Ghana’s textiles and garments industry is set for a major transformation as the Development Bank Ghana (DBG) partners with the Association of Ghana Industries (AGI).
This landmark collaboration, formalized through a Memorandum of Understanding (MoU), seeks to tackle longstanding challenges, create jobs, and boost the industry’s competitiveness in local and international markets.
DBG’s partnership with AGI reflects its strategic focus on manufacturing, identified as a priority for economic development. The collaboration aims to harness opportunities from global trade platforms such as the African Continental Free Trade Area (AfCFTA) and the African Growth and Opportunity Act (AGOA). “DBG’s support for the textiles and garments industry aligns with our strategic focus on manufacturing as a priority sector for development,” said K. Duker, CEO of DBG.
“This collaboration with AGI provides an opportunity to support the sector’s growth, leveraging global trade opportunities. Our combined efforts will help local businesses overcome barriers, increase production capacity, and tap into new markets, ultimately strengthening Ghana’s economy.”
K. Duker
A Comprehensive Three-Year Initiative
As part of the MoU, DBG will implement a three-year program offering technical assistance, financial support, and market development initiatives. This program addresses critical industry challenges such as high production costs, limited skilled labor, and inadequate access to long-term financing.
DBG has pledged an initial GHS 566,200 to fund AGI’s efforts in identifying at least three investable projects within the textile and apparel value chain. These funds will also support capacity-building sessions, market development activities, and regular evaluations to measure the program’s impact.
Beyond the initial funding, DBG aims to invest at least GHS 100 million annually in the textiles and garments industry over the next three years. This funding, delivered through long-term financing partnerships with Partner Financial Institutions (PFIs) and Development Partners (DPs), will empower businesses to scale production and expand operations.
In addition, DBG’s Guarantee subsidiary, DBG Guarantee (DBGG), will provide partial credit guarantees to encourage private sector investments. This financial innovation is expected to unlock significant resources for businesses, helping them overcome barriers to growth.
Empowering Local Businesses
The President of AGI, Dr. Humphrey Kwesi Ayim Darke, emphasized the partnership’s potential to transform the sector. “This partnership will empower businesses to improve their operational efficiency, create jobs, and gain access to both local and international markets,” he noted.
Capacity-building initiatives will help local companies enhance productivity and operational efficiency, while market development activities will ensure their readiness to compete on the global stage.
The collaboration also highlights the importance of sustainable practices. Prof. Eric Osei-Assibey, Chief Economist Designate at DBG, pointed out the sector’s potential to adopt eco-friendly production techniques and recycle textile waste.
“The textile and garment sector has immense potential to contribute significantly to Ghana’s economic growth,” Prof. Osei-Assibey stated. “Through this partnership with AGI, DBG is committed to bridging the financial and technical gaps that have hindered the sector’s growth.”
The integration of sustainable practices aligns with global trends, ensuring that Ghana’s textiles and garments industry remains competitive while contributing to environmental preservation.
This partnership is expected to significantly enhance the competitiveness of beneficiary companies, enabling them to operate efficiently and scale production. The initiative will also create jobs across the value chain, boosting household incomes and fostering economic empowerment. By strengthening market linkages, the program aims to increase Ghana’s export potential and foreign exchange earnings.
The DBG-AGI collaboration represents a crucial step toward revitalizing the textiles and garments industry. By addressing systemic challenges and promoting sustainable growth, this initiative will position Ghana as a leader in responsible manufacturing.
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