Ghana Presient Nana Addo Dankwa Akufo-Addo recently announced a stimulus package to rescue the ailing textile industry of the country.
In his recent state of the nation address to parliament, the President said, “Our local textile industry has been struggling for years, and many textile companies have, indeed, gone under. We have decided to give it a major stimulus to help put it on a strong footing.”
The president announced, “The local textile industry has, therefore, been granted a zero-rated VAT (Value Added Tax) on the supply of locally-made textiles for a period of three years. We have put in place a tax stamp regime for both locally manufactured and imported textiles to address the challenge of pirated designs and logos in the textile trade.”
Akufo-Addo disclosed, “The Tema Port had been designated as a Single-Entry Corridor for the importation of textile prints, with a textile taskforce in place to ensure effective compliance, and reduce, if not eliminate, smuggling of imported textiles. A new textile import management system had been instituted, to also control imports of textiles.”
He stressed on the repeal of One-district One Factory policy, stating, “79 factories under the scheme were at various stages of operation or construction; and another 35 were going through credit appraisal.
There is a lot of activity going on under the scheme, and it has awoken the interest of young people to go into manufacturing business.”