GHANA – The government of Ghana has adopted Ayum Forest Product Limited, a timber processing factory, under the One District One Factory (1D1F), injecting US$1.12m (about GH¢6.5 million) to support the company’s revival.
According to a report by Ghana Web, the factory which is located at Mim in the Asunafo North District was shut down in 2016 due to financial and operational challenges.
Following its adoption under the programme, Ayum Forest Product Limited has become one of the 68 ailing companies that have received government support under 1D1F to revamp operations.
To protect its interests in the company, the Government constituted a new Board to manage the affairs of the timber processing factory.
The new board was inaugurated by Ghana’s Minister of Trade and Industry, Alan John Kojo Kyerematen.
Mr. Kyeremated in his statement during the inauguration of the board explained that support was in line with the government’s commitment to decentralise industrialisation through assisting old and new companies in rural areas.
Chaired by Naja David, the five-member board includes Tony Elradi, Andrews Adjei-Yeboah, Henry Kwabena Kokofu, Estelle Afari Djan and Frederick Ebeneku-Anim.
The Minister for Trade and Industry further noted that the financial support would enable the company to pay staff salary arrears and carry out repair and maintenance works at the factory.
Part of the funds will also be used to settle debts owed to essential utility suppliers while another portion will serve as working capital to finance critical operations.
The company, the minister said, was strategically positioned to add value to the country’s resources and provide opportunities to the skilled labour force in the area.
Mr Kyerematen further said the company’s revival would help in the government’s effort to diversify the country’s economy to be export-led and thereby serve as a source of foreign exchange.
He noted that government would continue to provide managerial support and create the enabling environment for the company to operate effectively and generate revenue.
The board chair, Naja David, said the shutdown of the timber factory affected more than 2,000 employees and that since the resumption of production in April this year, 690 of the workers had been re-engaged.
He expressed gratitude to the government for the support, adding that the company had requested additional support from the Ghana EXIM Bank to complete the revitalisation programme, which would lead to the re-engagement of an additional 1,500 workers.
The One-District -One Factory is president Nana Addo Dankwa Akufo-Addo flagship programme aimed at achieving inclusive industrialization through the establishment of at least 1 factory in each of Ghana’s district.
The government hopes that through the initiative, Ghana’s economy would be uplifted and more jobs would be created for the country’s unemployed youth.
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