The Deputy Minister for Trade, Agribusiness & Industry, Sampson Ahi, has delivered a candid assessment of Ghana’s One‑District‑One‑Factory (1D1F) programme, branding it a failure and warning that many of its projects have degenerated into “white elephants”—facilities built but never delivering meaningful production or employment.
During a radio interview in early April 2025, Ahi rejected claims by the previous administration that the scheme still had vitality. Instead, he argued that structural flaws—especially chronic shortages of raw materials and capital—had rendered most 1D1F factories virtually non-functional. He pointed to Bokaso’s rice processing factory as emblematic of the problem: the plant was constructed under 1D1F but has rarely processed even a single tonne of rice—due to lack of supply.
Similarly, Minister Elizabeth Ofosu‑Adjare confirmed to Parliament in July that the government had officially cancelled the 1D1F programme, and that none of its incentives remain active. The policy has been replaced with a new industrial strategy framed around agro‑processing parks under Ghana’s 24‑hour economy policy.
Parliament’s Deputy Ranking Member on Trade, Yusif Sulemana, spoke even more pointedly: he labelled 1D1F a waste of resources, saying that most factories were initiated without adequate planning—leading them to become unproductive “white elephants.” Only 76 factories were genuinely operating of the ~170 claimed, and a disproportionate number were clustered in urban areas like Accra or Kumasi, contrary to the decentralised promise.
Why 1D1F Faded: The Root Causes
- Weak raw material base
Multiple 1D1F sites lacked reliable access to local agricultural inputs, meaning agro-based factories remained idle or dependent on costly imports—undermining viability. - Insufficient capital support and rising interest rates
The programme had capped credit rates at 20%, but actual lending surged to 35%, leaving factories unable to meet interest obligations and stunting operations from the outset. - Dispersed implementation model
Critics highlighted that scattering factories across hundreds of districts prevented scale, undermined economies of scale and technology transfer—unlike clustered industrial parks seen in more successful economies. - Policy inconsistency and weak institutional support
Without consistent incentives and robust policy follow-through—including import waivers and capital allocation—many factories collapsed soon after commissioning.
Consequences: Factories Without Function
- Many 1D1F facilities remain unoperational or under‑utilised, serving as landmarks rather than engines of industrial growth.
- The promise of mass employment and import substitution remains unfulfilled, leaving taxpayers with sunk construction costs but little output.
- The cancellation of the programme dismantled remaining incentives abruptly, reshaping investor confidence—and leaving industries caught mid‑development without institutional continuity.
What Comes Next: The 24‑Hour Economy Pivot
The current administration has shifted focus to agro‑processing parks housed within the 24-Hour Economy agenda—intended to facilitate round‑the‑clock food and export production, create clusters, secure raw materials via contract farming, and generate youth employment.
Deputy Minister Ahi emphasized that rebuilding industrialisation requires investing in the raw-material base, restructuring credit frameworks, and aligning sectoral production capacity with resource availability—not simply erecting factories in every district
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