CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The vision of this research is towards the invigoration of the large-scale Textile
Factories in Ghana with effective collaboration with the textile institutions to maximize
productivity for maximum returns. This is to ensure sustainability and efficiency of the
textile factories and reposition them for the betterment of the country’s economy to the
benefit of all Ghanaians.
Clothing, which is made from textiles, is one of the three basic necessities of man,
alongside food and shelter (Adu-Akwaboa, 2010). Although, clothing is usually
prioritized second to food, Agyemang (2001) posits that, one can go unnoticed without
food or shelter for a moment, but without clothing, he or she may be perceived in a
civilized world as insane or a mad person. Textile production has been the main pillar
around which industrialization in Europe and other countries have evolved. The rationale
for this, perhaps, may be due to the fact that the textile industry addresses one of the basic
necessities of man, clothing, which is indispensable in life with high demand and
therefore industrialization of the “industry” was in the right direction to develop other
industries (Majory, 1986).
Until 1960, Ghana depended largely on United Kingdom and other European
countries for textiles and other manufactured goods. This was due to the fact that the then
government of Ghana did not have enough capital and technical expertise to establish and
operate large-scale industries. Moreover, even if that was possible, it was obvious that
only the state sponsored bodies could embark on industrialization in the country.
Although the government had the desire and the will to establish profitable and
productive industries in Ghana to boost the country’s economy, it was extremely difficult
to achieve this since establishing large-scale industries is capital intensive (Osei-Bonsu,
2001).
However, when the government realized the need to raise the standard of living of
Ghanaians, it became necessary to initiate strategic economic independence policies by
developing an appropriate mixture of import substitution and export oriented industrial
production. This led to the establishment of the various state enterprises which included
large-scale textile factories in the early 1960s. The establishment of the textile factories
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was paramount in the government’s plans for industrialization in Ghana in the sense that,
textile was considered as the most important consumer good around which
industrialization in Ghana could evolve, considering its socio-cultural and economic
significance (Osei-Bonsu, 2001).
Among the early established large-scale textile factories in Ghana include; Ghana
Textile Printing Company (GTP), Tema Textile Limited (TTL), Ghana Textile
Manufacturing Company (GTMC), Freedom Textiles (FT), Juapong Textile Limited
(JTL), and Akosombo Textile Limited (ATL). These factories, among others, were
established to operate alongside with the indigenous textile enterprises which were
mainly cottage in nature, to produce high quality and large quantities of textiles,
primarily to meet the clothing needs of Ghanaians and also for export to earn foreign
exchange for economic development of the country. Many textile factories,
predominantly weaving, knitting and dyeing factories of small, medium and large-scale
sprang up between 1960 and 1970 (MOTI, 1973). These factories flourished within this
period and made significant contributions to the country’s economy through exportation
of locally made textiles to earn foreign exchange for the country. Statistics on the textile
industry indicate that Ghana had 10 large-scale, 40 medium-scale and over 200 cottage
or small-scale textile firms which were in full operation between 1965 and 1970 and were
made up of cotton and jute processing factories, weaving mills, knitting, printing and
dyeing factories (MOTI, 2004).
In recent times, the industry has gone through some difficulties times resulting in
shutting down of production lines of most of the factories. A lot of workers have been
made redundant as a result of these shut downs. Ghana Textile Printing Co. Ltd. (GTP),
now Texstyles Ghana Limited which once produced a very good textile brand is reported
to have shut down its spinning and weaving departments and laid off many of its workers.
This was a company, which was known to have competed with multinational textile
companies in the past. The story is not different for Ghana Textile Manufacturing
Company limited (GTMC) which shut down its production line way back in December
2005. Juapong Textiles also joined the league and shut down its production lines to be
partly reopened under a new name Volta Star Textiles Limited but could not cope with
the competition (The Financial Times Limited, 2007 as cited in Egu, 2009). Egu (2009)
observes that, some of the companies which are still in operation import gray baft and
semi-finished/bleached cloth for printing in Ghana. One such company is Printex which
is believed to be producing below capacity. The only surviving local textile company in
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the industry is the Akosombo Textile Limited (ATL) but the story does not look good for
it either. The situation is having adverse repercussions not only on the country’s economy
but also the institutions such as the universities and polytechnics that offer textiles related
courses; as the fate of graduates from such institutions ‘hangs in a balance’.

1.2 Statement of the Problem

The prime objective for the establishment of large-scale textile factories in Ghana
was not only to embark on mass textile production to meet the clothing needs of the
country, but as well to raise the standard of living of Ghanaians and also improve the
country’s economy for the better (MOTI, 1973; Osei-Bonsu, 2001).
Ghana, one of the West African countries with a vibrant textile industry
(Abdallah, 2010) is gradually joining the league of other nations in the sub-region with
collapsed textile and garment manufacturing sub-sector. This confirms the assertion that,
the sub-sector which was once the leader in Ghana’s industrial sector serving as an
important source of foreign exchange and revenue to the country has undergone a
considerable decline over the years due largely to the trade liberalization programme
which made it almost impossible for Ghana’s textile products to compete with cheap
imports, particularly from Asia (Quartey, 2006). From over 40 textile firms that
employed more than 25,000 people in the 1970s, the country now has only four textile
factories employing less than 4,000 workers. Abdallah (2010) establishes that the 25,000
workers accounted for 27 percent of Ghana’s total manufacturing employment in 1977.
By 1995, however, employment within the sub-sector had dwindled to a mere 7,000;
declining further to 5,000 workers by 2000. Statistics from the Ghana’s Revenue
Agencies Governing Board (RAGB) shows that the country is losing about 300 billion
Ghana old Cedis in potential revenue annually through smuggling of textile materials
and Ghana’s once thriving textile market is now flooded with the Chinese sub-standard
textile products, thereby surging up the country’s unemployment index (Quartey, 2006;
Abdallah, 2010).
Quartey (2006) records that the country’s total industry textile output peaked at
129 million yards in 1977 with capacity utilization rate of about 60 percent.
Unfortunately, total industry output declined to 46 million yards in 1995 including that of
Ghana Textile Manufacturing Company (GTMC), Akosombo Textile Limited (ATL),
Printex and Ghana Textile Printing (GTP) which were the four major companies that
survived the turbulence in the sub-sector. With regard to foreign exchange and revenue
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generation, textile exports generated 179.7 million US dollars in 1994 but revenue from
exports declined consistently and by 1998, the figure had decreased to 3.173 million US
dollars (MOTI, 2005; Quartey, 2006). These statistics evidently show the extent of
decline of the Ghana textile industry.
A preliminary survey of the Ghana textile industry by the researcher confirms that,
the sub-sector had experienced gradual decline over the years and some industrial
watchtowers (Egu, 2009) have attributed this not only to internal bottlenecks but also to
certain external factors that cut across the various operations of the factories from
acquisition of raw materials to sales. The major threats are the influx of cheap Asian
textiles (mainly from China) and the proliferation of used and second hand clothing on
the Ghanaian market (Quartey, 2006). It is observed that many Ghanaians, as a matter of
affordability, have shifted to the use of those foreign textiles thereby reducing the
patronage of the locally made textiles. This as consequently is crippling the operations of
the factories leading to the closure of most of them leaving few ones in the struggle to
survive.
The rippling effects of the closure of most textile factories, among others, are the
high rate of unemployment and economic crunch the country is facing. Most textile
employees have been laid off (Egu, 2009) whereas most new textiles graduates from the
country’s universities and polytechnics remain unemployed. A lot of chemical and
mechanical engineers, labourers, cleaners and messengers as well as business
administrators who might have been employed by the textile factories remain jobless. A
pragmatic approach is therefore necessary to revamp the situation. This multiple case
study, therefore, seeks to investigate the challenges and prospects of selected large-scale
textile factories in Ghana and their implications for textile education and also
recommends feasible measures to help mitigate the numerous challenges.

1.3 Objectives of the Study

The objectives of the research are to:
1. study the production and sales operations of the selected textile factories.
2. identify and discuss the internal and external challenges and prospects of the
selected large-scale textile factories with reference to production and sales.
3. identify and assess the measures put in place by the government, textile
industries and stakeholders to mitigate the challenges.

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 4. discuss the implications of the challenges and prospects on textiles education
in Ghana.

1.4 Research Questions

1. How do the selected textile factories carry out their production and sales
operations?
2. What are the internal and external challenges and prospects of the selected
large-scale textile factories with regards to production and sales?
3. What mitigation measures have been put in place by the government, textile
factories, and stakeholders in curbing the challenges?
4. What implications do the challenges and prospects of the textile factories have
on textiles education in Ghana?

1.5 Assumptions
The assumptions are that:
1. The textile factories in Ghana are in crisis.
2. The cotton production industries are not able to meet the demand of the textile
factories in Ghana.
3. Importation of used foreign clothing and textiles are a threat to the local
textile factories.
4. There are prospects to revive the textile factories in Ghana.
5. Ghanaians will patronise locally produced textiles if they are affordable and
are of good quality.
6. The textile factories will welcome the vision of this research and contribute
their quota for the success of the study.
7. Good policies by the government on textile production will help in the
sustainability of the textile factories in Ghana.
8. There are technical expertise and raw material resources in Ghana that can be
utilized to maximize productivity for optimum returns.

1.6 Delimitation
Geographically, the study focuses on four large-scale textile factories within Volta,
Eastern, Greater-Accra and Northern regions of Ghana. These are:

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 1. Texstyles Ghana Limited (TGL) formerly Ghana Textiles Printing (GTP):
Tema in the Greater-Accra region).
2. Akosombo Textiles Limited (ATL): Akosombo in the Eastern region.
3. Volta Star Textiles Limited (VSTL) formerly Juapong Textiles Limited (JTL):
Juapong in the Volta region.
4. Ghana Cotton Company Limited (GCCL): Tamale in the Northern region.
In content, it is centred on internal and external challenges and prospects of the
production and sales activities of the four selected textile factories.

1.7 Limitations
Since the research is a multiple case study, there was an obvious indication of the
unwillingness of the factory authorities to release certain vital data with the fear of
getting their production and sales secrets into the public domain due to competition that
exists between the local textile factories. Photographs and video documentation were
generally a prohibition in all the factories and that also affected the graphical presentation
of data.

1.8 Definition of Terms

It must be noted that, the terminologies in this section have been defined in context of
this research.
Cotton seed: seedlings for cotton farming.
Ginnery: A textile factory that deals in the processing of fibres for yarn and fabric
production.
Ginning: Processing of seed cotton which primarily involves separation of the seed
from the fibres.
Green production: An environmentally friendly production that leads to cleaner
land, air, and water.
Inorganic cotton: Cotton that is produced and processed through the use of
chemicals.
Knock-off: An inexpensive imitation of a costly fabric.
Lint cotton: Processed seed cotton for textile production.
Mummy Cloth: A general name for all African prints in Ghana.
Textiles- Products made from fibres, yarns and fabrics

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 Out-growers: Registered farmers who are given assistance to produce seed cotton for
the ginnery companies.

Organic cotton: A type of cotton that is produced purely by natural farm practises
and chemical free industrial process.
Productivity: the rate at which a company produces goods or services, in relation to
the amount of materials and number of employees needed
Seed cotton: raw cotton that has been harvested for ginning.
Spinning: the process of twisting together two or more fibres to form a long
continuous yarn.
Deminimize rule: A rule that permits textile article with 7% of fibres or yarns of its
total weight not wholly formed in US or the beneficiary Sub-Saharan African
country, to be eligible for AGOA.

1.9 Abbreviations
AGI-Association of Ghanaian Industries.
AGOA-Africa Growth and Opportunities Act.
APA-American Psychological Association
ATL-Akosombo Textiles Limited.
ATC-Agreement on Textiles and Clothing.
ATMI-American Textile Manufacturing Institute.
CEPS-Customs, Excise and Preventive Service.
EPROM: Erasable and Programmable Read Only Memory.
NABPTEX: National Board for Professional and Technical Examinations
RFO-Residual Fuel Oil
GTP-Ghana Textiles Printing.
GTMC-Ghana Textiles Manufacturing Company.
GIHOC-Ghana Industrial Holding Company.
GSP-Generalized System of Preference.
GATT-General Agreement on Tariffs and Trade.
GDP-Gross Domestic Product.
GM: Genetically modified.
HERAG: Home Economics Association of Ghana.
IMF-International Monetary Fund.
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 ISI-Import Substitution Industrialization.
JTL-Juapong Textiles Limited.
JIT-Just- In-Time
MFN-Most Favoured Nation.
MFA- Multi-fibre Agreement.
MOTI-Ministry of Trade and Industry.
OM-Operations Management
PSI-President’s Special Initiative.
RAGB: Ghana’s Revenue Agencies Governing Board
SARI-Savannah Agriculture Research Institute.
TGL-Texstyles Ghana Limited.
TQM-Total Quality Management
TRIPs-Trade Related Intellectual Property Rights.
TRIMs-Trade Related Investment Measures.
TTL-Tema Textile Limited.
VRA-Volta River Authority.
VSTL-Volta Star Textiles Limited.
WTO-World Trade Organisation.

1.10 Importance of the Study

The primary beneficiaries of this research are the large-scale textile industrialists in
Ghana. The results of the study can serve as reliable reference material for the textile
factories to take strategic and pragmatic decisions to ensure effectiveness and
sustainability of the textile industry and educational institutions in Ghana.
The research aims at invigorating the textile factories through implementation of its
recommendations. The invigoration of the factories is expected to bring expansion of the
production activities of the factories which will increase productivity for maximum
returns. The expansion in the scope of production may indirectly provide job
opportunities to textile graduates, chemical and mechanical engineering graduates as well
as business administrators from the country’s Universities and Polytechnics to ease the
unemployment situation in the country.
The research results can also serve as a body of knowledge, reference or
educational material for textiles students, lecturers and other researchers on the

8
challenges and prospects of the textile factories in order to direct their research activities
to solve pertinent problems confronting the textile industry.
The study can contribute to the socio-economic development of Ghana since it
addresses problems of the textile factories to revitalize them to perform effectively to
produce quality textiles to meet the textile needs of Ghanaians and also for export to earn
foreign exchange for the country.
The study aims at creating sustainable jobs for textile merchandisers or traders
whose work has subsided as a result of the decline of the textile factories and low
patronage of locally produced textiles. The research aims at sustainable development of
the textile factories. This will invariably provide jobs to textile distributors, wholesalers
and retailers of locally made textiles in Ghana.

1.11 Organisation of the rest of the text

Chapter two reviews literature related to the topic. It deals with; Development and
Technology in Textile Production, Production Theories, Operations Management, Factors
affecting Production and Sales of Textiles, The Significance of the Textile Industry,
Trade Policies on Textiles, The Development of the Local Textiles Factories in Ghana,
Government’s Policies on Ghanaian Textile Industry, Operations management,
Significance of the Ghana Textile Industry, the State of the Ghana Textile Industry and
Textiles Education in Ghana.
Chapter three which follows is the Methodology. It discusses the Research Design
consisting of the Research Methods, Data Collecting Instruments, Population for the
Study, Sampling Techniques, Data Collection Procedure, and Data Analysis Plan
Chapter four is the Presentation and Discussion of Findings. It addresses the
production and sales operations and internal and external challenges and prospects of the
selected factories. It also identifies and discusses measures already put in place to address
the challenges and the implications of the challenges for textiles education in Ghana.
Chapter five which concludes the text consists of the Summary, Conclusions and
Recommendations.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURE

Overview
The chapter reviews and discusses theoretical underpinnings and empirical data
relevant to the topic to establish a conceptual framework for the research. The core areas
of literature considered very relevant to the study and provides enough evidence for
analytical discussion to support the study are as follows:

a) Technology in Textile Production.

b) Production Theories.
c) Operations Management.
d) Factors affecting Production and Sales of Textiles.
e) The significance of Textiles in developed economies.
f) World Trade Policies on Textiles.
g) The development of Textiles in Ghana.
h) Government’s Policies on the local Textile Industry.
i) The significance of the Ghana Textile Industry.
j) Textile Education in Ghana

2.1 Technology in Textile Production

Technology is fast advancing and the textile industry is not an exception. The
textile industry is perhaps the oldest and the first to have gone through mechanization
throughout the world. Majory (1986) asserts that it has been the main pillar around which
industrialization in Europe and other countries evolved. The rationale for this may be due
to the fact that the textile industry addresses one of the basic necessities of man, clothing,
which is indispensable in life and of high demand and therefore industrialization of the
industry was in the right direction to develop other industries. Majory (1986) further
observes that since the 19th century industrial revolution, many developments have
occurred with the development of shuttleless looms of dynamic high production rates
which go beyond the power of the conventional shuttle looms. Further achievements in
the 21st century include the development of fibre variants and modifications, and new

10
methods of processing fibres into ultimate end-use products which have affected
finishing and colouring fabrics at the manufacturing level, behaviour in use and care at
the consumer level. In addition to mechanical improvements in yarn and fabric
manufacture, Majory (1986) states further that, there have been rapid advances in the
development of new fibres, processes to improve textile characteristics, and testing
methods allowing greater quality control and for this reason both industrialized and
developing countries now have modern installations capable for highly efficient fabric
production. Taylor (1999) adds that the rapidly evolving techniques of textile production,
together with developments in world of politics, economics and population, combine to
give an overall pattern of world consumption and usage of fibres that has changed
considerably since the introduction of manufactured fibres and continues to change. The
most important factors are the increase in world population and influence which are
raising both the total of world production of fibres, and also the per capita world
consumption.

