Local banks commit US$915m to the one district one factory (1D1F) project

GHANA – Ten local banks have committed a total of US$915.03 million to fund the one district one factory (1D1F) programme, a government of Ghana policy that aims to create employment while enhancing industrialization, GNA has reported.

The funding will help in the implementation of the project which has already started for 37 factories under the government’s signature.

According to Mr. Robert Ahomka-Lindsey, a Deputy Minister for Trade and Industry, these were at various stages including the establishment out-grower farms for production of the raw materials to feed the factories.

The projects have attracted 800 business plans, 357 of them having proved bankable while 95 others were at the credit committees of the participating banks for consideration.

A waiver on agric import duties

With a view to lowering domestic production costs, Zimbabwe has gone ahead to reduce its tariff rates especially those related to the agricultural sector.

Under the current revisions, MFN tariff rates average 17.3% in agriculture as opposed to 21.5% (including livestock, forestry, and fisheries) and 15.4% in manufacturing.

Tariff suspensions included a number of food items, and with a particular focus on inputs under some rebate schemes which further increases the effective protection of selected economic activities and companies.

There is also a waiver on import duties on core equipment, machinery and plant for the factories while agro processing companies using local raw materials will enjoy a five-year tax holiday.

The government of Ghana is looking to deliver on the 1D1F by 2020.

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