Ranking Member of Parliament’s Trade and Industry Committee, Hon. Michael Okyere Baafi, has denied allegations made by the Majority Leader concerning the abuse of government incentives by companies operating under the One District One Factory (1D1F) initiative.
Hon. Baafi, the New Juaben South MP, clarified to the media on Friday that the Majority Leader fundamentally misunderstands the 1D1F program’s structure and intent. He stressed that the policy is a transparent, private sector-driven endeavor supported by standardized government facilitation, not ownership.
“The 1D1F program is a two-tier model, supporting both new greenfield startups and existing brownfield businesses in need of assistance. Government’s role is strictly to facilitate, not to own these ventures,” Hon. Baafi explained.
He emphasized that incentives like the five-year tax holiday and import duty exemptions are standard industrial development tools used globally to empower the private sector and foster industrial growth, a necessity for Ghana’s successful industrialization.
Hon. Baafi refuted claims of incentive abuse, stating that all 1D1F beneficiaries underwent a thorough vetting process. “There were strict arrangements and procedures, including feasibility studies and financial assessments, to ensure the viability of businesses before their inclusion in the program,” he noted.
Addressing criticism about the distribution of factories, Hon. Baafi clarified that the policy aims for a minimum of one factory per district, not a restrictive limit. “If multiple businesses in a district meet the criteria, they can all be part of 1D1F. The policy was never intended to be restrictive,” he stated.
Hon. Baafi expressed disappointment at what he perceived as the Majority Leader’s lack of understanding of the 1D1F policy and called for well-informed discussions on national development programs.
“There is no evidence of abuse. This was one of the most transparent programs ever introduced by the government. We had nothing to hide,” he stressed.
The 1D1F initiative, a flagship program of the previous administration, aims to drive industrialization nationwide by establishing factories in each district, thereby generating employment and boosting local economies.