It can be inferred from the assertions made by Majory and Taylor that, the
changes that have occurred in the production of textiles cut across fibre processing to
finishing providing the consumer with the opportunity to choose from a wider variety of
products for specific applications or needs. In order to remain in business, therefore,
requires installation of modern machinery to be efficient and competitive in production to
meet both the standards set and also the high demands for both clothing and industrial
textiles as the world’s population keeps rising. This, however, poses a challenge to
domestic textile manufacturing companies which still operate with obsolete technology
and machinery that result in low productivity.

2.1.1 The Changing Phase in Fibre Production

In the fibre industry, high performance fibres have been developed to serve the
need of wider consumers. With reference to Spandex World (2009), such fibres with
their competitive advantage, have brought dynamism in fibre utilization. This source
further explains that most natural fibres with their less competitive advantage in terms of
technical application are now being blended with high performance fibres to meet
specific end use, leading to the development of sophisticated fibre processing machinery.
Non-breathable fabrics are now made breathable, non - stretchable fabrics are made
stretchable, aesthetic and functional qualities of fibres are now improved through fibre
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blend technology. This suggests that fibre production is now essentially oriented towards
utilitarian purposes to address specific needs other than only aesthetic needs. For this
reason, blending of fibres to assume new inherent and physical properties for both
technical and fashionable applications has become the norm in the fibre production
sector.

Taylor (1999) establishes that the quest for newness, suitability, comfortability
and quality in textile and clothing applications by modern man has emanated in the
development of innovative or high performance fibres and fabrics have become the
fastest growing segments with exceptionally high demand in the global market. In the
light of this, for Ghanaian textile factories to remain in business, it will be imperative for
them to be in trend with modern textile technologies for the production of new products.
The unfortunate situation is that, as the modern society quests for the use of novelty
fibres, yarns and fabric to meet different purposes, production of textiles in Ghana only
focuses on the use of cotton as a chief raw material in producing plain weave fabrics
which have limited application.
Tortora and Merkel (2005) records that, since 1960 the textile industry had
entered an era of a “Melting Point of Fibres" and that the days of competition between
natural fibres and man-made fibres had come to an end. Although some fibre production
sectors still cling to the concept that some fibres should only be promoted in their pure
form. The New Encyclopaedia of Textiles declares that this perception is rapidly
decreasing adding that, it is now common to blend fibres to acquire fabrics with enhanced
or unique properties, which cannot be achieved easily with fabrics made from a single
fibre type. It also emphasises that, due to the wide range of fibre properties and
characteristics there are almost limitless opportunities for the creation of blends of
different type, composition and fabric structure. Moreover, with the advent of modern
synthetic fibre technology a form of blend has evolved which could be regarded as a
quasi-chemical blending whereby fibres are generated by extruding the liquor of two or
more polymers through a spinneret to form a novelty fibre of varied characteristics.
The assertions made by Spandex World (2009) and New Encyclopaedia of
Textiles (1980) justify the fact that blending has become a very significant practice in
modern fabric production addressing technological factors such as durability and
comfort, and providing an important economic function for the consumer. There is
therefore no doubt that, blending provides functional and aesthetic qualities to fabrics to

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serve dual purposes. For instance, Collier (1980) explains that a polyester cotton blend
can be versatile in terms of serviceability, as it most likely retains the coolness and
lightness of the cotton fibre coupled with the strength, durability and wrinkle-resistance
of polyester, whereas polyester cotton blend may only shrink slightly in comparison to a
garment or fabric that is 100% cotton. This blend is often preferred by home sewers and
quilters as it is extremely easy to work with.
To buttress this fact, Frings (2001) observes that, natural and man-made fibre
producers work together to research and develop fibre blends adding that, textile
engineers find the best properties of both man-made and natural fibres and combine them
in satisfactory proportions to maximize their best characteristics. For example, cotton
may be blended with polyester for easy care, with rayon for softness, or with spandex for
stretch. The aftermath of blending is the creation of new and interesting fabrics. In this
modern age of environmental, health and safety concerns, Frings stresses further that
many textile industries are making advances in the development of environmentally
friendly production with the most exciting development being the production of
biodegradable fibres made from renewable resources; however, the domestic textile
industries have shrunk drastically due to competition from low priced imports. He
attributed the decline of the domestic textile industry to the high cost involved in eco-
friendly textile production which had made some textile producers, especially those from
the less developed countries to kick against the advocacy for environmental friendly
production.
It must be noted that, Frings, was writing with the American Apparel and Textile
Industry in focus and noted that, eco-friendly textile production is capital intensive. Even
America, one of the world’s economic giants suffers the challenge of practicing eco-
friendly textile production; how much more the less developed countries with agrarian
state of economy? Arguably, the less developed economies can hardly engage fully in
the production of eco-friendly textile production as this will require complete installation
of modern systems, training and hiring of high technical experts, development of strong
raw material base and infrastructural development, among others. Frings attests that, the
move for American and European textile companies to maintain health, safety and clean
air and water is astronomical. He therefore argues that it is very difficult for
environmentally responsible producers to compete with the low prices from mills in Asia
where producers do not pay to clean up their environment. In view of this, American and
European textile manufacturers want to require imported textile products to be under the
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same environmental, health and safety standards to ensure fair competition as well as
clean environment throughout the world.
The question therefore is whether the domestic textile firms in the developing
countries will be able to meet such standards to be able to compete fairly as it may be
extremely difficult financially for a country such as Ghana to go into such production
despite its environmental and health benefits.
Aside environmentally friendly production, advances in technology in man-made
fibre production have paved way for researchers to look for newer methods for growing
and processing of some important natural fibres like cotton. New standards are being set
for the growing of cotton, processing, printing and dyeing of natural cotton fabrics. New
strains of cotton are being developed that are insect and water resistant, and require little
or no chemical application such as insecticides or fertilizers. Reference of such
developments could be made to Genetically Modified (GM) and Organic cotton
production technologies.
GM cotton was developed primarily to reduce heavy reliance on pesticides
thereby reducing cost of production. In the GM technology, the bacterium Bacillus
thuringiensis (Bt) naturally produces a chemical substance which is harmful to some
insects such as butterflies, beetles, flies, moths, etc., which attack cotton and therefore
reduces pesticide control. A 2009 study by Chinese Academy of Sciences conclude that
GM cotton effectively control bollworm; and reduced insecticide is required to control
secondary pests mostly miridae (plant bugs) due to the use of Bt. Statistics of worldwide
production of GM projected by the International Service for the Acquisition of Agri-
biotech Applications (ISAAA) indicate the production of 16 million hectares land of GM
in 2009. This represents 49% of the total cotton planted in that year worldwide. A notable
reference can be made to China and US whose total GM production reached 68% in 2009
and 93% in 2010 respectively (Dip, 2011).
From the report by Dip, it is certain that the limited use of pesticides in GM
technology in cotton production has led to an increasing rate of its production with total
plantation of 16 million hectares of land accounting for 49% of total global cotton
plantation in 2009 making it popular in recent times. Cotton production countries have
moved into GM technology to such an extent that even giant economies like US and
China have toed this line with the aim of reducing cost of production as the report
indicated. The GM cotton technology therefore set a good platform for under developed
countries that are into production of cotton textiles to reduce production costs and to
14
maximize profit. The Ghana textile industry, for instance, which depends solely on
cotton, can expediently employ the GM technology to reduce cost of production
considerably.
That notwithstanding, organic cotton farmers are striving for chemical-free
cotton fibres due to the numerous adverse effects associated with inorganic cotton. A
number of factors account for the advocacy for the organic cotton production. These
include reduction of premature death and suffering associated with pesticide control. This
is in line with World Health Organization (WHO) report that indicates that pesticide
poisoning kills 20,000 to 40,000 people annually and three million suffer from pesticide
related diseases. Organic cotton production, however, reduces health risks in cancer and
skin irritation, preserves water bodies, reduces air pollution, preserves nature’s insect
predators, protect fisheries, and builds healthy soil for safe food (Organic Cotton, 2011).
This chemical-free concept of cotton production, from the researcher’s point of
view, is the best option for the Ghana Textile Industry as it lacks sophisticated and high
speed systems to compete fairly with the offshore counterparts in the mass market. Going
into high quality and highly priced organic cotton production to serve a specific niche
market globally will be one of the surest ways of revitalizing the industry. Frings (2001)
affirms and note that some manufacturers are committed to using only organic cotton in
their clothing. He adds that a technology to reclaim cotton waste has been developed to
convert it into yarn for reweaving in the denim industry. Efforts are being made by some
industrialist to reclaim other scraps for reproduction. Various textile companies in the
world are working toward the development of non-toxic pesticides, environmentally
friendly alternatives to PVA and finishing detergents; citric-acid cleaners to replace
phosphate and chlorine, natural oils to supplant petroleum lubricants, fibre reactive dyes
to decrease water use and chemical waste; resins to replace formaldehyde and enzymes to
replace acid washes.
From the researcher’s point of view, all these are toward best practices for health
and ecological safety purposes in the global textile industry. It is therefore very prudent
for domestic textile industries to develop strategies to change gradually into eco-friendly
production as there is strong global advocacy for industries to go into “green production”.

2.1.2 Technology in Fabric Manufacture

Weaving has been the major traditional method of fabric production. Writing on
recent developments in the weaving industry, Collier (1980) reports that, in the past a lot
15
of time and effort was devoted to improve the conventional loom rather than developing
radically new forms of machinery, and production was labour intensive. She, however,
asserts that the situation had changed in recent years due to the increasing amount of
competition in the market, plus influence of labour shortages, high wages and increased
cost. She adds that vast sums of money are now invested in machinery with incentives for
research and experimentation to develop new machinery, aimed at automation and
increased production speeds, vis-a-vis reduction of the number of operatives required.
Taylor (1999 establish that the weaving industry had gone through tremendous
developments with unprecedented innovations. The conventional power looms operate on
crank shaft and cam shedding mechanisms with limited design capabilities. Latter
development of shedding mechanisms focused on dobby and jacquard systems that
allowed the possibility of creating complex weave structures. With regard to picking
mechanisms, the traditional method of weft insertion that employs the shuttle has almost
been replaced by other methods that are based on the principle of shuttleless loom
mechanism. This is due to the slow production rate of the shuttle loom. Projectile, rapier,
air-jet and water jet looms have become extensively operational with their exceptionally
high rate of production. The modus operandi of the shuttleless looms could be
distinguished. With the projectile loom, the yarn is unwound and is presented to the weft
insertion device. This device is a projectile and is propelled through the shed carrying the
weft yarn along to lay it across the shed. The projectile receives energy via a torsion bar
in which strain energy has been stored prior to the picking operation. The rapier loom on
the other hand works on the Dewas principle where a “giver” receives the yarn from the
“carrier” to the centre of the loom to be presented to a “taker” which completes the
picking process. With the air-jet looms the yarn travels through the shed via a nozzle and
auxiliary jets (relay nozzles). The water-jet looms employ a jet of water for weft
insertion. The water jet is obtained by pressing water through a nozzle which converts the
pressure energy into speed energy to carry the weft across the shed.
Taylor (1999 explain further that these looms work on single phase mechanism
adding that there are multi-phase looms in which the weft yarn is first wound on carriers
with appropriate length and made to move intermittently through the shed. The shafts,
together with the reed, open and close at each passage of a carrier resulting in
wavy movements. The multi-phase looms did not receive much development due to their
associated problems such as limited weave possibilities, deviating weft yarns, difficult
reparation of weft breakages, and selvedge formation problems.
16
 Modern looms are equipped with microprocessors for efficient operation. Collier
(1980) writes that the development of the microprocessor aims at bi-directional
communication, that is, retrieval of production figures as well as setting of looms from
the central computer. The microprocessor has several functions which include fault
indication (i.e. weft stops, warp stops, stops for preventive maintenance), recording of
production rates (i.e. output, number and types of stops, produced cloth length), control
of weft insertion systems in the case of looms with multi-coloured weft, controlling the
electronic shaft machine, control of the engine for unwinding the warp beam, and setting
of the looms by means of an EPROM (Erasable and Programmable Read Only Memory).

From the above discussions, it is evident that, technological advancement has

given way to automation of reparation of weft and warp breakages, replacement of warp
beam and cloth roller, and feeding of supply package. These, among others, have
increased production rates, enhanced fabric quality, reduced labour and production costs,
and created variety, in the weaving industry. Moreover, a lot of investments and research
developments have taken place in the global weaving industry towards automation of
machinery. The challenge, therefore, for the domestic weaving industry is whether they
have the requisite capacity in terms of capital and technical expertise to move in this
direction to sustain the industry.

2.2 Theories of Production

With reference to Production Theory Basics (2009), production is defined as an
economic process of converting inputs into outputs by utilizing resources to create goods
or services that are suitable for exchange. Some economists, according to this source,
have defined production broadly as all economic activities other than consumption and
see every commercial activity other than the final purchase as some form of production.
Production is a process, and as such it occurs through time and space and because it is a
flow concept, it is measured as a rate of output per period of time. A production process
therefore refers to any activity that increases the similarity between the pattern of demand
for goods and services, and the quantity, form, shape, size, length and distribution of
these goods and services available to the market place. There are three aspects of
production processes; the quantity of the good or service produced, the form of the good
or service created, the temporal and spatial distribution of the good or service produced.

17
 Ali (2009) adds that inputs or resources used in the production process are called
factors of production by economists. The myriad of possible inputs are usually grouped
into six categories which are; raw materials, machinery, labour services, capital goods,
land, and entrepreneur.
Early Theories of Production (2010) explains that, knowledge of what is permanent
and normal in industrial production is what is termed as theory of production adding that,
traditionally, this knowledge has been accumulated in tacit form in the professional skill
of industrial managers and artisans, but today more and more of it is being documented in
writing by researchers.

Fig 2.1: Theory of production

Source: Early Theories of Production (2010)

Most studies of production, according to the Early Theories of Production, use

either one of the two alternative approaches, that is, they have either descriptive or
normative purpose, as can be seen in Fig. 2.1. It further explains that, the two resulting
theory paradigms differ quite much from each other even when the object of study is the
same. Descriptive theory contains knowledge about past or present production but does
not help in modifying it to correspond better to latest requirements. Normative theory of
production on the other hand contains generally applicable knowledge and tools that can
be used in the management of production, especially for optimizing existing production
and planning new production.
From the two distinctive theories of production, it can be deduced that while the
descriptive theory focuses on historical and academic studies, the normative theory is
18
pragmatically centred and therefore suitable for industries concerned with the production
of tangible products as in textile production to optimize productivity and develop
competitive products to meet current needs. Besides the conventional theories, there are
currently a number of theories of production that have emerged with the goal of the
manufacturer in focus which have been discussed in the following sections.

