Finance Minister Cassiel Ato Forson has announced that the government will end the tax exemption benefits under the One District, One Factory (1D1F) initiative, pointing to significant abuse during the previous Akufo-Addo administration.
Speaking in Parliament on March 26, 2025, the minister stated: “As Finance Minister, I’m not going to continue with the 1D1F tax exemption because the evidence before this House suggests it has been abused badly.” He, however, acknowledged the initiative’s original aims of driving industrialization and economic growth and stressed that the exemptions had been exploited, thus diminishing their intended impact.
The minister emphasized that while the government remains dedicated to supporting local industries, it will seek alternative measures to ensure greater accountability. He added: “We will support genuine businesses that contribute to our economy, but we must put an end to policies that create loopholes for exploitation.”
As one of the flagship programs originally launched by former President Nana Akufo-Addo, the 1D1F initiative was aimed at promoting local manufacturing, value addition, and job creation across Ghana’s districts.
However, the massive tax exemptions granted to companies under the initiative raised concerns over potential revenue losses. In 2021, the Ministry of Finance sought approval for approximately $335 million in tax waivers for 42 companies participating in 1D1F. Critics argued that these exemptions lacked proper oversight, leading to abuse and creating unfair advantages for select businesses.
