Government invites investors for district factories project

The Ministry of Trade and Industry has asked potential investors interested in government’s flagship One District, One Factory project, to submit a formal expression of interest to participate in the programme.

The ministry has published a request for expression of interest in the media, announcing that all interested investors must deliver their letters to the Chief Director of the ministry, either by hand or through an e-mail.

The ministry further requires the investor to include in his or her submission, the company’s name; main business activity of the company; location of the company, indicating the region, district and town. Other requirements include the contact details of the company such as the name of the investor, position occupied in the company, telephone number, e-mail address and website; and a business plan, if available.

The One District, One Factory project is government’s initiative to create huge employment in rural areas and peri-urban communities; reduce rural-urban migration; add value to natural resources in each district; develop local substitutes for imported items and promote new products for exports and niche markets.

Government has said that the district factories project will be led by the private sector, and will include existing industrial projects, with the potential for expansion, and has the capacity of enhancing the economy of the district.

The project, ever since the Akufo-Addo-led administration took office in January this year, has gained a lot of attraction from both local and foreign investors.

In February, the CEO of the Ghana Investment Promotion Centre (GIPC), Yofi Grant, said that investors had inundated his office to make inquiries about the project.

“There are a lot of people who are now asking questions about what they can do, where they can find information about what is available in the districts in terms of raw materials. Some, too, are asking about demographics. Some are also asking about incentives that might be available to investors once they invest in the rural areas etc.” Mr. Grant said.

In April, the One District, One Factory Secretariat, implementer of the project, also said it had recorded a total of US$3bn in pledges, signalling strong foreign and local investor confidence in the much-anticipated project.

“These are pledges made from local and foreign investors,” Gifty Ohene-Konadu, National Coordinator of the Secretariat, said.

According to Mrs. Ohene-Konadu, financial support for the programme will range from US$5,000 to US$5 million, depending on project size and operational categorization; with an exit plan that allows the government to sell its equity stake on the Ghana Alternative Market (GAX) after a five-year period.

Government has approved GH?456million for the implementation of the district factories programme in the 2017 budget.