2.2.1 Technology of Production

Parkin et al. (1999) assert that almost all products today are made with special
machinery, and each of these machines operates on the basis of a specific technology, i.e.
specific productive operation. An overview of the various technologies related to a given
type of products usually follows the typical process of manufacture. For example,
clothing and Textiles technology consist of; the technology of fibres (i.e. the methods of
collecting and cleaning natural fibres, extruding synthetic fibres, finishing fibres with the
methods of mercerizing, easy-care or anti-shrink, and of blending fibres), the technology
of yarns which involves spinning, assembling filament yarns, folding, cabling, and the
fabrication of fancy or textured yarns), the technology of textile construction, such as
weaving, knitting, braiding, stitch bonding, laminating, or nonwoven techniques, the
technology of textile finishing i.e. dyeing, printing, and mechanical finishing such as
raising, pleating or shrinking, the technology of cutting inclusive of pattern construction,
grading and lay planning, the technology of sewing with special machines for lockstitch,
chain stitch, blind stitch, flat seam, buttonholes etc., and the technology of pressing and
fusing.
Elaborating on the technological theory that exists for each productive operation,
Perkin et al opine further that, it involves data that define the role of the operation in the
total production process. These data deal with all the capacities of the machines, their
reliability, ease of use and other aspects of usability, and the emission of chemicals.
Besides, it provides detailed instructions on the use of the machinery, written mostly by
the constructors of these machines and complemented by studies of occupational safety
or methods of engineering carried out by the makers of the machinery or by the company
that is using them.
From the list of processes involved in the Clothing and Textiles technology as
enumerated by Perkin et al, it is evident that the textile industry cannot operate without
machinery as each level of production line requires specific set of machinery for better

19
output. This necessitates in-depth knowledge of how the systems work at each stage of
production.

2.2.2 Economy of Production

The economic study of production aims at finding an optimum between benefits
and expenditures of manufacture (Friedman, 2007). Friedman further establishes that, for
finding an optimum, several statistics are used, such as productivity and profitability and
most elements of production are measured as monetary variables which make it possible
to construct an economical image or projection of the manufacturing process. Instruments
of economic management include budgeting the incomes and expenditures of production,
setting objectives for the productivity of the most important operations; follow-up,
measurement and reporting of all of these; and comparing the reported statistics to the
agreed objectives. Friedman further stipulates that productivity standards are a handy
instrument when setting targets and defines the productivity of normal good pace of
work, measured as work hours per manufactured unit, under various circumstances.
These standards can then be used in work planning and possibly for defining work
incentives or wages for work contracts.
These projections made by Friedman clearly show that to obtain optimum economy
of scale in production, productivity must be equated with profitability where wages are
established by work done per hour which means that the more work done per hour, the
better the remuneration. This form of establishing wages, from the researcher’s point of
view, can foster high productivity to maximize profit in the industries operating in less
developed countries such as Ghana where workers will want do extra hours to earn more
compared to the fixed monthly salary structure which put workers of the same level at the
same salary point irrespective of the quantum of work done by each worker within the
month. The labour intensive nature of the technology of the domestic textile industry
therefore requires hourly rate concept for fair wages.

2.2.3 Quality Systems

Many large industries today (Theories of Production, 2010) have a quality system;
a special arrangement for the task of defining and steering the quality of production
which usually consists of a document on the policy of quality as approved by the
management, a quality handbook (or the equivalent on a network), a certificate of the
quality system, issued by an official body, quality objectives for each product, quality
20
control involving routines to guarantee the right quality of the products, and quality
inspection and corrective actions.
Most countries have a system of official certification of companies where a
standardized quality system is operative and regardless of what the company says in
advertisements, the target of quality in practice is seldom set at highest possible, because
attaining it in every finished product would perhaps cost too much. Instead, the company
often wishes to define an optimal level of quality and marks out how it shall be obtained
in production. These are defined by researchers, and the management of the company
then approves the targets for production. A much less complicated method for improving
the quality of production is the quality circle, a Japanese method in which each ordinary
work team at a plant discusses, perhaps weekly, the possibilities of improving the quality
of the products and of minimizing the errors and losses in production (Theories of
Production, 2010).
This suggests that for a company’s product to reach optimal quality level
necessitates developing and implementation of a well defined standardized quality system
through a collaborative effort of both the company’s research team and management.
Most domestic textile firms have quality control measures. But as the text reveals, proper
quality system goes beyond quality control to include attainment of quality system
certificate from an official body, and full policy document on quality system, among
others. Hence, if a local textile industry obtains certification from an internationally
accredited official body its products will be projected and made competitive in the
international market.

2.2.4 Timing of Production

The goal in time scheduling of manufacture (Theories of Production, 2010) is to
integrate all the tasks in the chain of production so that no unnecessary waiting occurs
and each task is given enough time, adding that methods of scheduling include the
standards of productivity and task programming techniques and the critical path method.
Explicit scheduling is indispensable especially in the case that the product consists of
several parts that have to be made in different places. Besides, in many fields of
production the company gets an advantage over competitors if it can deliver the product
quickly.
This can be related to the domestic textile factories as they operate on horizontally
integrated system where production is discontinuous with the processing of fibre, yarn
21
production, fabric manufacture, printing and finishing, taking place in different places
and therefore explicit scheduling becomes indispensable. This is to minimize time
wasting which occurs as a result of movement of material from one section, factory or
region to another for the next process to be carried out. Amidst competitive market, it can
asserted that, quick delivery or meeting deadlines should be one of the common goals or
priorities of the local textile factories to attain a competitive edge over other companies
producing the same products. This goal, with reference to Theories of Production, can be
achieved by concurrent engineering, i.e. overlapping some phases of the production as
shown in Fig. 2.2.

Fig 2.2: Gantt Chart showing Timing of Production

Source: Theories of Production (2010)

2.2.5 Logistics of Production

The sales point of the product usually differs from the place of obtaining the raw
material meaning that production entails much transportation of raw material and
products in various stages of completion. Besides, storage is another type of secondary
activity that brings about costs (Theories of Production, 2010). This source elaborates
that, most products are made in several stages which are carried out in different places
with various machines, and thus cannot be avoided to have some buffer storage between
the different phases of production. Moreover, it can be invaluable when a machine must
temporarily be halted and conclude that the science of logistics can help in planning the
production process to avoid unnecessary cost of transportation and storage.
The issues regarding storage and transportation of raw materials and products vis-
a-vis long down-times of machinery in the various stages of production cannot be
overlooked in textile production with special reference to the local textile industry as
these abysmally increase cost of production. With the obsolete nature of technology

22
prevailing in the local textile industry, it can be agreed that proper logistics in planning of
the production process can help avoid unnecessary costs of transportation and storage.

2.2.6 Ecology of Production

Ecology of production (Theories of Production, 2010) deals with the flow of
materials that result from making, usage and also discarding various products and
develops methods for minimizing the negative effects to the environment, such as the use
of materials, pollution and production of waste. In manufacture, there are many
possibilities to diminish the use of raw materials and toxic processes; but in doing so, the
environmental effects during the product’s use and final discarding are very crucial, as
can be seen in Fig. 2.3.

Fig. 2.3: Ecology of Production

Source: Theories of Production (2010).

2.2.7 Occupational Safety and Health

In the study of ergonomics or human factors of engineering the following straining
and risk factors of work (Theories of Production, 2010) are outlined; mechanical dangers
such as sharp and mobile parts of machines and products, physical factors like heat,
electricity, noise and shaking, chemical factors including the risk of fires, biological
hazards, for example bacteria, physiological hazards like lifting heavy objects and
psychological factors, for example, loneliness and monotony of work, or, on the other
hand, excessive noise.
The theory of occupational health and safety includes allowable limits for all the
above-mentioned factors, as well as the methods for measuring them and their harmful
effects. All industrial plants in developed countries are subject to periodical control of

23
those factors (Theories of Production, 2010). Production of locally made textiles
associate itself with all of the safety and health hazards outlined and for that matter
management’s effort to ensure safety and health conditions of workers is of paramount
importance. The researcher considers these factors very essential in textile production as
assurance of workers’ safety and good health reduce frequent accidents in the plant for
maximum productivity.

2.2.8 Motivation and Psychology of Work

Many of the targets of production that have been enumerated in the previous
sections, are normally set by the management without discussing them with either the
employees or their delegates such as shop stewards. The result often is that many
employees fail to understand why a target which can be arduous to achieve is important
for the company; their motivation to work diminish, and they perhaps consider leaving
their jobs (Theories of Production, 2010). Lately several researchers have tried to find out
what topics really are important for the employees adding that human motivation factors
fall into two groups: "dissatisfies", and "satisfiers". These are not simply opposites, but
rather like sensations in the same way as pain and pleasure. The strongest satisfying
factors, or motivators, all had to do directly with the person's particular job: results,
achievements; recognition, work itself, work as an interesting activity, responsibility and
advancement. Potentially negative factors in motivation are: company policy and
administration, supervision, pay, interpersonal relations, and working conditions. The
manager should see to it that these do not annoy the worker, but even when they are
arranged ideally they alone cannot motivate the worker. That is why they are not referred
to as "motivators" but maintenance factors or hygiene factors. Research of motivation or
human factors of work has continued till today, and on the basis of its findings many
improvements have been made in the conditions of work. Nevertheless, the satisfaction of
employees has not generally increased. The reason perhaps is that the expectations of
employees have ascended simultaneously.
Deducing from the above theory of motivation and psychology of work, it can be
established that job satisfaction of workers is key to successful production activity of any
industry. Management, in consultation with workers, must provide better working
conditions with respect to policy making, administration, supervision, remuneration and
interpersonal relationship to motivate the workers to perform as expected. With respect to
the Ghana textile industry, the laborious nature of the technology in place from fibre
24
processing stage to finishing seriously allow workers to deserve better conditions of
work.

2.2.9 Theory of Autonomous Groups

Many people today, with reference to Theories of Production (2010), have great
confidence in science, and when encountering a problem they often think that the best
method is starting a project and hiring a competent researcher. However, there is still an
alternative method, albeit ancient, where the existing team itself takes care of its working
methods and updates them so that problems never spring up or, when they do, they are
taken care of and removed. This source further establishes that, such an autonomous team
itself detects the sprouting problem, works out a remedy for it and modifies accordingly
the working routines of the team. Often cited advantages of autonomous activity
(Theories of Production, 2010) are; 1) Procedures of work that have been developed by
the team itself are often better than those developed by outsiders, because it is the
members of the group that know the problem and its alternative solutions the best. The
risk of omitting important viewpoints diminishes. 2) People today expect to have a right
to deal with their own problems. When methods of work have to be modified, those
changes found by the group itself will be accepted easily; the group will be willing to
work for something on their own, and commit themselves to it. 3) All the participants
will profit in the form of mental growth. In the future, the group will also be able to
recognize problems and deal with them on their own.
From the above view points, it is palpable that the theory and practice of
autonomous groups focus on team work of existing staff. It therefore requires regular
joint discussions to give every member of the team the opportunity to understand the
collective purpose of the work or the target set by the company. This will in turn build the
confidence of workers with the desire and willingness to work to identify and rectify
problems as well as modifying or updating the production activity when needed to
achieve better results. Although, textile production is highly technical and may
sometimes compel management to rely on the expertise or resource persons outside the
company or the country, such may be too expensive for the domestic textile industry to
practise. As the production line of the Ghanaian textile factories is segmented into series
of sections and department with staff of peculiar skills, the theory of autonomous groups
will be the best option to ensure cost effective and less problematic production.

25
2.3. Operations Management
Operations according to Schonberger and Knod (1997), is where the
organisation’s goods and services are produced and provided. In a more specific view, it
is where most people work and the company spends most of its budget. It is one of the
essential functions of any organisation which needs careful management. Schonberger
and Knod explain that, there is little consistency in how operations are managed due to
the complexity nature of it which involve people with all levels of skills and knowledge,
assorted equipment, material and tools, all kinds of buildings and work areas as well as
product and process knowledge in people’s heads. Operations managers must watch over
all of these with customer satisfaction and cost in mind.
Operations management (OM) can be seen as function that transforms inputs such
as people, capital, energy, materials and technology into outputs, i.e. goods and services
(Fig. 2.4). In this regard, inputs, transformation, and output define operations
management. Operations management is indispensable in all organisations with its basic
three responsibilities involving taking care of money, design and demand. Schonberger
and Knod establish that whether the organisation is private or public, manufacturing or
service, these functions are portrayed and represented as departments of finance, research
and development, marketing, and operations, or may alternatively be designated as
accounting, design, sales and production. To take care of customers effectively, all the
departments must function together like players on a well-trained sport team. The
departments cannot stand alone. Even though in theory the departments are treated
separately, in application they overlap to link in complicated ways but when they do not,
the organisation falters and services its customers poorly.

26
 Inputs

Goods

People

Capital

Transformation
Processes
Energy
Services

Materials

Technology

Market and
Environmental
Forces
Fig. 2.4: Operations management function
Source: Schonberger and Knod (1997)

2.3.1. Customer satisfaction

Customers energize the operations function like electricity does to light bulb. A
customer arrives at a bank, hardware store, hears a greeting “May I help you”, conveys a
want or need and has it fulfilled. That, according to Schonberger and Knod should be the
case. Too often, however, the current customer needs and wants never get to the light
bulb or do so too slowly. Both external and internal customers have many of the same
general demands which include quality, speed, and flexible response. The quest for speed
and flexibility is central to “Just-in-Time” (JIT) processing which is a system of
managing operations with little or no delay time or idle inventories between one process
and the next, or Time-Based Competition which became a movement of its own, roughly
in parallel with Total Quality Management (TQM).
27
 A major empirical research (Flynn, Sakakibara and Schroeder, 1995) supports the
hypothesis that JIT and TQM are mutually reinforcing emphasizing that in its broad
concept, JIT aims mostly at reducing cycle times, improving quality, flexibility and
various costs. In these pursuits, JIT concept employs cross-trained employees,
organisation of resources into self-contained “work cells”, reduced inventories precisely
positioned and labelled, quick change over equipment, high level of maintenance and
housekeeping, close partnerships with suppliers and customers, schedules closely
synchronized to demand, simplified product designs and high level of quality. This is in
line with the three unifying forces; quality, the customer and team work which are
centrepiece of TQM as exemplified by Schonberger and Knod (1997). Schonberger and
Knod continue that it is imperative that the supplier’s view of requirement called
specification be matched as closely as possible to the customer’s actual needs. Close
partnerships with customers help to create good specifications and increase the suppliers’
ability to satisfy users. Regardless of the type of business, internal and external customers
generally have six basic requirements: high levels of quality, high degree of flexibility,
higher levels of service, low cost, quick response and little or no variability; which
exhibit consistency. These requirements are part of the production of a well-conceived
operations management system. These need not be priority ordered but must be tackled in
accordance with the situation at hand. If competitors are beating the company on speed,
then quick response becomes high priority objective (Schonberger & Knod, 1997).

2.3.2. Competitiveness
A competitor is a firm vying with another for sales and customers as well as for
employees, permits, funding, and supplier loyalty. In this sense pleasing customers
becomes the most basic level of operations management that gains its allegiance and
brings revenue. This, according to Schonberger & Knod, could even drive competitors
out of the market or production line. These scenarios presume, of course, that sales and
marketing and other functions are also doing their part. Customer satisfaction builds
competitiveness which is judged by rate of productivity improvement. Productivity is
measured by the value of goods produced divided by number of hours worked. This
suggests that the demand or the rate of patronage of a company’s product within specific
working hours determines the company’s production rate. The more satisfying customers
are, the higher the demand and production rate of the company to remain in competition

28
or override its competitors; hence, the customer becomes the driving force of
productivity.
Another factor that helps companies to remain competitive (Pall, 1987;
Schonberger and Knod, 1997) is the value chain which is a complex mixture of product
quality and usefulness at low cost. This is seen as an eye of a customer which accounts
for value addition where an item goes through multiple transformation and waste
elimination. Pall (1987) adds that market-route benefit begins when improved quality
increases the product’s value in eyes of customers. The provider may raise prices or by
holding prices steadily realize a gain in market share; revenue increases in either case.
Cost-route benefits accrue because increased defect-free output cuts operating costs per
unit and lower cost enhances profits as exhibited in Fig. 2.5.

