Ghana One District One Factor (1D1F) Initiative
The President of Ghana created the One District One Factory (1D1F) initiative in 2017 to change the nature of Ghana’s economy from one that is dependent on the export of raw materials and the import of finished goods to one that is focused on manufacturing, value addition, and the export of processed goods. Key raw materials for this production often are found in the districts of potential production and would have otherwise gone to waste.
1D1F has the following core principles:
- Companies within the project are not state enterprises, but private companies supported by the Government.
- Companies could be new companies or existing companies that meet the 1D1F criteria.
- A district in Ghana can have more than one enterprise if there are more developers interested in a particular district.
- In selected cases, the Government through the District Assembly may partner with a strategic investor under a Public Private Partnership (PPP) arrangement.
- The 1D1F initiative is coordinated and managed by the Ministry of Trade and Industry in partnership with other Ministries, Departments and Agencies (MDAs) and District Assemblies.
Policy Context: Why 1D1F?
- The 1D1F is one of the main components of Government’s Ten Point Industrialization Plan.
- It aims to structurally transform Ghana from an agrarian economy to an industrialized economy.
- It seeks to create massive employment opportunities particularly for youth in rural and semi-urban communities, thereby reducing poverty.
- It aims to reduce rural-to-urban migration and alleviate congestion in the Ghana’s major cities.
Government Support to 1D1F Companies
- Tax Incentives include a waiver on duties and levies for imported plant, machinery, equipment, as well as raw materials.
- Five-year corporate tax holiday.
- Interest subsidy on loans granted to 1D1F companies.
- Technical assistance provided to 1D1F companies by experienced consultants free of charge.
- Extension of needed infrastructure such as electricity, water, and access roads to 1D1F project sites.
- Government procurement of goods produced by 1D1F companies.
- Assistance with identifying export markets.
- Community support through the district implementation support teams.
- 67 business resource centers established to provide business development service support to 1d1f and other companies
- 31 technology solution centers being established to provide technical support and technology solutions to 1d1f and other companies
- Agricultural processing
- Garments and textiles
- Components manufacturing
- Paper and paper products
- Packaging materials
- Participating financial institutions (PFIs) - 15 vetted local banks
- Partnerships/Joint venture/ PPP
Status of Implementation: 278 1D1F Projects at now at various stages of implementation
- Current projects operating as 1D1F: 106
- Projects under construction:148
- Projects in the pipeline to be financed by PFIs
- 1D1F creates opportunities for U.S. companies to supply machinery, equipment, services, technology transfers, and turn-key solutions to specific projects using several financing options such as credit guarantees from the U.S. Exim Bank through local PFI’s in Ghana.
For more information on the process for getting involved in a 1D1F projects in Ghana, contact Commercial Specialist Rita Asante at firstname.lastname@example.org or +233 (0) 30 274 1715.