The fate of over GH¢1.2 billion in investments hangs in the balance following the government’s abrupt decision to scrap the One District One Factory (1D1F) initiative, Hon. Michael Okyere Baafi, the Ranking Member of Parliament’s Trade, Industry and Tourism Committee, has cautioned.
Addressing the press in Parliament on Thursday, the New Juaben South legislator expressed grave concern over the cancellation, describing it as poorly thought out and a threat to Ghana’s industrial advancement.
Hon. Okyere Baafi highlighted the significant number of companies currently operating or under implementation through the 1D1F program. “We have a total of 322 companies at various stages, with 169 already fully operational. To announce the cancellation of this policy without a clear plan for these businesses is deeply worrying. What becomes of their investments, and what message does this send to potential investors in our nation?” he queried.
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He passionately appealed to the government to institute a structured transition period for the existing 1D1F companies, allowing them sufficient time to adjust their operations and strategize for the future. According to the MP, a sudden termination of the policy could lead to the collapse of numerous businesses. “Responsibility demands that the government outline a phase-out strategy, perhaps indicating when incentives will cease, be it by the end of this year or the next. A sudden pulling of the plug is not the way to go,” he advised.
The Ranking Member also pointed out the absence of a concrete alternative to the 1D1F initiative in the 2025 Budget Statement, which was presented in March. He noted that while a ‘Feed Industry Policy’ was mentioned, its allocation was inadequate to serve as a viable replacement.
Hon. Okyere Baafi further revealed that the uncertainty surrounding government incentives has already created operational challenges for several companies. He cited a specific instance of a major ceramics manufacturer whose crucial machinery remains stranded at the port due to the lack of clear policy directives.
“Incentives are indispensable for modern business operations. Even developed nations provide support to their industries. We are competing with countries like Côte d’Ivoire, which offer significantly more attractive tax incentives, with a mere 1% tax after a decade, compared to our 15%. How can our industries effectively compete under such conditions?” he lamented.
The Ranking Member gave a firm assurance that the Minority caucus on the Trade Committee intends to take decisive action on this critical issue. He indicated plans to formally raise the matter on the floor of Parliament through an urgent statement.
“We will bring this issue before Parliament through the appropriate channels. If it is accepted for discussion, that is good. If not, we will explore other avenues to ensure our concerns are heard. We are committed to ensuring this matter is not overlooked,” he stated.
Hon. Okyere Baafi cautioned the Ministry of Trade against any attempt to shut down dialogue on the matter, asserting that the Committee will vigorously pursue accountability and ensure comprehensive engagement with all relevant stakeholders.
Drawing on his extensive background as a former CEO of the Ghana Free Zones Authority and a past Deputy Minister of Trade, Hon. Okyere Baafi emphasized the growing number of industry stakeholders reaching out to Parliament for intervention and support. “These companies are contacting us, placing their trust in Parliament, particularly the Minority, to assist them in this challenging situation. We are determined to stand by them,” he pledged.