The Akosombo Textiles Limited (ATL), Ghana Textiles Print (GTP) and Printex say the ban on social gatherings in the wake of the outbreak of COVID-19 in the country had slowed their businesses down, thus making it difficult for them to keep their workers and remain in operation.

The companies say they face dire financial challenges as their supply volumes have gone down by an average of 90 per cent.

Management of the three companies who spoke to the Daily Graphic said some textile companies have had to shut down temporarily while others were on the verge of cutting down the size of their workforce.

Government intervention

He also announced additional reliefs such as extension of tax filing date from April to June; two per cent reduction of interest rates by banks effective April 1, 2020, and grant of six months moratorium on principal repayment by banks to entities in the airline and hospitality industries.

The CAP, which was subsequently approved by Parliament on April 9, dedicated GH¢600 million as soft loans for businesses, especially those in the small and medium enterprises (SMEs) sector.

The garment companies derive their fabrics from ATL and GTP, a move that is expected to breathe some fresh energy into their activities.

ATL

However, the Chief Executive Officer (CEO) of ATL, Mr Kofi Boateng, said although the supply of materials for the PPE had been beneficial to the company in a way, the impact was quite insignificant.

"The first order for materials for the PPE was 180,000 yards which we immediately supplied and we have since then supplied over 400,000 yards of materials to the garment companies producing the PPE.

"We have the capacity to produce up to about 3 million yards a month and can supply the whole country and the West African sub-region," he said.

Mr Boateng said the ban on public gatherings which had affected social activities which included weddings, funerals, religious services and festive occasions and the closure of borders had led to a 70 per cent reduction in the company's monthly output.

He said the supply of materials for the PPE was only helping to fill a gap and the turnover for that kind of contract was very low.

Support locals

Mr Boateng said given that the government had turned to local textile companies to supply selected garment factories with materials for nose masks, it was important that local textile industries were supported to stand on their feet.

"The public is relying on the local textile companies for made-in-Ghana nose masks at this time of need. I am appealing to both the people and the government not to turn their backs on us and go back to the streets for smuggled fabrics when the COVID-19 saga is over,” he added.

GTP

The Director of Marketing of GTP, Rev. Stephen Badu, said the continuous ban on social gathering would worsen the plight of the local textile companies.

Under the circumstances, he said, it was important that textile companies were availed of the stimulus package in good time to prevent them from total collapse.

"Our supply projection for April was one million yards but less than 50,000 yards was realised. We were given a one-off order for supply of 180,000 yards of materials for PPE which we supplied and that is it. This is just like a drop of water in the ocean.

"We have struggled to pay our workers for April this year and hoping that things will change and there will no more be a lockdown in the country," he said.

He encouraged the public to be responsible and do their part so that the fight against COVID-19 can be won collectively and for businesses to return to winning ways.

Printex

The General Manager in charge of Administration at Printex, Mr Moses Zizer, said the COVID-19 pandemic had dealt a heavy blow to the company.

"Printex is currently not working because we do not get orders from our customers. Basically, we sell colours and designs that are used for occasions such as funerals and weddings, but with the ban on social gathering all the customers who placed orders with us have cancelled them. As we speak, all our workers are home but are still being paid.

"We are compelled to pay them because it is not their fault that such a disease had come to dislocate us. We are negotiating with the workers’ union to see how we can stagger monthly payments over a period, seeing that they are doing no work at the moment," he said.

Mr Zizer appealed to the government to extend the zero value added tax (VAT) rate for local companies to a period of 10 years to help the textile industry to survive after COVID-19.