A photo of one of the factories in Central Region
In a shocking revelation, the International Fund for Agricultural Development (IFAD) has reported that none of the facilities under the One District, One Factory (1D1F) policy, particularly those geared towards youth participation, have commenced operations. This damning report has cast a shadow over the Akufo-Addo government’s flagship industrialization initiative.
Launched in 2016 as a cornerstone of the New Patriotic Party’s manifesto, the 1D1F policy aimed to create jobs for Ghanaians by establishing factories and industries across the nation. The program received a significant boost on January 13, 2018, with the commissioning of the Twyford Ceramics factory in the Shama District, Western Region. This factory, designed to produce and distribute tiles, was projected to operate at a production capacity of 14.4 million square meters per year, with annual sales expected to reach $82.8 million.
Before he departed from the New Patriotic Party in 2022, then Minister of Trade and Industry, Alan John Kyeremanten, claimed that the 1D1F initiative had successfully created over 156,782 jobs across 106 operational companies. However, the IFAD report published in March 2024 paints a starkly different picture.
The IFAD memoir reveals that despite the completion of many 1D1F facilities, none are operational. The review highlighted that while the factories are equipped, the management and ownership models remain unresolved. Consequently, the completed factories are sitting idle.
The report also highlights that the youth groups intended to manage these facilities lack the technical expertise, management capacity, and working capital needed to run the factories. Moreover, although the processing equipment is in place, the factories lack essential storage, drying, and packaging facilities for the agricultural products they are meant to process.
The IFAD report calls for immediate policy direction and suggests initiating discussions to hand over these factories to the private sector on long-term leases. These dialogues should focus on making the terms appealing to private entrepreneurs. Additionally, only incomplete civil works should be finished, and any deterioration should be remedied by the Rural Enterprises Programme (REP), provided there is a private entrepreneur ready to take over. No further financing for equipment to un-equipped factories will be undertaken under REP.
This report underscores the urgent need for the government to rethink its strategy for the 1D1F program. The vision of nationwide industrialization and job creation remains unfulfilled as long as these facilities stay inactive. Engaging the private sector appears to be a viable solution, but it requires swift and decisive action.
The 1D1F initiative once hailed as a transformative policy for Ghana’s industrial landscape, is at a crossroads. The government’s ability to pivot and involve the private sector could determine whether this ambitious program succeeds or remains a series of empty promises. As stakeholders await further developments, the pressure is on the government to deliver on its promises and revive the 1D1F dream.
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