Professor Gatsi Calls For A Comprehensive Investigation Into The One District, One Factory Initiative
Professor John Gatsi, the Dean of the School of Business at the University of Cape Coast (UCC), has advocated for a ‘thorough investigation and analysis’ of the government’s ‘One District, One Factory’ (1D1F) policy to improve its effectiveness.
He expressed concern over the industrial sector’s persistently low growth despite the implementation of the extensively promoted industrialization policy, raising questions about its impact on the industry.
In response to the 2024 Budget Statement during an interview, he highlighted that Ghana’s industrial sector exhibited a growth rate of -2.5% in 2019, 0.9% in 2021, 1.9% in 2022, and -2.2% in the first half of 2023.
“Why should we be implementing the industrialization policy of the government and then have this particular record of growth in our industry sector?” he queried.
Professor Gatsi pointed out that the industrial sector would have faced even more challenges if not for the positive performance of the oil and gas sector. Consequently, he emphasized the importance of prioritizing the development of the oil and gas sector.
In the Budget Statement, Mr. Ken Ofori-Atta forecasted that the country’s economy would surpass GH¢1 trillion in 2024, a notable increase from the GH¢219.5 billion recorded in 2016.
“Mr. Speaker, with such a milestone ahead of us, the government is protecting, at all costs, the foundation for sustained economic expansion—a foundation that has been achieved through the sweat and patience of the Ghanaian people.
“We pledge to protect this for all our people and especially for private sector growth,” he said.
However, Professor Gatsi remarked that, considering the country’s growth trajectory since 2008, the forecasted growth was a natural and anticipated outcome.
Instead, he suggested that the government should implement measures to ensure the even distribution of this growth across various sectors. This would create opportunities, generate employment, and make a substantial contribution to revenue generation.
“For instance, how much is agriculture contributing? How is the industry faring? And how is service faring? These are the things that should bother our concentration,” he said.
Professor Gatsi also praised the government for its choice to enhance the collection of property taxes as a means to boost revenue.
“The property tax sector is underperforming in terms of revenue.
“It is an area we need to focus on to get more. So, coming out with a policy to enhance efficiency in the administration and collection of the tax is a laudable initiative,” he added.
Source: GNA
