Brochure chapter Brochure V1 · p. 29, 30

Textile & Garment

Textile & Garment chapter from Doing Business in Ghana V1 (2024), ready for V2 enrichment.

Textile & Garment

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.

There are 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.

The main challenge in the fabric industry is the importation of cheap fake imports. In response, the government is encouraging people to support the industry and promote their culture by wearing local fabrics.

Cotton production as a raw material support industry for the sector is currently low. The sector saw an improvement in 1999 when production moved from 1500 tonnes in 1985 to 38,000 tonnes. Factors that account for the bubble were because of the ready market by local textile companies and direct injection of funds by government. As a result of this fortune in 1999-2000, a lot of companies sprung up and the absence of control mechanisms led to the collapse of the sector once again. Production however, dropped to 2500 tonnes in 2010 due to unfavourable policy environment, poor sector organization, lack of professionalism of stakeholders and weak farmer organization. Today, new initiatives are emerging such as the Mishkan Group project, which since 2021 has been developing a vertical solution "from Farm-to-Fabric" in the production of organic cotton without GMOs and the Tony Blair Institute is trying to attract large investments in conventional cotton production.

In efforts to support Ghana’s garment manufacturing industry, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, together with its partners, have officially launched the Ghana Apparel Training & Service Centre, in Accra. The key objective is to strengthen export-oriented small and medium-sized apparel manufactures to create socially responsible jobs. Ultimately, this should stimulate growth in the whole industry and contribute to the creation of 1200 new jobs in garment factories. At the beginning of 2023 in 30 textile exporting companies, 605 new jobs are already to be credited to this initiative and the training centre has been handed over to the Accra Technical Training College (ATTC).

Again, at the initiative of GIZ, the Africa Fashion & Textile Accelerator Network (Africa FAN) was created in 2021. The objective is to create sustainable job partnerships along the Textile Value Chain.

Finally, Ghana is ideally positioned as a first mover in establishing a regional apparel hub, supported by its Anglophone population and its stable, investor-friendly government.

Strengths

  • Highly competitive labor rates

Weaknesses

  • Lack of local textile and other raw material infrastructure

Opportunities

  • Duty-Free Trade Agreements (Sub Saharan Africa-AGOA)

Threats

  • Unskilled labor

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