Elizabeth Ofosu-Adjare, the Minister nominee for Trade, Agribusiness, and Industry, has recently shared her insights on the New Patriotic Party’s One District, One Factory (1D1F) initiative, acknowledging that despite its potential, the program has faced significant challenges in reaching its expected outcomes.

She highlighted two primary factors that have hindered the success of the initiative: the shortage of raw materials and the lack of adequate capital for the companies participating in the program. Ofosu-Adjare made these remarks during her vetting in Parliament on January 22, 2025.

While she recognizes the value of the 1D1F initiative, Ofosu-Adjare pointed out that several obstacles have prevented the factories from achieving their full production potential. She emphasized that although the program was designed with good intentions, the lack of essential resources and the challenges related to financial support have slowed its progress.

“1D1F has its pluses and minuses,” she stated, acknowledging both the positive aspects of the initiative as well as the difficulties it faces. “Factories were set up where value could be added to our raw materials, and while many agro-processing companies got off the ground, they were not able to meet the targets that were expected of them,” she explained.

A major issue she identified was the insufficient availability of raw materials, which is critical for the smooth functioning of the factories. She noted that the companies involved in the 1D1F program struggled to obtain the necessary resources to operate efficiently.

Without a reliable and consistent supply of raw materials, many factories were unable to reach their production capacities, which in turn, hindered the intended growth and development of these businesses.

In addition to the raw material shortage, Ofosu-Adjare also highlighted the lack of proper capital planning as another critical challenge that the factories faced. Despite government efforts to support these businesses with some initial input, many of them found it difficult to secure the necessary funding to sustain and expand their operations.

The lack of adequate capital prevented these factories from operating at their full potential, leading to a stagnation in their development.

The Techiman North Member of Parliament (MP) also pointed to the high interest rates on loans as a significant factor that contributed to the slow progress of the 1D1F initiative. The government had initially capped interest rates at 20% to reduce the cost of production for the companies. However, interest rates unexpectedly rose, causing a significant increase in the financial burden on businesses.

“Interest rates shot up to 35%, and the companies were left in a difficult position, unsure of how to cover the remaining 15%,” Ofosu-Adjare explained. She believes that the rising interest rates played a crucial role in the delayed growth of the initiative.

Despite these challenges, Ofosu-Adjare remains optimistic about the future of the 1D1F program. She suggested that under the leadership of the National Democratic Congress (NDC), the revival of the program could be supported by the implementation of a “24-hour economy.”

This concept, she explained, would ensure that businesses have consistent access to raw materials, thereby addressing one of the key challenges that has plagued the initiative.

The Minister nominee further elaborated on the role of agribusiness in solving the raw material shortage. She assured that with proper planning and the establishment of commercial contract farming, businesses would be able to access a steady supply of the raw materials they need.

By fostering partnerships between farmers and companies, this approach would ensure that the supply chain is more reliable and efficient, ultimately benefiting the factories under the 1D1F initiative.

In conclusion, Ofosu-Adjare acknowledged that the 1D1F program has faced significant hurdles, particularly in terms of raw material supply and access to capital. However, she remains hopeful that with proper planning, financial support, and a focus on agribusiness, the program can be revitalized and achieve its goals of boosting local production and creating jobs across the country.

By addressing the challenges of raw material supply and financing, the government can help ensure that the factories under the initiative operate at their full capacity and contribute to the overall economic development of the country.