USD $2 Billion Chinese Deal To Fund 1 District 1 Factory

The Association of Ghana Industries, (AGI) says it has agreed on key terms with the Chinese government on disbursement of $2 billion for its members.

The facility which is directly coming from the China Building and Manufacturing Company is to serve as counterpart funding for the ‘One district One factory’ (1D1F).

The assurance from AGI is coming at a time that there are reports that the country is having some challenges in agreeing on key terms for disbursement.

However Vice President of AGI, Ayim Darker tells JoyBusiness the Association have crossed all the hurdles for disbursement to start soon.

“The Chinese are providing 85 percent of the cost of establishing the factories whilst the local partners are expected to fund the remaining 15 percent, we have already agreed on that so we have crossed that path and setting off to finalize the deal.”

The ‘One District One factory’ initiative is a flagship programme launched by the government to diversify the country’s economy into an industrial-led in collaboration with the private sector.

“AGI have agreed on many of the terms and the China partners have made some funds available so we are hopeful of a good start soon”

“Members have started the process and I can tell you that by the grace of God we are on track,” he said.

JoyBusiness has gathered that both sides have agreed on a 15 percent interest rate on the facility for all would-be investors and promoters wishing to access the fund.