The Export Import Bank of the United States (EXIM US) has approved a $300 million credit to support companies operating under the One-district, One-factory (1D1F) programme.
Per the deal, EXIM US is expected to advance loans through the Ghana Export Import Bank (GEXIM) to the companies for the purchase of machinery and other equipment from the United States for their manufacturing activities.
The companies are to receive the money through a lending structure developed by the GEXIM and the US EXIM.
A company interested in the cash would receive up to $10 million.
Speaking at a ceremony yesterday [Sunday], Finance Minister, Ken Ofori-Atta said the deal is historic and would help change Ghana’s industrial sector.
The minister said the move would enable the operators in the export sector to procure machinery from the US and retool and operate efficiently.
He noted that with the availability of the money, industrialists in the country would be in a better position to take advantage of the Africa Growth and Opportunities Act (AGOA).
In his view, the deal would help replace imports with domestic production of food and other items and made reference to the fact that food imports into the country alone totalled $2.4 billion annually.
“The facility will show government’s commitment to the One-District, One-Factory programme.
The country has not seen an intervention of such nature for the private sector.
This is a necessary intervention to boost the President’s vision to make the economy an industrialised one,”he said.