The impact of the importation of Chinese textiles on Ghanaian local producers

Anafo, Fauziya Yen
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Textiles in Ghana are a way of communicating our history. They do not only emphasize our cultural roots but also employs workers in the country. The textile industry is currently losing its market share to importation from other countries and the imitation of textiles. It used to employ about 25000 labor force in 1975 and as at 2005; it only employed 5000 labor force. As such the study investigated into the factors that have caused the decline in market share of local companies. Based on literature reviewed, the imitation of textiles have contributed to the closure of many textile companies, hence the study investigated into how the imitation of local textiles have affected the local companies, the factors that have caused the decline of the market share of local companies then finally looked at the measures that have been put in place by these companies to address these issues. The study looked at three major companies namely Ghana Textile Print, Akosombo Textile Limited and Printex Ghana based on criteria selected by the researcher. The perspective of 32 consumers and 30 traders were also addressed to understand the perspective of the end user. Secondary data from articles and journals guided the researcher in the methodology and data analysis The conclusion made based on data findings showed that contrary to literature reviewed, there are other major factors aside the imitation of textiles has caused the decline of market share of textile companies. Some factors mentioned cost of production, taxes, government policies and the trade liberalization policy of Ghana. The recommendations made are that the government has to restructure policies to help the local industries as well as provide support with cost of utilities and reduces taxes imposed on raw materials used for production.
Thesis submitted to the Department of Business Administration, Ashesi University College, in partial fulfillment of Bachelor of Science degree in Business Administration, April 2015
Ghana, textile industry, Ghana Textile Print, Akosombo Textiles, Printex Ghana Limited, trade liberalization