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Business News of Tuesday, 14 August 2018

Source: 3news.com

Akufo-Addo commissions auto-parts manufacturing company under 1D-1F

President Akufo-Addo on Monday commissioned auto-parts manufacturing company under the government’s 1-District, 1-Factory programme.

The company, Springs and Bolts Limited located at Asokwa in the Ashanti Region is engaged in the manufacture of U-bolts, leaf springs, trailer suspension parts, bolts and nuts.

It will enjoy tax holiday for five years and will not pay duty on raw materials imported for production as well as import machinery and equipment duty-free.

Also, the Ministry of Trade and Industry will attach two technical experts to provide free advisory services to the company, which will also receive NABCO personnel

Commissioning the company, President Akufo-Addo said the modernized economy he is seeking to build in Ghana must have a strong industrial sector, hence his commitment to the successful implementation of the 1-District-1-Factory initiative.

The 1-District-1-Factory initiative has received significant support from the business community, as well as from both local and international financial institutions, he said.

“As a show of support to this initiative, some local banks have pledged about GH¢2.5 billion, whilst some leading financial institutions from the UK, US and China have pledged over $700 million in credit lines to be accessed by Business Promoters.

“The Ministry of Trade and Industry is facilitating the engagement and negotiations between Business Promoters and these financial institutions,” the President said.

Nana Akufo-Addo noted that the company is engaged in a sector that is critical to the industrialization programme of Ghana.

“The manufacture of machines, machine parts and components, as well as the development of the Automobile and Vehicle Assembly industry, are two of the strategic anchor initiatives being promoted by the Government as part of the Industrial Transformation Plan. Spring and Bolts Limited which is being commissioned is a good reflection of the potential in these two sectors,” President Akufo-Addo added.

The President also revealed that “Government is also currently in negotiations with leading global vehicle manufacturing companies to establish Assembly Plants in Ghana, and, very soon, formal notification of these negotiations will be made public for the Ghanaian people”.

He also told the gathering of another programme being implemented by the Ministry of Trade and Industry to link SMEs, such as Spring & Bolts, to the supply chain of big multinational companies as suppliers of critical inputs and parts.

“The Industrial Sub-Contracting Exchange (SPX) has been designed to create a strategic platform for matching local SMEs to large scale companies. The outcome of this programme will enhance the productive capacities of Ghanaian SMEs and increase their revenues whiles the country will have the advantage of retaining critical foreign currency that is currently being used to import parts, raw materials and components,” he added.

President Akufo-Addo congratulated Mr. George Amankwa the business promoter and Springs Bolts Ltd., and his team, for a great job done to support the industrialization drive in Ghana.