The renewal of the African Growth and Opportunity Act has brought relief to Ghana’s apparel exporters, but industry players say the real test lies ahead: can Ghana significantly scale up exports before the next review cycle?
Dr. Nora Bannerman Abbott, Chief Executive Officer of Sleek Garments Export Limited, believes the renewal offers Ghana a strategic window that must not be wasted.
“AGOA gives us breathing space,” she said in an interview. “But the question is whether we can triple our apparel exports before the window closes again. That depends on how quickly we address our structural challenges.”
From Survival to Expansion
For more than two decades, AGOA has provided eligible African countries with duty-free access to the United States market for thousands of products, including textiles and garments. For Ghana’s apparel sector, this has meant reduced tariff barriers and improved price competitiveness.
Dr. Abbott, whose company has exported shirts and uniforms to major U.S. retailers for decades, noted that while tariff-free access is critical, it is no longer enough.
“Preferences open the door, but competitiveness keeps you in the room,” she said. “Buyers today are looking at speed, consistency, compliance, and volume. If we cannot meet those standards, they will source elsewhere.”
She explained that Ghana’s apparel exports remain modest compared to countries such as Kenya and Ethiopia, which have aggressively positioned themselves under AGOA.
“The renewal should push us to move from survival mode to expansion mode,” she added.
Capacity Constraints Remain
According to Dr. Abbott, one of the biggest obstacles to scaling up exports is limited production capacity. Many local manufacturers operate below optimal levels due to high operating costs and limited access to affordable financing.
“Competing in the U.S. market requires significant working capital,” she said. “You must buy fabric, pay workers, and meet strict delivery timelines before you receive payment. Without access to affordable credit, expansion becomes difficult.”
She also pointed to energy costs and logistics as persistent challenges. Delays at ports and high utility tariffs can erode the cost advantage created by AGOA.
“If our production costs remain high, even zero tariffs will not make us competitive enough to triple exports,” she cautioned.
The Value Chain Question
Dr. Abbott stressed that Ghana must deepen its industrial base to maximise AGOA benefits. Currently, many garment manufacturers import fabrics and accessories, exposing them to foreign exchange volatility and longer lead times.
“If we want to grow rapidly, we must strengthen backward linkages,” she said. “Reviving textile production locally would shorten turnaround times and reduce costs.”
She also encouraged manufacturers to invest in modern machinery and skills development to improve productivity and quality standards.
“Scaling up is not just about more orders,” she explained. “It’s about improving efficiency per worker and per machine.”
Investor Confidence and Market Diversification
The AGOA renewal, she said, should also be leveraged to attract new investment into Ghana’s garment and textile sector.
“When buyers see policy stability, they are more willing to place larger, long-term orders,” she said. “Investors also look at predictability.”
However, Dr. Abbott warned against overdependence on a single market.
“The U.S. is important, but we should also explore Europe and regional African markets,” she said. “Diversification strengthens resilience.”
A Race Against Time
While welcoming the renewal, Dr. Abbott described it as a temporary advantage rather than a permanent guarantee.
“This window will not stay open forever,” she said. “If we fail to use this period to expand capacity, upgrade technology, and improve efficiency, we will be having the same conversation at the next renewal.”
She called for stronger collaboration between government, financial institutions and manufacturers to reduce structural bottlenecks and create an enabling environment for export growth.
“Tripling apparel exports is ambitious but achievable,” she said. “We have the talent, the experience and the market access. What we need now is speed, coordination and bold investment.”
As Ghana celebrates AGOA’s renewal, the challenge has shifted from access to performance and the clock is already ticking.
