President inauguates first company under IDIF - banks pledge GH¢2.5bn, $700m
The One-district, One-factory (1D,1F) initiative has received massive financial support from both local and international financial institutions.
A number of local banks have pledged GH¢2.5 billion, while some international banks in the United States, the United Kingdom and China have pledged more than $700 million towards the successful implementation of the initiative.
President Nana Addo Dankwa Akufo-Addo made this known when he inaugurated the Springs and Bolts Company Limited at Asokwa in Kumasi yesterday.
Springs and Bolts is the first business entity to be absorbed into the 1D1F initiative.
The company, established by the 2014 National Best Farmer, Mr George Amankwah, is engaged in the manufacture of U-bolts, leaf springs, trailer suspension parts, bolts and nuts and can import machinery and equipment duty-free.
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With its new status as a company under the 1D1F initiative, it will, among other benefits, not pay duty on raw materials imported for production and also enjoy a tax holiday for five years.
Additionally, the Ministry of Trade and Industry will attach two technical experts to the company to provide free advisory services for the company, while staff under the National Builders Corps (NaBCo) will be posted to the company.
President Akufo-Addo said a strong industrial sector was key to transforming and modernising the Ghanaian economy, adding that the 1D1F initiative was an answer to the industrialisation drive towards achieving the country’s modernisation and development.
He said there was the need to address the challenges of poverty and underdevelopment in towns and villages by attracting private sector investment into the development activities of such communities.
He said the establishment of Springs and Bolts was critical to the industrialisation of the Ghanaian economy.
Mr Amankwah said the company, which was operating under the free zones enclave, exported close to 80 per cent of its products to neighbouring West African countries.
He said until the intervention of the government, the company was unable to meet even 40 per cent of orders from its clients.
With the stimulus package through a Cal Bank facility, he said, it would increase its employment capacity from 65 to 120.
Mr Amankwah pleaded with the government to invest $7 million in the company to establish a semi-automated heavy-duty assembling plant.
He said with the new plant, the company could employ more than 200 more workers, out of which 80 would require no skills as a prerequisite for employment.