Ghana to Invest US$1 Billion in Textile and Garment Industry in Push for Global Fashion Market

Ghana will invest US$1 billion to transform its textile and garment industry into a competitive manufacturing hub capable of supplying global fashion markets, Finance Minister Dr. Cassiel Ato Forson has announced, as the government moves to reverse decades of decline and import dependence in the sector.

Presenting the 2027 Budget Statement to Parliament on Thursday, November 12, 2026, Dr. Forson said the investment—under the government's 24-Hour Economy and Accelerated Export Development Programme—would focus on modernising existing textile mills, expanding garment factories, and establishing dedicated industrial enclaves for production .

"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.

From 25,000 Jobs to 6,000: A Sector in Decline

The investment addresses a sector that has contracted dramatically over the past four decades. Ghana's textile industry once employed more than 25,000 people directly in the late 1970s, but that figure fell to just 6,000 by 2020, according to the Development Bank Ghana, with cheap imports, uneven customs enforcement, and fragmented incentives eroding competitiveness .

Today, more than 70 percent of textiles and garments consumed in Ghana are imported annually, limiting how far sector growth translates into local jobs and value addition . The sector is currently valued at approximately US$400 million, with the government targeting growth to over US$2 billion and the creation of 150,000 jobs by 2033 .

The Enclave Model

The planned industrial enclaves will be equipped with serviced land, reliable electricity, industrial water, treatment facilities, laboratories, warehouses, and factory buildings. The shared infrastructure is intended to reduce production costs and enable manufacturers to handle large orders for domestic and international markets .

The programme will also support local fashion designers, tailors, and dressmakers with modern equipment, technical assistance, and commercial partnerships to help them access regional and global markets .

Implementation is expected to begin in 2027 with infrastructure development and the modernisation of priority facilities. New and upgraded production lines are expected to become operational in 2028, supported by buyer agreements and export orders. By 2030, the government aims to have a commercially viable industry supplying wider international markets .

Procurement as a Market Guarantee

To create a reliable domestic market, the government will amend public procurement laws to require public institutions to source uniforms, hospital textiles, bedding, and protective clothing exclusively from Ghanaian manufacturers. The requirement would cover security agencies, schools, hospitals, and other public institutions .

The measure builds on earlier efforts. In March 2026, the Association of Ghana Apparel Manufacturers launched the "Dress Ghana and Build Ghana" campaign with ILO support, advocating for amendments to the Public Procurement Act to mandate local sourcing of school and security uniforms . The government also extended the zero-rating of Value Added Tax on textiles and garments until December 2028 to reduce production costs .

Trade Minister Sampson Ahi, speaking at the campaign launch, cited global 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, pointing to South Korea's textile transformation and the United States' Buy American Act .

The Capacity Question

The government's ambitions face a familiar obstacle: local manufacturers have the machines but not the orders. Precious Textiles in Tema, despite having modern machinery, was operating at just 30 percent capacity in late 2025 due to limited market access . In the Bono Region, McKenzie Ghana Limited has more than 200 sewing machines but uses only about 60 because of space constraints and a lack of large-scale contracts .

"We can produce everything here in Ghana," said Michael Asare, McKenzie's CEO. "If the contracts are given to us, we will not allow anybody to go to China again" .

The Northshore Apparel Hub, opened in September 2026 under the Free Zones regime, offers a glimpse of what the 24-Hour Economy model could deliver. The facility has already created at least 2,000 jobs and runs multiple shifts, with the bulk of its products destined for export .

As Parliament begins deliberations on the budget, the government's challenge will be translating the US$1 billion commitment into factory orders, skilled workers, and export earnings—and ensuring that the procurement reforms reach the smaller producers who have watched the sector's decline from the inside.