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Fri, Sep

US$2 BILLION INVESTMENT DEAL FOR ‘ONE DISTRICT, ONE FACTORY’

Business & Economy

The Government of Ghana is partnering with the China National Building Materials & Equipment Import & Export Corporation in a US$2 billion investment deal to boost the “One district, One factory” programme.

The Government of Ghana is partnering with the China National Building Materials & Equipment Import & Export Corporation in a US$2 billion investment deal to boost the “One district, One factory” programme.

 

The National Secretariat in charge of the policy at the Presidency has facilitated a deal between Banks in Ghana and the private sector with a Chinese Government Private Sector facility of up to US$2billion.

The facility provides financing up to 85% of viable projects recommended by the secretariat and accepted by the banks.

The financing provides a turnkey solution for the establishment of factories as well as technical training and support services.

The most exciting part of the financing is that the Chinese will provide a huge market access for most of the export commodities which is expected to bring US$2.5 billion revenue to Ghana annually.

Additionally, China Railway would be signing an MOU with the government in a US$10 billion deal in the minerals extraction, railway and road network development programme, which will be the biggest deal signed with a Chinese company  so far.

This would undoubtedly be a significant boost to Ghana's efforts at attracting investors into the development of its infrastructure.

The facility will be offered to the bank at low interest rate in the single digits and has over 8 years for repayment depending on the project.

The ‘One District One Factory’ is a flagship industrialization programme promised by the NPP during the 2016 electoral campaign. It is aimed at building a factory in each of the 216 districts in the country.

The programme, which will be implemented with the private sector, will also provide business support services and capacity budding, mentoring and coaching.

It would also provide networking opportunities, assistance with financial planning and financial management, regulatory and legal compliance, links to strategic partners for market and community access.

 


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