Business News of Thu, 9 Aug 20185
1D1F: Trade Minister to present bill to parliament to seek tax holidays for factories
National Coordinator of government’s flagship One-District-One-Factory has hinted plans by the Trade and Industry Ministry to present a bill to parliament that seeks to grant factories under the project tax exemptions.
The tax exemptions she believed will together with other measures already implemented serve as a great incentive to attract more foreign direct investments in the country, especially under the programme.
Gifty Ohene Konadu, however, did not disclose what the incentive package will be like stressing that it was yet to be laid before parliament hence the need to exercise some patience and not divulge any information as there still could be changes made to the policy.
She revealed this while addressing the media after a groundbreaking ceremony that will see the construction of a tomato factory at Afienya, Leefound Food Stuff Company Ghana Limited.
“Recently if you listen to the Hon. Minister for Finance, he gave hints of some incentives promoters will enjoy when they come under the One-District, One-Factory. One of them is a 10% relieve, they will take 10% of the interest that was charged on the loan. Government will take that one. And the Hon Trade Minister, is developing an incentive package but that one will have to be endorsed by parliament and once it is endorsed it will be made public for all to know” she detailed.
54 factories to be approved for Accra, 14 begin operations
Also at the groundbreaking ceremony, the Deputy Trade and Industry Minister, Ahomkah Lindsay revealed that government has given approval for 54 businesses to either expand or establish themselves under the 1D1F programme.
The 14 companies he noted have received approval from the banks with some finalising their agreements with them.
The tomato factory he remarked is one of 14 factories that has been approved for the Greater Accra Region and has commenced initial work ahead of production.
The deputy Trade Minister stated that the factories though given approval, have different completion dates and capital requirements.
More than half of the 54 factories the deputy Minister disclosed are into the Agro-processing subsector.
Leefound Food Stuff Company Ghana Limited
Government’s quest to industrialise the country through its flagship programme One-District-One-Factory has witnessed a major boost as one of the factories registered under the programme is scheduled to commence operations in December this year.
The factory, sited in Afienya, is known as Leefound Food Stuff Company Ghana Limited and is a joint venture between two major shareholders; Ghana Rise Food Company Ghana Limited and Tianjin Limmin Condiments Company Limited of China.
The two are jointly investing $3 million with additional capital after operations commence in December.
The establishment of the factory has also attracted two other investors who will build ancillary factories to produce tins and cartons to feed the tomato and spices factory in Afienya.
At full capacity, the company is expected to produce 300 containers of tomato paste a month to feed both local and sub-regional markets.