TEXTILE & GARMENT

TEXTILE INDUSTRY IN GHANA:

Ghana has a rich history of textile production. The textile and garment sector is one of the most strategic sectors in Ghana in terms of export potential and job creation. Ghana’s new strategy is based on selected anchor industries that will change the economy. The textile industry in Ghana has seen a recession over the past few years, vibrant traditional prints and woven motifs are finding their way unto international fashion stages.

THE TEXTILE INDUSTRY IN GHANA AND GOVERNMENT SUPPORT

Over the years, the Ghanaian government has shown a real commitment to making the textile and apparel industry a priority, as there is enormous potential for employment and development based on Ghana's rich history in textiles and design. Successive governments have worked on preparing facilities to expand the textile industry in Ghana. For example, tax exemptions for importation of textile machinery and technology, and cooperative tax discount up to 50% in economic trade zones. Textile manufacturing in Ghana is one of the most vibrant industries generating employment and contributing to GDP. It consists of ginneries and textile mills producing batik, wax print, fancy printed cloth, and Kente. Apparel and garment firms are in Ghana to serve local, regional, and international markets, taking advantage of policies such as the African Growth and Opportunities Act (AGOA). The industry has shown signs of significant growth and potential in recent years, promoting high-quality traditionally designed fabrics as “Made in Ghana” to niche markets, especially the US. These are based mainly in Accra. Thus, it may be said that most of the large-scale firms in the textile subsector are concentrated in Accra, Tema and Akosombo-Juapong area. Page1 West African prints have made it to the fashion catwalks of the western world, yet at home the fabric industry is suffering because of cheap fake imports. In response, the government is encouraging the wearing of local fabrics to support the industry and promote the Made-in-Ghana culture

WHY GHANA?

The West African region has enormous advantages that position it favourably to capture demand flowing out of Asia and other regions. It is among the world’s fastest urbanizing regions with a rapidly growing and affordable labour force. It is also the 6th largest cotton-producing region globally. Ghana is ideally positioned in this region as a first mover in establishing a regional apparel hub, supported by its Anglophone population and its stable, investor- friendly government.

GEOGRAPHICAL ADVANTAGE

Europe, typically 2-5 weeks faster than East Africa and Asia.

region.

• Average transit times of 14-18 days to the U.S. and 14-22 days to
• Ghana’s Port of Tema is among the most efficient ports in the

FAVORABLE TRADE AGREEMENTS

and to the EU under EPA (up to 12% cost reduction).

• Duty-free exports to the U.S. under AGOA (15-32% cost reduction)
• Particularly strong advantages for synthetic and polyester fabrics.

LARGE AFFORDABLE WORKFORCE

lower than Kenya’s, and 50% lower than Bangladesh’s.

years.

• Ghana’s statutory minimum wage is 5x lower than China’s, 3x
• The Anglophone population of 28 million, 57% of which are <25

PEACEFUL, STABLE & DEMOCRATIC

by a homogenous population that shares cultural bonds.

• Ghana is a the most peaceful country in West Africa, underpinned
• Stable democracy with a 30-year track record of peaceful elections.

SUPPORTIVE BUSINESS CLIMATE

Ease of Doing Business ratings.

support.

• Consistently ranked 1st in West Africa in the World Bank’s annual
• Robust industrial policies and targeted investment promotion

GATEWAY TO WEST AFRICAN REGION

it a gateway to the broader West African region.

• Ghana’s central location, infrastructure and political stability make
• Easy access to Nigeria’s massive consumer and labor market.

GHANAIAN CLOTHING

Traditional garments of Ghana include but are not limited to the kente cloth and the Ghanaian smock. The smock is made from the fabric called “Gonja cloth”. The kente cloth originates from Southern Ghana, while the Gonja cloth, from Northern Ghana. Gonja cloth – thick striped cotton fabric. The cotton is picked, dyed, and woven by hand. Usually, the pattern on this cloth is blue/black and white stripes. Long narrow pieces of fabric (about 4 inches wide) are woven and then sewn together or sold in rolls. The Ghanaian smock (known by other names such as "dansika", "fugu", "batakari", among others) is a shirt-like garment predominantly worn by men, though there are also female versions available. The smock typically features embroidery on the neckline and sometimes the front of the garment. The smock is not only a symbol of Ghanaian culture but also has economic prospects, as it is a major contributor to the country's textile industry. Its production creates employment opportunities for many Page3 Ghanaians, particularly in the Northern Region where it is most prevalent. Additionally, the smock is a popular item for tourists to purchase, contributing to the country's tourism industry. As such, the Ghanaian smock industry is an important part of the country's textile industry and overall economy.

