1 District, 1 Factory: UMB Signs Off $11 Million Factory Project

Universal Merchant Bank (UMB) has signed off as the first ever One district One factory (1D1F) project financed by a private financial institution under the government's flagship one district one factory initiative.

Under the arrangement, UMB bank, through the UMB bank, through the UMB Public-Private Partnership (PPP) incubator centre, is providing a credit facility to the tune of USD 10.7 million to the central sugar company limited that will be producing starch in commercial quantities from cassava from their base at prang in the Pru District of the Brong Ahafo Region.

The starch processing factory will be constructed by the China National Building and Material Company (CNBM) as well as the procurement of all the required machinery and tools to ensure the facility is fitted with state-of-the-art production installation.

And also, a local Steel company, Isopanel Company been contracted to fabricate and install all the steel structures for the factory as part of efforts to promote active local content participation.

Speaking at the ceremony, the CEO of UMB, Mr. John Awuah, said that "this signing ceremony is a demonstration of our Bank's commitment to fully support the government's industrialization agenda which includes the flagship one district, one factory programme "

He also added that the UMB PPP incubator centre is a dedicated centre fully-equipped to offer financial and technical support to private sector entrepreneurs and businesses who have interest in the government's one district, one factory and other PPP projects.

Addressing the media, Mr. Awuah admonished private sector entrepreneurs to continue to engage the UMB PPP incubator centre continuously for appraising business proposals to ascertain their viability.

Mr. Awuah reiterated that this is the first of such announcements by any private bank in Ghana and it shall not be the last from UMB.

"We intend to ensure the success of this starch processing project and at the appropriate time, the bank will be announcing many projects under the one district one factory initiate ", he stated.

The Minister for Trade and Industry, Hon. Alan Kyeremanteng, on the other hand, continued that government is committed to supporting UMB one district, one factory initiative introduced by the government.

According to him, the government is committed to providing technical support to champion the project.

He also mentioned that some of the objectives of the project have to do with creating jobs in the rural areas, streamline rural-urban migration and potential for increasing foreign exchange, which seeks to reduce imported products and commodities.

He stressed that the project is driven being by the private sector.

The signing ceremony was witnessed by a number of dignitaries and guests including Board and management members from UMB, reps from the office of the president, Deputy minister of information, ministry of trade Rep, Mrs. Gifty Ohene-Konadu from the 1D1F secretariat, Central Sugar Company limited and China national building and material company (CNBM) .