Michael Okyere Baafi
Ranking Member on the Trade, Industry and Tourism Committee in Parliament, Michael Okyere Baafi, has called on the government to immediately introduce a transition plan for companies under the One District One Factory (1D1F) programme following the cancellation of the flagship industrial policy.
The New Juaben South MP criticised the government’s failure to clearly replace the 1D1F initiative in the 2025 Budget, despite public claims that the policy had ended.
Addressing the media in Parliament yesterday, Mr. Baafi said this has left hundreds of companies in limbo and threatens years of investment in the country’s industrialisation efforts.
“We have 322 1D1F companies at various stages of implementation. Out of these, 169 are fully completed and operational. These companies cannot simply be abandoned because a new government decides to cancel the policy,” he stressed.
He noted that the only new policy mentioned in the 2025 Budget was the Feed Industry Policy, which he described as poorly funded and insufficient to absorb the scope and impact of the 1D1F initiative.
The MP explained that the 1D1F programme, which was launched under the Akufo-Addo administration, had attracted over $1.2 billion in investments, supporting both new (Greenfield) and existing (Brownfield) businesses.
According to him, many of these companies continue to rely on incentives such as tax waivers and import concessions to remain viable.
“In modern business, you can’t operate without government incentives. Even in advanced economies, industries receive support from the state,” Mr. Baafi emphasized and added, “To pull the plug now without a clear alternative is dangerous. Businesses are calling us, seeking clarity and comfort.”
He warned that the lack of a proper phase-out plan will cause severe disruptions, especially for multinational companies that have already budgeted for the year based on expected government support.
Mr. Baafi also called out what he termed the “rushed” nature of the government’s new 24-Hour Economy policy, saying it was not yet ready to provide a safety net for companies transitioning from 1D1F support.
“Let’s be honest, the 24-Hour Economy policy is dead on arrival. It is not what was promised during the elections, and it won’t take effect immediately. We need an interim solution,” he said.
The Minority Trade Committee members, he added, will escalate the matter on the floor of Parliament and may file a formal motion to force the issue if the government fails to respond.
Mr. Baafi urged the Trade, Agribusiness and Industry Ministry to work with stakeholders to implement a transition period, extending support until the end of the year or next, to allow affected businesses time to plan and adjust.
“This is not politics. This is about protecting Ghanaian industry, jobs, and investor confidence,” he intimated.
By Ernest Kofi Adu, Parliament House