Chinese market to absorb 1D1F products

From L to R: Alan K., CNBM officials and Trade Ministry Director

Chinese markets will be lining up to take up produce from Ghana under the One District, One Factory (1D1F) initiative – as part of the agreement with the China National Building Materials Corporation (CNBM) which is investing some US$400m in the project.

Trade and Industry Minister Alan Kyerematen told the B&FT that an off-taker agreement is to ensure that the Chinese take up products from the 22 District Enterprise Projects the CNBM is supporting.

“The selection of these projects, particularly, has been based on the off-taker agreement that is being negotiated in Chinese markets. CNBM, according to the contract that has been signed, is already negotiating an off-taker agreement for most of the products that are coming out of these projects,” the minister said.

“I must say that the demand for cassava starch is very high in China, and so these projects have been strategically selected. There is also very high demand for vegetable oil; that is why you see there are a number of manufacturing plants for edible oil,” Mr. Kyerematen told B&FT in an interview during the signing ceremony with CNBM as a major partner of 1D1F. 

Even though government has been instrumental in negotiating the financing arrangement and making sure the local companies enjoy all the facilities that will make their projects competitive, it remains private sector-driven.

Twenty-two (22) projects have been 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.

It follows a pledge made by CNBM in 2017 in support of government’s industrial transformation agenda. As part of this turnkey agreement, CNBM – which is known for 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 the local Ghanaian market.

The 1D1F initiative is designed as a comprehensive programme for rural industralisation, 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.

Three Hundred and Thirteen (313) of the Business Plans that have been reviewed were found to be feasible and can be implemented.

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