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- The Parliament of Ghana has approved a $28 million tax waiver on machinery, equipment and raw materials for Kasapreko Company Limited.
- Estimated cost of project being ¢624 million, it will involve debt and equity financing.
- The promoters of the business will also be investing ¢390 million.
- Also, the establishment of the factory at Tanoso in Kumasi will provide 300 direct jobs.
- A loan of ¢234 million from SG-SSB Ghana and Stanbic Bank has been secured for the purchase of plants and machinery.
The Parliament of Ghana has approved a $28 million tax waiver on machinery, equipment and raw materials for Kasapreko Company Limited under the One District, One Factory Programme.
Kasapreko Company is the latest to benefit from the benevolence of the House in enjoying tax waiver, as the support to expand Kasapreko’s operations under the one district one factory initiative. This will help it realize and achieve its market demand in achievement of the company’s vision.
The jettisoned Paramount Distilleries factory, formerly owned by GIHOC in Kumasi has been acquired and refurbished by Kasapreko Company Limited.
With the estimated cost being ¢624 million which involves debt and equity financing for the project, the promoters of the business will also be investing ¢390 million.
A loan of ¢234 million from SG-SSB Ghana and Stanbic Bank has been secured for the purchase of plants and machinery and its related operations for the Kumasi factory.
The Chairman of the Finance Committee, Dr. Mark Assibey Yeboah said the approval of the waiver will boost the company’s operations, the local economy and provide job opportunities for Ghanaians.
“Kasapreko is one of the leading and most successful beverage companies in Ghana… the company wants to expand its operation under the 1D1F initiative to meet market demand. The operationalization of the factory will enable the country to increase its production capacity, growth sales and satisfy market demand in the middle belt and northern sectors of the country as well as I the export market with high prospect for growth and profitability”.
Dr. Mark Assibey Yeboah
Also, he stated that the establishment of the factory at Tanoso in Kumasi will provide 300 direct jobs for factory hands, administrative staff, sales executives, and drivers within a five-year period, adding that the company presently employs about 800 direct workers.
“The committee observed that the project when implemented will facilitate the timely delivery of essential beverage product for local consumption and export. It is also expected to boost the local economy and provide job opportunities for the people of this country”.
Dr. Mark Assibey Yeboah
Dr. Assibey-Yeboah told the House that Kasapreko Company Limited envisage to provide a potential of an estimated 1,800 indirect jobs for distributors, retailers, and small businesses who will sell the products across the country.
These will include food vendors, commercial drivers, rental house owners who will provide services to workers of the company.
Member of Parliament for Adaklu, Kwame Agbodza however questioned why government has failed to enact law prohibiting tax waivers to company as announced by the Finance Minister, Ken Ofori-Atta.
Tax waiver on three other companies
Currently, Parliament has approved a total of $2.068 million tax waiver on machinery, equipment and raw materials to be procured by three companies under the One District One Factory (1D1F) Programme of the Government.
The companies are Accum Energy Ghana Limited, Vester Oil Mills Limited and Ada Premium Diaper Care Limited.
The waiver covers Import Duty, Import NHIL, Import GETFund Levy, Import VAT and EXIM Levy.
Accum Energy Ghana Limited’s benefit amounts to US$1, 208,404; Vester Oil Mills Limited – US$814,874; and Ada Premium Diaper Care Limited -US$44,990.
They will cover machinery, equipment and raw materials to be procured by the three companies respectively.