Market- route benefits Higher

Improved prices Increased
Competitive revenue
Continual position Increased
quality market Increased
improvement share profit
Increased
defect-free Reduced
output cost of
Cost-route benefits operation

Fig. 2.5: Market-route and cost-route benefits

Schonberger and Knod (1997) assert that, critical to the success of operations
management are; dedication to customers both internal and external, response to six
general targets for servicing customers (i.e. high quality, felicity, service, low cost, quick
response and minimal variability), competitiveness measures that are relevant globally as
well as at the level of operations (i.e. indexes of customer satisfaction, trend in inventory
turnover, and value-chain analysis) and considering all employees as contributor to
operations management.
It is obvious that all the critical areas of operations management are geared
towards customer satisfaction and must be strictly adhered to by the every company for
effective management operation.

29
2.3.3. Operation Strategies
Customers and competitors (Schonberger & Knod, 1997) affect operations
management in many ways as in the location of the plant in order to go after competitors
and customers, using better quality as a strategy for gaining market share at competitors’
expense, cutting costly waste in operations which allows lowered prices to customers
thereby putting pressure on competitors, and gaining customer allegiance by including
customers on product development team. Schonberger & Knod establishes further that,
Japan’s emergence as an industrial power- house was propelled by its dominant
competitive advantage strategy with the focus on quality which became a critical new
business strategy for larger number of firms in the 1980’s. This evidently shows that, for
a company to be competitive, quality must be the priority. Quality according to Garvin
(1988) has eight distinctive dimensions. These are; performance (priming operating
characteristics), feature (little extras), reliability (probability of successful operation
within a given time span), conformance (meeting pre-established standards), durability
(length of usefulness, economically and technically), serviceability (speed, courtesy,
competence, and ease of repair), aesthetic (pleasing to the senses), and perceived quality
(indirect evaluations of quality).
To recognize quality, benchmarking is one of the surest techniques to build a
competitive edge. This involves systematic search for best practices from whatever
source to be used in improving a company’s own process. The process first involves
planning and organisation, followed by identifying key processes, form team and
understands their own process, collects information on who’s is best, what to ask,
establishes relationship and plans to collect and shares information, conducts surveys,
visits site and determine any third party, and finally compares data, plans to surpass,
implements and monitors to improve (Schonberger & Knod, 1997).
Stalk (1988) rates time as the next source of competitive advantage strategy. He
stresses that, as a strategic weapon, time is equivalent to money, productivity, quality,
and even innovation with justification that management’s delay-free response draws
customers, exposes causes of bad quality, and avoids complex costly controls. Stalk
further cites globalization or multinational expansion as the third operations strategy as
political and trade barriers fall and massive new market opens. Next is teaming up or
partnering internationally and externally which facilitate fast-paced improvement in
quality and customer response. Stalk cites flexibility and agility as quality and time-based
competitive strategy involving quick and flexible response from agile organisation.
30
 Effective management of the three elements of operation strategy (i.e., inputs,
transformation and output) leads to the development of distinctive competency by the
company which help fend off competition. Two major strategies emerge; thus, takeover
verses investment-otherwise known as “we win you lose” and “win win” strategies. The
former deals with taking over a weak business with other people’s money and making it
strong by mass shutdowns and layoffs of its weakest elements. This has raised ethical
questions in recent times. The latter, however, invests not just money but also training
and helping in implementation of customer-centred quality, efficiency, and continuous
improvement (Schonberger & Knod, 1997).
Vigorous international competition has generated a lot of newer concepts and
methods which are best captured as continuous improvement. To be strategically
effective, continuous improvement must account for the needs of customers and
competencies of competitors and must build on the organisation’s internal capacities and
capabilities. However, if continuous improvement is confined to ranks of management
and technical experts, it is a weak strategy. It must therefore be woven into the fabric of
everyday work of all employees (Schonberger & Knod, 1997).

2.3.4 Strategies for maintaining customer loyalty

According to Fornell (1992), both market share and customer satisfaction lead to
profitability but it is not certain that market share and customer satisfaction have a
positive connection. Fornell further states that loyal customers are not necessarily
satisfied customers, but satisfied customers tend to be loyal customers. Companies’
relationship to their customers can be divided into two separate business strategies;
offensive and defensive. The offensive strategy deals with attracting new customers and
the defensive focuses on keeping already existing customers, as shown in Fig. 2.6.

31
 Business Strategies

Offensive Defensive
(New Customers) (Present Customers)

Increase Capture Build increase

Market Share Market Share Switching Customer
Barries Satisfaction

Figure 2.6: Offensive and Defensive Strategies

(Source: Adapted from Fornell, 1992)

Traditionally, companies have devoted more resources to acquiring new customers

but today most companies apply a combination of both offensive and defensive
strategies. The objective of the defensive strategy is to minimize customer switching and
maximize customer retention by protecting the brand and its market from competitors and
by having highly satisfied customers. Customer satisfaction on the other hand makes it
costly for the competitors to entice the companies’ customers. A measurement for
successful customer satisfaction is high customer retention leading to loyal customers.
Benefits of high customer satisfaction are increased profits and that customer satisfaction
can generate a favourable word of mouth (Fornell, 1992).
Inferring from Fornell’s assertions on offensive and defensive strategies, it can be
concluded that customers need to be well treated, satisfied for their needs so as to help
boost customer retention and to prevent brand and company switching. Again, companies
must provide what is needed by the customers and are commercially viable, but on time
also.

2.3 Factors Affecting Production and Sales of Textiles

Generally, the production of textiles worldwide is driven by certain key factors.
With reference to Majory (1986), major factors that determine the success or decline of
textile production are; impact of fashion, conservation of energy and raw materials,
environmental factors, economic factors, and aesthetic concerns.

32
2.4.1 Impact of Fashion

Fashion determines, for many consumers, what is bought, when is bought, and how
frequently it is replaced. Further, the dictates of fashion often determine whether
durability is important, what type of care will meet consumer needs and how frequently
items will be discarded and replaced (Majory, 1986). These factors, from the point of
view of the researcher, directly or indirectly influence the production and sales of textiles
to a greater extent as the dynamisms in fashion determine the demand for specific type of
textiles for specific purposes. From this perspective, it will not be out of place to state
that the textile industry is obliged to consider the fashion trends in order to produce to
satisfy the demand of the fashion that is in vogue at a particular period of time. This is
very paramount in the sense that failure to do so will lead to low patronage which will
eventually affect the smooth running of the industry.

2.4.2 Conservation of Energy and Raw Materials

Majory (1986) posits that, conservation of energy and raw materials is the great
concern for future production and care of textile products adding that, in this era where
the need to conserve energy is of great importance, manufacturers must search for
production methods that use a minimum amount of energy. He further elaborates that
petroleum has been and is still the main source for the production of non-cellulosic fibres.
However, with a limited supply of petroleum and with the need to reduce it importation,
there may be the need to return to greater production of natural fibres. This could result in
concomitant reduction in production of petroleum-based fibres. The same holds true for
wet processing of textiles and the development of technology that reduces the use of
energy.

This implies that there is the need to decrease energy for higher income, a trend
that is gaining great importance in the textile industry. In pursuit towards conservation of
energy and natural resources, one problem becomes obvious regarding production of
natural fibres where acquisition of land becomes a challenging factor. Majory observes
that, with the increase in population, more land is taken over for commercial and
residential use and as population expands to the rural areas, there is limited available land
for agriculture use. This situation is however not a problem to the Ghana textile industry
as there is vast land available for cotton production.

33
2.4.3 Environmental Factors

Dangers in environmental pollution such as noise, air and water do affect textile
production. Majory (1986) has it that, the damage from noise pollution has long been a
problem in the textile industry, particularly in fabric manufacture with specific reference
to the weaving rooms which have been notorious for high sound vibrations with adverse
effect on the hearing of workers. This has been reduced to the barest minimum by the use
of alternative methods of picking requiring the use of water or air on modern looms.
Employees are also provided with ear protective devices to protect their ears in noise
prone areas within the factories, considering its hazardous effects. Air and water
pollution has also received much concern by the textile industry. Majory attests that
attempts have been made by manufacturers to install costly water–purification equipment
to reduce water pollution and this affects the cost of production. The manufacturers have
turned to alternative use of solvents and foam technology for reduction of water pollution
in recent times which requires less energy consumption for effective textile production.
Air pollution through the exhaust of fumes and smoke has in the past, been responsible
for a variety of illness among employees. Cleaning and filtering air to reduce or eliminate
this interior pollution has become a necessity for all plants today, owing to demands of
government agencies and employees.

Frings (2001) confirms that the demand for more environmentally friendly
products has generated new awareness and ingenuity at each level of the textile industry.
He states further that, the American Textile Manufacturers Institute has established an
Encouraging Environmental Excellence (E3) programme to urge producers to protect the
environment. This includes environmental targets and audits to encourage recycling and
environmentally efficient manufacturing and finishing processes. As a result, many
textile firms now budget and plan for environmental improvements. These pose a great
challenge to today’s textile industry worldwide with the vulnerable domestic textile
factories greatly affected.

2.4.4 Economic Factors

Statistical data on consumption of world’s fibres indicate a considerable increase

of man-made fibres with a drastic reduction in the use of natural fibres. Majory (1986)
notes that production of textile fibres has generally increased over the past decades and

34
particular increases have occurred in the production of man-made fibres. The reason for
the increase in man-made fibres in world consumption of textiles is because man-made
fibres provide longer yardage at less weight, have a wider application including home
furnishing and domestics, transportation and for business and industry as well as apparel,
making them economically viable for textile production compared to natural fibres. An
increase in the production and consumption of textile fibres is due to a combination of
factors; i.e. the increase in population and increase in consumption of textiles.
It is apparent that man-made fibres have over years, gained competitive advantage
over natural fibres considering their wider scope of application and versatility in the
clothing or apparel market and their industrial or technical applications. This has led to
significant increase of man-made fibres in the world of textiles. In light of this most
textile nations have redirected their focus to the production of man-made fibres but
Ghana still sticks to the production of cotton based textiles that find application mostly in
the tropical regions; hence, making them less competitive and economically viable
globally.

2.4.5 Aesthetic Concerns

The aesthetic value of textiles is one of the major factors that attract most textile
consumers in making their choices. It is, in fact, the first determining factor coupled with
utilitarian purpose that stimulates consumers to consider whether or not to select a
particular fabric for specific occasion or purpose. Majory (1986) is of the view that the
strong desire for attractive clothing and surroundings results in constant search for new
and different fashion fabrics and yarn structure as well as finishes and methods of colour
application. He explains further that consumers want fabrics that are not only attractive
but are also comfortable and durable with minimum care.
Evidently, the success of any textile factory rest on carefully and proactive
consideration of these factors. Failure for management to put in place strategic plan
concerning conservation of energy and raw materials, economic and environmental
factors regarding textile production, as well as aesthetic and utilitarian values of the end
products, makes the factories vulnerable to a number of challenges leading to low
productivity, less quality products, high cost of production, and low patronage.

35
2.5 Significance of the Textile Industry in developed economies
Bennett and Dilorenzo (2009) attest that textile factories play enormous
contribution to the national development providing employment opportunities to many
people in the society, reducing unemployment and ensuring better living conditions of the
people. Bennett and Dilorenzo share common view with Majory (1986) that the textile
industry is considered as one of the largest industry worldwide adding that if all facets of
the vast economic giants are taken into account, the textile industry would probably be
found to involve more people with high economic value than any other industry in the
world. Even if we take only the growth, production, manufacturing and processing of
fibre to fabric, the textile industry is still very near to the top industries of the world in
terms of labour force and economic value, not to talk about marketing and usage aspects.
One indicator of the size and significance of the textile complex is the level of
employment or the number of jobs which depend upon its output. Because the products
of the textile industry are of such critical importance, the industry plays a major role in
the economy.
The significantly large size of the textile industry, its indispensable products to
life and the high rate of employment it offers, makes it a viable industrial base for
economic development. It is probably due to this that some countries tend to rely largely
on textiles to survive. Pakistan’s economy, for instance, is identified to be largely
dependent on textile production. It is estimated that more than 65% exports earnings of
Pakistan economy come through textile exports, while the share of textile in the country’s
gross domestic product (GDP) and employment is 8% and 11% respectively (APTMA,
2000).
The Indian Textile Policy (1998) attests that the textile industry plays a unique and
vital role in the country’s economy highlighting that its contribution to industrial
production, employment and export earnings is very significant. Besides, the industry
provides one of the basic necessities of life and the employment it provides serves as a
source of livelihood for millions of people, most of them living in the rural and remote
areas. In addition, its exports contribute a substantial part of the country’s total foreign
exchange earnings. This implies that the India’s economy also relies significantly on
textiles. The statistics on the world largest exporters of textiles between 1990 and 2000
show the significance of textiles in the economies of some bench marked producers like
EU, China, Korea, US, India, etc. (Table 2.1).

36
Table 2.1: The World’s Largest Textile Exporting Countries
Value (million $) % Change Share
1990 2000 1990-2000 (%)
World 104330 154740 48.30% 100.00%
1 EU 50795 52923 4.20% 34.20%
2 China 7219 16135 123.50% 10.40%
3 Hong Kong 8213 13442 63.70% 8.70%
4 Korea 6076 12710 109.20% 8.20%
5 Taiwan 6128 11896 94.10% 7.70%
6 US 5039 10961 117.50% 7.10%
7 Japan 5859 7023 19.90% 4.50%
8 India 2180 5899 170.60% 3.80%
9 Pakistan 2663 4532 70.20% 2.90%
10 Turkey 1440 3672 154.90% 2.40%
11 Indonesia 1241 3505 182.40% 2.30%
12 Mexico 713 2571 260.60% 1.70%
Source: American Textile Manufacturers Institute (ATMI, 2008)

Although the EU tops the ranking as at 2000, it shows not much significant
change of exports as compared to China. However the two countries were ranked as the
leading economic giant in the world textile industry in terms of export. Other countries
like India, Turkey, Indonesia, Mexico, have also moved in that direction to increase their
production and exports to improve their economy. This is indicated in a research
conducted by the American Textile Manufacturers Institute (ATMI, 2008).
Inferring from Table 2.1, it is evident that the textile industry plays a significant
role in the world’s economy considering its substantial export prospects and foreign
exchange. The World Trade Organization Report (2004) reveals and confirms that most
of the economic giant countries in the world largely depend on textile production for
sustainability and development of other sectors. Such countries include China, US, EU,
India and Pakistan. The report further indicates that the production and trade activities of
the textile and clothing industry have long been a catalyst of economic growth throughout
the world. In 2001, the sector accounted for over US$450 billion of trade worldwide. In
the EU alone, the sector employees are over 2.1 million with annual sales of 200 billion
Euros, and its exports represent 45 billion Euros, making it the world’s second largest

37
exporters after China. This clearly indicates that textile production and export have been
one of the major sources of income for these countries to survive the pending world
economic crunch.

