One District One Factory to reduce Ghana’s rising inflation

After blaming Ghana’s rising inflation rate to import, Deputy Minister of Finance, Abena Osei-Asare has outlined how the One District One Factory (1D1F) program can help address the issue of high inflation in the near future.

She claims that as the factories come up, the rate of imports would decrease because most of the resources will be produced locally to support the economy.

The Deputy Minister who made this known to the media on Monday, May 16, 2022, argued that “With the inflation, we will all admit that a chunk component of the that is due to imported inflation. That is why the government, when you look into the 2022 budget government has put aside more than 2012 million Cedis to boost the 1D1F programme”.

Speaking on the government 1D1F initiative, Abena Osei-Asare disclosed that “So far the government has opened 158 district factories at various stages of completion, we will not see the effects now but we are hoping that within five and ten years, we should be able to produce most of these things that we import that has contributed immensely to our inflation going up.

She added, “The vision of this government is that we are hoping that as we put more money into 1D1F, we will be able to get factories across every district and we will be able to produce some of these things that we import”.

Regarding Ghana’s inflation, the Ghana Statistical Service (GSS) revealed on Wednesday, May 11, 2022, that the national year-on-year inflation rate in April 2022 was 23.6 per cent, up 4.2 percentage points from March 2022’s 19.4 per cent.

The GSS reported that month-on-month inflation was 5.1 per cent between March and April 2022.