An investigation into strategies and policies to expand the textile industry in Ghana: A case study using Akosombo Textile Limited (ATL) and Ghana Textile Product (GTP)
The Ghana Textile industry was part of several industries set up in the late 1960s by Ghana's first president, Dr. Kwame Nkrumah, in an attempt to make the economy self-sufficient. By the mid 1970s, there were 40 medium to large scale textile companies in Ghana. The industry's productivity peaked in this same period achieved a total output of 130 million yards, plant utilization capacity of 60% and employed about 25,000 people (Quartey, 2006). In the mid 1980s, however, the Ghana textile industry's performance started declining. Several researchers have attributed this decline to a Trade Liberalization policy that was implemented at the time. Paradoxically, trade Liberalization is the removal of trade barriers such as tariffs, quotas and other non-tariff restrictions on trade. This makes an economy freer and more open to fair trade with other countries (Krugman and Obstfeld, 2006). Today the Ghana textile industry employs some 3000 people with total industry output of 40 million yards (Zizer, 2010). This research study explores the current problems facing the Ghana textile industry using Ghana Textile Print (GTP) and Akosombo Textile Limited (ATL) as case studies. The study provides feasible and relevant measures and strategies to policy makers (government) and textile manufacturers to stimulate the moribund textile industry. In particular government should subsidize manufacturing costs, assist textile firms to obtain credit and strategically institute trade barriers. It is imperative that government and textile manufacturers understand and implement the recommendations made in this research project to revive Ghana's currently almost non-existent textile industry.
Thesis submitted to the Department of Business Administration, Ashesi University College, in partial fulfillment of Bachelor of Science degree in Business Administration, April 2011
Ghana, textile industry, Ghana Textile Print (GTP), Akosombo Textile Limited (ATP), trade liberalization