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Thursday, March 30, 2023

Gov’t absorbs 50% of interest rate charged to 1D1F companies

Government says it will bear 50% of interest on loans advanced to factories that would be operating under its 1District, 1Factory (1D1F) policy.

This intervention by government is expected to attract more companies in the private sector to get onboard the government’s 1D1F programme.

Speaking at the Graphic Business and Stanbic Bank Breakfast meeting in Accra, Senior Minister Yaw Osafo Marfo added that the move would help take some burden off owners and managers of factories under the programme.

“What the government has decided is that, the government will absorb 50% of the interest rate on this 1D1F companies, so that determining what will be bankable will be done by the professionals; so that when you have been appraised, you have been shortlisted, you have qualified, the cost of money to you will be shared between the government and yourself.”

Read: Over 300 proposals on 1 district, 1 factory screened – Alan

Mr. Osafo Marfo stated that out of the 781 proposals submitted so far under the 1D1F programme, 50 have been appraised, with 15 approved for implementation by close of 2018.

The Senior Minister also disclosed that cabinet has approved GHȻ236 million to be disbursed as stimulus package for struggling companies.

The 1District, 1Factory policy is one of government’s flagship programmes aimed at helping industrialised Ghana’s economy, and also serve as an avenue for job creation to reduce unemployment in the country.

Read: Number of factories under 1D1F unrealistic; will reduce further – GAWU predicts

Under the project, each of the 216 Districts in the country is expected to have at least 1 factory based on the predominant trade or natural resources within the District.

Source: 3news.com

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