Michael Okyere Baafi
Former Deputy Minister of Trade and Industry and Member of Parliament for New Juaben South, Michael Okyere Baafi, has dismissed claims that businesses abused the erstwhile New Patriotic Party (NPP) government’s flagship One District, One Factory (1D1F) incentives programme.
Addressing journalists in Parliament last Friday, Mr. Baafi addressed misconceptions surrounding the structure and implementation of the 1D1F policy, insisting that the incentives under the initiative were transparently administered and subject to strict eligibility criteria.
“I was hoping to address this matter on the floor of Parliament, but unfortunately, I was not given the opportunity. I feel compelled to clear the air, especially in light of suggestions that businesses under the 1D1F programme have abused government incentives. That is entirely inaccurate,” Mr. Baafi stated.
He explained that the 1D1F policy is structured as a two-tier programme, consisting of Greenfield and Brownfield businesses. Greenfield projects refer to entirely new businesses that were incorporated after the policy’s inception, while Brownfield projects involve existing businesses that are facing challenges, such as financing or operational constraints, and require government support to continue or expand operations.
“The government’s role in 1D1F is purely facilitative. It remains a private-sector-led initiative. Government involvement is meant to stimulate participation by offering standardised incentives—not direct financial handouts or unchecked benefits,” he emphasised.
Mr. Baafi strongly refuted the Majority Leader’s statement on the floor which alleged that companies under the programme had misused the incentives granted by the state.
“That claim is unfounded. There’s no evidence to support it. The programme was designed with transparency and fairness, and every applicant had to go through a rigorous vetting process,” he stressed.
Under the 1D1F initiative, participating companies benefit from a comprehensive incentives package including, a five-year corporate tax holiday that exempts companies from the standard 25% tax rate; and import duty waivers on machinery and raw materials essential for production.
“These incentives are not unusual; they’re global best practices in industrial development,” Mr. Baafi said and added, “No country achieves successful industrialisation without offering support to its investors. If you want to stimulate growth in your real and productive sectors, incentives are essential.”
Responding to concerns that some firms may have gained access to the programme through undue advantage, the former Deputy Trade and Industry Minister assured that every company underwent a detailed evaluation process before being accepted into the programme.
“We do not admit businesses into the 1D1F scheme overnight. There are inspections, feasibility studies, and consultations with professional auditors and consultants to ensure the viability and sustainability of these ventures,” he said.
By Ernest Kofi Adu, Parliament House