The Development Bank Ghana (DBG) has entered into a Memorandum of Understanding (MoU) with the Association of Ghana Industries (AGI) to boost growth in Ghana’s textile and garment sector. This partnership aims to support local businesses by enhancing production capacity, improving competitiveness, and fostering job creation.
Under the MoU, DBG and AGI will collaborate on a three-year program that offers technical support, financial aid, and market development opportunities to selected companies in the textile, garment, and fintech industries. The initiative will address critical challenges such as high production costs, insufficient skilled labor, and limited access to long-term financing.
DBG’s Chief Executive Officer, K. Duker, emphasized that the bank’s focus on the textile and garment sector aligns with its broader goal of advancing manufacturing as a cornerstone of economic development. “This partnership with AGI enables us to strengthen the sector, leveraging global trade platforms such as the African Continental Free Trade Area (AfCFTA) and the African Growth and Opportunity Act (AGOA). Together, we aim to break down barriers, increase production, and explore new markets, which will ultimately benefit Ghana’s economy,” he stated.
To support the initiative, DBG has allocated an initial investment of GHS 566,200. These funds will be used to identify at least three viable projects within the textile and garment value chain, provide technical assistance, conduct market development activities, build capacity through workshops, and monitor the program’s impact.
DBG plans to inject at least GHS 100 million annually into the sector through long-term financing over the next three years in partnership with Partner Financial Institutions (PFIs) and Development Partners (DPs). Additionally, DBG Guarantee (DBGG), a subsidiary of DBG, will provide partial credit guarantees to encourage further investment and enable businesses to scale their operations.
AGI President Dr. Humphrey Kwesi Ayim Darke highlighted the importance of this partnership, noting that DBG’s efforts to provide funding and technical resources will address key challenges faced by local textile and garment companies. “This collaboration will help businesses improve efficiency, create jobs, and access new markets locally and internationally,” he said.
Prof. Eric Osei-Assibey, Chief Economist Designate at DBG, remarked that Ghana’s textile and garment industry holds significant potential to drive economic growth. He added that the partnership would help bridge financial and technical gaps, allowing the sector to adopt sustainable practices such as recycling textile waste and eco-friendly production, thereby contributing to environmental conservation.
The program is expected to enhance the operational efficiency and competitiveness of beneficiary companies, create jobs, and boost Ghana’s export potential. This partnership represents a critical step toward revitalizing the textile and garment industry, laying the foundation for sustainable economic growth and development in Ghana.
Source: TheDotNews