Ghana: A new garment factory
and fabrics from local production

Ghana offers many advantages for textile companies

Ghana is well connected to international markets through its seaports, especially the port of Tema in the Greater Accra Region. Many goods exported from Ghana, including textiles, are fully or partially exempt from import duties through international trade agreements such as the African Growth and Opportunities Act (AGOA) or the EU's Economic Partnership Agreements. In addition to good logistical connections to the USA and Europe, Ghana offers a business-friendly investment climate, a stable political environment and competitive wage levels. In the World Bank's annual Ease of Doing Business ranking, Ghana has repeatedly ranked first in West Africa. Sea transport to Europe is much faster than from Asia. These factors give products from Ghana a competitive advantage. Nevertheless, textile companies have not yet managed to increase their market share against the strong competition from Asia.

Fabrics from own production to reduce the dependence on imports

With 2,500 employees in Ghana, DTRT Apparel produces garments for large international customers. The necessary materials such as fabrics and trims have so far been imported by sea from Asian manufacturers. Under the investment project supported by Invest for Jobs, DTRT Apparel will expand its production of garments and build a fabric mill. By processing its own fabrics, the company aims to reduce its dependence on imports and be able to respond more quickly to new customer requests. Other companies in the textile industry are also expected to benefit from the trend towards local production and the independence gained as a result.

With the support of Invest for Jobs, production capacities are being built at two locations: In the Tema Industrial Zone, a sewing plant using the cut-make-trim method is to be built on 18,000 m2. The garments will be cut, sewn, and finished according to the design specifications of the international customers. DTRT Apparel will significantly expand its existing production and relocate to this new site. T-shirts, polo shirts, jumpers and other items will be manufactured there. In addition, a knitting factory with 60 machines will be built in the nearby Dawa Industrial Zone. It will produce up to two tons of polyester fabrics annually. The fabrics will be processed in the company's new sewing plant in Tema, but also sold to other textile companies in Ghana. An environmentally friendly dyeing process specially developed by DTRT Apparel will be used in the production of the fabrics.

New jobs with consortium partners and a boost for the Ghanaian textile industry

A total of 2,700 new jobs will be created at the two sites. The sewing factory will be significantly larger than the one currently in use. All newly hired staff will be trained in the operation of the new machines. This is done in cooperation with the company operating the industrial area. The new sewing factory will have more modern equipment than the existing DTRT Apparel production facility, so that the working conditions for the 2,500 employees already working for the company will improve significantly. The air-conditioning will be improved, and the workers will have more space at their individual workstations. The expansion of production will also contribute to the development of the Ghanaian textile sector and its suppliers. This should make it more attractive for other manufacturers and convince even more international buyers of textiles from Ghanaian production.

The partner company invests a total amount of 24.9 million euros to build the two new factories. The Facility Investing for Employment grants a subsidy of 6 million euros (24 %) to co-finance the acquisition of sewing and knitting machines.

The Facility Investing for Employment (IFE) of KfW Development Bank is part of the Special Initiative "Decent Work for a Just Transition" of the German Federal Ministry for Economic Cooperation and Development (BMZ). With its support, the Facility wants to remove barriers that prevent the creation of new and better jobs in the private sector in the African partner countries.