Finance Minister Dr Cassiel Ato Forson has refuted claims made by former Deputy Finance Minister Abena Osei Asare that industry slowed because 1D1F was cancelled and other growth opportunities were taken away.
Dr Forson, responding to these claims, stated that the lawmaker was aware her assertions were false.
The minister noted that data from the Ghana Statistical Service (GSS) suggests that the dip in overall industry growth is primarily due to a structural shock in the oil and gas sub-sector, not manufacturing or the alleged removal of 1D1F support.
He indicated that the oil and gas sub-sector contracted significantly, averaging a 20.1 per cent decline in the first half of 2025 (18.1% in Q1 and 22.5% in Q2).
This single factor pulled overall industry growth down to 3.4 per cent for the first half of 2025, he said.
According to him, the cause is attributed to 8 years of under-investment and operational decline in petroleum volumes.
Countering the argument, the manufacturing sub-sector—where 1D1F beneficiaries operate—actually grew by 6.3 per cent in the first half of 2025, the minister argued.
This evidence suggests the claim that “cancelling 1D1F collapsed the industrial sector” lacks analytical foundation.
The underlying philosophy is that any business that collapses within 10 months of government support withdrawal was likely non-viable and dependent on the public purse, rather than being a genuinely entrepreneurial venture.
He added that the 2026 Budget is positioned to expand, not constrain, industrial opportunities through targeted investments:
US$500 million Oil Palm Development Finance Window.
Over 4,000 machines for 50 agricultural districts.
New incentives for textiles, agro-processing, pharmaceuticals, and export-orientated manufacturing.
VAT reforms designed to foster business expansion and job creation.
These measures, according to the government, are the “real levers of long-term competitiveness”. The conclusion that ‘cancelling 1D1F’ caused the industrial sector decline is not supported by GSS data or the priorities of the 2026 Budget.
Read his full statement below
SETTING THE RECORDS STRAIGHT
- Industry, Growth and the 1D1F Argument
A. Hon. Abena Osei- Asare claimed that industry slowed because 1D1F was cancelled and other growth opportunities were taken away.
The data says otherwise, and she knows it.
B. According to the Ghana Statistical Service, the oil and gas sub-sector contracted by 18.1 percent in the first quarter of 2025 and 22.5 percent in the second quarter averaging 20.1 percent in the first half of 2025.
C. That single structural shock pulled overall industry growth down to 3.4 percent in the first half of 2025.
D. The cause was clear: 8 years of under-investment and operational decline in the petroleum volumes. It had nothing to do with any realignment of 1D1F.
E. Even more interesting, the manufacturing subsector, where 1D1F beneficiaries sat, grew by 6.3 percent in the first half of 2025.
F. So the argument that “cancelling 1D1F collapsed the industrial sector” has no analytical foundation.
If a business collapses after the withdrawal of government freebies in just 10 months, then that business was never viable.
We inherited many factories that were less entrepreneurial ventures than chronic dependents on the public purse.
Ghana cannot build an industrial future on handholding disguised as industrialisation.
G. This Budget expands, not constrains, industrial opportunity:
We are rolling out:
i. a US$500 million Oil Palm Development Finance Window,
ii. over 4,000 different machineries for 50 agricultural districts, and
iii. new incentives for textiles, agro-processing, pharmaceuticals and export-oriented manufacturing.H. In addition, the VAT reforms are designed to foster business expansion and create new job opportunities.
I. These are the real levers of long-term competitiveness.
J. The evidence, therefore, does not support the conclusion that ‘cancelling 1D1F’ has caused the Industrial Sector to decline.
Data from the Ghana Statistical Service does not support it, either.
Neither does the 2026 Budget support it.
By: Rainbowradioonline.com/Ghana
