Ghana does not adequately support the garments industry; this must change - Bawumia

Dr Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), engaged with the Association of Garment and Apparel Manufacturers to address the challenges facing the industry and explore ways to make it more competitive on the global stage. The sector holds significant potential for job creation, local business support, and economic growth in Ghana.

However, Dr Bawumia pointed out that compared to countries like Bangladesh and Benin, Ghana's support for the garments industry remains insufficient. In a post on Facebook, Dr Bawumia expressed gratitude to the Association for their open discussions and valuable contributions, which will inform the development of policies for the sector.

Prior to the meeting with the garment manufacturers, Dr Bawumia also held a conversation with executives and representatives of the Ghana Union of Traders Associations (GUTA) to discuss issues affecting traders in the country. GUTA officials raised concerns regarding high import duties, increased demurrage costs, a rise in the Value Added Tax (VAT) to 20% for informal sector operators, the lack of access to Export-Import (EXIM) loans, foreigners dominating the retail trade, soaring rent prices, and the burden of Goodwill payments for shops.

These discussions proved insightful, and GUTA presented proposals to tackle some of these challenges. Dr Bawumia emphasized the importance of shifting from merely importing goods to manufacturing them within Ghana, as well as offering incentives to encourage such production. The meeting was deemed highly productive, and Dr Bawumia extended his thanks to GUTA for their valuable input.