President John Dramani Mahama has described the establishment of Northshore Apparel in Savelugu as an important step towards restoring the Northern Region’s industrial strength and attracting more investment to the area.
Speaking at the launch of the apparel manufacturing facility, His Excellency added that the project demonstrates that businesses could operate successfully in northern Ghana despite longstanding arguments about the location of raw materials, markets, ports and other traditional factors of production.
“I have a pleasant feeling in my heart, because I believe that we’ve planted the first seed that will restore the North back to its glorious industrial past, and that’s what Northshore is just about doing.”
President John Dramani Mahama
The President noted that the company’s ability to source supplies through Tema and transport finished products from Savelugu had challenged assumptions that industries must necessarily be located close to ports or major markets to remain competitive. He explained that ongoing improvements to the Eastern Corridor would further reduce the time required to move goods between the northern part of the country and the port city of Tema.
President Mahama disclosed that work on the Nkwanta to Damanko section of the Eastern Corridor is progressing and expressed the expectation that the wider route would be completed by the first quarter of next year. According to him, the improved road connection would strengthen the business case for locating manufacturing activities in the North and make it easier for companies such as Northshore Apparel to move their inputs and products.
Beyond transportation, the President identified land availability and security as major advantages that could encourage private sector investment in the region. He pointed to the availability of abundant litigation free land, noting that this could give investors greater confidence when acquiring sites for industrial projects.
“The North has comparative advantages that I believe should attract investors here, and I’m sure many will follow in the footsteps of Northshore.”
His Excellency John Dramani Mahama
He also highlighted the region’s peace and stability, saying investors could establish businesses in an environment where safety and security provide a strong foundation for economic activity. Electricity supply is another factor cited by the President as a growing advantage for industries operating in the northern part of Ghana. He noted that the expansion of the national grid has improved access to reliable power across several communities.
President Mahama also outlined plans to increase water supply to Tamale, Savelugu and surrounding areas through an expansion of the Tamale water system. He explained that an additional 40 million gallons of water would be provided through a planned facility supported by the European Union, with the supply expected to come from the Yapei area along the White Volta.
The President emphasised that the additional water would strengthen the infrastructure available to industries and communities while supporting future expansion in the area. Renewable energy, he added, offered another opportunity for manufacturers in the North because of the region’s high levels of sunshine. Northshore Apparel has already incorporated solar power into its operations and intends to expand its use as the factory grows.
President Mahama said greater reliance on solar energy could reduce the company’s dependence on the national grid and lower its production costs. Labour availability is part of the advantages identified by the President, who noted that labour costs in the North could be more affordable than in the southern parts of the country.
President Backs Investment Model Behind Northshore Apparel
President John Dramani Mahama also praised the financing structure used to establish Northshore Apparel, describing the project as an example of the kind of investment partnership Ghana needs to create jobs and expand industrial production.
Addressing the launch of the apparel factory in Savelugu, the President highlighted the combination of private equity, international financing and support from Ghana EXIM Bank as a model that could be replicated for other productive ventures. His Excellency reiterated that Ghana’s engagement with international partners should increasingly focus on investment that generates economic value instead of depending primarily on traditional aid.
“We look for investment, and not aid. And this is an example of investing together.”
President John Dramani Mahama
The President commended the promoters of Northshore Apparel for committing their own resources to the project, describing their equity contribution as an important demonstration of private sector confidence in the venture. He also acknowledged the contribution of Ghana EXIM Bank, which provided almost US$12 million in financing to support the establishment of the factory.
President Mahama recalled that Ghana EXIM Bank was established during his previous administration with the intention of providing financing for productive businesses capable of creating employment and strengthening the domestic economy. He explained that the institution was designed to support projects that could have a direct impact on economic development, particularly enterprises that create opportunities for young people.
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