2.6 World Trade Policies on Textiles

A number of policies governs and directs textile trade worldwide. These policies are
developed and administered under the authority of the World Trade Organization (WTO),
an international organization dealing with the global rules of trade between nations
(Redmond, 2008). With more than 150 member nations, the major aims of WTO as spelt
out in WTO Policies on Textiles and Clothing (2009) include; expanding free-trade
concessions equally to all members, establishing free global trade with fewer barriers,
making trade more predictable through established rule and making trade more
competitive by removing subsidies.
The WTO Policies on Textiles and Clothing further records that, the Uruguay
Round of multilateral trade negotiations under the auspices of GATT (General
Agreement on Tariffs and Trade, based on the 1947 agreement) established the World
Trade Organization. Upon ratification of the Round's Final Act by members, the WTO
replaced GATT as the global multilateral trade organization, and a series of agreements
associated with, but legally distinct from GATT, were also placed under the WTO
umbrella. At the 1994 Uruguay Round, agreement was reached to reduce tariffs on
manufactured goods by one third. Under the WTO, subsidies and quotas were to be
reduced on imported farm products, automobiles, and textiles, which were not covered by
GATT.
The main function of WTO (Walden and Anuradha, 2001) is to ensure that trade
flows as smoothly, predictably, and freely as possible. Besides, it oversees the
implementation, administration and operation of the covered agreements and provides a
forum for negotiations and for settling disputes. Additionally, it reviews national trade
policies and ensures coherence and transparency of trade policies through surveillance in
global economic policy-making and also provides assistance to developing, least-
developed and low-income countries in transition to adjust to the WTO rules and
disciplines through technical co-operation and training. The WTO co-operates closely
with the two other components; the IMF and the World Bank to operate effectively.

38
2.6.1 Challenges of the WTO (Implications on the Member Countries)
Some multinational corporations believe that the WTO is great for business; others
believe the WTO will undermine the principles of democracy and simply make the rich
much richer on the detriment of the poor. Critics of the WTO contend that the
organization hurts developing countries and weakens health and environmental safety
standards in order to promote the interests of large corporations. Developing countries
argue strongly that the WTO does not adequately take into account the difficulties and
asymmetries of economic development under conditions of liberalization. Developed
countries and the international organizations the WTO controls, such as the IMF
(International Monetary Fund) have put strong pressure on developing countries to
liberalize their trade laws despite uncertain consequences for long-run development
prospects (Challenges of WTO, 2009).
From the researcher’s point of view, this has been one of the major factors of the
collapse of most local industries in the developing countries who are members of the
WTO such as Ghana. This is because liberal trade imposes pressure on the vulnerable
developing countries in terms of excessive flow of competitive goods which the local
industries find it extremely tough to compete with and finally give up. Underhill (2009)
argues that, perhaps the biggest challenge of the WTO comes not from member states but
from civil society groups such as non-governmental organizations. He further explains
that many social activists in the anti-globalization movement draw attention to the
difficulties of liberalization in both developed and developing countries, especially for
the weaker members of society and less market-competitive forms of economic
organization which may be crucial to local identities and cultures. Organized labour,
according to Underhill, maintains uneasy relationship with the liberalization process, for
fear of job losses concluding that, conflict in the WTO continues to mirror socio-political
tensions across its member economies and this is intimately related to the tensions of
global economic integration which is largely driven by liberalization policies.
Apart from agriculture, textiles and clothing are the only industries that have
independent agreement, multilaterally negotiated under the auspices of the WTO (Verma,
2000). This, to the researcher, is not surprising considering the significant share of
textiles and clothing in the international trade of many countries, especially the
developing countries. Verma further posits that the international trade in textiles and
clothing is being transformed significantly owing to the phasing out of the Multifibre
Agreement (MFA) era, and ushering in of the era of quota-free trade. This has jolted the
39
entire pattern of global trade in textiles and clothing from years of stupor, and each
country has suddenly become busy preparing its own national strategy for
competitiveness in the scheme of global trade. The Agreement on Textiles and Clothing
(ATC) remains the principal driver of such a mammoth economic earthquake in this
sector. The question then is what Ghana is doing as a member of the WTO under the new
ATC agreement to position its textile industry to be competitive globally.

2.6.2 Multifibre Agreement (MFA)

Kim (2009) has it that up to the end of the Uruguay Round 1994, textile and
clothing quotas were negotiated bilaterally and governed by the rules of the Multifibre
Agreement (MFA). This, according to Kim, provided for the application of selective
quantitative restrictions when surges in imports of particular products caused, or
threatened to cause, serious damage to the industry of the importing country. The MFA
was a major departure from the basic GATT. The MFA was an agreement among
developed country importers and developing country exporters of textiles and apparel to
regulate and restrict the quantities traded. It was negotiated in 1973 under the auspices
GATT as a temporary exception to the rules that would otherwise apply, and was
superseded in 1995 by the ATC.

2.6.3 Agreement on Textile and Clothing (ATC)

Verma (2000) emphasizes that, Agreement on Textiles is one of the hardest-fought issues
in the WTO, as it was in the former GATT system as a “special case”. Elaborating on
this, Verma explains that before this Agreement took effect, a large portion of textiles and
clothing exports from developing countries to the industrial countries was subjected to
quotas under a special regime outside normal GATT rules. International trade in textile
and apparel is a classic exception to the objective of GATT, favouring liberalization of
world trade throughout history. With a number of short and long term agreements
regarding textiles and clothing which included Multi-fibre Agreement (MFA), it become
necessary that if meaningful liberalization of trade was to be achieved, then the MFA
which is acknowledged as a derogation from GATT, has to be disappeared, and rules
applying to industrial goods had to be extended to textiles and clothing.
It is against this background that the Agreement on Textiles and Clothing assumes
significance to put an end to the long life of MFA and to bring textile and clothing at par
with all other industrial products to erode the notion of the sector as a “special case”.
40
Mandelson (2004) and Kim (2009) agree that, ATC called for the phase-out of quotas on
textiles and apparel which was established over four phases in a 10-year period adding
that two mechanisms were employed to eliminate the quotas; the phased out of existing
quotas, and accelerated growth rates of remaining quotas. Outlining the impact and
effects of quota elimination, Mandelson asserts that the immediate beneficiaries of quota
elimination are consumers, who will experience declining costs of textile and apparel
products as production shifts to the lowest-cost countries and quota rents are eliminated.
The immediate losers will be textile and apparel workers in the high labour cost industrial
countries, as well as less competitive developing countries. The major effects of the quota
system is that as exporting countries reach their quotas on specific products, production
shifts to less restricted countries and product categories. Moreover, since quota
allocations are usually based on historic export performance, there is a further incentive
to increase exports to unrestricted markets, even when it is not profitable, in order to
increase subsequent years’ quota allotments.
Kim (2009) observes that, the quota system has provided many developing
countries with access to markets they otherwise would likely not have achieved on the
basis of competition and therefore these countries will be adversely affected by phase-out
schedule in ATC. The WTO Agreement on Textile and Clothing (ATC) was scheduled to
expire on 31st December, 2004.
Frings (2001) projected that the end of the quota system on Textiles and Apparel
may bring major economic changes to many parts of the world adding that it provides a
great opportunity for China, but many other developing countries that rely on textile and
apparel export for economic growth may lose their business to China. China’s high
unemployment and migration from rural areas to the cities will provide even more people
willing to work for low wages. This, to the researcher, will lead to low production cost
and thereby decreases the cost of China’s textile and apparel products tremendously. This
poses a serious threat to most textile factories in both developed and the developing
countries which depend on high labour cost for production. Besides, the ATC elimination
of quotas on importation of textile and apparel goods, provides developing and developed
countries equal opportunities to export textiles and apparel goods to the WTO member
countries. However, since the WTO agreement dwells on liberalization, the advanced or
developed countries would benefit more due to their ability to export high quantum of
quality goods as compared to the vulnerable developing countries with relatively low
export capacity.
41
2.6.4 Trade Liberalization Policy
Trade liberalization, according to Underhill (2009), involves systematic elimination
or reduction of cross border taxes (tariffs) and quantitative restrictions on imports,
restrictions on the nature and scope of support measures for domestic production and the
elimination of certain kinds of restrictions on the flow of trade-related direct investment.
These trade reform measures may also be accompanied by other measures to expand
exports such as subsidies and incentives for export activities, including special incentives
for Export Processing Zones. Underhill adds that over the last ten years, many
Commonwealth developing countries have been involved in varying rounds of
liberalization, initiated in the first instance by the structural adjustment reform
programmes of the World Bank and IMF and, in some cases, autonomous economic
reform programmes, as well as regional trade agreements.
Generally, the purpose of trade liberalization is to induce an increase in growth
and incomes within each country that should result in a wide range of benefits such as
increase in employment, decrease in wage differentials and to enhance access to
technology. Measures such as reductions in tariffs have a direct impact on government
revenue and hence influence the nature and direction of government spending. They also
have impacts on the balance of payments, labour and commodity markets, and the
availability of particular types of public services to households. This has raised questions
about poverty, social and gender-equity impacts of the trade liberalization policy
(Globalization and Gender Brief Series No 1, 2009).
Frings (2001) observes that there has been enormous increase in importation of
fabrics and apparel on the ticket of trade liberalization. This has not only affected small
developing countries but has also affected the so called giant developed nations like
America. Labour unions, according to Frings, have complained that overseas production
has stolen thousands of domestic jobs in textile and apparel production. The American
Textile Industry, for example, has lost more than 900,000 jobs, and thousands of plants
have been closed down since 1980. In view of this, United States has lost its
manufacturing base. Proponents of free trade (trade without restrictions), such as
importers and retailers believed that, in long runs, it would be best if the world trade is
based on specialization; i.e. each nation would contribute to the world market what it
produces best at the most reasonable cost. In this way, consumers would obtain the most
value for their money.

42
 Although trade liberalization policy was enacted with the prime objective to
support domestic production through elimination or reduction of trade border tariffs and
quantitative restrictions, the researcher sees a different story especially in the small
developing countries where free trade had brought about competitive advantage in favour
of well developed countries with high production capacity on the detriment of vulnerable
domestic factories which find it extremely difficult to withstand the competition leading
to the closure of a number of them with high redundancy rate in such countries.

2.6.5 Import Substitution Industrialization Policy (ISI)

Blouet and Blouet (2002) define Import Substitution Industrialization (ISI) as a
trade and economic policy based on the premise that a country should attempt to
substitute products which it imports (mostly finished goods) with locally produced types.
As a set of development policies, ISI policies are theoretically and practically grounded.
It derives a body of practices, which are commonly active industrial policies to subsidize
and orchestrate production of strategic substitutes, protective barriers to trade (for
example, tariffs), an overvalued currency to help manufacturers import capital goods
(heavy machinery) and discouragement of foreign direct investment. Conceptually, the
ISI could be outward-looking in that it promotes exports. The major advantages claimed
for ISI, as indicated by Blouet and Blouet include; increases in domestic employment
which reduces dependence on labour non-intensive industries such as raw resource
extraction and export, flexibility in the face of global economic shocks such as recessions
and depressions, reduces long-distance transportation of goods and concomitant fuel
consumption and greenhouse gas and other emissions.
The disadvantages attributed to ISI, according to Blouet and Blouet, are that the
industries that it creates are inefficient and obsolete, and that the focus on industrial
development impoverishes or deprive local commodity producers who are primarily
rural. It is a fact that, the more units of anything manufactured a factory can sell, the
better the chances of that factory to achieve economy of scale, i.e. efficient production. In
a free market global economy, industries that produce inefficiently, without obtaining
economy of scale of production under the protections of ISI, have been subject to
criticism from more efficient foreign industries. What determines whether a country
obtains efficiency – economy of scale in production is the market size (i.e. number of
consumers, population) and purchasing power. Hence, larger, richer economies are more

43
likely to make ISI succeed efficiently, whereas smaller countries with lower per capital
incomes are less likely to succeed with ISI.
From these postulates, it is glare that smaller countries with less population and
low per capital income cannot benefit fully from the ISI even though it can provide
employment to a section of the population. More so, the ISI does not encourage the
development of small or cottage industry which provides skill and employment to the
rural folks due to the emphasis it places on the attainment of economy of scale. This
makes the ISI a threat in disguise to the local industries of the countries that implement
this form of policy. Though Ghana’s involvement in the ISI benefited her at the initial
stages, the benefits did not last as projected on the basis of these premises and eventually
had to give up for liberalized trade.

2.6.6 African Growth and Opportunity Act (AGOA)

The African Growth and Opportunity Act (Appiah, 2002) was enacted into law on
May 18, 2000 by the Ex-President Clinton of United States of America (USA) as Title 1
of The Trade and Development Act of 2000. The Act offers tangible incentives for
African countries to continue their efforts to open their economies and build free markets.
As a trade and investment Act, it is aimed at providing opportunities to eligible African
countries to export about 64,000 products to United States without tariffs or quotas.
With reference to AGOA Implementation Guide (2000), the Act significantly
enhances U.S. market access for, currently, 39 Sub-Saharan African (SSA) countries
adding that it was originally made to cover 8-year period from October 2000 to
September 2008, but amendments signed into law by former U.S. President George Bush
in July 2004, the period was extend to 2015. The key elements of the AGOA include;
institutionalization of a process for strengthening US relationship with African countries
and providing them incentives to achieve political and economic reform and growth,
offering beneficiary Sub-Sahara African countries access to US market for essentially all
products through the Generalized System of Preference (GSP) programme, provision of
additional security for investors and traders in African countries by ensuring GSP
benefits for eight years, elimination of GSP competitive need limitation for African
countries, establishment of US Sub-Saharan Africa Trade and Economic co-operation
forum to facilitate regular trade and investment policy discussions, and promotion of the
use of technical assistance to strengthen economic reforms and development, including
assistance to strengthen relationship between US firms and firms in Sub-Saharan Africa.
44
 Although AGOA targets about 48 countries in the Sub-Saharan Africa, not all
countries are eligible for AGOA. The eligibility status (AGOA Implementation Guide,
2000) mandates a president of a member nation to established, or is making a continual
progress towards establishing. This requires that the member nation build a market-based
economy that protect private property rights, incorporates an open rule based on trading
system, and minimized government interference in the economy through measures such
as price control, subsidies, and government ownership of economic assets. The member
nation must also comply to the rule of law, political pluralism, and the right to due
process, a fair trial and equal protection under the law. elimination of barriers to US trade
and investment, including; the provision of national treatment and measures to create an
environment conducive to domestic and foreign investments, the protection of intellectual
property and the resolution of bilateral trade and investment disputes. It must as well
develop economic policies to reduce poverty, increase availability of health care and
educational opportunities, expand physical infrastructure, promote the development of
private enterprise, and encourage the formation of capital markets through micro-credit or
other programmes. It must put in place a system to combat corruption and bribery such as
signing and implementing the convention on combating Bribery of Foreign Public
Official in International Business Transaction, and Protection of internationally accepted
workers’ rights, including the right of association, and the right to bargain collectively, a
prohibition on the use of any form of forced or compulsory labour, a minimum age for
employment of children, and accepted conditions of work with respect to minimum wage,
hours of work, and occupational safety and health. In addition, the member nation must
not engage in activities that undermine US national security of foreign policy interest and
not engage in internationally accepted violation of human right or provides support for
acts of international terrorism activities.

For a country to be eligible to receive a duty free treatment on apparel/textile

products, US requires that the beneficiary country obtain an effective visa system to
prevent unlawful transhipment of apparel/textile products and the use of counterfeit
document relating to importation of products to US (Appiah, 2002). African Growth and
Opportunity Act (AGOA) insists that, only the following five types of textiles and
apparel products are permissible to entre US on duty free and quota free treatments:

45
 a) Apparel assembled in Sub-Saharan Africa from fabrics wholly formed
and cut in the United States, from yarns wholly formed in the United
States.
b) Apparel cut and assembled in United States or Sub-Saharan Africa,
using thread or fabrics wholly formed in the United States.
c) Sweaters knit to shape from cashmere or certain wool. The sweater must
be in chief weight of cashmere, or 50% or more by weight of Merino
wool measuring 18.5 microns in diameter.
d) Apparel cut or knit to shape and assembled in Sub-Saharan from third-
country yarn or fabric in short supply. Yarns and fabrics currently
deemed to be in short supply include; silk, linen, fine count cotton
circular knit fabric for certain apparel, cotton vehement, fine count
cotton corduroy, Harris tweed, batiste fabrics, and high thread count
broadloom fabrics for men’s and boy’s shirts.
e) Handloom, handmade and folklore articles (AGOA Implementation
Guide).

