Can Ghana grow a $157 million clothing industry?

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Ghana’s Ministry of Trade and Industry has taken steps to make its apparel industry more attractive to investment and also make it into a sustainable source of forex inflows.

The move is a result of the US Government’s decision to extend the African Growth and Opportunities Act to September 2025.

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AGOA was established in 2000 to stimulate trade between the US and selected African nations through the removal of duties and quotas; originally the law was only meant to last until 2008 but has been extended several times.

It is expected that revamping the country’s garment will increase export from $2 million to $157 million in five years, as well as providing a massive stimulus for job creation. This is part of a wider five-year National Export Development Plan (NEDP) intended to boost export income to as much as $5 billion.

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Ghana’s Technical Advisor on Export at the Ministry of Trade and Industry, Gerald Nyarko-Mensah, said the ministry would undertake baseline studies and technical assessments of existing factories and previous works and remove all impediments and bottlenecks in the industry. The ministry would also upgrade existing facilities while working to build more.

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Currently Ghana only has one functioning garment producer, all of the others having gone bust in recent years, which is why the country has not been able to take advantage of AGOA in this way before.

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SOURCE: [Business Ghana]

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