Ghana is negotiating a cotton supply agreement with Benin as part of plans to revive Volta Star Textiles Limited, one of the country’s historic textile mills, in a move aimed at restoring domestic textile production and strengthening the regional cotton value chain.
The announcement was made by President John Dramani Mahama, who confirmed that discussions are underway to secure raw cotton supplies for the factory while preparations continue for its reopening.
Ghana and Benin Discuss Cotton Supply Agreement
Speaking on 16 July, President Mahama said the two governments are preparing to sign a Memorandum of Understanding (MoU) that will enable Benin to supply cotton to the textile mill.
“Arrangements are being made to sign a memorandum of understanding with the government of Benin to supply cotton for the factory,” Mahama said.
The proposed agreement is expected to support the restart of Volta Star Textiles while creating new export opportunities for Benin’s cotton industry.
Reviving a Historic Textile Manufacturer
Originally established in 1968 as Juapong Textiles Limited, the company was renamed Volta Star Textiles Limited (VSTL) after becoming state-owned in 2007.
The mill was once among Ghana’s largest spinning and weaving facilities, producing grey baft, an unfinished woven cotton fabric used in textile manufacturing. At its peak, the factory had an annual production capacity of approximately 26 million yards (around 24 million meters) of fabric and supported thousands of jobs across the textile, transport and agricultural sectors.
However, years of aging machinery, financial challenges and increasing competition from imported textiles weakened its competitiveness. The factory officially ceased operations in July 2023 due to energy-related debt and operational inefficiencies.
Read More:Â Ghana Selects Strategic Investor to Revive Volta Star Textiles
Strategic Investor Selected
The Ghanaian government has confirmed that a strategic investor has been selected to revive the facility, although the investor’s identity has not yet been disclosed.
The selected partner is expected to modernize equipment, improve operational efficiency and restore production capacity as part of the government’s broader strategy to rebuild the country’s textile industry.
Opportunity for Benin’s Cotton Industry
If finalized, the agreement could provide Benin with an additional export destination for its growing cotton production.
According to national statistics, Benin exported nearly 200,000 metric tons of uncarded and uncombed cotton in 2025, generating approximately CFA223.5 billion (US$398 million) in export revenue. Its major export markets include Bangladesh, India, Pakistan, China and the United Arab Emirates.
The country also expects seed cotton production to increase by 8%, reaching 700,000 metric tons during the 2026/27 season.
Addressing Ghana’s Cotton Supply Challenges
The proposed import arrangement also highlights Ghana’s limited domestic cotton production capacity.
According to FAO data, Ghana produced approximately 28,000 metric tons of seed cotton annually between 2020 and 2024, far below the volumes required to support a fully operational textile manufacturing sector.
Officials believe regional cooperation under the agreement could help secure reliable raw material supplies while supporting the long-term revival of Ghana’s textile industry.
