News
Let’s revive defunct, ailing SoEs under 1D1F
One of the major campaign promises of the ruling government in the 2016 general election was to create a factory in every district of the country.
Perhaps, the afore-mentioned campaign promise by President Nana Addo Dankwa Akufo-Addo, accounted for the overwhelming victory of the party in the 2016 elections, given the growing unemployment challenge facing the country.
Dubbed “One District, One Factory,” the policy was “designed to decentralise industrial development to ensure an even and spatial spread of industries.”
The policy aimed to establish “at least, one factory or enterprise in each district of Ghana as a means of creating economic growth poles that would accelerate the development of the various local areas and create jobs for the teeming youth.”
Under the private sector-led initiative, government was to “create the necessary conducive environment for the businesses to access funding from financial institutions and other support services from government agencies to establish factories.”
Among others, the IDIF, was to transform the country from the import of raw commodities to export of value-added materials to attract more value for the country’s natural resources.
It was to also to transform the local economies by harnessing the huge mineral and natural resources that abound in various parts of the country.
Furthermore, the programme was to create strategic enterprises at the local level and create employment to address the growing unemployment conundrum facing the country.
As of July 2020, about 170 factories had been established under the IDIF initiative of 28 were said to have been completed and 31 were under various stages of completion.
The World Bank indicated that the country’s youthful population, accounting for 36 per cent of the population, presents both opportunities and challenges.
Creating factories in each district of the country, would go a long way to help, harness this demographic dividend to propel national development and not become a curse for the country.
It must be indicated that the 1D1F initiative formed part of several initiatives, outlined by the government to industrialise the nation and move the country from import dependent to export led of value-added products.
For instance, the government recently launched Ghana COVID-19 Alleviation Revitalisation Enterprise Support (GHANA CARES) initiative to support and help prop up companies devastated by the coronavirus disease.
With a GH¢100 billion seed fund, the programme is designed to mitigate the economic challenges brought on businesses due to COVID-19 pandemic.
It must be emphasised that previous governments had made various attempts to industrialise the country and thereby initiated programmes to that effect.
Particularly, under Dr Kwame Nkrumah’s industrialisation agenda, many companies were established in the country.
Thus, in the early period of independence the country was awash with industries in areas of agriculture, mining, manufacturing and services, creating all the country needed without importation.
Interestingly, in the 60s, the country could produce items such as lorry tyres, glass products, radio and sugar, just to mention but a few, locally.
In view of this, there was no need to spend millions of dollars to import the afore-mentioned productions. The government was able to save a lot of foreign exchange and this put less pressure on the Cedi by its international peers such as the dollar.
Unfortunately, most of the industries created by Ghana’s first President had collapsed and others privatised following the formation of the Divestiture Implementation Committee, and the others that had not been privatised have been left to rot.
Mention can be made of some of the defunct state-owned enterprises such as the Aboso Glass Factory, Bonsa Tyre Factory, Ghana Airways, State Construction Company, State Fishing Corporation, National Savings Banks and the Black Star Line.
The companies mentioned provided a lot of employment to the citizens. It is said that in the early independence era, jobs were in abundance. Graduates had jobs before completing school because companies were scouting for them.
Sadly, the story is different today. The country currently imports everything including tooth pick, when bamboo can be found in most parts of the country. Producing took pick does not require any sophisticated technology, for which the country should be importing tooth pick.
The state does not have foothold of the economy and it appears Ghana’s economy is in the hands of foreigners. All the strategic national assets, from mining to telecommunication, have been privatised and now in the hands of private investors.
For example, until recently when the government announced the takeover of the AirtelTigo, the country did not have a strong position in the telecommunication sector.
I am not by the above argument suggesting that the country should not work to attract Foreign Direct Investment. Far from that, but the country can equally invest in critical sectors of the economy so as to create jobs, attract more foreign exchange and shore up the economy.
The country, and for that matter, the government by now, has learnt a lot of lessons from the factors which caused the collapse of the ailing state-owned enterprises. Such weaknesses, whether managerial or governance, will serve useful lessons for government. There are more prospects for government to succeed if it decides to partner the private sector to revive the defunct industries, because history will be there to guide us.
Implementing the IDIF programme to industrialise the Ghanaian economy offers the government opportunity to partner the private sector to revive and resuscitate the defunct and ailing state-owned enterprises.
There is no need re-inventing the wheel in the effort by government to industrialise the country. The template, to help to revive and prop up ailing state enterprise and bring back those which have gone down, is available and what is needed is for government to look for strategic investors to partner to bring the defunct state-owned industries back to life.
These can serve as low hanging fruits in the government’s attempt to industrialise the country. Some of the defunct companies, have vast lands, which is a critical factor of production, and for that matter there would be no need to spend so much resources to acquire a land.
With land available for most of the defunct companies, it should not be difficult for the state to look for private investors to revive those companies.
The Food Distribution Corporation silos and adjoining lands in the North Industrial Area in Accra is a critical example to cite. The area has been occupied by squatters, who are doing brisk business .
Such national assets going waste abound across the country. The Kade Match Factory in the Kwaebibirem District in the Eastern Region, is an example.
When the then Ambassador Hotel was transformed to what is now known as Movenpick Ambassador Hotel through a private investor, many were those who hailed the government. The assumption was that government would continue the exercise to revive other defunct state-owned enterprises, but that was not to be.
