Minister of Finance and Economic Planning Ken Ofori-Atta says the implementation of the much-anticipated ‘1-district, 1-factory’ policy is estimated to generate over 350, 000 direct and indirect jobs across the country.
The policy, trumpeted during the 2016 electioneering campaign by the New Patriotic Party (NPP), will begin this year, Mr Ofori-Atta announced to members of Parliament on Thursday, March 2.
He was delivering the 2017 budget statement and economic policy of government.
According to him, the policy is “a comprehensive programme for rural industrialization driven by the private sector”.
It will be implemented as part of the National Industrial Revitalisation Programme, he said, which aims at providing “technical and financial support to existing companies that are currently distressed”.
Mr Ofori-Atta diagnosed the lack of businesses in Ghana as owing to factors among which are high cost of capital, limited access to land for business and weak logistics and industrial support.
“It is against this background that the National Industrial Revitalisation Programme with a stimulus package for industry will be established to provide technical and financial support to existing companies that are currently distressed or are facing operational challenges but are deemed to be viable to benefit from the stimulus package which will put them in operation within the shortest possible time.”
The Finance Minister, who in his preliminary remarks expressed pride in being the sector minister in the 60th year of Ghana’s independence, indicated that the policy will eradicate youth employment in the country.
The policy will involve the setting up of at least one medium- to large-scale factory in each of the 216 administrative districts.
“It is aimed at creating massive youth employment especially in rural and periurban communities, add value to the natural resources of each district, ensure even and spatial spread of industries to stimulate economic growth in all parts of the country, enhance the production of local substitutes for imported goods and promote exports and increase foreign exchange earnings.”
Mr Ofori-Atta assured that the policy will not only transform the industrial landscape of Ghana but also contribute significantly to the socio-economic development of the country.