The Minority Leader in Parliament, Alexander Afenyo-Markin, has warned that the government’s cancellation of the One District One Factory (1D1F) policy could worsen youth unemployment in the country.
He explained that the policy, introduced by the previous government, was aimed at addressing unemployment by providing tax incentives to the private sector, stimulating investment, boosting productivity and making Ghanaian businesses more competitive.
Mr Afenyo-Markin described the cancellation of the policy as a missed opportunity to tackle unemployment through private sector support.
“The 1D1F policy was not merely a political programme but a structural response to one of Ghana’s most persistent challenges. By providing tax incentives to the private sector, the policy sought to stimulate investment, boost productivity and make Ghanaian businesses more competitive. Its cancellation has left a dangerous vacuum,” he said in an interview with The Ghanaian Times.
While acknowledging the challenges faced by the policy, Mr Afenyo-Markin said the government could have streamlined and reformed it instead of cancelling it outright.
He noted that the effects of the cancellation were already evident, as several projects initiated under the policy had stalled.
“When the Minority caucus met with the Association of Ghana Industries (AGI), members lamented that many projects initiated under 1D1F had stalled, with investors unable to access the government support needed to bring them to completion,” he stated.
He cited a watermelon processing factory at Walewale in the North East Region, which is reportedly 90 per cent complete but unable to commence operations due to lack of government incentives.
“One particularly striking example was raised by the President of AGI: a watermelon processing factory in Walewale, in the North East Region, which stands at 90 per cent completion. With the factory tantalisingly close to becoming operational, the investor has been unable to access the government incentives needed to finish the project,” he added.
Mr Afenyo-Markin further warned that the cancellation could put additional pressure on the public purse, as the government may struggle to absorb graduates into the public sector.
“If you employ more in the public sector, you spend more of your tax revenue paying public sector workers and are left with nothing, or just very little for other investment,” he cautioned.
He also indicated that despite a question tabled by the Minority in Parliament requesting the Minister of Trade, Agribusiness and Industry to explain the government’s policy direction for the private sector following the cancellation of 1D1F, the caucus had yet to receive a substantive response.
The Minority Leader further urged the media to scrutinise the issue closely, citing what he described as the absence of visible government intervention to support businesses, particularly in the private sector.
BY BENJAMIN ARCTON-TETTEY
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