Elizabeth Ofosu-Adjare, Minister-Designate for Trade, Agribusiness, and Industry, has proposed a 24-hour economy to address the issues facing the One District, One Factory (1D1F) plan.
To address the issues hampering the One District, One Factory (1D1F) plan, Elizabeth Ofosu-Adjare, Minister-Designate for Trade, Agribusiness, and Industry, has suggested a 24-hour economy.
Ofosu-Adjare discussed the program’s challenges and acknowledged its accomplishments during her vetting by Parliament’s Appointments Committee.
She emphasized that agro-processing firms face a serious problem with shortages of raw materials, which is made worse by restricted access to financing.
Market swings caused interest rates to rise to 55%, leaving businesses with a 15% funding gap even if the government assisted in the form of subsidized loans and a 20% interest rate ceiling. The problem was made worse by the government’s failure to fulfil its pledge to pay 10% of the subsidized interest rate.
She suggested a workable solution: a shift to a 24-hour economy. The factories could reduce supply chain issues and increase output by optimizing productivity through longer operating hours.
“1D1F is a programme for Ghanaians set up by the government. It has its plus and minuses. For the pluses, the program set up factories where individuals could add value to our raw materials and these agro-producing factories started but because of some challenges, they have not been able to do what was expected of them.
“One of the challenges I have been briefed by the ministry is the fact that these factories lacked raw materials. We all know that one of the challenges in the agro-processing industry is the lack of raw materials. So, these companies have not processed the way the government wanted it to be.
“Also, even though the government supported them with some inputs, they lacked capital or access to the same, and because of that, they have not been able to do their work as expected of them. If you look at the other 1D1F companies that signed onto the programme, their major challenge was the fact that the government capped their interest rate at 20% and promised to pay 10%, which was a very good programme.
“But somewhere along the line, the interest rate shot up to 55%. So, now the problem the company had was who paid for the difference of 15%. Because they have already sold their products. One thing that the government was also not able to do was pay the extra 10% that it promised these factories.
“So, these are the challenges of that 1D1F but there is always a challenge to our problems. It is good that it has started. Now that we know the challenges, how are we going to solve them? I see the solution to the 1D1F in the 24-hour economy,” she stated.
Source: Mybrytfmonline.com/oseph Asare
