Ghana President Nana Addo Dankwa Akufo-Addo has announced a stimulus package for the development of its struggling textile sector.
He said this during his 2019 State of the Nation Address (SONA) to Parliament on 21 February 2019.
Substantiating on the same, the President said that Ghana’s local textile sector has been grappling for its existence and many textile companies have even closed down. The stimulus package will enable the industry to revive.
He further added that in the endeavour to reform the industry, a zero-rated value added tax has been granted to country’s textile sector on the supply of locally made textiles for a period of 3 years.
“In order to address the problem of pirated designs and logos in the textile trade, we have implemented a tax stamp regime for both local and imported textiles.” – Nana Addo Dankwa Akufo-Addo, President, Ghana
In addition to designating the Tema Port as a single-entry corridor for importing textile prints, a textile task force has also been set up to ensure effective compliance and control smuggling of imported textiles.
Besides, 79 garment factories under the “One-District-One-Factory” scheme were at different production stages of operation or construction. This apart, another 35 factories are going through credit appraisal.
The President said that under the Rural Enterprises Programme, 50 small-scale factories will come up by the end of 2019 in 50 districts of the country. This programme is funded by the African Development Bank and the International Fund for Agricultural Development.