The Deputy Ranking Member of the Trade and Industry Committee of Parliament, Yusif Sulemana, has held the view that the One District One Factory (1D1F) initiative has fallen short of its intended objectives.
He highlighted that the 1D1F, introduced by the New Patriotic Party (NPP) government, aimed to establish new factories in every district to foster employment and drive industrialization.
However, Mr Sulemana asserted that this vision has not materialized, even four to five years after the policy’s implementation.
In an interview on Eyewitness News on Citi FM, Mr Sulemana expressed concerns about the unmet goals of the 1D1F.
The initiative was intended to improve foreign reserves, create jobs, and ensure the presence of factories in all districts, but according to him, these objectives remain unrealized.
“Four to five years down the line after the implementation of the 1D1F policy, the objectives to which it was introduced had not been met. It is supposed to ensure that we improve upon our foreign reserves. It’s supposed to ensure that we have created jobs, that have not been achieved. It’s to ensure that we have factories in all the districts of this country, that has also not been met,” he said.
“When a blind man wants to throw a stone at you, he knows what his feet are on. So what we are saying to them is that the companies they have shortlisted and sent to us, many Ghanaians are complaining that they have also applied, yet because there are no criteria or selection, they have been left out. It got to a time when the system was being abused, so we suggested that we suspend the granting of tax exemptions and come up with the Tax Exemption Act.”
Mr Sulemana voiced doubts about quantifying the benefits derived from the 1D1F, despite the provision of tax waivers, alleging that the system has been subject to abuse.
He analogized the situation, stating, “When a blind man wants to throw a stone at you, he knows what his feet are on.” He criticized the lack of criteria or selection, leading to complaints from many Ghanaians who applied but were left out. Due to the perceived abuse, Sulemana recommended the suspension of tax exemptions and the establishment of a Tax Exemption Act.
He underscored the need for this tax measure, stating, “Before the enactment of this tax exemption act, we had realized that we could not even quantify the kind of benefits that we were getting as a result of granting those tax exemptions, so there was a need to put that tax in place.”
While emphasizing that the National Democratic Congress (NDC) is not opposed to industrialization through the 1D1F, Sulemana raised concerns about tax exemptions not benefiting the state.
Sulemana disclosed that there is a current GH¢5.7 billion tax exemption request in Parliament, with the finance committee advocating for tax exemptions for these companies.
Additionally, he claimed that the Ministry of Finance has about GH¢7 billion in tax exemption requests, totaling GH¢12.5 billion. Sulemana expressed concern that this substantial amount could be allocated to associates under the guise of the 1D1F initiative.
He further stated, “Before the enactment of this tax exemption act, we had realized that we could not even quantify the kind of benefits that we were getting as a result of granting those tax exemptions, so there was a need to put that tax in place.”
He added, “We have been reliably informed that the Ministry of Finance has about GH¢7 billion in tax requests in the form of tax exemptions that the ministry is preparing to forward to us. When you put the two together, it’s about GH¢12.5 billion. That is what the government, and for that matter, the Ministry of Finance as well as the Ministry of Trades, are willing to give to their friends and cronies in the name of 1D1F.”