Ghana to Amend Procurement Laws, Mandating Public Institutions Buy Only Made-in-Ghana Uniforms and Textiles

Ghana will amend its public procurement laws to compel public institutions to purchase uniforms, hospital textiles, bedding, and protective clothing exclusively from Ghanaian textile and garment manufacturers, Finance Minister Dr. Cassiel Ato Forson has announced, in a move designed to create a guaranteed domestic market for a sector that has struggled to compete with imports.

Presenting the 2027 Budget Statement to Parliament on Thursday, November 12, 2026, Dr. Forson said the policy would cover public spending by security agencies, schools, hospitals, and other government institutions.

"Mr Speaker, we will amend the public procurement laws to require that public funds spent on uniforms, hospital textiles, bedding and protective wear for our security agencies, schools, hospitals and other public institutions are purchased from ONLY Ghanaian textile and garment manufacturers," he said .

A Market Guarantee for a Struggling Sector

The procurement reform forms part of a proposed US$1 billion investment in the textile and garment industry under Pillar 6 of the 2027 Budget, which seeks to expand local production, boost exports, and create jobs .

The policy addresses a longstanding paradox in Ghana's garment sector: local factories have the capacity to produce, but lack the orders to operate at scale. The Association of Ghana Apparel Manufacturers (AGAM) has reported that many domestic garment factories are operating below 40 percent of their production capacity due to a lack of orders, even as Ghana spends more than US$200 million annually on imported garments and apparel .

More than 70 percent of textiles and garments consumed in Ghana are imported each year, limiting how far sector growth translates into local jobs and value addition .

Industry Advocacy Bears Fruit

The announcement represents a victory for AGAM, which has been campaigning for procurement reform under the "Dress Ghana and Build Ghana" banner, with technical support from the International Labour Organization. AGAM has argued that a national local procurement policy for garments could create over 100,000 jobs, particularly for women, who constitute between 70 and 85 percent of ownership, management, and workforce in the sector .

In March 2026, Trade Minister Sampson Ahi endorsed the campaign, citing South Korea's textile transformation and the United States' Buy American Act as precedents for strategic procurement. "Global experience shows that when governments spend with purpose, they do not merely purchase goods—they build industries, create jobs, and secure economic sovereignty," he said .

The government has already extended the zero-rating of Value Added Tax on textiles and garments until December 2028 to reduce production costs .

Beyond Procurement: Enclaves and Capacity

The US$1 billion investment will also fund the modernisation of existing textile mills, expansion of garment factories, and establishment of dedicated industrial enclaves equipped with reliable electricity, industrial water, laboratories, warehouses, and factory buildings .

Dr. Forson said factories would receive support to meet international standards in quality, traceability, and responsible production. Implementation is expected to begin in 2027 with infrastructure development and modernisation of priority facilities, with new production lines operational in 2028 .

"Our ambition is to put Made-in-Ghana fashion into wardrobes around the world and put dependable incomes into Ghanaian homes," Dr. Forson told Parliament .

The Road Ahead

As Parliament begins deliberations on the budget, the government's challenge will be ensuring that local manufacturers can meet the volume, quality, and delivery timelines that public institutions require. AGAM has indicated that its members are ready, citing factories with hundreds of industrial machines and thousands of workers in Accra and Tema .

The procurement amendment also builds on earlier measures: in April 2025, Dr. Forson announced plans for a list of locally manufactured products that public institutions would be required to purchase, and in August 2026, President John Mahama announced the government was working to amend the Public Procurement Act to give preference to licensed Ghanaian-made products, specifically mentioning uniforms for the military, police, prisons, and immigration services .

Whether the amendment translates into factory orders—and whether those orders reach the smaller producers who have watched the sector's decline from the inside—will determine if the policy delivers on its promise.