The China National Building Materials Corporation (CNBM) has committed a US$400m credit facility to support 22 district enterprise projects under the One District, One Factory (1D1F) programme.
CNBM, which is regarded as a major partner for the 1D1F programme, is estimated to have a turnover of US$50billion, according to Trade and Industry Minister, Alan Kyerematen.
Speaking at the signing ceremony in Accra on Wednesday, Mr. Kyerematen explained that the partnership is in three phases comprising a framework agreement between government, the private sector and seven local banks which will negotiate the financing terms for the projects, as well as with business promoters who signed the Engineering Procurement and Construction (turnkey)] contracts.
“We are going to sign contracts to spearhead some of the flagship projects under the 1D1F initiative…and the contracts that will be signed, 22 of them, with a total value of US$400million.
“As these are being implemented, others that are at the implementation stage with our banks will also be negotiated and rolled out as we go on. So, these are exciting times for our country and we hope that our business community will join in partnership with our financial institutions to make this a success,” he said.
The 22 projects were selected as a result of their significant export potential, particularly within the Chinese market. They are expected to generate significant economic benefits including employment generation and tax revenue.
The agreement follows a pledge made in 2017 in support of government’s industrial transformation agenda.
As part of this turnkey agreement, CNBM – known for its high quality modern facility and factory construction – will support the businesses to market and sell their products in the Chinese market through strategic partnerships and alliances.
The selected products, which include edible vegetable oil, starch, alcohol and garments, will also be sold within the ECOWAS sub-region and local Ghanaian market.
The Trade Minister also pointed out that the 1D1F initiative is designed as a comprehensive programme for rural industrialisation, involving the setting-up of at least one medium- to large-scale factory or industrial enterprise in each of the administrative districts of Ghana, based on the natural resource endowment or comparative advantage of each district.
A total of 707 Business Plans have been received from Business Promoters, out of which 602 have been reviewed by the Technical Support Group (TSG) of the ministry. A total of 313 of the Business Plans that have been reviewed were found to be feasible and could be implemented.
The event was attended by some Ghanaian Business Executives and selected District Assemblies represented by the Ministry of Trade and Industry and officials from CNBM.