The textile industry in Ghana faces a complex dynamic between demand for locally-made versus foreign-made textiles. While there is a significant cultural and economic push to support locally produced textiles, imports still dominate the market.
The textile industry in Ghana contributes significantly to the country’s economy, but its financial impact has fluctuated over the years due to various challenges, including competition from cheaper imported textiles, smuggling, and high production costs.
At its peak in the 1970s and 1980s, Ghana’s textile industry was a major contributor to the economy, employing over 25,000 people and accounting for about 30% of manufacturing employment. By 2010, the textile and apparel sector’s contribution to Ghana’s GDP had dwindled significantly, partly due to the influx of cheaper foreign textiles and a decline in local production.
The textile industry with giants like GTP, ATL and Printex currently employs around 3,000-5,000 people directly, down from its peak of over 25,000 workers, reflecting the contraction in local production capacity. However, when including the broader value chain (designers, retailers, and informal sector), the number of jobs linked to the textile industry is much higher.
Ghana exports some of its locally produced textiles, but exports have been relatively modest compared to other sectors like agriculture and mining. For instance, Ghana’s textile and apparel exports under the African Growth and Opportunity Act (AGOA) to the U.S. were valued at around $30 million in 2021.
The textile industry in Ghana has been valued at around $150 million in recent estimates. This includes both local production and the sale of imported textiles, with foreign-made textiles occupying the larger share of the market.
The government recognizes the textile sector’s potential and has implemented policies to revitalize the industry. Programs like the Wear Ghana campaign and incentives for local manufacturers are aimed at increasing local production and helping to increase demand. The government has also implemented policies to promote local textile production, including the Textile and Garment Manufacturing Development Policy and efforts to combat the smuggling of foreign textiles. The sector is also seen as a critical area for job creation and economic diversification as part of the broader industrialization agenda.
Locally made textiles, such as kente, batik, and wax prints, tie and dye hold deep cultural significance and are associated with Ghanaian identity and traditions. These textiles are often used for special occasions, such as weddings, funerals, and festivals. Locally produced textiles are often viewed as higher quality in terms of craftsmanship and durability, especially traditional fabrics like kente. Local textile manufacturers face higher production costs due to outdated machinery, limited access to modern technology, and high utility costs. This makes locally-made textiles more expensive compared to imported alternatives. Local textile producers sometimes struggle to compete with the variety and design options available from foreign manufacturers, leading to reduced market share among younger consumers.
A survey at the Central Business District in Accra indicates a robust demand for both imported and locally made fabrics from diverse classes of people. While the middle and old aged class sort for locally made fabrics, for funerals, weddings, events and many more which may require a specific look, the teaming youth demands imported ones, purposely for fashion and trends.
Foreign-made textiles, like China Wax, Holland Wax (Dutch Wax), Indian Cotton, Ankara, Chiffon, Lace Fabrics, Brocade, and Khanga particularly from China, Europe India, and other Asian countries, are often cheaper and more widely available in Ghanaian markets. The lower price point makes them more appealing to a broader consumer base, especially for everyday wear like Kaftans, Bridal wear.
Imported textiles offer a wider range of designs, colours, and patterns, catering to changing fashion trends. This has made foreign-made fabrics popular, especially among younger and urban populations.
Despite efforts to boost local production, foreign-made textiles dominate the market. It is estimated that 70-80% of textiles sold in Ghana are imported, driven by factors such as cost-effectiveness and supply chain efficiency.
There is a strong, albeit niche, demand for locally made textiles, especially for ceremonial and formal occasions. The demand is often driven by a desire to preserve Ghanaian heritage and support local industries. Foreign textiles continue to dominate the everyday market due to their affordability, variety, and accessibility. They are more prevalent in casual wear and urban fashion.
While there is a growing movement to support locally made textiles, especially for cultural and formal events, foreign-made textiles still hold a significant share of the Ghanaian market. To shift the balance, local producers need to focus on innovation, improving production efficiency, and creating diverse, trendy designs that appeal to modern consumers while maintaining the unique quality of traditional textiles. The sector still holds significant potential, particularly in terms of employment and cultural value. With ongoing efforts to revive local production and increase exports, the industry could play a more substantial role in Ghana’s economy in the future.
