Parliament has approved the request for the waiver of Import Duties, Import VAT, GETFund Levy, Import NHIL, EXIM Levy and other Imposts amounting to Two Hundred And Twenty-Two Thousand, One Hundred and Fifty-One United States Dollars (Equivalent to GH¢ 1,144,723.00) on equipment to be procured by Yedent Agro Bulk Processing Company Limited under the implementation of the One-District-One-Factory, (1D1F) Program.
The Finance Committee, chaired by Dr. Mark Assibey-yeboah recommended this, to The House for the approval after “considering the benefits to be derived from the project, The Committee is of the view that the request is in the right direction”.
On project returns, “The Committee was informed that the projected Internal Rate of Return (IRR), Profitability Index and the Discounted Payback Periods (DPP) indicate that the investment is viable. Using a discounted rate of 8% and evaluating the company’s financials for a ten-year investment period and using the most pessimistic scenario gives the following outcome: Net Present Value GH¢ 129,499,9 16, Internal Rate of Return 52%, Profitability Index 9.55 and Discounted Payback 2.13years. It is on the basis of the above that the Ministry of Trade and Industry granted approval status to it as a 1D1F entity”.
Justification for Selecting Yedent Group of Companies,The Committee said “that the Company, established in 201 1, intends to expand and diversify its operations by investing in a new processing plant with varied capabilities and significantly enhance its installed capacity to produce super cereals, maize meal, super cereal plus, composite flour, grits and animal feed, among others, using inputs sourced from mainly local farmers.
The overall aim of the Company is to consolidate its business with the World Food Progamme and establish alternative distribution channels in the retail market segment of the company’s operations and also take full advantage of the opportunities Within the bulk segment. The Company also wants to sustain its growth and improve its cash-flow and profitabilities”.
The Committee however, noted that, “Government has no interest in any of the Companies under the 1D1F program. The role of Government is to create the enabling environment to support businesses in Ghana. Government seeks to provide fiscal and other incentives to businesses”.
Story by Edzorna Francis MensahP