Gov’t considers incentives for ‘1 District, 1 Factory’ investors—Yofi Grant
Government is considering a host of incentives for investors who have expressed interest in its flagship “One District, One Factory” project, Yofi Grant, CEO of Ghana Investment Promotion Centre (GIPC) has said.
In an interview with the B&FT in Accra at a programme organised by the Canada Ghana Chamber of Commerce, themed: “Promoting Joint Venture Partnership with Foreign Investors,” Mr. Grant said it is important to devise various incentive schemes for the investors to motivate them to go into districts that do not have the adequate and essential infrastructure needed for the smooth operations of the businesses.
“It is still being considered what will make sense to enable the One District One Factory programme to accelerate because that will be the fastest way of accelerating job creation in every corner in Ghana. We have to recognize that the infrastructure nationwide is not evenly distributed so if you have a business in Accra, access to market is much higher.
But if you go to some corners of this country, is not the same. So, for an investor to go there, then it means that you must make it competitive for him to be there. So, it is important to review what kind of incentives we can have to make sure that businesses can survive.
Luckily, there is an equally important infrastructure programme that will create the infrastructure so that access to market will be efficient and effective, but I can’t tell what exactly the incentives will be, because it requires deep thinking among the parties involved,” Mr Grant said.
He further stated that, even though the district factories programme has not yet taken off, interest in it remains high as investors keep asking about what they require to participate in the industrialization agenda.
In a related development, the Minister of Trade and Industry, Alan K. Kyerematen, has said that over 350 business proposals have been received by the ministry from investors expressing interest in the district factories.
“It started very well. Right now, we have over 350 business promoters that have already submitted their proposals to be part of the initiative, that in itself shows that the initiative itself has attraction and people are interested in it.
He added that some 285 out of the number, have been selected for government support and are expected to work with government towards the establishment of various enterprises in all districts across the country.
Mr. Kyerematen further announced that ten factories are expected to be commissioned by end of the year to kick-start the industrialization programme.
The district factories, which will predominantly be in the manufacturing sector, are expected to create at least 5000 jobs across the country.
Government has said that its contribution will be provided to each project in the form of infrastructure, namely, roads, energy and other utilities; and the provision of incentives, subsidies and facilitating access to credit for investors.