For nothing at all, the outbreak of the coronavirus disease, has taught great lessons for countries to look within and position themselves to produce and consume what they need locally.
The COVID-19 pandemic presents a great opportunity for the government to revive and bring back the state enterprises which have gone down so as to be able to produce what the country needs locally.
Not only will the country generate enough foreign exchange to shore up the cedi, but also create enough jobs for the teeming unemployed youth. The country’s demographic bulge should not be a ticking time bomb, but an asset to develop the economy.
It behoves on the State Interest and Governance Authority, the Ministry of Finance and the appropriate state organisations to begin to initiate strategies to revive the defunct state-owned enterprises.
By Kingsley Asare
Local mattress manufacturers have raised serious concerns over the influx of substandard mattresses, warning that these products pose significant health risks to consumers and threaten the sustainability of Ghana’s mattress industry.
At a press briefing held in Kumasi on Tuesday, manufacturers accused unregistered foreign entities, particularly Chinese firms, of flooding the market with cheap mattresses made from polystyrene.
Mr Yaw Ampem Darko, a spokesperson for the local manufacturers, warned that prolonged use of substandard mattresses, especially those made with polystyrene, could result in chronic back pain, musculoskeletal disorders, poor posture, and diminished sleep quality.
These health implications, they stressed, were not always immediately evident but accumulate over time, especially among vulnerable populations such as children and the elderly.
This material, typically used for packaging, is considered unsuitable and unsafe for bedding.
According to industry leaders, these sub-standard products have been circulating for at least five years, gaining traction among unsuspecting consumers due to their unusually low prices.
“These mattresses are being sold at suspiciously low prices, luring unsuspecting consumers who are unaware of the health dangers.”
“We are not just protecting our businesses; we are protecting Ghanaian lives. The government must act swiftly to stem this tide before more citizens fall victim to these dangerous products,” Mr Yaw Ampem Darko stated.
The Ghana Standards Authority (GSA) has acknowledged the issue and, in response, announced a nationwide enforcement campaign aimed at clamping down on the production, distribution, and sale of substandard mattresses.
The campaign, which was scheduled to take effect from September 30, 2025, was empowered by the GSA Act, 2022 (Act 1078), which authorises the Authority to seize and seal non-compliant products and impose sanctions on offenders.
In a statement signed by the Director General of the GSA, Professor George Agyei, the authority cited Sections 29 and 43 of the Act, reiterating that all mattresses sold in Ghana must meet established national standards or face confiscation.
The statement further emphasised that mattresses failing to meet these standards not only compromise sleep quality but also contribute to long-term health complications, including spinal and neck pain.
Despite the GSA’s commitment, manufacturers have expressed frustration over delays in implementation and called for stronger enforcement mechanisms.
They urged the GSA to work in close collaboration with the Customs Division of the Ghana Revenue Authority and national law enforcement agencies to identify and prosecute violators of Ghana’s quality standards.
Manufacturers are also appealing to consumers to remain vigilant and prioritise their health by verifying that any mattress they purchase bears the GSA certification mark.
Moreover, they caution the public against purchasing suspiciously cheap mattresses that lack proper labelling or identifiable branding, as these were often indicators of substandard or counterfeit products.
As the official enforcement deadline had expired with no show, the local producers insisted that much more than business interests were at stake.
They argued that without swift and sustained action, the health and safety of Ghanaian consumers would continue to be compromised.
“Public awareness, strict enforcement, and collaboration among regulatory bodies are essential if we are to protect the integrity of the local industry and the wellbeing of the Ghanaian people,” Mr Darko indicated.
From Kingsley E. Hope, Kumasi
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The Founder of the Raissa Child Protection Initiative, Ms Raissa Sambou, has urged authorities to impose severe punishment on individuals, including teachers and guardians, who sexually abuse young girls.
Speaking in an interview to mark this year’s International Day of the Girl Child (October 11), Ms Sambou condemned the increasing cases of sexual exploitation involving minors, describing such acts as “heartless, criminal, and a total betrayal of trust.”
She noted that those entrusted with the care and education of children must not be the same people who violate them, stressing that “anyone found guilty of abusing a girl child must face the full rigours of the law without leniency.”
The International Day of the Girl Child is observed annually to promote the rights of girls, empower them to reach their full potential, and draw attention to the challenges they face worldwide.
Ms Sambou lamented that poverty continues to push many young girls into vulnerable situations, exposing them to exploitation.
She expressed concern that some headmasters, teachers, and community members who should protect girls rather take advantage of them.
“This must stop immediately. The safety of every girl must never be compromised,” she said, urging the public to report all forms of abuse to the appropriate authorities and called for swift action by law enforcement agencies against perpetrators.
Addressing girls directly, Ms Sambou encouraged them to take their education seriously and to believe in their potential.
“It is possible to be young and responsible. Your future is bright, protect it, believe in it, and never let anyone dim your light,” she advised.
She further urged girls to choose their friends wisely, stay disciplined, and speak up if anyone makes sexual advances toward them.
Ms Sambou concluded with a rallying call for collective action, saying “speak up, protect them, and empower them. Together, we can end the sexual exploitation of girls.”
By Esinam Jemima Kuatsinu
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