Stakeholders call for stronger local content rules in apparel procurement

Apparel manufacturers and policy stakeholders have called for stronger local content rules in national apparel procurement to propel the sector’s growth.

They proposed a binding framework for state procurement of apparel, emphasising that such a framework  was crucial for boosting domestic production, creating jobs, and reducing the country’s dependence on imported garments. 

They made the call at a national dialogue on local procurement of apparel, garments and textiles, in Accra, on the theme: “Promoting Local Garment, Apparel and Textile Procurement for Job Creation and Economic Development.”

Data from the International Labour Organization (ILO), indicates that Ghana spends over $200

million annually on imported garments.

Also, public procurement makes up over 20 per cent of Ghana’s GDP, according a 2021 Ministry of Finance figure.

Speaking at the dialogue, Madam Nura Salifu, President of the Association of Ghana Apparel Manufacturers (AGAM), said strategic procurement, especially by state institutions, was critical in driving industrial transformation and growing the sector.

She explained that while the Public Procurement Act provided preference margins, it “doesn’t mandate procuring agencies to buy from Ghanaian-owned manufacturers,” a loophole, she said, must be addressed to ensure that demand translated into local production, jobs and GDP growth.

She also stressed the importance of a stronger local sourcing regime to reduce the cost of production. 

With local manufacturers already supplying international markets, Madam Nura said: “If we’re given this opportunity, we’ll not just create jobs, we will contribute significantly to our economy.”

She, however, commended the current government for showing keen interest in the sector by ensuring that banks such as the Eximbank and the Development Bank Ghana supported the operations of apparel manufacturers.

“There’s been a real shift in not just the conversation, but in ensuring that this is actualised, and so there’s a real seriousness with making sure that this will be captured. 

“And it has, in fact, been captured in the 2026 budget, and so we’re hoping that AGAM will definitely get a piece of the pie. We have the capacity to produce,” she said.

The dialogue, organised by AGAM and the ILO, brought together industry leaders, government officials and employers.

Mr. Kingsley Laar, an Economist at the Ghana Employers’ Association, called for a viable Local Procurement Policy, stressing that such a policy must be accompanied by measures to reduce production costs and stabilise the value chain. 

“High electricity tariffs, logistics costs and imported raw materials continue to erode competitiveness,” he said. 

Mr. Laar recommended clear procurement quotas, reserved product lists, predictable delivery schedules and assured payment cycles to support industry planning and expansion.

He also called for a structured enterprise-upgrading programme for SMEs, explaining that many SMEs lacked the machinery, capital and certification required to compete for large contracts.

Mr. Sampson Ahi, Deputy Minister of Trade, Agribusiness and Industry, emphasised government’s commitment to supporting the sector, reiterating that government had already allocated funding to establish three new garment factories and formed a working group to ensure that Ministries, Departments and Agencies procure locally made uniforms and fabrics. 

“Imagine a Ghana where every school uniform, military fatigue, hospital linen and ceremonial robe proudly bears the Made in Ghana label,” he said. 

Mr. Ahi also highlighted ongoing efforts to strengthen local raw material production to meet AfCFTA rules of origin.

Citing global examples, such as South Korea, the United States and Malaysia, Mr. Ahi said strategic public procurement had historically powered industrialisation.

 “When the government spends with purpose, it does not merely buy goods, it builds industries, creates jobs, and secures economic sovereignty,” he noted. 

Mr. David Marcos, Project Manager, Productivity Ecosystem for Decent Work, ILO, said as an organisation that had been supporting the sector for years now, it intended to work towards securing market access for manufacturers.

Additionally, he said, ILO would support manufacturers to enable them to produce to the required international standards.

“We are going to work a bit more on market access than we worked before, because I think factories are, many of them are ready to export,” he said. 

“If you work in market access, then you need to also work on compliance as well, because, obviously, for ILO, it’s very important to our mission, the element of minimum standards, and we talk about the standards, minimum standards, compliance, there must be a minimum standard.”

Source: GNA

The post Stakeholders call for stronger local content rules in apparel procurement appeared first on Ghana Business News.

Read Full Story