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Business News of Wednesday, 17 June 2020

Source: goldstreetbusiness.com

Huge technical support for Ghana’s textile industry impending

Deputy Chief Executive of GEPA, Samuel Dentu Deputy Chief Executive of GEPA, Samuel Dentu

Industrial work has commenced aimed at getting technical consultants to develop Ghana’s textile sector.

These consultants – sourcing companies and individuals – will not only provide technical support on the current demands in the textile industry, but also assist indigenous firms to get buyers for their produce from various retail shops in the United States and European markets.

Under the auspices of the Ghana Export Promotion Authority, (GEPA), the sourcing companies and individuals are expected to assess the industry’s production capacity, the kind of machinery being used, resources in place among others in order to recommend to the foreign retail companies and shops to have their items – t-shirts, shirts, jerseys – among others produced in Ghana.

Speaking exclusively with Goldstreet Business, Deputy Chief Executive of GEPA, Mr. Samuel Dentu said DTRT – a Ghanaian textile manufacturer – produces lots of textiles and garments for the US markets because they have experts who source for their items.

“If we get these people to come in to see the resources they have; first to see the companies that are producing the items; number of workers; the way it’s being produced whether it is sustainable; then an agreement will be signed to enable them produce to supply the retail shops in abroad”, Mr. Dentu noted.

The sector which falls under the Industrial Art and Craft of Non-Traditional Export (NTE) has over the years has been suffering from unfair competition due to cheap imports notably from China onto the Ghanaian market.

The Authority insists that with the impending implementation of the National Export Development Strategy, the industry has been identified as a major area that is expected to see greater development in Ghana’s Non-Traditional Export.

Ghana’s textiles industry consists of vertically integrated mills, horizontal weaving factories and the traditional textile manufacturing firms involved in spinning, hand-weaving and fabric-processing.

Despite recording contraction in growth rate of industry’s total earnings in revenue, the sector is beginning to record some positive growth rates.

In fact, the industry has shown signs of significant growth in recent years, promoting high-quality traditionally designed fabrics labeled as “Made in Ghana” to niche markets, especially the US, as confirmed by the Ghana Investment Promotion Centre (GIPC).

To further develop potentials and opportunities in the industry, government has initiated various policies aimed at restructuring and improving the sector in order to promote both domestic and foreign investment; expand and diversify the economy and create employment.