Lack of private sector interest may limit 1D1F’s economic viability – ISSER

Director of ISSER, Prof. Peter Quartey

The Institute of Statistical, Economic and Social and Research (ISSER) has cautioned that if there’s no private sector interest in government’s One District One Factory (1D1F) initiative, its economic viability of establishing factories in some districts may be low.

According to the Director of ISSER, Prof. Peter Quartey; “If no private investor has shown interest after nearly three years of implementing the programme, then, it appears that the perceived return on private investments in these 150 districts may be considerably low among potential investors despite a host of incentives in the form of tax holidays and exemptions by government.”

Speaking at ISSER’s review of the 2020 Budget and Economic Policy in Accra on Monday, November 25, Prof. Quartey suggested a much-focused policy attention on the economic viability of establishing factories in some of these districts to show significant long-term viability than to have many projects.

Adding that, some of these projects may only hold a limited long-term commercial potential.

58 factories established under 1D1F

Finance Minister, Ken Ofori presenting his 2020 Budget and Economic Policy disclosed that some 58 factories have been completed and currently in operation under government’s 1D1F industrialization initiative.

He explained that; “Fifty-eight out of the number are in operation, 26 projects are under construction, while 97 projects are ready to commence implementation by the end of 2019.”

Mr. Ofori Atta also noted: “significant progress has been made towards the achievement of the set target”, adding: “To date, 181 projects are at various levels of implementation spread over 110 districts across the 16 regions.”

The Akufo-Addo-led administration’s industrial development agenda is anchored on the 1D1F initiative, a programme designed to support the private sector to establish at least one industrial enterprise in each of the 260 districts of the country to add value to their natural resource endowments.