Government facilitates 278 companies under 1D1F – Minister
Minister of Trade and Industry, Alan Kyeremanten has informed Parliament that over the last four years the government has facilitated the setting up of a total of 278 companies and projects across the 16 regions of the country.
He explained that out of this number, 106 companies were currently in operation, 148 are under construction and 24 are at the mobilization stage.
Mr Kyeremanten made the observation when he appeared before the House to respond to a question by Mr Murtala Mohammed Ibrahim, Member of Parliament (MP) for Tamale Central on the number of factories set up in the last four years under the One District One Factory (1D1F) programme and how much government spent for their establishment.
Mr Kyeremanten also indicated that since the start of the 1D1F initiative the government has successfully mobilized loans for 1D1F companies from the Participating Financial Institutions (PFIs) totaling GH¢2.69 billion.
He said this amount has been leveraged through the disbursement of an amount of GH¢260.9 million by government as subsidy to de-risk loans and support interest payment for beneficiary 1D1F companies and projects.
Mr Kyeremanten also explained that the 1D1F initiative is private sector-led but facilitated by the government.
He said the role of the government on the initiative includes payment of interest subsidy on loans granted to 1D1F companies and projects by Participating Financial Institutions granting of incentives such as Waiver of Import Duties on capital goods and raw materials and facilities of access to infrastructure such as electricity, water and roads.
The trade minister also explained the 1D1F initiative does not only include facilitating the setting up of new companies but also facilitates the revamping and restructuring of existing companies
He maintained that the interest of the government in introducing the programme is to be able to create jobs in the rural and peri-urban areas.
“It makes sense for us where there is evidence of companies that are already existing but require support for them to become competitive to be assisted rather than to leave those existing companies to die and insist on the private sector to setup new ones” he added.
Source: GNA