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Overview

China National Building Materials provides $400 million loan to Association of Ghana Industries for One District, One Factory (1D1F) Project

Commitments (Constant USD, 2023)$425,650,552
Commitment Year•2017Country of Activity•GhanaDirect Recipient Country of Incorporation•GhanaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 26, 2017
Start (actual)
Aug 25, 2017
First repayment (originally scheduled)
Jan 1, 2020
Last repayment (originally scheduled)
Dec 26, 2041

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned companies

  • China National Building Material Company (CNBM)

Receiving agencies

NGO/CSO/Foundations

  • Association of Ghana Industries (AGI)

Loan description

China National Building Materials provides $400 million loan to Association of Ghana Industries for One District, One Factory (1D1F) Project

Grace period•3 yearsGrant element•15.8309%Interest rate (t₀)•7.5%Interest type•Fixed Interest RateMaturity•25 years

Narrative

Full Description

Project narrative

In 2017, China National Building Material Co., Ltd. (CNBM), a subsidiary of China National Building Material Group (a Chinese state-owned enterprise), signed a $400 million loan facility agreement with the Association of Ghana Industries (AGI) for the One District, One Factory (1D1F) Project. The 1D1F Project is a key component of the Ten Point Industrial Transformational Agenda of the Government of Ghana. It is designed to support the establishment of at least one industrial enterprise in each of country’s 260 districts. The program is private sector-led but facilitated by Government of Ghana. The CNBM loan facility carries a 7.5% interest rate and each individual factory micro-loan carries a maturity of 8-25 years and a grace period of 2-3 years. It provides financing support for up to 85% of total capital expenditures required for the setup of factory (industrial enterprise). The businesses that are supported by the CNBM facility come from the following sectors: general manufacturing, agriculture, ICT, textiles, renewable energy, waste management, pharmaceuticals, and tourism. As of 2020, 181 projects were at various stages of implementation under the 1D1F initiative across 112 districts in the country. In April 2022, there were 278 1D1F projects at varying implementation stages. As of July 2024, 321 factories had been established across 142 districts, and 169 factories were fully operational.