President Akufo-Addo Inaugurates 1 District, 1 Factory Project in Asokwa

By Mainoo Yeboah

President Nana Addo Dankwa Akufo-Addo on Monday, inaugurated Spring and Bolts Limited -- one of the companies under Government's 1 District, 1 Factory initiative at Asokwa in Kumasi.

Delivering the key note address at the inauguration ceremony, President Akufo-Addo said the Spring and Bolts Ltd. was engaged in a sector that was critical to the industrialization programme of Ghana, adding that the modernized economy he was seeking to build for Ghana should have a strong industrial sector; hence, his commitment to the successful implementation of the 1-District1-Factory initiative.

He disclosed that the implementation of the 1 District, 1 Factory initiative had received significant support from the business community, as well as from both local and international financial institutions.

He said as a show of support to the initiative, some local banks had pledged about GH¢2.5 billion, while some leading financial institutions from the United Kingdom (UK), United States of America (USA) and China had pledged over $700 million in credit lines to be accessed by Business Promoters, with the Ministry of Trade and Industry (MoTI) facilitating the engagement and negotiations between Business Promoters and these financial institutions.

President Akufo-Addo said the company, engaged in the manufacturing of U-bolts, leaf springs, trailer suspension parts, bolts and nuts, would be exempted from paying import duties on machinery and equipment, and raw materials imported for production, as well as enjoy a tax holiday for five years.

He said two technical experts from the MoTI would be attached to the company to provide free advisory services, while employees under the NABCO programme would be posted to the company.

"The manufacture of machines, machine parts and components, as well as the development of the Automobile and Vehicle Assembly industry, are two of the strategic anchor initiatives being promoted by the government as part of the Industrial Transformation Plan. Spring and Bolts Limited which is being commissioned is a good reflection of the potential in these two sectors," President Akufo-Addo added.

The President disclosed that government was also currently in negotiations with leading global vehicle manufacturing companies to establish Assembly Plants in Ghana and that, very soon, formal notification of these negotiations would be made public for the Ghanaian people.

He said another programme was also being implemented by the MoTI to link Small and Medium-size Enterprises (SMEs), such as Spring & Bolts, to the supply chain of big multinational companies as suppliers of critical inputs and parts.

"The Industrial Sub-Contracting Exchange (SPX) has been designed to create a strategic platform for matching local SMEs to large scale companies. The outcome of this programme will enhance the productive capacities of Ghanaian SMEs and increase their revenues while the country will have the advantage of retaining critical foreign currency that is currently being used to import parts, raw materials and components," he added.

President Akufo-Addo congratulated Mr George Amankwa, business promoter, Springs Bolts Ltd., and his team for a great job done to support the industrialization drive in Ghana.

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