Bawumia calls for increased support for Ghana’s garment and apparel industry

Dr Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), has emphasized the need for heightened support for Ghana's garment and apparel industry. The call came after a meeting with the Association of Garment and Apparel Manufacturers to discuss sector-specific challenges and strategize for improved competitiveness in global markets.

Bawumia highlighted Ghana's potential to boost garment production but stressed the necessity of stronger backing for local manufacturers to vie favorably with international producers.

In his comparison to the support systems in countries like Bangladesh and Benin, Bawumia pointed out that Ghana's current support levels are insufficient. This observation was echoed in a subsequent Facebook post following the meeting. Bawumia expressed gratitude towards the association, acknowledging their role in the discussions aimed at addressing the hurdles faced by garment and apparel manufacturers.

These deliberations are part of Bawumia's ongoing consultations with various business groups to explore ways of bolstering their operations.

Prior to the meeting with garment manufacturers, Bawumia engaged with leaders of the Ghana Union of Traders’ Associations (GUTA) to address concerns from traders across the nation. Among the issues raised were steep import duties, demurrage charges, the recent increase in Value Added Tax (VAT) for informal sector traders to 20%, limited access to EXIM Bank loans, and the difficulties associated with foreign participation in Ghana’s retail trade.

Traders also pointed out the high costs of shop rentals and goodwill payments as barriers to their business growth.

Bawumia highlighted that the meeting provided a platform for GUTA representatives to articulate their concerns and suggest potential solutions. He emphasized the importance of shifting focus from merely importing goods to producing them locally, along with the incentives required to facilitate this transition. The discussions were deemed highly productive, and Bawumia expressed gratitude to GUTA for their contributions.

He underscored the focus on fostering local production, enhancing competitiveness, and creating an enabling environment for manufacturers and traders to expand their activities.