Restructuring The Ghana Textile Industry

In the context of increasingly globalized textile and apparel markets, coped with trade liberalization, the Ghana textile and apparel industry has been greatly affected and it is on the verge of collapse. Developing both national and regional strategic partnership through value chains for the textile and apparel industries within Ghana and with its neighbouring countries (countries that posses a comparative advantage in terms of the relevant intensive factor) to revive this industry, strengthen its productivity as well as increase its global competitiveness is very essential.Before developing this partnership, it is very vital for the textile value chain within the country be identified and analyzed. This study applies the value chain tool to analyze the competition position of the Ghana Cotton-Textile industry. Using this tool, it helped identified all value generating processes within this sector. Akosombo Textile Limited, the only textile company in the country with a full processing chain (spinning to printing) was selected for case studying. Application of VCA revealed that transporting of raw materials to the textile mills, output capacity of factory workers, pour conditions of textile machines and high cost of labour and utilities (fuel electricity and water) are the major issues affecting the textile industry in Ghana.Even though, the active participation of the government of Ghana is vital to the revival process, the study stresses the importance of the local industries to effectively handle management and production related issues very well by themselves rather than always rely on the government for assistance or employing foreigners to manage the local textile mills.Results from applying the VCA tool provided valuable insights into policy formulation and implementation. The study recommended some possible strategies to revive the textile sector of Ghana.