Dorsoo (2002) adds that Apparel/Textiles agreement under AGOA is governed by

two main rules; the Rule of Origin and the De Minimize Rule. Dorsoo explains that
Under the Rule of Origin, the exporter wishing to obtain preferential treatment available
under AGOA (i.e. duty free treatment) for specific apparel/textile products must
complete a certificate of Origin in English and furnish it to the importer in the United
States. The certificate must be available to US Customs upon request but should not
necessarily accompany the actually shipment. The De Minimize Rule states that apparel
products assembled in Sub-Saharan Africa which would otherwise be considered eligible
for AGOA benefits but for the presence of some fibres or yarns not wholly formed in the
United States or the beneficiary Sub-Saharan African Country will still be eligible for
benefits as long as the total weight of all such fibres and yarns is not more than 7% of the
total weight of the article.
It is clear from the above conditions that, although AGOA provides duty-free and
quota-free access to the US it imposes lots of restrictions and commercial challenges that
few industries or countries can meet in that the offer of duty-free and quota-free access to
the US does not apply to all African textiles and clothing exports as it does not apply to
exports of African fabrics or household textiles with locally based materials. The
46
question many critics of AGOA ask, therefore, is whether African countries can actually
benefit from its opportunities?
Salinger (2001) contends that, when AGOA was passed into law, opposition came
from a number of forces, mainly from the domestic textile and clothing industry as to
whether African countries can benefit fully from its opportunities. Critics of AGOA
charge that requirements in the law dictate international economic and political
conditions to sovereign African nations. In order to qualify for preferential US market
access for textiles and clothing exports according to Salinger, AGOA stipulates that each
African country should conform to a checklist of US lawmakers' concerns. For example,
it must be making progress in establishing a market-based economy governed by the rule
of law, it must be eliminating barriers to US trade and investment, combating corruption
and bribery, and protecting internationally recognized worker rights. Furthermore, it must
not be engaging in activities that undermine the US, in gross violations of internationally
recognized human rights, or in supporting terrorism. Critics even include the US textile
and clothing industry. Their biggest fear is that in a global market still governed by
quotas, although quotas are under phase-out according to the Uruguay Round's
Agreement on Textiles and Clothing (ATC), non-African clothing exporters seeking to
run around quota ceilings into the US market will find myriad ways to illegally tranship
product via "leaky" African customs regimes. Consequently, access to the US market by
even the eligible African countries has been constrained by several conditions of the law.
The researcher admits that the requirements of AGOA dictate international
economic and political conditions to sovereign African nations to the extent that to be
eligible to take advantage of the Act sometimes necessitates amendments of the standing
laws of the exporting country. Moreover, provisos to protect the US Clothing/Textiles
industry were included in AGOA for monitoring local production capacity and country of
origin which make it an obligation for African countries to collaborate with the US
Customs Service whenever Country of Origin verification is requested (Salinger, 2001).
This makes entry into the US market by even eligible African countries difficult, hence
unable them to benefit fully from the Act.
Salinger stresses that the extent of benefits that African countries can tap from
AGOA depends on how Africa's industries are learning to compete internationally. To
him, AGOA may offer duty and quota free advantages to African exporters, but potential
suppliers will have to be commercially competitive if they are to realize any tangible
gains for their industries and for their people from the bill. But the unfortunate thing is
47
that most of the African countries are not able to compete with the international market.
The competitiveness of the African clothing industry and its ability to seize the
opportunities presented by AGOA's preferential market access clearly varies a great deal,
depending on industry conditions. Yet even in the most advanced economies on the
continent, AGOA's duty-free, quota-free access to the US presents commercial
challenges which few industries are yet ready to meet. Both highly and barely developed
industries will need to figure out how to adapt what they make, and how they make it, to
meet the rigours of the US market to compete with suppliers from Mexico, the Caribbean,
and Asia.
Advocates of the bill, however, argue that labour-intensive manufacturing for
export is an important step in the economic development of low-income countries. They
point to Asia's manufacturing export successes, which typically began with production of
lower value goods for foreign markets, such as clothing and footwear, and then evolved
into the manufacture of more sophisticated items, such as electronics and automobiles.
These industries are labour-intensive and help to create new employment opportunities in
the growing, non-agricultural areas of an economy. Such openness to trade leads to
increased economic growth which, in turn, helps to reduce poverty. Many of the world's
remaining poor countries are in Africa; thus the reasoning goes, give African countries
preferential access to the US market for some category of products, and they too will be
able to grow their way out of poverty (Salinger, 2001).
Inferring from the above text, it can be established that AGOA does not provide
full opportunities for its beneficiaries. There are “bottlenecks” with regards to the rules
governing the offer it provides such as eligibility requirement, quota and duty free
agreement on apparel and textiles. However, there is no doubt that AGOA can provide a
form of employment and foreign exchange to citizens in the Sub-Saharan African
countries that may be deemed eligible to go into it as it focuses on export to US on quota
and duty free bases. But the Act does not support the development of local resources in
the sense that the raw material base for textiles and apparel, for example, mainly come
from the US. The researcher therefore sees the act as an indirectly means through which
the US wants to add value and develop their resources to enhance their economy by
utilizing the cheap labour of the less developed countries in Africa.

48
2.7 The Development of Textiles in Ghana
The advent of “mammy cloth” (printed cotton fabric) in Ghana could be traced
from the Gold Coast era. Kroese (1976) records that, the cloths were first brought by
some Ashanti soldiers who were given to the Dutch commissioner by the then
Asantehene to serve in the Dutch army in some colonies in Indonesia. The soldiers were
attracted by the aesthetic qualities of the Javanese prints and brought samples of the
cloths to the Gold Coast after their service. The Gold Coast women upon seeing the
cloths became very fascinated and expressed special interest in the prints which led to the
establishment of trade links between Holland and the Gold Coast upon which large
quantities were brought to the Gold Coast.
Sylvanus (2007) attests that wax print originated from Java from the Javanese
batiks which were produced by hand with local technology. The European industrialists
industrialized the production of the batik effects but the industrial reproduction process
was poor in quality as it left fine lines on the fabric that resulted from the cracking of the
wax technique. These imperfections though unappreciated by the Javanese, were highly
appreciated in West Africa where the prints became popular and gained wider market.
This suggests that, wax print is not indigenous to Ghana.
The only foreign textiles in the Gold Coast before the Javanese prints were dyed
fabrics from Manchester. The Manchester dyed fabrics could not compete with the wax
Javanese prints and lost their popularity. When the British realized this drastic change,
they sought for diverse ways to improve upon their dyed fabrics and this led to the
production of imitation wax prints. Unfortunately for them they did not succeed the
competition since the Gold Coast women were able to distinguish between the imitation
wax prints from the real wax print (Osei-Bonsu, 2001). Osei-Bonsu indicates that, the
term “Dumas” which popularly became known for real wax prints from Holland was
coined from the name of a Lebanese merchandiser who first traded in wax print with the
Gold Coast women. The British eventually took over the trade through one of her leading
firms in Africa known as the United Africa Company (UAC). The introduction of these
prints in Ghana, according to Osei-Bonsu, compelled Ghana to develop its own textiles
adding that Ghanaian textile designers, from the onset, were able to make designs, give
them names and send them to Holland to be printed and brought back for sale in Ghana.
Before independence in 1957, Ghana (Gold Coast) was given no place by book
makers as a country having a future for the production of textiles. A host of other African
countries and Ghana were put by analysts as those with no future prospects for the
49
production of textiles. Production and export figures for cotton in the late 1940 and early
1950 were the evidence upon which this verdict was passed (Economic Bulletin for
Africa, 1980).
A decade after when a number of African countries have stepped up in the
production and exportation of cotton, Ghana was still out of the list. Between 1960 and
1970, the cotton exporting countries in Africa were Tanzania, Sudan, Morocco, Burundi,
Algeria, Cameroon, Egypt, Mali, Zaire, Niger, Ivory Coast, Chad, Madagascar, and
Uganda. However, it was known that Ghana exported 487, 343 lbs of cotton in 1925 to
1926 from its southern British Togoland and Trans-Volta District areas. Local varieties of
cotton known as “Sonko”, “Deti Je” and “Kadeanyigha” were grown in Aduklu areas. A
prevailing variety that was grown in the Hohoe and Kpando areas was kidney shaped
cotton which was replaced later by an improved Nigerian variety known as “Ishan”. This
variety was advocated for the Northern territories of the colony where it was less
subjected to the attacks of pests as compared to the Ghanaian varieties. On the whole, all
the varieties were subjected to pest attacks, and as this situation was difficult to be
brought under control, production came to a halt. Attempts to grow cotton in Northern
region for export also failed as seed input was even greater than seed output (Department
of Agriculture, 1969),
This predicament was one of the major setbacks for sustainable development of
textiles in Ghana since the main raw material base for the country’s textile production is
cotton. The country’s textile industrialists had to rely on foreign cotton to ensure
continuous running and sustainability of their factories since the local cotton industry
could not meet their demands.
With reference to MOTI (1973), in pursuit to come into power and the desire to
place the country’s economy on a warm footing, Dr. Kwame Nkrumah requested
Professor W. Arthur Lewis to make proposals for the form industrialization in the Gold
Coast should take. In 1953, he submitted his report on industrialization in Gold Coast to
the government. Lewis considered the genesis of industrialization on three main basis as;
Production for home market, Production for export and Encouraging local production of
raw materials to feed the industry. According to MOTI’s report, Lewis recommended
textiles as the most important consumer good around which any industrialization
programme in Gold Coast should be centred with an explanation that industrialization for
the home market usually begins with the manufacture of textiles since consumers at low
income level spend more on textiles than all other manufactures combined. He added
50
that, industrialization cannot offer substantial employment unless it makes a
consideration into the market for textiles.
Immediate action was not taken to implement this recommendation, as is usually
the case. There was a period of evaluation of the economic viability of a proposal of this
nature. Two inevitable problems that confronted the government at the time were
acquisition of raw materials and financial limitations (MOTI, 1973). The obvious reason
that can be drawn from this is that establishing a textile factory is capital intensive, and if
the government was to consider the monetary aspect of it, then it would be ideal to shift
the responsibility of its implementation to private individuals.
Nevertheless, Manu (1994) asserts that the government decided to give the textile
industry a trial in the mid-1960s. In 1965, Manu records that, the first textile industry was
built at Tema by Messrs Socoltra and Sacom, a French firm, under the name State Textile
Manufacturing Company and handed over to Ghana Industrial Holding Corporation
(GIHOC) on 19th July, 1965. The factory was established by a legislative instrument that
same year. Later, a Chinese firm, known as Winner Company, was engaged by the Ghana
Industrial Holding Corporation to take over management of the factory. The name of the
factory was later changed to Tema Textiles Limited (TTL) under a joint ownership of
Ghana Industrial Holding Corporation (40%), Winner Company (40%) and Ghana
National Trading Corporation, the government (20%). However, a private firm known as
the Ghana Textile Manufacturing Company (GTMC), owned by Winner Company was
already in operation before the State Textile Manufacturing Company was established.
In 1967, Akosombo Textiles Limited (ATL) was established by Chinese Company.
Two other joint state companies were also established; Juapong Textiles Limited (JTL) in
1968 and Ghana Textile Printing Company in 1969. Many textile factories including
garment manufacturing companies sprang up in the capital, Accra. Among them include;
Millet Textiles Corporation, Freedom Textiles, Zakour Textiles, Loyalty and Tejtex. The
textile industry in Ghana flourished in the 1970s and there was no doubt that, despite the
fact that the textile industry depended on imported raw materials, the industry developed
to become one of the most important productive sectors in the country (MOTI, 1973).
Manu (1994) affirms that the development of textiles in Ghana was so rapid that,
within less than a decade of its take off, the firms were able to supply most of the
country’s textile needs adding that, in August, 1975, the then government banned the
importation of suiting materials, knitted fabrics, shirting materials and women fabrics,
with the aim of protecting the newly established textile firms.
51
2.8 Government’s Policies on the Local Textile Industry
Industrial development has been recognized as one of the surest means of ensuring
higher and sustained growth rates; hence, most African countries including Ghana
pursued import substitution industrialization (ISI) policy in the 1960s and 1970s through
widespread of direct government participation, including State ownership (Quartey,
2006; Dargin, 2010). Quartey elaborates that, Ghana pursued ISI as a means of ensuring
industrial development and to foster higher and sustainable economic growth rates. He
adds that, the ISI was not only pursued by Ghana alone but some African countries in the
1960s and 1970s. The rationale was to move African economies from their agrarian state
to modern industrialized economies as it has been the case of the east and south-east
Asian economies. Consequently, policies to promote import substitution industrialization
were pursued and this led to the establishment of light industries to produce goods locally
and operate behind tariff barriers. Like many African countries, Ghana’s industrial
strategy was meant to provide economic dependence; hence, manufacturing industries
were established to produce items that were previously imported.
For over two decades after ISI was initiated, the textile sub-sector dominated the
manufacturing sector and contributed significantly to livelihood. It employed about
25,000 of the labour force which accounted for 27% of total manufacturing employment
and operated at about 60% of plant capacity. The textile sub-sector was an important
source of foreign exchange in Ghana. However, by 1982, shortage of foreign exchange
for importing raw materials resulted in the sub-sector operating at extremely low
capacity. Consequently, most of these industries went out of business and the situation
deteriorated under trade liberalization, which formed part of the Structural Adjustment
Programmes (SAP) pursued in the 1980s and 1990s by the government. Hence,
employment declined from 7,000 in 1995 to 5,000 in 2000. The reforms led to increased
importation of textiles and other used apparel, which facilitated the death and closure of
many textile industries in Ghana (MOTI, 2004 as cited in Quartey, 2006).
Writing on the consequences of liberal trade, Taylor (1994) asserts that one of the
major contributions of the trade liberalization was the increased availability of all forms
of finished textiles to the general public; assorted textiles such as already made clothing,
fancy prints, knitted fabrics, African prints, suiting materials, towels, baby wear, among
others, which were previously not in existence due to high restrictive trade measures.
Taylor however contends that, the introduction of the trade liberalization policy emanated
competitiveness and dynamism in the Ghanaian market and as a result inefficient
52
entrepreneurs and salesmen have gone out of business. He adds that the best impact of the
trade liberalization on the manufacturing sector, especially in the textile industry, are the
alertness and manpower development programmes that were undertaken by the sub-
sector which resulted in upgraded, trained and efficient management. Capacity utilization
and efficiency of other methods of production was injected into the industry to enhance
the overall efficiency in the economy. The non-viable companies were diversified
resulting in savings in the budgetary allocation to the subsector. Government made
substantial revenue from textile imports. The boom in the importation of second-hand
and used clothing and other foreign textiles encouraged the government to tax the sector
more. Government was also quick to lift the ban on certain categories of used clothing
shortly after it was announced in 1993 budget statement and this opens avenue for
excessive imports of all sorts of textiles into the country on the ticket of trade
liberalization.
It is evident from the MOTI’s report and Taylor’s assertions that the trade
liberalization policy is accountable for the influx of all sorts of highly competitive foreign
textiles including used and second hand clothing in the country with which the local
textiles are not able to compete. This had consequently led to the closure and
diversification of most state own enterprises of which the textile industry is the most
affected.
It has been argued by Industry watchtower that the near collapse of the textile
industry in Ghana is attributed to the trade liberalization policy adding that liberalization
in trade in Ghana has led to the flood of textile products from China and other countries
(Egu, 2009). Egu further states that, textiles from China are cheaper compared to those
produced in Ghana and therefore has made it difficult for the local producers to cope with
the competition. Besides, some of the foreign prints are made with Ghanaian motifs
which make it difficult for consumers to distinguish between the real made in Ghana
prints and imitations from other countries, and consequently, local retailers prefer to sell
the imitation brands because they are affordable to local consumers.
Stakeholders therefore propose that, it is good to protect the textile industry from
external factors since it forms part of the production sector of the economy. However,
whiles the industrialists oppose the trade liberalization policy, economists argue that trade
protectionism flies against the theory of comparative advantage, which suggests that
opening up world markets, and reducing trade barriers would lead to gains from trade for
all concerned (Trade liberalization and the Ghana Textile Industry, 2009).
53
 Based on the foregoing discussion, one could argue that if the trade liberalization
policies had been favourable to the local industries, the alarming losses of jobs and
livelihoods would have been minimal. Cheap textiles from countries such as China have
flooded Ghana’s market which has seriously injured the local industry on the ticket of
trade liberalization which has made industrialists to raise concerns about the
implementation of the policy.
In the light of this, the Republic of Ghana (Ghana Trade Policy Review, 2001)
since the early 1990's, has sought to extensive reforms to reverse previous policies, and
trade and investment liberalization has been an integral part of the new development. The
source elaborates further that, Ghana, a member of the WTO, applies its trade policies
and measures on a non-discriminatory basis, granting MFN treatment to all its trading
partners with about 15% of its tariff lines bound in agriculture. Its GATS Schedule covers
commitments on certain services, including tourism, maritime transport, construction,
and education with a recent agreement in Basic Telecommunications and Financial
Services.
Obviously, the textiles and garment sector was not given significant attention in
the 2001 review policy. However, it is worth mentioning that, when Ghana qualified for
AGOA in 2000, exports of Ghanaian textiles and apparel to the US market amounted to
$550,000 in 2002, $4.5 million in 2003 and $7.4 million in 2004. Imports of US textile
and apparel were $8.87 million, $12.73 million and $11.48 million, respectively, over the
same period (Quartey, 2006). However, due to the stringent rules of the AGOA, Ghana’s
textile and apparel export to US has declined considerably. Statistics show that, Ghana’s
export of textiles and apparel to US reached $9.507million in 2006 but decreased
drastically to $0.718 million as at January 2008 (Egu, 2009).
From the foregoing discussion, it is evident that government’s policies have not
been favourable to the local textile industry. There has been inconsistency in terms of
policy implementation and practices. Ghana as a nation cannot boast of a holistic policy
document of its own on textile production and trade. The country had, over the years,
relied mainly on the policies of WTO to guide its production and trade operations. These
policies, although in one way or the other have benefited the country to some extent, they
have generally not been favourable to the local industries, but have caused many of them
to collapse. A more proactive policies need to be developed and implemented to save the
industry from total collapse.

