Government invests $1bn to modernize Ghana's textile and garment sector

The Ghanaian government has announced a US$1 billion investment to transform the nation's textile and garment sector into a competitive manufacturing hub for global markets. Finance Minister Dr. Cassiel Ato Forson disclosed the initiative during the presentation of the 2027 Budget Statement and Economic Policy to Parliament. This strategic move, part of the "New Economy Programme," aims to modernize domestic production, reduce reliance on imports, and position Ghana as a major exporter of high-quality apparel. Central to the investment plan is the large-scale modernization of existing textile mills and the expansion of garment factories across the country. The government intends to establish dedicated industrial enclaves equipped with modern infrastructure to improve production efficiency and lower operational costs for manufacturers. Infrastructure development is scheduled to commence in 2027, with the Ministry of Finance projecting that production lines will reach significant scale by 2028 and achieve full functionality by 2030. To guarantee a steady market for these local producers, Dr. Ato Forson announced that the government will amend public procurement laws to prioritize "Made-in-Ghana" products. Under the new regulations, public institutions—including the Ghana Health Service and various security agencies—will be mandated to source uniforms, hospital bedding, and protective clothing exclusively from domestic textile companies. This policy shift is designed to create a reliable demand base that will support the long-term sustainability of the industry. The initiative is also expected to be a significant driver of employment, particularly for youth and women, while providing a platform for local designers to scale their operations. By integrating the entire value chain from raw textile production to finished fashion garments, the government aims to retain more value within the Ghanaian economy. Dr. Ato Forson emphasized that these measures are critical for industrialization and for ensuring that the textile sector once again becomes a cornerstone of Ghana’s economic development.