KENTE CLOTH

Kente cloth is another traditional garment of Ghana. It is a handwoven piece of fabric with very colourful and symbolic patterns. This outfit is mostly worn for special occasions, ceremonies, and celebrations. The garment is very important for the Ghanaian culture. Kente cloth has significant economic value for Ghana, as it is a major contributor to the country's textile industry. Kente first appeared about 400 years ago. Kente is more than just a cloth. It is an iconic visual representation of the history, philosophy, ethics, religious beliefs, social values, and political heritage of the people of Ghana in West Africa. It is the traditional wear of the Ashanti and Ewe tribes in modern-day Ghana, having its origin traced down to Bonwire, a town within Ghana’s Ashanti Region. The production of Kente cloth is a labor-intensive process that involves weaving strips of colorful yarns into intricate patterns. This process provides employment opportunities for many Ghanaians, especially those in the Ashanti Region, where Kente weaving is most prevalent. The Kente cloth industry also generates revenue for the country through exports. Many tourists visiting Ghana purchase Kente cloth as souvenirs, contributing to the country's tourism industry. In addition, the cloth is exported to other African countries and beyond, where it is highly valued for its cultural significance and unique patterns. The Ghanaian government recognizes the economic importance of Kente cloth and has taken steps to promote and protect the industry. For example, the government established the Ghana National Association of Weavers to support Kente weavers and ensure that they receive fair compensation for their work. The association also works to promote the industry both domestically and internationally. In recent years, the demand for Kente cloth has continued to grow, not only in Ghana but also in other parts of the world. The cloth has become increasingly popular among African Americans, who wear it to celebrate their cultural heritage. As a result, the Kente cloth industry has the potential to grow even further, contributing more to Ghana's economy and providing more employment opportunities for its people. Additionally, Kente cloth is not only a valuable aspect of Ghanaian culture but also a significant contributor to the country's economy. Its production provides employment opportunities, generates revenue through exports and tourism, and has the potential to continue growing in popularity. As such, the Kente cloth industry is an important part of Ghana's textile industry and overall economy.

GHANA SKILLS AND TECHNOLOGY DEVELOPMENT PROJECT

The goal of this project is to establish demand-driven support to formal and informal training systems and support the development and adoption of new technologies in economic sectors prioritized in the government’s development plans. The Ghana Skills and Technology Development project has helped textile and garment manufacturers and other businesses to expand, create jobs and stimulate local economies. The skills and technology challenges will be addressed under the following components:

the component is to strengthen the Government institutional capacities in planning, coordination, quality assurance and service delivery towards improved quality, relevance, accountability, and effectiveness in skills development.

Development: The objectives of this component are to (i) strengthen the planning, management, and coordination of national science, technology and innovation (STI) policies and programs in order to make efficient use of resources; and (ii) support technology development and diffusion that is responsive to the economy.

skills and technology development programs in prioritized economic sectors through a demand-driven Skills Development Fund (SDF) managed by COTVET.

component is to provide effective implementation of the project by establishing a project support unit embedded within COTVET and reporting to the Project Steering Committee. Results Indicators: It is expected that the following results will be achieved by the end of project implementation: 60% increase in labor productivity by participating firms; 40% increase in investment by participating firms in skills and technology development; 70% satisfaction with skills by trainees; 70% satisfaction with skills by participating firms in 4 economic sectors from small, medium, and large.”

• Institutional Strengthening for Skills Development: The objective of
• Institutional Strengthening of Science and Technology
• Financing of Skills and Technology Development: This is to finance
• Project Management and Monitoring and Evaluation: This

EXTERNAL LINKS

Source: Kohan Textile Journal - July 2021

External Links (QR codes vers L3)

• Ghana’s Textile Industry in
• Manufacturing Ghana
• Sector Report**
• ** GIPC Public Relation Documents