Ghana’s textile industry attracted $31.7 million in FDI over a decade, despite strong competition from imports, highlighting growing investor confidence and government support.Ghana’s Textile and Apparel Industry has recorded a modest growth in foreign direct investments (FDI) in the last decade despite the struggles, the Ghana Investment Promotion Center (GIPC) has revealed.
The GIPC has indicated that the sector has attracted $31.7 million in FDI in the last decade. This FDI comes along with 16 companies registered in the sector.
This FDI attracted in the country’s local textile and apparel industry can be touted as impressive considering the fierce competition the local industry is facing from foreign prints from destinations such as China, Togo, and other places.
Director of Investor Services at the GIPC, Edward Ashong Lartey made this revelation at a meeting with prospective investors and other industry players hosted by the Ghana Freezones Authority as part of the Ghana Textiles and Apparel Roadshow.
Edward Ashong Lartey further touted Ghana’s investment climate, emphasizing the nation’s readiness to support foreign investors. According to him, these investments underscore the growing confidence in Ghana’s market as a strategic hub for textile manufacturing and export, particularly as global firms seek competitive alternatives to traditional production zones.
He revealed that the uptick recorded in the textile and apparel sector in recent years was driven by favorable policies and strategic support from the government and international partners.
An earlier report by The High Street Journal has revealed that Ghana’s textile industry navigates a complex landscape, balancing the demand for locally-made fabrics against the influx of foreign imports.
Despite strong cultural and economic efforts to promote local production, imported textiles continue to dominate the market.
While the industry plays a vital role in Ghana’s economy, its financial contribution has seen fluctuations over the years. This instability stems from challenges such as competition with cheaper imports, rampant smuggling, and high production costs.
With the growing interest shown by foreign investors in local apparel and textiles, industry players are calling for policies and measures that can enhance the industry’s capacity to effectively and efficiently compete with foreign prints.
The Ghana Textile and Apparel Roadshow was organized by the Tony Blair Institute for Global Change, in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), International Finance Corporation (IFC), Ghana Investment Promotion Centre (GIPC), Ghana Free Zones Authority (GFZA), and the Ghana Job and Economic Transformation (JET) programme
