Africa-Press – Ghana. Mr. Michael Okyere Baafi, the Ranking Member on the Trade and Industry Committee in Parliament, has called for a transition period for the 322 One District One Factory (1D1F) companies, particularly the 169, that were fully completed and operational.
Mr. Okyere Baafi expressed concern about the future of these businesses, which had invested significantly, after the policy was cancelled without a clear replacement.
“We have invested over $1.2 billion in these businesses, and you just come out to say the policy is cancelled. We think it’s absolutely not right,” he stated.
Mr. Okyere Baafi, also the New Patriotic Party (NPP) Member of Parliament (MP) for New Juaben South, made the remarks on Thursday during a news conference in Parliament House.
The MP proposed that the ministry should implement a transition period to allow the companies to adjust, provide a timeline for the phase-out of incentives, and ensure a smooth transition to avoid disrupting the businesses.
“A transition period would give these companies time to reorganize themselves and see what will happen in the future,” the MP added.
He also emphasized that abrupt cancellation would be detrimental to the companies and the economy, urging the government to reconsider and provide a phase-out period.
On Tuesday, Mrs. Elizabeth Ofosu-Adjare, the Minister of Trade, Agribusiness, and Industry, told Parliament that the 1D1F programme, a flagship initiative of the previous NPP government, had been cancelled.
“Mr. Speaker, I want to draw the House’s attention to the fact that as of now, there is no policy as 1D1F,” she said on the Floor of the House.
The minister explained that the ministry was now focusing on agro-processing parks under the 24-hour economy policy, which aimed to make Ghana’s economy vibrant around the clock.
“Mr. Speaker, we are doing agro-parks, which seek to be a great game changer, especially in the agro-processing zones… to produce around the clock for import substitution, export, foreign exchange, and to create jobs for our teeming youth.”
Mrs. Ofosu-Adjare made the remarks when she answered an urgent question by Mr Alexander Afenyo-Markin, the NPP MP for Effutu.
The MP, also the Minority Leader, asked the minister about specific incentives and investment promotion packages being deployed to attract private sector investment, given the cancellation of the 1D1F.
The minister noted that the policy for the 24-hour economy, which included investment packages, was under review and will be presented to Parliament when completed.
When asked about transitional measures following the cancellation of 1D1F, the minister said the ministry was in talks with stakeholders and looking at the fallout from the cancellation.
However, she attributed the cancellation to the previous administration, stating:
“Since I did not cancel the policy, I would not be in a position to give reasons why remedial measures were not given before the cancellation,” she said.
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