We’ll tackle 1D1F hurdles with a 24-Hour economy – Elizabeth Ofosu-Adjare

The Minister-Designate for Trade, Agribusiness, and Industry, Elizabeth Ofosu-Adjare, has put forward the concept of a 24-hour economy as a solution to address the challenges facing the government’s One District, One Factory (1D1F) initiative.

During her vetting by Parliament’s Appointments Committee, Ofosu-Adjare acknowledged the successes of the program but pointed out several hurdles, particularly the shortage of raw materials and limited access to capital.

She explained that while the program has been successful in setting up agro-processing factories aimed at adding value to Ghana’s raw materials, many of these factories have faced significant challenges in meeting expectations.

The lack of adequate raw materials for processing, coupled with limited access to capital, has hampered the expected outcomes of the initiative.

One of the key obstacles, Ofosu-Adjare noted, was the financial support provided by the government, which, although beneficial, fell short due to fluctuating market conditions. While the government had promised subsidized loans with an interest rate capped at 20%, the rates surged to 55%, creating a 15% funding gap. Moreover, the government was unable to cover the additional 10% of the interest rate that it had committed to, leaving businesses with unresolved financial challenges.

To overcome these difficulties, Ofosu-Adjare proposed shifting to a 24-hour economy, which she believes would enhance productivity by allowing factories to operate around the clock. This extended operational schedule would enable factories to address supply chain issues and increase their output.

“1D1F is a programme for Ghanaians set up by the government. It has its pluses and minuses. For the pluses, the program set up factories where individuals could add value to our raw materials, and these agro-processing factories started, but because of some challenges, they have not been able to do what was expected of them,” she said.

She continued to outline that the lack of raw materials and limited access to capital had prevented many factories from functioning as intended.

Ofosu-Adjare also acknowledged that while the government’s support had been positive, the fluctuation of interest rates had created additional barriers for businesses.

However, she remains optimistic about the future of 1D1F, stating, “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.”

Through this initiative, Ofosu-Adjare is hopeful that factories can maximize their productivity and overcome the current operational challenges.