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Business News of Saturday, 5 November 2016

Source: Graphic.com.gh

SADA signs agreement with Chinese company for the establishment of textile factory

The Savannah Accelerated Development Authority (SADA) has signed a Memorandum of Understanding (MoU) with the China National Textile and Apparel Council that will lead to the establishment of a $300 million textile factory in the SADA Zone.

The Secretary to the President, Ambassador Kwesi Quartey, signed on behalf of the government, while Mr Xu Yingxin, Vice-President of the council, appended for the council.

Ambassador Quartey said the government established SADA to facilitate the development of the Savannah Ecological Zone which is deprived to bridge the development gap between the area and the southern sector of the country.

He said the SADA was one of the flagship initiatives of the government aimed at fast-tracking the development of the Northern, Upper East and Upper West regions and the northern parts of the Brong Ahafo and Volta regions.

Potential

Ambassador Quartey said the SADA zone had the potential for commercial agriculture and expressed delight that a number of Chinese companies had already shown interest in investing in the area.

For his part, Mr Xu said while the textile industry in China was vibrant, Ghana also had potential in large-scale cotton production.

He expressed the hope that the agreement would not only be beneficial to both parties in the future but would also lead to the strengthening of relationship between the two countries.

The Chief Executive Officer of SADA, Mr Charles Abugre, said the Chinese council had already acquired 5,000 acres of land for the cultivation and processing of cotton.

Infrastructure

Mr Abugre said SADA?had also signed an MoU with the China CAMC Engineering Company Limited to embark on some infrastructure projects.

The Vice-President of the China CAMC Engineering Company Limited, Mr Hu Wei, who was present at the signing ceremony involving SADA and the China National Textile and Apparel Council, said the company was an international construction firm with extensive experience in Africa.

Background

The Savannah Accelerated Development Authority (SADA) is an independent agency for coordinating a comprehensive development agenda for the SADA zone in Ghana.

The beneficiary areas comprise of the three northern regions and parts of the Brong Ahafo and Volta regions. SADA constitutes Ghana’s response to effects of climate change associated with floods and drought.

The agency’s main thrust is to promote sustainable development through a forested and green north to catalyse climate change reversal to improve livelihoods of the people.