By Daniel Bampoe
The government of President John Mahama has officially discontinued the New Patriotic Party (NPP) flagship One-District-One-Factory (1D1F) industrialization initiative, a programme once touted as the cornerstone of the Akufo-Addo administration’s drive for industrialization, rural development and job creation.
The announcement came from the Minister for Trade, Agribusiness and Industry (MOTAI), Elizabeth Ofosu-Adjare, who told Parliament on Tuesday, July 8, that 1D1F no longer exists as a policy framework, and that there are currently no investment incentives under the programme.
“Mr. Speaker, I want to draw the House’s attention to the fact that as of now, there is no policy as 1D1F,” Ofosu-Adjare stated bluntly during her appearance before the House.
From 1D1F to Agro-Industrial Parks
In place of the 1D1F initiative, the minister said the government is focusing on agro-processing industrial parks under President Mahama’s 24-hour economy policy, which aims to boost productivity, generate employment, and stimulate Ghana’s manufacturing base around the clock.
“We are doing agro-parks which seek to be a great game changer, especially in the agro-processing zones,” she said, explaining that the shift is intended to promote import substitution, enhance exports, attract foreign exchange, and create sustainable jobs for the youth.
The 24-hour policy, she noted, will offer a broader and more flexible industrial framework with potential to scale across various sectors and regions, beyond what 1D1F was capable of delivering.
Parliament Questions Cancellation
The move has sparked strong reactions in Parliament, particularly from Minority Leader Alexander Afenyo-Markin, who questioned the rationale behind cancelling a programme that had received significant parliamentary backing, including tax incentives worth millions of dollars granted to companies operating under the 1D1F initiative.
He also demanded to know the investment promotion packages being rolled out to replace those under 1D1F.
He asked what concrete steps the ministry was taking to de-risk industrial investment, especially in underserved districts.
Similarly, Majority Leader Mahama Ayariga queried the government’s transitional plans, highlighting the potential financial exposure due to tax incentives and other commitments made under the now-defunct
In response, the Trade Minister admitted that while some aspects of 1D1F have been absorbed into the 24-hour economy strategy, she was not in a position to explain why proper remedial measures were not implemented before the policy’s abrupt termination.
“Since I did not cancel the policy, I would not be in a position to give reasons why remedial measures were not given before the cancellation,” she clarified, distancing herself from the original decision.
The One-District-One-Factory initiative was launched in 2017 under former President Nana Addo Dankwa Akufo-Addo, with the vision to establish at least one factory in every district to add value to local raw materials, boost export potential, and industrialize the economy.
By the end of Akufo-Addo’s tenure in January 2025, over 170 factories were reportedly operational or under construction, many of them supported by government facilitation, public-private partnerships, and tax incentives.
The initiative was widely credited for creating jobs in rural areas, although critics also pointed to project delays, underutilized facilities, and inconsistent financing.
Transitioning to a New Model
While the Mahama administration insists the 24-hour economy offers a more modern and holistic approach to industrial development, stakeholders are demanding clarity on how the transition will be managed, especially for businesses and workers who benefited from 1D1F.
