Ghana’s ‘One District One Factory’ initiative has received a significant financial boost after China agreed to support the project with $2 billion.
The $2 billion facility is a single digit low-interest loan, with a tenure of 8 years to a number of selected local lenders.
This was made known after a Memorandum of Understanding (MoU) was signed by stakeholders from China and Ghana.
The MoU stated that China was committing the sum to a consortium of stakeholders including a number of local Ghanaian banks, the private sector led by the Association of Ghana Industries (AGI), and the Chinese government’s private sector development corporation.
China National Building Materials and Equipment Import and Export Corporation (CNBM) is expected to provide up to 85% of the funding for projects considered viable under the initiative by the One District One Factory secretariat.
Strategically, CNBM is expected to oversee the construction of factories and the supply of major operational resources for companies considered investment worthy under the initiative.
The One District One Factory initiative is aimed at scaling up industrialization in a fair and equitable way across all of Ghana’s major districts.