiatives seeking to revolutionize industry in Ghana.
The program will see at least one factory each, built in all 216 districts across the country.
President Akufo-Addo launched the program by commissioning the first project, a pineapple factory at Ekumfi in the Central Region.