Economist Dr. Paul Appiah Konadu has slammed Ghana’s habit of abandoning key policies with every change of government, warning that shelving flagship initiatives like One District One Factory (1D1F) not only derails industrial growth but also squanders scarce public resources.
“This government comes and initiates a policy, the next government comes and decides to put it on hold or cancel the policy altogether, just as we have experienced with 1D1F,” he told The High Street Journal in an exclusive interview.
The 1D1F programme, launched in 2017 under the previous NPP administration, aimed to establish at least one factory in each district to accelerate local manufacturing, create jobs, and drive Ghana’s industrialisation.
However, addressing Parliament on Tuesday, Trade, Agribusiness and Industry Minister Elizabeth Ofosu-Adjare confirmed its termination, stating unequivocally.
“There is no policy as 1D1F,” adding that all associated investment incentives have been withdrawn.
Dr. Appiah Konadu explained that although 1D1F faced challenges, cancelling it forfeits even the minimal benefits realised so far.
“Even though there were challenges with the policy, some monies have been put into it, so at the end of the day, if we are cancelling it, then it means even the little benefits that we are going to realize from it, we may not get it,” he noted.
He emphasised that 1D1F was private-sector-led, with government support in the form of tax holidays and access to affordable capital via the Exim Bank. In 2023 alone, tax reliefs under 1D1F amounted to approximately GH¢3.6 billion.
“As for the workers that were employed, for those that have started operation, it is up to the owners to decide if they can sustain the business and keep the people in employment even without the government’s support,” he warned, hinting at possible layoffs if firms fail to self-finance operations.
Assessing the programme’s strategic impact, he observed that despite heavy investment, Ghana’s imports remain high.
“In 2024, total food imports was $2 billion. We had a lot of these companies in the food value chain. So the question is, were we strategic enough in using the support to galvanise companies to cut food imports?” He quizzed.
Dr. Appiah Konadu urged policymakers to learn from 1D1F’s failings to improve implementation of the new 24-hour economy strategy. He advocated greater transparency in selecting beneficiary companies, measurable performance indicators, and clear expectations for employment, exports, and tax contributions.
“If we are not able to do that, 24-hour economy will fail just as 1D1F seemingly failed,” he cautioned.
