The NPP government’s ‘One District One Factory’ initiative has received a major boost following the signing of a Memorandum of Understanding for a funding facility worth up to $2 billion between a number of Ghanaian banks and the private sector led by the Association of Ghana Industries (AGI), and the Chinese government’s private sector development corporation.
Under the agreement, the China National Building Materials and Equipment Import and Export Corporation (CNBM) will provide up to 85% financing for viable projects recommended by the One District One Factory secretariat, which is under the Office of the President of Ghana, and accepted by the banks.
The facility will be offered to the banks at low interest rates, in the single digits, and has a minimum of 8yrs for repayment depending on the project.
Among others, CNBM is to construct the factories for Beneficiary Companies and equip the factories with the requisite and necessary equipment on a turnkey basis, to make them fully operational for the successful implementation of the Programme.
The MOU was signed in Beijing, China on Wednesday June 21, 2017, on the side lines of the four day official visit of Vice President Dr Mahamudu Bawumia to China, the first by a high level government official since the New Patriotic Party took office in January this year.
Ghana Commercial Bank, Access Bank, Universal Merchant Bank and the Ghana Import and Export Bank have so far signed up to the compact, although other banks have the opportunity to join.
Speaking to the media after the signing ceremony the National Coordinator of the 'One District, One Factory' secretariat, Mrs Gifty Ohene-Konadu, explained that the facility will also cater for technical training and the provision of support services.
“The most exciting part of the financing is, the Chinese will provide a huge market access for most of the export commodities, which is expected to bring $2.5b revenue to Ghana annually.
“This clearly shows how the NPP government is poised to make the private sector the engine for growth of the Ghanaian economy,” she said.
The ‘One District One Factory’ programme is a flagship project of the Nana Akufo-Addo government designed to establish at least one viable factory in all 216 districts in Ghana as part of an industrialisation drive aimed at providing jobs and transforming the economic fortunes of the ordinary Ghanaian.
Source: Ameyaw Adu Gyamfi/Peacefmonline.com/Ghana
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So this NPP old guys, haven't they got enough of Ghana's money to be off the political platform? Osafo Marfo? how old are you? don't we have a more qualifies, intelligent and energetic Ghanaians to take up these positions that are been manned by these old men or they think they are the best?
Kraa we don't care, we are protecting our country and enforcing the laws, period!!
Generally I support the access of funds to boost the economy. my concern is that this deal appears to be boosting the business of China, and not Ghana. The CNBM will control 85% of the funding and "CNBM is to construct the factories for Beneficiary Companies and equip the factories with the requisite and necessary equipment on a turnkey basis". This Turnkey portion of the deal will merely make Ghana "Sales Agents" for their designs and goods. And how do we get value for the money if CNBM are sole suppliers of possible $2bn products/factories?
Ghana is working again. But the government should ensure that the One District One Factory policy is well explained to the general population for the ordinary Ghanaian to also take advantage of. As already been suggested. Secondly Government must provide practical incentives that will encourage them factories to produce products that could consume locally at a cheaper cost. Rather than exporting these goods far to China, the Government should think about exporting these product within the African continent because that is another big market to target. There should be proper linkage between these factories and the service industries to generate more income and employment
Npp told ghanaians the bawumia guy is a Genius he will perform wonders and turn our economy around.as we can see now it was all tall tales.afterall he has no answers to our economic woes.another saloon loan,bawumia is simply agenius turned beggar
Get down to work´. Learn the lessons of Kutu Acheampong. Start in little bits. The Chinese cannot help. They will milk us dry. There are Chinese Companies in Ghana who have just milked us dry. I know one called Assene Enamel Wares.
No amount of dollars can develop Africa, it will make matters worse. Ghana has lost over $60 billion dollars to oil companies because of lack of political will to collect what is due us. Bawumia is behaving as if he has never been to school before! He doesn't even know that he can make more than 10 billion dollars a year if he stays home and behaves like the Chinese did to the Americans. The Chinese did not borrow dollars to become Rich. They just took taxes from the White boys. Let's take what is due us.
Another bribe being taken to allow Chinese to do illegal mining in the country.Who cares,I was born and raise in Accra so i won't be affected.
I am still yet to understand what will go into the one district one factory policy. Ghanaians have not been educated about the policy but our officials are in China with the policy. Tomorrow a Chinese businessman will call his Ghanaian counterpart and ask him about the one district one factory policy and you can guess the answer his Ghanaian counterpart will give him. We generally come up with good ideas and fail to implement it well. First the policy must be understood by all Ghanaians, I mean all Ghanaians must be encouraged to be part of this. Second let Ghanaians living everywhere understand the policy, so government does not have to borrow, rather the Ghanaian living abroad can bring in capital, thirdly rather than look for money from foreign sources, look for market for the products that will be produced from these factories, first in Ghana, second in West Africa, third in the rest of Africa, then Europe Americas and China. We will succeed better when the produce from our factories are consumed by Nigeria, Ivory Coast, Benin, etc outside Africa, most Nations will ask for raw materials which is a low revenue earner.
I hope they don't use this as an opportunity to let their nationals come here to do galamsey. China has benefit a lot from the galamsey activities their nationals do in this country running into billions of dollars.lets open our eyes.