Implications of govt’s ‘One-District, One-Factory’ policy on job creation
On Friday, August 25, 2017, the President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, launched the government’s flagship programme dubbed “One-District, One-Factory” at Ekumfi in the Central Region. The launch marked the formal introduction and implementation of the government’s industrialisation policy.
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The fruit processing factory at Ekumfi which was launched by the President will create a ready market for pineapples cultivated in the Ekumfi area and its environs. The factory is expected to process pineapples into fruit juice and other finished products for both local and international markets.
Objectives
Some underlying objectives of the government’s flagship programme are to ensure equitable distribution of factories across the country; create strong links among industry, agriculture and other natural resources; ensure rapid industrialisation; create job opportunities and enhance wealth creation among Ghanaians.
Investments
It is refreshing to note that the fruit processing factory at Ekumfi has an initial production capacity of about 80 tonnes per day; and is expected to produce about 25,600 tonnes of fruit per year. This translates into 320 estimated days (25,600 tonnes per year ÷ 80 tonnes per day = 320 days) throughout the year. About $5 million out of the $2 billion Exim Bank Chinese loan is expected to be invested in the Ekumfi Fruit Processing Factory with full repayment expected to be made by the latter in seven years.
Job opportunities
The Ekumfi Fruit Processing Factory will create direct employment for 250 persons; and create additional 5,000 direct and indirect jobs in the district. Supposing an average of 250 persons are to be hired in the 216 districts across the country, we can expect employment opportunities for about 54,000 people. Should an average of 5,000 direct and indirect jobs be recorded throughout the 216 districts, one would count about 1,080,000 jobs across the country. Each of these 1,080,000 jobs will come along with employment opportunities.
Approach to Ghana’s industrialisation drive
Ghana’s industrialisation drive is intended to transform the economy from an agriculture-led to industry-led one. This, it is believed, would enhance the chances of transitioning the economy from one characterised by low-paying jobs to one dominated by high-paying job opportunities.
Recent corporate failures such as the liquidation of the UT and Capital banks culminated in the call for a mixed operations approach to our industrialisation drive. This concept (approach) emphasises on a combination of public and private sector approach to the ownership and management of factories established in various districts across the country. The mixed operations approach calls for higher private sector and lower public sector participation and ownership in the industrialisation process to ensure effective checks and balances; and to assure the general public of continuity in the lives of the factories.
Views of advanced economies on industrialisation
Advanced economies across the globe such as the United States of America (USA), Germany, Russia, Japan, Great Britain, China, South Korea, among others have come to a common realisation, that is, the technological or abstract age alone is not enough to propel their economies to higher echelons. Rather, a combination of industrialisation and technological age is the panacea to their economic advancements; it is the surest way of ensuring economic development and growth. This affirms the invaluable role of industrialisation in the economic achievements of economies throughout the world.
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Role of churches
Over the years, orthodox churches, including the Roman Catholic, Presbyterian, Methodist, Anglican, Evangelical Presbyterian, Global Evangelical Presbyterian and A.M.E. Zion; pentecostals, comprising Pentecost, Assemblies of God, Apostolic and Christ Apostolic; and Charismatics such as the International Central Gospel Church (ICGC), Action Chapel and Perez Chapel International, to mention but a few, have contributed significantly to the training and development of human resource professionals by establishing academic institutions at various levels of the educational ladder across the country.
The enormous efforts of these churches are duly acknowledged; and they are being called upon to contribute to the government’s efforts at reducing the unemployment levels in the country by participating actively in the one-district, one-factory initiative.
Although churches in Ghana and across the world are noted for their humanitarian gestures, little is known about the Church’s direct involvement in the establishment of factories as a means of helping governments to mitigate high unemployment rates.
Thus, the decision of churches in Ghana to heed this humble appeal and establish factories in some selected regions or districts across the country would be an economic novelty; it may not only be an economic theory that would be tested and accepted in other countries just as microfinance was started in Bangladesh, but now an economic model worthy of emulation and application in many developing economies, including Ghana. This is an opportunity for the churches in Ghana to be global pacesetters in the fight against the high unemployment rates among world economies.
Year-end targets
In all, 51 factories are expected to be created before the end of this year. These 51 factories will create about 80,000 direct and indirect jobs to ease the unemployment burden on the entire economy. The industrialisation drive under the current administration is a reincarnation of the industrialisation policy implemented under the first Republic led by the late Osagyefo Dr Kwame Nkrumah.
Managers of Ghana’s flagship programme must be guided by the sterling industrialisation exploits and successes of economies such as the USA, Germany, Russia, Japan, Great Britain, China and South Korea to guarantee its economic viability and success. The current programme deserves the financial, intellectual, spiritual, social and moral backing of all meaningful Ghanaians and external well-wishers, investors and non-investors alike, to ensure its resounding economic success. — GB
The writer is the Lead Consultant/CEO of Eben Consultancy and also a Fellow Chartered Economist & Council Member, Institute of Chartered Economists of Ghana (ICEG)
Email: [email protected]
Website: www.ebenezerashley.com
