The Minister for Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim, has revealed that some factories established under the One District, One Factory (1D1F) initiative have been abandoned and later converted into churches after failing to operate successfully.
Speaking before Parliament’s Assurance Committee, the minister attributed the failure of some of the factories to poor planning and the decision to locate them in areas without the necessary raw materials to sustain production.
According to Ahmed Ibrahim, political considerations influenced the siting of some of the factories instead of proper economic and commercial assessments.
He argued that several projects were established in districts that lacked the resources required for their long-term operation, making it difficult for the businesses to survive.
“We sited factories and companies far away from raw materials because politicians were coming from these faraway areas. How many of them survived?” he questioned.
The minister noted that the challenges facing some of the 1D1F factories are similar to those experienced by several state-owned enterprises established over the years.
He said many of those companies eventually collapsed, were sold, or were privatised because they were not economically sustainable.
He said the Ministry will work closely with Metropolitan, Municipal and District Chief Executives (MMDCEs) to identify communities where factories and markets can thrive based on available raw materials, commercial potential and local economic activities.
According to the minister, future investment decisions will be guided by evidence rather than political considerations to ensure that projects create sustainable jobs and contribute meaningfully to local economic development.
The One District, One Factory programme was introduced by the Nana Addo Danquah administration to promote industrialisation, create employment and add value to local raw materials across Ghana.
However, concerns have been raised in recent years about the operational status and sustainability of some of the factories established under the initiative, with the government now seeking a more data-driven approach to future industrial development.
