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The Ranking Member of Parliament’s Trade and Industry Committee and MP for New Juaben South, Mr. Michael Okyere Baafi, has cautioned that the John Mahama administration is allegedly planning to cancel the One District, One Factory (1D1F) initiative introduced under former President Nana Addo Dankwa Akufo-Addo.
He warned that any such move would have serious financial implications for the state and undermine investor confidence in Ghana’s industrial sector.
Addressing a press briefing, Mr. Okyere Baafi—who previously served as Deputy Minister of Trade and Industry—claimed that a recent call by the Majority Leader in Parliament, Mr. Mahama Ayariga, for an independent audit of the 1D1F programme was part of a broader effort to discredit the policy and pave the way for its cancellation.
Audit Allegations and Response
Mr. Ayariga has reportedly argued that some tax exemptions granted under the 1D1F initiative were misapplied, while certain factories purportedly do not exist. He has challenged the former New Patriotic Party (NPP) government to provide proof of all operational factories established under the policy.
In response, Mr. Okyere Baafi stated that as of the time the NPP left office, 196 factories were fully operational, creating about 700,000 direct and indirect jobs, with an additional 70 factories nearing completion.
“The evidence abounds,” he said. “Go to Akontombra, Sagnarigu, Assin Dompim, and other parts of the country. The Common User Facility that established rice mills and other processing plants has created thousands of jobs along the value chain.”
Defending the 1D1F Model
Mr. Okyere Baafi clarified that the 1D1F programme was never intended to create government-owned factories, but rather to support viable private enterprises through a public-private partnership model aimed at stimulating industrial growth and job creation.
He explained that businesses—both greenfield and brownfield projects—were assessed based on their viability, after which qualified firms were linked to participating financial institutions for funding support.
“The government guaranteed these loans and paid 50 percent of the interest to ease financial pressure on the companies and empower them to create more employment opportunities,” he explained.
“These companies are still repaying their loans. If you cancel the policy, the government will bear the responsibility of settling the outstanding loans.”
Youth Empowerment and Economic Impact
Highlighting the wider impact of the programme, Mr. Okyere Baafi noted that the Enable Youth Initiative, supported by the International Fund for Agricultural Development (IFAD) and the African Development Bank (AfDB), empowered hundreds of young entrepreneurs in agribusiness and agro-processing across districts and municipalities.
He described the 1D1F initiative as a catalyst for rural industrialization, job creation, and economic empowerment, arguing that its cancellation would jeopardize years of progress made under the policy.
“Any move to cancel 1D1F will destroy investor confidence. Both local and foreign investors will fear that policies can be overturned after every change in government,” he cautioned.
Mr. Okyere Baafi concluded by dismissing the NDC’s 24-Hour Economy proposal, claiming it lacks substance and is an attempt to undermine the success of the 1D1F programme.
“I’m telling you, the NDC’s 24-Hour Economy is dead at birth. They simply want to discredit the 1D1F policy, which has created sustainable jobs,” he said.
