Development Bank Ghana (DBG) and the Association of Ghana Industries (AGI) have partnered through an MoU to revitalize Ghana’s textiles and garments industry, tackling key challenges and leveraging global trade opportunities African Continental Free Trade Area (AfCFTA) and the African Growth and Opportunity Act (AGOA).

DBG’s Chief Executive Officer, K. Duker, emphasized the significance of the initiative, stating, “DBG’s support for the textiles and garments industry aligns with our strategic focus on manufacturing as a priority sector for development.”

He added that: “This collaboration with AGI provides an opportunity to support the sector’s growth, leveraging global trade opportunities such as AfCFTA and AGOA. Our combined efforts will help local businesses overcome barriers, increase production capacity, and tap into new markets, ultimately strengthening Ghana’s economy.”

Under the three-year initiative, DBG has committed an initial GHS 566,200.00 to support AGI’s activities.

These include identifying investment opportunities, providing technical assistance, building capacity, and fostering market development.

Moreover, DBG aims to channel at least GHS 100 million annually into the sector over the next three years, working in partnership with financial institutions and development partners.

The bank’s subsidiary, DBG Guarantee (DBGG), will play a crucial role by offering partial credit guarantees to unlock additional financing for businesses, facilitating their expansion and enabling greater operational efficiency.

President of AGI, Dr. Humphrey Kwesi Ayim Darke, commended the partnership as a game-changer for the industry.

“This partnership will empower businesses to improve their operational efficiency, create jobs, and gain access to both local and international markets,” he said.

Addressing the broader vision, Chief Economist Designate at DBG, Prof. Eric Osei-Assibey, highlighted the sector’s untapped potential.

“The textile and garment sector has immense potential to contribute significantly to Ghana’s economic growth. Through this partnership with AGI, DBG is committed to bridging the financial and technical gaps that have hindered the sector’s growth,” he remarked.

Prof. Osei-Assibey also stressed the importance of sustainable manufacturing, focusing on eco-friendly practices and textile waste recycling, ensuring the industry’s growth aligns with environmental preservation goals.

The initiative is expected to bolster local production capacity, enhance competitiveness, and create jobs within the textiles and garments sector.

It also aims to expand market linkages and boost Ghana’s export potential, paving the way for long-term economic growth.