6 banks to support 1-D, 1-F with GHC2.6bn

Government’s flagship industrialization policy, One-District, One-Factory will be receiving more than GHC2.6bn from six banks in Ghana, Senior Minister Yaw Osafo-Marfo says.

The banks namely, GCB, UBA, EXIM BANK, UMB, SG-SSB, ADB according to the Minister will appraise the projects to ascertain its bankability before releasing the funds.

The Minister who was speaking at Graphic Business/Stanbic breakfast meeting at the Labadi Beach Hotel in Accra on Tuesday, 31 July 2018 added that government will absorb 50% of the interest rates on credits to One-District, One-Factory companies.

“GCB has agreed to make available GHC1bn to support the One-District, One-Factory, UBA has agreed to support with GHC880m, ADB GHC200m, EXIM Bank GHC103m, UMB 440, SG-SSB GHC25. We continue to count, Other Banks are discussing with us. This support will be appraised by the Banks themselves but the not government.” He stated.

“What the government has decided is that it will absorb 50 per cent of the interest rates of these 1D1F companies so that determining what is bankable will be done by the professionals. When you have been appraised, shortlisted and you have qualified, the cost of money to you will be shared between the government and yourself,” he added.

Mr. Osafo-Maafo also revealed that 50 companies are to begin production under government’s One District-One Factory (1D1F) programme before the end of 2018.

“So far 15 projects have been approved for implementation under the 1D1F… We expect that by end of this year, 50 of those which have been appraised will be in production,” he said.