Ghana’s One-District, One-Factory (1D1F) programme has received $300 million in credit support from the Export Import Bank of the United States (EXIM US), revealed Ghana Web. Covering companies that operate under 1D1F, the programme will receive advanced loans via the Ghana Export Import Bank (GEXIM) through a lending structure developed by both institutions.
This newly acquired fund will be used by the companies to buy machinery and equipment from the U.S. These will be used to expand Ghana’s manufacturing performance. According to Ghana News, each of the companies under 1D1F has access to a maximum of $10 million.
Ghana’s Minister of Finance Ken Ofori-Atta says that this agreement is slated to ‘change Ghana’s industrial landscape.’ This is because of the new and advanced types of machinery and equipment which will be used to retool industrial companies. Moreover, it is predicted to make the operations of these companies more efficient.
Ofori-Atta also told attendees of the exchange of cooperation framework in Accra that access to this amount of money will give Ghana and its companies an opportunity to use the Africa Growth and Opportunities Act (AGOA) to its advantage.
In addition, this deal will make domestic production a more robust industry. This is in light of the fact that the country spends $2.4 billion annually for importation. With a stronger domestic production, the country may cut back on importation. Ofori-Atta states that this will be a great thing for the country as it may cease importing ‘everything’ and encourage Ghanaians to get involved in entrepreneurship and manufacturing.
Meanwhile, Deputy Minister of Trade and Industry Robert Ahomka-Lindsay says that value-added exports should also be a priority as the country ‘could not achieve the desired economic growth’ and wealth creation without it.
GEXIM is in the hopes that this deal with EXIM US will also aid in job generation and strengthening export industries.