Ghana targets $1.2bn investment and 150,000 jobs under new textile policy

Ghana is targeting about $1.2 billion in investment and 150,000 direct and indirect jobs over the next decade under a new textile and garment policy approved by Cabinet.

The policy, which is expected to be formally launched by the Ministry of Trade, Agribusiness and Industry, also seeks to expand the country's textile and garment industry from an estimated $400 million to about $2 billion.

It further aims to revive domestic cotton production across 50,000 hectares as part of efforts to strengthen local raw material supply and support the growth of the industry.

The targets were announced by the Trade Ministry’s Director of Research, George Amoah, at the launch of the second phase of the International Labour Organization’s (ILO) Productivity Ecosystem for Decent Work programme.

Mr Amoah described the textile and garment industry as a significant source of employment, with the potential to create decent jobs and help address unemployment.

He cited estimates indicating that the global garment sector employs about 94 million people, with women accounting for between 60 and 80 per cent of the workforce.

However, he said investment in factories and equipment alone would not be enough to achieve the sector’s growth ambitions.

“We need a skilled workforce, efficient production systems, strong management, compliance with standards and workplaces where people can perform at their best,” he said.

At the same event, ILO Programmes Manager Bismark Ghartey outlined some of the achievements of the first phase of the Productivity Ecosystem for Decent Work programme.

He said the programme supported the development of Ghana’s first productivity statistics, providing a national evidence base for discussions on productivity, employment, wages and policy.

Mr Ghartey also cited developments in the shea sector, where the programme supported the establishment of the Shea Employers Association and the Ghana Shea Workers Union.

The two organisations subsequently signed what he described as the sector’s first collective bargaining agreement in 2026.

He said the agreement provided a framework for employers and workers to address shared concerns through dialogue.

ILO Global Programmes Manager for the Productivity Ecosystem for Decent Work, Stephan Ulrich, said the second phase would build on the initial programme by coordinating productivity improvements at the policy, labour and enterprise levels.

He stressed the need for deliberate pathways to help workers transition into more decent employment, noting that economic growth does not automatically translate into job creation.

The programme is funded by the Swiss government through the State Secretariat for Economic Affairs.

Switzerland’s Deputy Head of Mission and Head of Cooperation to Ghana, Janine Walz, called for a coordinated approach to job creation, stressing that improvements in productivity and employment require collaboration across businesses and institutions.

The Productivity Ecosystems for Decent Work programme adopts an integrated approach to improving productivity and working conditions at enterprise, sectoral and national levels.

It seeks to address structural factors contributing to low productivity and high informality rather than focusing only on their effects.

The proposed textile and garment policy is expected to form part of broader efforts to attract investment, strengthen local production and improve employment opportunities in the sector.