Ministry clears doubts over two companies

Accra The Ministry of Trade Industry, says Unijay Garments Limited and Volta Forests Products, have received financial support under the government’s signature One District One Factory (1D1F) programme.

Although the two companies were already existing, they applied for and got assistance from the programme.

Mr. Patrick Nimo, the Chief Director, in a signed statement, copied to the Ghana News Agency, said Unijay, received GH2.5 million from the Prudential Bank as 1D1F Company, in July 2017.

This was after it had gone through the required screening.

It has applied for an additional G0 million, which is currently being considered by the Bank.

The statement said, In the light of the above, it is difficult to understand how anybody could reasonably object to the description of Unijay Garments Limited as an existing 1D1F company.

The clarification comes in the wake of attempts by some journalists to discredit the classification of Unijay and Volta Forest Products as 1D1F Companies.

With regard to the Volta Forest Products Company, located at Hohoe, which has been manufacturing wood products, the statement said it also applied for help under the 1D1F programme in November 2017 and was given G.5 million by Prudential Bank.

The statement pointed out that the 1D1F programme, was a private sector led initiative, facilitated and supported by government, and not intended to establish state enterprise.

The companies are established and owned by the private sector and when required, with government equity not exceeding 30 per cent.

It added that selection of 1D1F projects could involve the revitalisation of an existing government-owned or privately sponsored project or company, deemed to be potentially viable.

Government’s support to 1D1F companies, included facilitating access to short, medium and long term financing from participating financial institutions, subsidized interest rate for loans, various tax and other fiscal incentives including a five-year tax holiday and waiver of duties and levies for the importation of machinery.

The other forms aid involved facilitating access to equipment and raw materials, free technical assistance to support operations of 1D1F companies and infrastructure facilities including land, electricity and water.

There are 181 1D1F projects covering 112 districts and these are at various stages of implementation including 58 existing companies, 26 projects under construction, 26 pipeline projects currently under consideration by Planting for Food and jobs (PFJs), and 58 Enable Youth 1D1F projects ready for construction by first quarter of 2020 (Small Scale Processing Facilities to be owned by organised farmers groups and funded by the African Development Bank).

There are also eight Large Scale 1D1F Common User Processing Facilities ready to commence construction by third quarter of the year 2020.

Under the 2020 Budget, Government has provided resources to support Business Promoters to establish 1D1F projects in the remaining 148 Districts currently not covered under the programme, the statement added.

Source: Ghana News Agency