Textile and Garments
The textiles and garments sector is predominantly cotton-based although the production of man-made fibers is also undertaken on a small scale. The textiles and garments sector in Ghana can be subdivided into the following different groups:
• Export-based readymade garments
• Traditional textiles like Kente and waxprints
• Custom-made garments
• Ready-to-wear garments for the domestic market.
Textiles and garments exports from Ghana comprise of fancy prints, wax prints, java prints, calico smock, ladies dresses, men’s wear, etc. Indigenous textile products like Kente, Adinkra (hand-prints) smock or Fugu are also exported. Batik or tie and dye fabrics are also used to produce all kinds of products for the export markets.
These products include: a unique brand of carefully crafted handbags, casual wear for ladies and gents, shirts, dresses, napkins, cushion covers, bedspreads, chair backs,curtains, toys and many others.
In the year 2000, Ghana qualified for duty and quota free access to the US market via the African Growth and Opportunity Act (AGOA). Some key players in this sector include Ghana Textile Printing Company Limited (GTP), Ghana Textile Manufacturing Company Limited (GTMC), Akosombo Textile Limited (ATL), Printex Limited and Global Garments & Textile Limited.
These companies are supported by the Ministry of Trade and Industry under the Private Sector Development and President’s Special Initiative on Garments and Textiles.
Also, organizations such as Export and Investment Development Fund (EDIF), Federation of Associations of Ghanaian Exporters (FAGE) and Association of Ghana Industries (AGI) support the industry.
Textile export is an important source of foreign exchange to the country and revenue to textile manufacturing firms. In 2009 export of textiles from Ghana reached US$18,272,616 and the estimated value for the export of textiles in 2010 was US$15,664,595. The main export destination for made-in-Ghana textiles includes EU countries, USA and ECOWAS.
In order to serve this market as well as improve the textiles sector, various initiatives have been undertaken including:
1. The Textiles and Garments Industry Cluster Network – formed to address the problems and challenges faced by the sector. Since its inception, the cluster has assisted in training in mass production strategies, sub- contracting, up-grading of technical and marketing/managerial skills of members, and providing financial assistance.
2. Textiles & Garments Training Centre – A US$1.2 million ultramodern Clothing Technology and Training Centre has been established in Ghana to supply the US market sufficient garments on a sustainable basis. The capacity of the training centre is 10,000 trainees per year. The textiles and garments industry is also supported by 21 vocational training institutes in the country and they provide basic practical and theoretical training and assistance in tailoring and dressmaking.
Additionally, production facilities have been further developed and they include:
1. Factories constructed at Tema Export Processing Zone (EPZ) and allocated to companies for the production of garments for export.
2. Warehouses at the old Ghana National Trading Company (GNTC) complex have been converted to factories and allocated to entrepreneurs for the production of garments for export.
3. Additional factories to be converted from warehouses purchased from the Ghana Textiles Manufacturing Company (GTMC) for use by entrepreneurs.
Investment opportunities available to potential investors in this industry are as follows:
• Garments and Textile Manufacturing Companies to set up factories in Ghana to produce for the US market on a sustainable basis
• Supply of Raw Materials
2. Marketing and Distribution
• Buyers and Sellers to make exploratory visits to Ghana and request trial orders
• Fabric suppliers to supply raw material requirements of Ghanaian garment manufacturers
3. Technological and Supporting Services
• Suppliers of Garment Manufacturing Equipment to supply the Ghanaian market on a sustainable basis
• Suppliers and Financiers of factory building technology
Some incentives available to investors in this sector include:
• Quota-free and tariff access to the US market based on approved African Growth and Opportunity Act (AGOA) visa.
• Favored industry status for garment exporting companies.
• Fast track support and facilitation of investments in the garment industry by government and a private-public sector development consortium.
• Exemption from customs import duties on plant and machinery, equipment and accessories imported exclusively and especially for establishing enterprises.
• Corporate tax rebates of 40% – 75% and location incentives for manufacturing industries.
• Investment allowance of 7.5% per annum and full repatriation of earnings.
• A relatively cheaper raw material base, expanding cotton production levels and active support to the sector with the provision of facilities such as the Garments Village and Training Centres.