Business

Chinese can sabotage one-district-one-factory policy – Govt cautioned

Government-backed factories to be sited in the various districts can easily be undermined and forced to go on their kneels by foreigners, especially Chinese investors.

According to Prof. Clement Dzidonu, President of Accra Institute of Technology, these factories can be collapsed in no time if the Chinese decide to stage a price war against them.

Commenting on the ‘one district one factory’ programme of the government on TV3 New Day on Saturday, Prof. Dzidonu challenged the “smart” people in government to think through the kind of factories they established and how to sustain them.

When government launched the policy in August, President Akufo-Addo said by the close of 2017, 51 factories will be at various stages of construction and create about 80, 000 jobs. READ MORE

Advising the government to measure how it raises the expectations of Ghanaians, Prof. Dzidonu said government must take time to build factories that can stand the test of time.

He pointed out how competitive the local market is, and reminded government, “everything you produce from these factories you must get a buyer for it.”

“A Ghanaian is not going to buy the one district one factory goods if he can get it cheaper at Makola market coming from China,” he said.

It was based on the above that he concluded, “the Chinese would even determine whether or not these our factories will succeed”.

With the availability of loans in China and the low interest rate on them as compared with the high interest rate which partly translates into the high cost of doing business in Ghana, he warned, “all they need to do is to undercut us”.

By Isaac Essel | 3news.com | Ghana

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