The return of iconic Ghanaian textile brands GTP and Woodin to Ghanaian ownership is welcome news for Ghana’s economy and local businesses, but the story must not just end there.
This achievement must trigger a much bigger conversation about the future of economic ownership in Ghana. Ghanaian entrepreneurs and businesses must be systematically enabled to acquire foreign-owned businesses operating in the country.
Olive Africa Partners Fashions, a wholly Ghanaian-owned investment company, has acquired the entire shareholding of Vlisco BV in TexStyles Ghana, together with the Woodin brand and trademarks associated with GTP and Woodin. The transaction will make the Ghanaian company the principal shareholder of TexStyles Ghana.
The deal is significant not simply because two familiar brands have returned to Ghanaian hands, but because it demonstrates what can happen when Ghanaian capital is mobilised to acquire established businesses.
Why Ghana Needs More of This
For years, the country has worked aggressively to attract foreign investors to establish or acquire businesses. Foreign capital remains important and should not be discouraged. But economic transformation cannot be measured only by how many foreign companies operate in Ghana.
It must also be measured by how many productive assets Ghanaians own. When a Ghanaian acquires a profitable foreign-owned company, ownership of its factories, brands, distribution networks and future earnings shifts closer to Ghanaian investors.
Dividends and capital gains are more likely to accrue to Ghanaian shareholders, pension funds, investment companies and households, strengthening domestic wealth creation.
This has implications beyond individual businesses. Greater local ownership can help Ghana retain more of the income generated by its economy, deepen domestic capital markets and create a stronger pool of Ghanaian companies capable of expanding across Africa.
Ghana Needs a Reverse Investment Strategy
The government should therefore move beyond simply asking foreigners to invest in Ghana. It should also deliberately help Ghanaians acquire businesses from foreigners.
This could begin with the establishment of professionally managed acquisition funds that bring together pension funds, insurance companies, banks, private-equity investors, the Ghana Stock Exchange and Ghanaian high-net-worth individuals.
Such funds could provide equity or long-term financing to credible Ghanaian investors seeking to acquire controlling stakes in established foreign-owned businesses.
The government could complement this with carefully structured credit guarantees, tax incentives and financing facilities, without taking over the businesses or directing pension money towards politically connected companies.
The Ghanaian diaspora should also be brought into the equation. Instead of diaspora capital flowing predominantly into consumption, housing and family support, investment vehicles could channel some of that capital into acquiring productive businesses. The Ghana Stock Exchange could provide another route by enabling acquisition vehicles to raise capital from thousands of Ghanaian investors rather than depending on a handful of wealthy individuals.
The Goal Is Not to Chase Foreigners Out
A local-ownership agenda should not become an anti-foreign investment campaign. Ghana still needs foreign capital, technology, expertise, and international market access. The objective should instead be to create a two-way investment economy.
Foreigners should be able to invest in Ghana, and Ghanaians should be financially strong enough to buy foreign-owned businesses when those owners decide to sell.
That would represent a fundamental shift from an economy where Ghanaians largely provide labour and consume products to one where they increasingly own the assets generating the profits.
The GTP and Woodin transaction provides a compelling example. What if similar opportunities emerged in manufacturing, agriculture, financial services, logistics, retail, telecommunications and other sectors, and Ghanaian investors were ready to compete for them?
That could gradually change the ownership structure of the economy. It could strengthen domestic capital formation, deepen the stock market, create new Ghanaian institutional investors and ensure that a greater share of corporate profits remains within the country.
Most importantly, it could improve Ghana’s national income position, because the issue is not merely where economic activity takes place, but who ultimately owns the capital and receives the income it generates.
The GTP and Woodin acquisition shows that it can be done. The next challenge is to make such transactions less exceptional and more systematic.
