Thousands of jobs "overnight" if Ghana can kick-start its apparel industry
Tuesday, January 24 2012
Virtually overnight, Ghana could create thousands of jobs in its apparel industry, business experts agree. But doing so would require cooperation and collaboration among stakeholders - and significant improvements in a number areas, they said at a meeting in Accra to reinvigorate the sector.
Ghana's apparel industry is poised to create thousands of jobs, experts agree.
The stakes are high, stakeholders agreed.
“You’d create 4,000 jobs almost instantly – and have people in line for even more,” said Francis Kusi of the ministry’s medium and small enterprise department. Almost all of the workers are young people – generally young women (see related story on youth employment).
“The opportunities in Ghana today are enormous,” said Jeffrey Stein of Liberty and Justice, an apparel buyer and manufacturer in Ghana with customers in the U.S. “It’s a matter of creating synergy across departments in Ghana to make this happen.”
The $60 billion apparel market in the U.S. would drive the creation of new jobs, the USAID Trade Hub Apparel Advisor Joop de Voest told stakeholders at the meeting’s opening.
Thanks to the elimination of tariffs on products under the African Growth and Opportunity Act (AGOA), buyers say African countries have a huge edge in international competition.
Extending a provision of the AGOA law, which allows countries eligible under the law to use fabrics from a third country, is critical to ensuring the sector’s continued viability, said USAID Trade Hub AGOA Services Manager Abou Fall.
“AGOA remains the key advantage for eligible African countries,” Fall said. “But given the sourcing of fabric from Asian countries, it is imperative that the exemption is extended by the U.S. Congress.”
In 2010, U.S. Ambassador Donald Teitelbaum and Ghana's Ministry of Trade and Ind
So, why are over 2,000 sewing machines in the country’s Garment Village in Tema idle? At a meeting in Accra, stakeholders looked for the answers – and sketched the outlines of a plan to implement solutions.
The primary issue is competitive loans and collateral requirements, stakeholders agreed, followed by access to technical quality managers, logistics, marketing, management and technology investments.
“We need to come together and make this work,” said Nora Bannerman of Sleek Garments. “The fact that buyers are here shows that they know we are capable. Banks need to see that, too.”
She was referring to the ever-present issue of access to finance at competitive rates. One solution is for government to launch a fund to spur finance. Although Ghana’s Export Development Investment Fund exists for that, accessibility to the fund has been an issue. A strategic push from the government would help – and address youth employment in the country, especially for women, stakeholders said.
A critical success factor for kick-starting the industry would be subsidies or grants to offset the time needed to train new workers when a factory starts operations – it generally takes six months to reach internationally competitive productivity rates, stakeholders said.
“Assistance from government to train workers would be an important element of a solution to solve this,” said Moses Osei-Bonsu, managing director of Decent Touch. “At the top levels, it’s also important to have top technical supervisors.”
With banks in the room and representatives of EDIF, the hope for improvements in access to finance was palpable. Overall, stakeholders felt optimistic, they said, but also realistic.
“We have the will to change the way we do business,” Osei-Bonsu said. “People believe that building an industry is like selling a product. It is not at all like that. Equipment, facilities, people – there are many elements. And we need to get them all right.”
2 comments
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job opportunity
The creation of job opportunity through the apparel industry by Ghana Government is a very good and laudable efforts that needs to be appreciated by all, especially giving the fact that the Africa (Ghana) market will be able to compete with the International market especially under the African Growth and Opportunity Act(AGOA).
I will appreciate if there can be job opportunity for graduates in other Africa Countries especially Nigeria. I am a Nigerian and a graduate in accounting and will like if there can be job opportunity.
I look forward to your favourable responce.
A.G Adaraloye
SEND ME YOUR RESUME
Hi Mr. A.G. Adaraloye, if you are based in Nigeria, please, send me your current resume. Regards, Solomon Onadein
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