The Economic Intelligence Unit (EIU) has predicted that the Akufo-Addo government is not likely to fulfil its pledge to establish 181 factories under the much-criticised One District, One Factory (1D1F) initiative by the end of this year, saying it is too ambitious.
“…we believe that the government’s industrialisation strategy is too ambitious, given broader barriers to growth,” the EIU stated in its latest report on Ghana released on Friday, September 13, 2019.
The verdict contained in a 25-page report prepared by the Britain-based EIU of the Economist Group predicts those factories may not be delivered by the close of the first term of the Akufo Addo administration either.
The forecasters explain that Ghana’s regional imbalances coupled with broader issues of a poorly trained workforce and weaknesses in the business environment are among the reasons the 1D1F target for this year will be missed.
This report rubbished estimations made by the Akufo Addo administration-particularly the Minister of Trade and Industry, Alan Kyeremanten, who said in May this year that the 181 factories were at different stages of completion across the country and would be ready for operation by the close of the year.
This statement by the trade minister was to counter criticisms that the much-anticipated 1D1F was a mere sham by the government.
“The government aims to have 181 projects operational by end-2019, although we believe that this is unlikely, given limited progress over the year to date. There are stark regional imbalances—with development hampered by a lack of supporting infrastructure—combined with broader issues of a poorly trained workforce and weaknesses in the business environment,” the EIU stated in its verdict of the 1D1F.
“The authorities are also keen to develop domestic refinery capacity to allow the upstream oil industry to improve value-added and revenue generation. However, poor data quality reduced investor interest in the licensing round announced in July.