The Association of Ghana Apparel Manufacturers (AGAM) has stated a national local procurement policy for garments and textiles could create over 100,000 jobs in Ghana.
This policy would primarily benefit women and youth across the country by requiring government institutions to buy uniforms and other garments from local manufacturers. The move aims to activate Ghana’s apparel sector, which currently operates below its full potential.
This initiative aligns with Ghana’s broader economic goals of industrialization and job creation, seeking to reduce reliance on imports. The Ghanaian government has prioritized supporting local industries to foster sustainable economic growth. Increased domestic production would also strengthen the cedi by conserving foreign exchange reserves.
Nana Poquah Adiamah, National Coordinator of AGAM, emphasized the industry’s capacity. She highlighted that the apparel sector could absorb thousands of unemployed individuals if government bodies procured uniforms locally. Ms. Adiamah pointed out that women constitute 70% to 85% of ownership, management, workforce, and supply chains within the garment manufacturing industry. This makes the sector highly inclusive for women and young people.
AGAM advocates for strengthening existing procurement laws. These changes would mandate state institutions to source uniforms and garments from Ghanaian-owned companies operating in Ghana. Ms. Adiamah noted that current laws allow Ghanaian contractors to import products despite securing state contracts. This loophole undermines local manufacturing efforts. The proposed policy would initially target uniforms for schools, security services, and health institutions.
Ghana currently spends more than $200 million annually on imported garments and apparel. This expenditure drains significant foreign exchange, which could otherwise support local industries. Despite investments in skills and factory expansion, many local garment factories operate below 40% capacity due to insufficient orders. AGAM's members include factories with an average of 100 industrial machines, with some larger facilities employing up to 5,000 workers.
Ghanaian apparel manufacturers have also demonstrated competitiveness in the international market. They have exported garments worth between $45 million and $60 million to the United States in recent years. This success indicates local factories possess the quality and capacity to meet high standards. The garment manufacturing sector offers quick skill training, with workers becoming productive in one to three months.
The policy aligns with the government’s industrialization agenda, the 24-hour economy concept, and the African Continental Free Trade Area (AfCFTA). It also supports Sustainable Development Goal Eight for decent work and economic growth. The campaign, themed “Dress Ghanaian, Build Ghana,” aims to promote local manufacturing, create jobs, and reduce imports. This would strengthen Ghana’s industrial base and foster economic resilience. Decision-makers will likely consider the economic benefits, including job creation and foreign exchange savings.