Local banks have been asked to support government’s industrialisation drive by financing projects under the ‘One Factory, One District’ policy. However, Managing Director of Cal Bank Frank Adu says they still do not see a clear path to financing the programme.
The banker fears that as a result of lacking coordination for financing the programme, its smooth implementation could be hindered. Adu is proposing that the ministries of Trade and Finance take time to study the balance sheets of local banks and determine which offer medium- to long-term loans.
That sounds like a more structured manner to engage local banks who will be key in the overall success of the programme. This is not to say local banks are not onboard the 1D1F programme, but the Cal Bank CEO believes a more scientific assessment would give a better indication of which banks have the capacity to assist – and they should be supported to do so.
Last week, the signing of contracts with the China National Building Materials Corporation for construction of 22 factories suggested the programme is about to be rolled out – and it is important that local banks be able support a programme of such a national scale.
Since the programme is expected to create around 7,000 to 15,000 jobs in each district, it is too important a policy to be left hanging without any clear indication of the local banks being in a position to offer financial services to the factories.
Government has been selling the idea of 1D1F to the investing public, and China and India are countries with the expertise and financial wherewithal to give meaning to this laudable programme which will enhance the country’s industrial sector and create the much-needed jobs that the youth are clamouring for.
The expectation is high – and deservedly so, since it brings in its wake the promise of decent jobs and employment. Even as the fine-tuning of the programme is being done, there are many who feel the pace is too slow. However, it is important to leave no stone unturned when rolling out a programme of the magnitude of 1D1F; hence, the youth must be patient for the thorough preparatory process to be completed.
We are however hopeful that the needed will be done to ensure the smooth implementation of this transformative industrial agenda.