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Ghana’s textile and apparel sector hit by low cost China exports


Low-cost and high-volume apparel exports from China and other Asian countries in the global market are continuously overwhelming Ghana’s exports. Inadequate promotion of Ghanaian textiles and Afro-centric fashion in mainstream apparel channels abroad remains a bane for the sector, says the Ghana Export Promotion Authority (GEPA).

Opportunities do exist though for the industry in Ghana. These include unexplored niches in the global market like original woven Kente, diaspora market potential, proximity to global apparel markets and the existence of bilateral and regional trade agreements. Currently, the industry employs more than 6,000 Ghanaians and exports more than $30 million on an average annually. Export revenues from the sector in 2020 stood at $43 million compared to the $137.4 billion worth of apparel and accessories that China alone exported last year to the US market.

The country is reviewing financial positions of existing apparel companies to roll out a funding package to serve the funding requirements of the industry. Support in the form of capacity building and funding will be provided to the industry to help it upgrade and become a self-sustaining national industry. There are about 14 indigenous apparel manufacturers which predominantly export to the US under the African Growth Opportunity Act.

Export revenues for 2021 are projected to reach $52 million by December.