The government is considering succession plan as one of the requirements for private companies interested in participating in the One District-One Factory (1D1F) programme.
According to the Minister of Trade and Industry, Alan Kyetematen, an effective succession plan would ensure that companies were competitive and operational in the future when the current owners were no more in existence.
Citing Darko Farms, Kasapreko Company Limited, among others, he said, the instituted succession plan would ensure that companies outlived their owners and became key players in Ghana’s industrialisation drive.
The minister said these here in Kumasi yesterday, when he toured the factories of Appiah Menka Complex Limited, a soap and cooking oil production company.
He noted that “In most developed and matured economies, you will notice century old companies which are still very competitive. We want our companies to emulate the practice and be beneficial both to the current owners and future generations. That can only happen if there is a good structure which can sustain the company for many years.”
Established in 1979, Appiah Menka ceased operations in 2014, due to financial constraints and other economic factors, but it is currently enrolled under the 1D1F programme awaiting government support to be able to restart operations.
Mr Kyerematen said, the story of Appiah Menka reinforces government’s decision to include existing companies in the 1D1F, adding “the idea of government is to raise industries and support existing companies which are distressed, but have the potential succeed. Why will you abandon a company which already has made significant investments and go start something new?”
The minister said the company, which has oil palm as it main raw material would strengthen government’s plan to make oil palm one of the strategic anchor industries to diversify Ghana’s economy and enhance export.
Kwaku Appiah Menka, Director of the Company, said that the company was in the process of securing capital injection amounting to US$5 million dollars for new equipment and working capital to restart operations.
When at full capacity, he said the company would employ 200 workers and provide indirect jobs to more than 1000 farmers engaged in the production of oil palm.
Without any unforeseen challenges, the company, he noted, would commence operations by second quarter of next year.
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