54
2.8.1 The Case of Some African Countries

Although Asian and European textile firms now determine the pace of today’s
textile production and sales with unprecedented competition in the world market, some
developing African countries such as Kenya and Nigeria have developed strategies to
protect and sustain their textile industry from collapsing (Omolo, 2006). Kenya,
according to Omolo, is a good example of an African country that has developed its
textile and clothing industry in terms of size, employing about 30 percent of the labour
force and providing support to over 200,000 small-scale cotton farmers. The success of
the textile and clothing industry during the period of import substitution can be attributed
to the policy by the government that ensured the backward integration of the textile mills.
Between the time of Kenya’s independence and the end of 1990, Kenya systematically
introduced controls in the sector; it helped cooperative societies to buy ginneries from
colonial settlers, controlled marketing margins, fixed producer prices and invested
heavily in textile mills. The government also protected the local industry by imposing
100 percent duty on imported textiles. This ensured rapid growth of the local textile
industry hitting an average production capacity of over 70 percent.
Omolo continues that, to increase trade and investment within the sector, the
government has reviewed trade licensing agreements to provide market information to
Kenyan manufacturers, support the private sector in identifying new markets, improve
the quality of Kenyan goods to reduce non-commercial risks. Other measures proposed
include promoting trade fairs and putting in place mechanisms for continued exploitation
of benefits accruing from AGOA trade opportunities. The government has also pledged
to improve the business climate by developing a new regulatory framework for financing
and infrastructure, strengthening the rule of law, improving security and reducing the
number of regulations and steps required for investing in the country.
Faced with fierce competition from outside, Asare (2010) asserts that, the Federal
Republic of Nigeria introduced a number of restrictions on imports between 2001 and
2004 to encourage local production and consumption. For instance, the number of broad
product groups under import ban rose from 27 in February 2003 to 35 in January 2004. In
terms of sectoral coverage. Import prohibition focused on agricultural products such as
fruits, vegetables, grains, meat and fish, as well as manufactured products including
rubber, wood and textiles. Oyejide (1975) explicates that, the prevalent use of import
prohibition as an instrument of trade policy in Nigeria stems from a long-standing import

55
policy regime which was designed to promote industry, employment and balance-of-
payments objectives in the context of an import substitution-industrialization strategy.
Key elements of this regime include protecting existing domestic industries and reducing
the country’s perceived dependence on imports, while at the same time ensuring the
availability of raw materials and capital goods which cannot be obtained from domestic
sources. Sectoral coverage of import prohibition, according to Oyejide, has obviously
varied over time, but it has been determined largely by the general policy that imports of
certain products could be prohibited either if they were judged to be ‘not essential’ or
when they compete with domestically produced goods that are available in adequate
quantities.
According to the WTO (1996), the use of import prohibition has perhaps another
equally important reason, i.e. it is administratively easier. It clarifies that, Nigeria’s
response to the questions raised on the issue of import prohibition during discussions at
the various WTO fora, has always been that, the choice of import prohibition as a policy
option to shield local products from foreign competition stemmed from the fact that
import prohibitions are easier to monitor than price-based measures. They argue that the
presence of the banned products on local markets is, in principle, sufficient for
enforcement.
These forms of restrictions have helped Nigeria and Kenya to withstand, to some
extent, the strong competitions that emanate from liberal trade thereby minimizing
dumping of used textiles and clothing. Ghana can therefore learn from these experiences
to sustain its textile industry.

2.8.2 China’s Experience

The textile industry plays a significant role in China´s national economy. From
January to December 2008, the total export value of China´s textile industry stood at
65.406 billion USD. In spite of the gloomy export market, China´s textile industry still
represents surplus which reached 49.171 billion USD in 2008. Since the second half of
2008, the Chinese government has issued many favourable policies to promote the textile
industry of which Revitalization Plans for the industry was passed in early 2009. In
addition, there has been an increase in export tax rebates to encourage textile enterprises
and lift profits of the whole industry. All these greatly support the textile industry in
aspects of capitals, trade environment, etc. The rapid development of China´s economy

56
and its increasing demands and favourable policies have all contributed to the
improvement of the textile industry (China's Textile Industry, 2009).
It can be inferred from the above that, favourable government’s policies have been
the major driving force of the success of China’s textile industry. China’s huge textile
exports cannot be overemphasized and this has been made possible due to increase in
export tax rebates which encourages textile manufacturing companies to export their
products to earn significant foreign exchange. This does not provide a level playing field
for domestic textile producers in the developing countries like Ghana which get no export
tax rebates on their products and for that matter are unable to export much to accrue
meaningful foreign exchange to the country. To increase exportation of locally made
textiles to earn substantial foreign exchange for the country will necessitate consideration
of export tax rebates to encourage textile manufacturers to engage in fruitful export.

2.9 The Significance of the Ghana Textile Industry

The contributions of the textile factories in Ghana to national development in the
past have been enormous. According to MOTI Report (2004), the textile sector has been
one of the major industrial sources of employment to many Ghanaians giving
employment to about 25,000 people across the country in the 1970s which accounted for
27% of the total employment from the manufacturing sector. The report states further
that, the garment industry which comprises numerous small-scale enterprises in the form
of sole proprietorship and were engaged in making garments for individuals as well as
uniforms for schools, industries and governmental institutions such as the police, the
army, hospitals, etc., and also for the exports market largely depended on the textile
industry to survive. Textile exports by the local textile industries are an important source
of foreign exchange and revenue to textile manufacturing firms and the country at large.
It is estimated that, textile exports generated $27.2 million dollars in 1992 to Ghana, and
this increased to $179.7 million in 1994. This, in fact, had a very significant impact on
the national economy (AGOA Implementation, 2000).
Orhin (2007) elaborates that textiles produced in the 1960s and 1970s had
philosophical significance; the prints had names that could easily depict or explain the
beliefs, practices and culture of Ghanaians. Such prints include “Akyekyedeeakyi”-the
back of the tortoise, and “Fathia fata Nkrumah”-Fathia deserves Nkrumah. In the light of
the fact that the textile industry contributes enormously towards socio-cultural and

57
economic development of the nation, it is particularly important that Ghana takes due
advantage of industry to foster economic, social, cultural and artistic developments.

2.10 The State of the Ghana Textile Industry

Industrial development has been recognized as one of the surest means of ensuring
higher and sustainable economic growth rates. For this reason, plans were made in the
1960s to establish economically viable industries as part of the industrialization
programme in Ghana. A number of factories were established and the textile sub-sector
was considered as an important source of foreign exchange in Ghana (Quartey, 2006).

2.10.1 Employment Levels

By 1995, employment within the sub-sector declined from 25,000 in the 1970s to
7,000, and declined further to 5,000 in 2000. As the situation continues to deteriorate
employment continues to decline. As at March 2005, employment rate of the four major
textile companies in Ghana stood at 2,961. A survey of 40 textiles and garments
industries in 2005 confirms a worse situation where about 44% of industry respondents
had cut down on employment. From the total number of firms that had shed staff, 59%
had laid off about 5% of their workforce, 24% had laid off about 6-10% and 11% had cut
down employment by over 70% between 2000 and 2005 (MOTI, 2004; Quartey, 2006).

2.10.2 Surviving Factories and Investments

Quartey (2006) establishes that by the mid of 1970s about 16 large and 4 medium
sized textile companies had been established in Ghana. He however posits that,
inconsistent government policies over the years have contributed greatly to the decline in
the sub-sector’s activity levels adding that, as at 2002, the four major companies that
survived the turbulent times were GTMC, ATL, GTP and Printex. Investments within the
textile industry are mainly by local firms. Only 5% were involved in joint ventures with
foreign investors. The rest (95%) were locally owned and none was solely foreign owned.

2.10.3 Production Output

Total industry output peaked at 129 million yards in 1977 with a capacity
utilization rate of about 60%. GTP maintained the lead in the industry with an annual

58
production of 30.7 million yards, followed by GTMC, ATL, and Printex with
production levels of 15 million, 13 million and 6 million yards respectively
(Quartey, 2006). Unfortunately, total industry output declined from its 1977 level of
129 million to 46 million yards in 1995 but rose to 65 million yards in 2000. Quartey
further states that as at March 2005, GTP was producing 9 million yards, 18 million
yards by ATL, 2.24 million yards by GTMC and 9.84 million yards Printex, making
a total annual output of 39.04 million yards, which was 49.4% of initially installed
capacity of the four firms. Thus, output declined from 65 million yards in 2000 to 39
million yards in 2005 indicating a drastic decrease in production.

2.10.4 Imports and Exports

According to the MOTI (2002), textile factories in Ghana rely mainly on imported
raw materials and machinery from the Netherlands, China, India, U.S, E.U, Nigeria, and
Thailand, etc. to survive. It further notes that textile imports into the country comprise
dye stuffs and chemicals, calico, etc., with imported machinery, equipment and spare
parts. Whereas raw material imports such as cotton are complementary to local
production, imported African prints from Nigeria, Côte d’Ivoire and South-East Asia tend
to crowd out local production. These finished products often bear the patent designs, logo
and trademarks of local textile industries, which are sold on the local market at a very
cheap price.
Imports of textile have grown steadily over the years. In 1992, Ghana imported US
$35 million worth of fabrics and garments. The figure increased to US $57 million in
1998. At the end of the first quarter of 2005, imported textiles accounted for 48% of total
textile prints in the Ghanaian market (Ghana Employers Association, 2005).
It is estimated that, textile exports generated $27.2 million dollars to the country in
1992. Ghana increased her textile exports and in 1994, $179.7 million was generated
from textile exports. Notwithstanding this significant increase, revenue from textile
exports declined consistently thereafter, and by 1998 it had fallen to US $3.173 million.
The total textile and apparel export to the US market amounted to $550,000 in 2002, $4.5
million in 2003 and $7.4 million in 2004. However, imports of US textile and apparel
were $8.87 million, $12.73 million and $11.48 million, respectively, over the same period
(AGOA Implementation Guide, 2000). An obvious indication from these statistics is that
Ghana’s imports of textiles and apparel exceed her exports; a scenario that does not

59
present a good picture for the country that wants to develop and sustain its local textile
industry.
The local market (MOTI, 2002) is facing stiff competition from finished imported
textile prints such as calico, grey baft, furnishing materials usually from Côte d’Ivoire,
Nigeria, China, and most recently from India and Pakistan. Consumers, according to this
source, have argued that although the locally produced fabrics are relatively better in
terms of quality, the market for imported products has increased because the products
have attractive colours, new designs with softer and glossier finish. The MOTI’s report
also has it that the increase in imports of textile goods into the country has inversely
reduced exports of locally produced textiles tremendously. Moreover, the decline in
textile exports since 1992 is attributed to internal and external bottlenecks. Ghanaian
manufacturers of textiles generally agree that the market for exports is huge, but have
reservation about operating in some of these markets, particularly within the ECOWAS
sub-region due to trade barriers. Some of the trade barriers include imposition of 20%
duty by Côte d’Ivoire (contrary to ECOWAS regulations), transit tax collected at Benin
entry point, extortion by Nigerian authorities, and the risk of currency devaluation. Poor
packaging of some local manufacturers/ exporters also serves as a barrier to exports to
markets such as the EU and the USA. Also, poor finishing of products
(quality/conformity to standards), technical barriers, inability of some manufacturers to
meet export orders on schedule, high tariffs charged in some export destinations of
Ghanaian textile, are among the factors that are causing the decline of the industry
(MOTI, 2002).
The MOTI’s report clearly shows that, although export opportunities for locally
made textiles are great, Ghanaian textile factories have not been able to make full
utilization of them due to restrictions that countries in the sub-region impose on the
exportation of Ghanaian textile products, as well as the inability of the factories
themselves to meet international standards and deadlines of export orders.

2.10. Textiles Education in Ghana

One of the engines for accelerated and rapid development of a nation, its self-
reliant policy or sustained economic advancement depends largely on proper
Technical/Vocational education of which textiles education is a major component. Annoh
(1992) opines that investment in Technical/Vocational education benefits the
individual, society, and the world as a whole adding that broad-based
60
Technical/Vocational education of good quality is among the most powerful instruments
known to reduce poverty and inequality. Annoh further establishes that, with proven
benefits for personal health, Technical/Vocational education strengthens nations‘
economic health by laying the foundation for sustained economic growth. For
individuals and nations, it is key to creating, applying, and spreading knowledge and
thus to the development of dynamic globally competitive economies.
Successive Governments in Ghana (Mensah, 2006) accept that education should
result in the formation of well balanced individuals with the requisite knowledge,
skills, values, attitudes and aptitudes to enable them became functional and
productive citizens. In this regard, the education system should lead to improvement
in the quality of life of all Ghanaians by empowering the people themselves to
overcome poverty, and create the wealth that is needed for socio-economic
transformation of the country. To this end the education reform of 2007 places
emphasis on Technical/Vocational, Agricultural and Information Technology
education.
The general philosophy of Ghanaian education is towards poverty
alleviation and wealth creation. Mensah (2006) asserts that t he reforms made by
previous Government since independence have the general philosophy of making
Ghanaians self-reliant or self-actualized adding that self-reliance or self-actualization
can better be achieved through Technical/Vocational education as these are aimed at
equipping one with practical and employable skills. As part of the accelerated
development plan for education in 1951, Baffour (2000) observes that the government
places a high importance on Technical/Vocational education hence the introduction
of Secondary/Technical schools, polytechnics and universities, where much more
needed technical scholars controlling vital organs of national development and
economy are produced.
Individuals who have received education in Technical/Vocational
Agriculture generate incomes for themselves, add to the prosperity in their
communities and even safeguard the environment. Technical/Vocational education
also produces technocrats who are self employed to bring creativity and skills in
this modern day of information technology to make way for the development of a
country (Thompson, 1996). Vocational/Technical education is associated with subjects
like Fashion, Catering, Leatherwork, Textiles, Basketry, Jewellery, Science,

61
Woodwork, Metalwork, Building Construction, etc. which provide the individual with
practical but employable skills to be able to compete in the global market (Annoh, 2001).
Textiles education is offered at both second cycle and tertiary levels in Ghana.
The SHS textiles programme is structured and geared towards the diversification of the
industry in order to generate more jobs and alleviate poverty. The scope of the textile
programme covers the history, principles and practice of Textiles as a vocation. The
programme has been designed to provide adequate foundation for students who will
pursue further education in art (CRDD Textiles Syllabus, 2010). The SHS textile
education aims at the following:
a) Appreciate Textiles as an integral part of constructive living.
b) Develop self-esteem, pride, confidence and patriotism through
appreciation of his/her own artistic creations.
c) Develop the capacity for creativity and problem-solving activities that
use traditional and/or contemporary tools, materials and ICT
d) Develop effective manipulative skills using tools, materials and ICT.
e) Acquire perceptual and analytical skills through direct artistic
experience and through the processes of self-expression.
f) Develop critical thinking that assists in harmonizing opposing ideas,
contradictions and inconsistencies in human life and in human relations.
g) Be aware of the variety of vocations available in the field of textiles and
opt for a viable, fulfilling career in Textiles.
h) Develop appropriate attitudes and skills for sustainable development
i) Appreciate products of locally produced textile items and patronize them
j) Develop positive attitudes for exploring the indigenous textile industry
k) Be aware of the hazards of using some tools, materials and chemicals
and the precautions to take when using them.

