National SSDII Strategic Corporate Plan (2014-2018)

The Metropolitan, Municipal and District Assemblies (MMDAs) of Ghana are second-level administrative subdivisions of Ghana below the level of the regions. The districts of Ghana have gone through a number of re-organizations over the years under successive governments. For instance, they were re-organized in 1988/1989 in an attempt to decentralize the government and to combat the rampant corruption amongst officials. The reform of the late 1980s subdivided the regions of Ghana into 110 districts, where local district assemblies should deal with the local administration. By 2006, an additional 28 districts were created by splitting some of the original 110, bringing their number up to 138. In February 2008, there were more districts created and some were upgraded to municipal status. This brought the final number to 170 districts in Ghana. Since then, a further 46 districts were added on 28th June 2012 bringing the total to 216 districts currently.

Ghana’s manufacturing sector has not responded well to the various economic and trade policy reforms pursued over the past decades. Manufacturing firms have faced considerable challenges in the form of increased competition in the domestic and export markets and high production and distribution costs arising from high interest rates, aged and obsolete equipment, inefficient infrastructural services and low productivity. Government has aimed at initiating and implementing policies to develop requisite skills, ensure adequate and cost-effective-competitive production inputs and services and provide needed finance for industrial development. There is an overall low level of science, technology, research and development and innovation in industry. This limits the absorption and adaptation of modern technologies into the manufacturing sector, thus affecting its competitiveness.

The Small Scale District Industrialization Initiative, SSDII, is a Ministry of Trade 5-Year rural-based industrialization programme to benefit all the 216 Administrative districts of Ghana. The Ministry of Trade and Industry and its implementing collaborators will apply the Public Private Partnership (PPP) framework and the Corporate Village Enterprise (COVE) model in establishing these commercially viable companies in all the MMDAs. The COVE, place-based, bottom-up, home-grown development model structured on the PPP framework is the surest way to create sustainable employment and economic opportunities for our rural and peri-urban communities. The model adopted for the SSDII programme is a combination or integration of two general models applied in other countries, namely: the Endogenous and Exogenous models of Rural Industrialization. The SSDII thus, draws advantages from the two schemes.

The 216 MMDAs will be covered in a phased programme: 30 in Phase 1 (2014), 48 in Phase 2 (2015), and 46 each in Phases 3 (2016), 4 (2017) and 5 (2018) respectively. The funding for the setting up of the SSDII-PPP Companies will come from equities by the respective MMDAS and private investors at the districts. The companies will thus belong to and managed by the shareholders. MOTI and NBSSI and their collaborators are facilitators and bearers of backstopping support services. MOTI can also assist MMDAs and Private investors to obtain support from Government’s SME credit/grant schemes such as EDAIF, GPSDF and others.

Projections show that over 258,000 Ghanaians, especially those in the districts/rural areas will benefit from both direct and indirect employment while over GHc471 million (US$174 million) worth of exportable and locally marketed value added goods or products will be produced and sold. It is estimated that a total of GHc278 million or US$ 103 million, will be required from Government (1.31%), MMDAs (39.48%) and private investors (59.21%) under shareholding/equity contribution arrangement for the 5-Years SSDII Implementation Plan.

The National Development Policy Framework also referred to as the Ghana Shared Growth and Development Agenda (GSGDA) forms the basis for all sector development plans and it is to be implemented over the period 2014-2017. Ghana’s industrialization effort is achievable through accelerated technology-based industrialization with strong linkages to agriculture and other natural resource endowments. The SSDII Programme is one of the strategies to achieve the objectives of the GSGDA.

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