Ranking member of Trade and Industry Committee and Member of Parliament for New Juaben South Constituency Michael Okyere Baafi has cautioned the Mahama-led government against the cancellation of the One District One Faactory(1D1F) policy.
The former Deputy Trade Minister has warned that any attempt to cancel the policy will come with huge financial implications against the State and will also erode investor confidence in the Ghanaian economy.
He said the Majority Leader Mahama Ayariga’s campaign for an independent audit into the 1D1F across the country is a part of the scheme to paint the policy black, give it a name, and hang it.
Mr. Ayariga’s call for an independent audit stems from his belief that the tax exemptions given to these factories were not used for their intended purpose, while some of these factories are not even in existence.
He challenged the erstwhile NPP government to show Ghanaians the whereabouts of the 1D1F.
Responding to these claims at a press briefing, Mr. Baafi has indicated that, as of the time the NPP exited, 196 1D1F factories were operational, creating about 700,000 direct and indirect jobs. He said an additional 70 factories under the policy were at an advanced stage of completion.
Okyere Baafi said the Enable Youth Initiative alone empowered several young people in Agri-business and Agro processing in selected District, Municipal and Metropolis with funding support from the International Fund for Agriculture Development and the African Development Bank.
‘The evidence abounds. Go to Akontombra, Sagnarigu, Assin Dompim and other parts of the country. The Common User Facility that established rice mills for rice farmers and other processing plants has created thousands of jobs in the value chain’ Okyere Baafi talk about evidence
He indicated that, the 1D1F policy was never meant to establish 100% government owned businesses. He said the initiative was meant to create an enabling environment for business and provide funding support for the same with the vision of creating jobs.
Adding that, under the policy both Green and Brown businesses were accessed based on their proposals and viability.
He mentioned that, the companies were connected to some Participating Financial Institutions that reviewed their proposals and granted loans to those that passed the viability test.
“The government guaranteed loans for the selected companies and paid 50% of the interest on their loans in its effort to release financial stress from the companies and empower them to create more employment.
“These companies are still paying the rest of the loan and interest. If you cancel the policy, the government will bear the responsibility of repaying the loans.” Okyere Baafi warned
He said any attempt to cancel the 1D1F under the guise of an independent audit will also erode investor confidence since foreign and local investors wouldn’t find their feet anytime there is a change in government.
‘I’m saying to you that the NDCs’ 24-hour economy is dead at birth. So they just want to discredit the 1D1F that has created sustainable jobs’ Baafi added
Source: Maxwell Kudekor