It could be inferred from the scope and objectives of the SHS textiles programme
that, it is very exhaustive and for that matter expected to offer enough knowledge and
skills to students terminating their education at the end of Senior High School who would
practise the vocation for industrial and national development.
With regard to the polytechnic textiles programme, the Accredited syllabus for
HND Fashion Design and Textiles Technology (2007) records that, in 1993, it became
necessary to pass the Polytechnic Law under PNDCL 321(1992), which upgraded
62
polytechnic education in Ghana to tertiary status. This gave rise to the running of Higher
National Diploma (HND) Programmes in all polytechnics in Ghana. In 2007, the
polytechnic law was revised into “The Polytechnic Act”, which confirmed polytechnics
as public tertiary institutions in Ghana with academic autonomy. The major objective of
Polytechnic education in Ghana is to develop the middle and higher level manpower to
the highest technological and academic standards for the country’s needs especially in the
fields of manufacturing, commerce, science, technology, applied social science and
applied arts. In addition to these, polytechnics are to provide opportunities for skills
development, applied research and publication of research findings.
Though the textiles programme (B-Tech, 2010) at the Higher National Diploma
(HND) level has run for nearly eighteen years, current trends in industry require that
HND graduates are given further training with specialties to enable them perform more
efficiently in contemporary industry. After 15 years of education at the Higher National
Diploma (HND) level, it has become very necessary for Takoradi Polytechnic to move up
the educational ladder to satisfy this need and provide opportunities for further studies.
The Bachelor of Technology (B-Tech) Degree programmes have therefore been
introduced to provide the much needed academic progression for graduates of the Higher
National Diploma (HND). The Bachelor of Technology in Textiles is therefore, one of a
number of top up programmes designed for graduates of the Higher National Diploma
(HND) and holders of similar certificates and diplomas. The major objectives of the
programme as spelt out in B-Tech Textiles Syllabus (2010) are:
a) To provide an opportunity for HND Graduates and people with
similar qualifications to acquire advanced knowledge, skills and
academic status in Textile and Fashion Design and Technology.
b) To provide specialised skills to HND Graduates to meet
contemporary manpower needs at managerial levels in industry.
c) To equip the graduates with enhanced entrepreneurial skills to
enable them establish their own business ventures.
d) To up-date analytical techniques of the graduates to enable them
solve modern technological problems.
e) To develop and up-date their supervisory and management
skills in a rapidly changing environment.

63
 f) To enhance the Information Communication Technology (ICT)
skills of HND Graduates and make them more suitable to meet
the modern industrial challenges.
g) To position the graduate to pursue advanced graduate studies.

The programme is designed to train students to attain theoretical and practical

competencies that will equip them with skills to serve as Textile Technologists, Weavers,
Spinners, Dyers, Printers, Launderers and Dry-Cleaners, Garment Manufacturers,
Fashion Designers, Interior Decorators, Sales Representatives, Textile Designers, Private
Business Executives, Quality Controllers, Managers and Mill Supervisors of Textile
Production Units.
The textiles programme of KNUST, with reference to IAD (2010), was created in
1964 with the main aim of producing graduate artists and art teachers for schools and
colleges. The programme has expanded and is now a blend of Textile Design,
Technology, Management and Fashion. Textiles and Fashion Design are two separate but
interrelated disciplines too broad to be contained in one syllabus. Specialised areas have
not been designed for these two fields of study, resulting in students being overburdened
in an attempt to cover all these areas for a degree certificate in Textiles. The result is that,
graduates leave school knowing bits of everything but mastering none, making it difficult
to market themselves on the job market which has become very competitive more than
ever although the current needs of the country and trends in the global textile and fashion
industry demand training of specialized manpower to handle the design and technology
of production of textile and fashion goods. Among the aims and objectives of the
KNUST textile programme (IAD, 2010) are:
a) Produce technologically trained graduates in the field of textile and
fashion design, textile/fashion production and marketing
b) Improve the manpower resource base for the textile and fashion industry
in Ghana.
c) Prepare students for careers in research development or other
technological aspects of the textile, fashion and allied industries
d) Produce trained graduates in the field of textile and fashion design,
production and marketing

64
 e) Offer technical expertise in the textiles, clothing and related industries
and make ready-to-wear garments commercially available to the
manufacturer and consumer.
f) Build a couture clothing (high fashion) industry compatible with
international standards and expand the export promotion exercise under
the President’s Special Initiative (PSI) and African Growth and
Opportunity Act (AGOA) among other
g) Offer outreach programmes and workshop in textile/fashion technology
and design
h) Produce graduates with the requisite knowledge and skills to take up
positions in the following areas: Manufacturing; Commerce; Teaching;
Research and Development
i) Enhance some existing academic programmes of the university such as
Communication Design, Metal Product Design and Interior Decoration.
j) Develop income generating activities in the form of outreach academic
programmes such as short training courses and workshops.

Apparently, the textile studies at the university level focus on producing

technologically trained graduates with specialized manpower and skills to handle the
design and technology of production of textiles and fashion design, production and
marketing, to meet the current needs of the country and trends in the global textile and
fashion industry. It could be established that, the curricula of the various levels of textiles
programmes in Ghana; SHS, Polytechnic and the University, place much emphasis on
skill acquisition and technological development aimed at producing qualified graduates to
satisfy the manpower needs of the country. With these broad objectives, graduates are
expected to fit and perform well in the industry to contribute to the development of the
country.
Inferring from the literature reviewed, it is evident that the global textile industry
has seen a lot of developments since the 19th century industrial revolution from fibre
processing to fabric application. Research and advancement in technology have expanded
the industry from the conventional use of naturally occurring fibres to the technology of
man-made fibre production which had offered the consumer with a wider variety of
fabrics to choose from. High speed machines have been developed with computer
programmable systems to increase productivity, produce variety of innovative high
65
performance fabrics for fashionable and industrial purposes, save time, and also reduce
noise and labour in the industry; all these are aimed at reducing cost and achieve quality.
The global advocacy for environmentally friendly production in the millennium had
ushered in new technological paradigms in the textile industry and most textile producers
have re-strategized to plan and budget accordingly. This has led to newer technologies
with much focus on the production of Biodegradable fibres, Genetically Modified Cotton
and Organic Cotton which are produced with little or no pesticides. Moreover, amidst
liberal trade that forbids quantitative restriction of textiles, a stiff competition now exist
in the global textile market and most WTO members have developed strategies to get
competitive edge to sustain and move their industries forward. Some vulnerable
developing countries have therefore put in place mitigative measures to withstand or
safeguard their industries from the consequences of trade liberalization.
In addition, most developed economies such as China, US, EU, India and Pakistan
depend largely on textile production for sustainable development of other sectors due to
the socio-economic significance and employment opportunities the industry creates. In
the past, Ghana had made significant benefits from textiles with regard to employment,
productivity and revenue generation, employing 25,000 workers with output performance
of 129 million yards of cloths in 1977 and revenue of 179.7 million dollars in 1994 from
textile exports. That notwithstanding, by 2004, revenue from textile exports had dwindled
to 7.4 million dollars and in 2005 the total employment of the sector had reduced to 2,961
workers with total output performance of 39 million yards, indicating a significant
decline of the industry. These are attributed to both internal and external challenges that
confront the industry.
Based on the developmental indicators that have occurred in the global textile
industry as highlighted above, it could be established that, for the Ghana textile industry
to sustainably remain operational and to maximize productivity for maximum returns, the
industry needs to build a strong competitive edge with its offshore counterparts. This
therefore sets high standards for the domestic textile factories to meet in the following
domains; utilization of high speed modern machinery and technology, conservation of
energy and raw materials, development of new fibre/fabric variance, practising of
environmental friendly production, innovative and high performance fabrics, product
competitiveness (quality, design and price) through adoption of effective operational
strategies, increase in export levels, implementation of favourable policies, development

66
of local raw materials and collaboration with institutions of higher learning for research
and development.

67
 CHAPTER THREE

METHODOLOGY

Overview
In any activity that requires investigation into a phenomenon to reach concrete
results, a well defined and systematic methodology for achieving authentic results
become very imperative. In this chapter, therefore, the research design used, the data
collecting instruments, the population for the study, the sampling techniques used and the
data collection procedures have been discussed.

3.1 Research Design

The study was based on the phenomenological perspective of qualitative approach
but adopted the descriptive observational and multiple case study methods to investigate
the challenges and prospects of four major textile factories and implication thereof for
textile education in Ghana. As epitomized in phenomenological study (Encarta, 2009),
the description of structures and experience as they presented themselves in the
operations of the selected textile factories were carried out. The qualitative enquiry
allowed close interactions with the respondents, observation of their settings and
interpretation of findings (Osuala, 2001). The justification for using qualitative research
for this study is because it collects descriptive information and gives detailed descriptions
and explanations of the phenomenon studied rather than providing and analyzing
statistical data. Again, it is usually based on quality rather than quantity and its
description of observations is not ordinarily expressed in quantitative terms. This does
not imply that numerical measures are never used in qualitative research, but it is not
largely dependent on numbers; Encarta, 2009) as is the case for this study.
With respect to the study, the production and sales processes of the selected textile
factories were closely studied, examined, described and interpreted qualitatively to
deduce their strengths and weaknesses for conclusions to be drawn and recommendations
made. In this regard, the quality of the processes and the products were invariably
paramount than quantity as buttressed by Merriam (1988). The paradigm of qualitative
research evolves on process versus product quality with the focus on an individual's
experience and description of life situations. The core characteristics of qualitative
research; description, interpretation, verification and evaluation of situations, settings,
68
processes, relationships, systems, or people (Leedy & Ormrod, 2005) made it very
relevant approach for this study to investigate the quality of processes and products of
selected textile factories in Ghana.

3.1.1 Descriptive Observational Study

The descriptive observational study was used in this research to describe the
industrial settings, production and sales processes, situations with regards to challenges
and prospects of the factories, and for analysis and interpretation of collected data. Sidhu
(1984) explains that descriptive research is the method of investigation which attempts to
describe and interpret what exists at present in the form of conditions, practices,
processes, trends, effects, attitudes, beliefs, etc. It seeks to answer the question as “what
the real facts are with regards to the existing conditions”. In line with this, the descriptive
observational method was employed to document data from real life situation and the
natural setting of what exists in the factories. The working environment, workers attitudes
to work, safety measures, labour force, management structure, machinery capacity, raw
materials, processes, products, make ups and distribution and sales operations of the
factories were systematically studied and descriptively analysed. This was done based on
what, when, where and how of a situation parameters of the descriptive research
methodology. Again, data collected were presented in their natural sense without any
manipulation (Leedy & Ormrod, 2005). The data were analytically compared with that of
various authors and the expert opinions from resource personnel of the textile industry to
draw conclusions and make projections on possible means of achieving the set objective.
With the focus on the Ghana textile industry as the study area with its
multifaceted challenges, it was imperative to present the situation of the selected factories
as they stand without any manipulations in order to ascertain the true picture for the
descriptive analysis and interpretation to reach unbiased findings. Because observation
becomes indispensable in such a study, the observational study of the descriptive research
was used to investigate the situation of the factories to arrive at concrete results.

3.1.2 Multiple Case Study

The case study method of qualitative research approach was used alongside the
descriptive research method for the study. The nature of the study demanded the need to
identify and select relevant textile factories that could be considered as a fair
representation of the large-scale textile factories in Ghana which could yield authentic
69
results to make practicable generalisations for the development and sustainability of the
textile industry in Ghana. The case study method was considered very appropriate in this
regard as it made it possible for the researcher to embark on an in-depth study of selected
major textile factories in Ghana, which focused on GCCL, TGL, ATL and VSTL.
The relevance of the case study for this research stems from the fact that it makes
it possible to embark on an in-depth investigation of a particular individual, programme,
or event within a defined period of time. A case study may be single a case or multiple
case with the latter involving two or more cases to allow comparisons to be made, build a
theory, or propose generalizations (Leedy & Ormorod, 2005). This research therefore
employed the multiple or collective case study method as it targeted four major selected
textile factories in Ghana. A stage was therefore set to make comparison to decipher the
strengths and weaknesses of the selected factories with reference to their production and
sales operations to draw realistic conclusions.

3.2 Sources/Facilities for Data Collection

3.2.1 Libraries
The following libraries were visited to solicit secondary data for the research.
a) KNUST Main Library, Kumasi.
b) University of Ghana Library, Accra.
c) University of Cape Coast Library, Cape Coast.
d) University of Education Library, Winneba.
e) British Council Library, Kumasi.
f) The George Padmore Research Library on African Affairs-Accra.

3.2.2 Archives
Archival data were also obtained from the following sources.
a) National Archives-Accra
b) Archives of MOTI, Accra.
c) Archives of CEPS, Accra.
d) Archives of GCCL, TGL, VSTL and ATL.

70
3.2.3 Industries
GCCL, ATL, TGL, and VSTL were the four main textile factories where the
research was conducted. However, the researcher made references to other factories such
as GTMC and Printex to support the study.

3.2.4 Institutions
The research also sourced data from institutions whose operations have direct or
indirect impact on the activities of the textile factories. These were; the Ministry of Trade
and Industries (MOTI) the major government institution which spearhead formulation
and implementation of policies on trade and industrial production in Ghana; the Customs,
Excise and Preventive Service (CEPS) the government institution whose duty is to ensure
that importers and exporters pass through the approved roots and pay the right tariffs to
have their goods transported for the government to retrieve appreciable revenue for
national development; Higher Intuitions that run textiles programmes in Ghana such as
KNUST, UEW, Kumasi and Takoradi Polytechnics that train textile designers and
technologists for the local textile factories.

3.2.5 Markets/Sales and Distribution Outlets

A market survey was conducted at the various sales depots of the selected textile
factories to observe the trends of patronage of the locally made textiles. Premium African
Textiles, CTD (Char Textiles Distribution), Woodin shops, and UAC (United African
Company) were the major textile merchandisers the research focused. The researcher also
called on textile retailers who are predominantly market men and women who trade in
textiles at Makola in Accra and Central market in Kumasi to collect data for the research.
The market survey was also aimed at finding and assessing the extent of importation and
smuggling of foreign textiles and the effects it is having on the locally produced textiles.

3.2.6 Other Sources of Data

The researcher retrieved current information from the internet on textile production
and sales. In addition to the internet, primary data or first-hand information were solicited
from selected resource personnel who are textile consultants and lecturers.

71
3.3 Population for the Study
The study targeted workers of four selected textile factories which are Ghana
Cotton Company Limited (GCCL), Akosombo Textiles Limited (ATL), Texstyles Ghana
Limited (TGL), Volta Star Textiles Limited (VSTL); resource personnel whose
operations have direct or indirect influence on the textile industry such as the Ministry of
Trade and Industries (MOTI), Customs, