Elizabeth Ofosu-Adjare, Minister-Designate for Trade, Agribusiness, and Industry, has proposed that the 24-hour economy will boost the 1D1F initiative. Speaking during her parliamentary vetting, she acknowledged the program’s achievements while outlining its major challenges.
She said raw material shortages are a critical issue for ago-processing factories under the One District, One Factory initiative. She also mentioned that limited access to capital also hindered the program’s success, despite government support through subsidized loans capped at 20% interest.
Rising market rates, however, increased interest to 55%, leaving a 15% funding gap for businesses to bridge independently. She said, “ somewhere along the line, the interest rate shot up to 55%. So, now the problem the company had was who paid for the difference of 15%. Because they have already sold their products. One thing that the government was also not able to do was pay the extra 10% that it promised these factories.
She proposed transitioning to a 24-hour economy as a practical solution. By maximizing productivity through extended operational hours, the factories could mitigate supply chain challenges and enhance output.
“1D1F is a programme for Ghanaians set up by the government. It has its plus and minuses. For the pluses, the program set up factories where individuals could add value to our raw materials and these agro-producing factories started but because of some challenges, they have not been able to do what was expected of them.
“One of the challenges I have been briefed by the ministry is the fact that these factories lacked raw materials. We all know that one of the challenges in the agro-processing industry is the lack of raw materials. So, these companies have not processed the way the government wanted it to be.
She said the 1D1F initiative has successes, but tackling its challenges will ensure better outcomes for participating factories. “…So, these are the challenges of that 1D1F but there is always a challenge to our problems. It is good that it has started. Now that we know the challenges, how are we going to solve them? I see the solution to the 1D1F in the 24-hour economy,” she stated.
