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Lack of raw materials crippling 1D1F factories in Central Region

Akufo Addo 1d1f9 The 1D1F is an industralisation policy by the government of President Akufo-Addo

Sat, 30 Jul 2022 Source: peacefmonline.com

All the factories financed by the Ghana Export and Import (GEXIM) Bank in the Central Region are in dire need of constant raw materials to produce at full capacities for the nation to enjoy their full benefits.

"It is interesting to believe that the Ekumfi Fruits and Juices Factory that is selling in Ivory Coast and USA produces only between eight and ten days monthly due to lack of raw materials," Mr Bright Evans Darkoh, the Head of Small and Medium-scale Enterprises at GEXIM has said.

Additionally, he pointed out that GEXIM had invested more than GH¢100 million into 12 companies under the One-District, One-Factory (1D1F) programme since its inception in the Central Region.

Mr Darkoh disclosed this on Wednesday, at an engagement with the 22 Metropolitan, Municipal and District Assemblies (MMDAs) engagement with GEXIM as part of the ongoing Central Regional Trade, Tourism and Investment Fair 2022.

The forum which was on the theme: "Time with Ghana EXIM Bank", afforded the various Metropolitan, Municipal and District Assemblies (MMDAs) the opportunity to make presentations on economic resources in their districts with potential for support.

The MMDAs expositions did not only concentrate on grey areas but touched on companies that were financially distressed for capital injection.

Nevertheless, Mr Darkoh gave the assurance that the Bank had initiated raw materials development project hinged on a solid collaboration between the bank and stakeholders to develop adequate raw materials based on the six value chain.

That include; pineapple, coconut, watermelon, oil palm, lemon, and avocado.

Under the initiative, he said, farmers would be supported through an out-grower system to grow the crops and get ready market for their produce whilst it also provides technical assistance in good agronomic practices for them1qq1

Mr Donkoh also encouraged the companies and others to take advantage of the Bank’s support for exports through the export trade facility, receivable, and export guarantee to expand their operations.

The financial products seek to provide medium to long-term finance to exporters to set up new export projects, revitalization, acquisition of additional assets for expansion and or expansion of existing production companies for exports

Also, to give a strong boost to the acquisition, rehabilitation and expansion of farms or plantations to produce and processing of exportable products, acquisition of machinery spare parts and packaging materials for the manufacture of exportable products and other activities that may be acceptable to GEXIM.

Leveraging on the government's vision of Ghana 'Beyond Aid', Mr Darkoh reiterated the Banks commitment to unearthing unique platforms that add value to the non-traditional raw material resources in the Central Region to rake in foreign exchange for development.

That buttresses the mandate of GEXIM Bank to become a strong financial institution that will be a key engine in the development of Ghana’s export trade, facilitate cross-border trade and make Ghana a pillar in regional and continental trade.

The move is anticipated to increase the number of factories and will in turn boost the country’s export earnings while cutting down on imports to spur industrialization.

"By doing so, jobs will be created, standard of living will be improved and poverty will be alleviated from our various communities," Mr Darkoh noted.

Mrs Justina Marigold Assan, the Central Regional Minister called on all the 22 MMDAs to monitor the various 1D1F companies in their jurisdiction and support them to grow.

That will open partnerships leading to the transformation and development of the non-traditional business economy of the region to improve the livelihoods of the people.

Source: peacefmonline.com