1D1F company creates jobs for more than 2,000 people
The objective underlying the One District One Factory programme of the government, spearheaded by the Ministry of Trade and Industry, is the transformation of the industrial landscape of the country through a deliberate effort of providing incentives to realize the set target.Government has thus provided an incentive regime which includes tax waivers on importation of plant and machinery, tax holidays for companies enrolled on the programme, provision of technical support services, and flexible interest regime for the programme, among others.
The hope is that all the support given the companies will spur them on to be able to create the much needed jobs for the teeming youth in the country, especially within the rural and peri-urban communities.One of such companies that has taken up the challenge is KEDA Ceramics Company Ltd, located at Lower Inchaban in the Shama District of the Western Region of the country.
The company has so far provided employment estimated at more than two thousand (2,000), directly and indirectly for both the first phase and second phase. This figure is expected to increase to more than five thousand (5,000) in 2022.
Commissioning the third phase and at the same time cutting the sod for the commencement of the 4th phase of the project, H.E. Nana Addo Dankwa Akufo-Addo, President of the Republic was very enthused about the fast progress and expansion of the company. He noted that the expertise of KEDA Ceramics and the reputation for its best qualities has positioned the company to be competitive not only in Ghana but the whole of West Africa.
The President emphasize that in 2019, KEDA was able to export 7,156,800 meter square of ceramics amounting to USD22.9 Million, which increased to 10,540,800 meter square in 2020 and raked in USD34.8 Million. According to the President, the projection for this year’s export is expected to hit 12,355,200 metric square with USD39.5 Million as foreign exchange generation.
The total investment of the projects is estimated at USD 150 million and the Government has provided exemption in the area of equipment, machinery, construction materials, etc. to enhance the operations of the company. The President commended the Promoters for having confidence in the Government and the Ghanaian economy and assured them of Government’s continuous support to expand operations and take advantage of the African Continental Free Trade Agreement.
The President also applauded the traditional rulers and land owners for their unflinching support for the project and advice the workers to put in their maximum best devoid of any negative tendencies that may undermine the success of this strategic project at Lower Inchaban, Shama District in the Western Region.
A deputy Minister of Trade and Industry, Michael Okyere Baafi, noted that the success story of KEDA Ceramics is a testament to the fact that with a friendly business environment and the appropriate incentives, such as pertains under the 1D1F flagship programme, home grown companies can compete on the global market. This is because the company is currently exporting its products to most West African countries and is seeking to enter the wide continental market.
Hon Okyere Baafi was particularly happy about the usage of locally available raw material, clay, as the major input in the manufacture of the products. He was of the view that the siting of the factory in the Western Region is a classic example of local enterprises harnessing the available resources to enhance the economic activities of the people within its catchment area. In a related development, the President has also commissioned a rubber processing factory, Narubiz Limited, another project under the 1D1F initiative in the Western Region.
The project is owned by three (3) shareholders, each of them having a rubber plantation of 200 acres and more, who took the bold step to establish this facility to process rubber for export. With the Auto Sector picking up in the country, this project is going to play a critical role in Ghana’s quest to develop a vibrant auto industry. Other Promoters in the value chain can therefore establish processing lines for vehicle tyres, engine seats, fan belts, etc. which are all derivates of the finished product from Narubiz.
Narubiz is 100% Ghanaian owned company with current capacity to process 20 tons per day of processed rubber for export to Turkey, Malaysia, and Hong Kong. Narubiz is expected to export a total volume of 6,240 tons of processed rubber per year amounting to USD9.6 Million of foreign exchange into the economy. So far, the total investment for the facility is USD$2.1 Million with Ghana Commercial Bank providing USD1.38 Million loan facility to the company. The facility currently offers direct employment for 85 employees and indirectly linked to 1,260 people including out-growers, latex harvesters, farm maintenance workers, transporters etc.
The company is sourcing its raw materials from Western, Western North and Central Regions and this is going to boost rubber production in these catchment areas. Government through the Ministry of Trade & Industry has supported Narubiz with Interest Subsidy, exemption on machinery and equipment as well as a transformer for the smooth operations of the company.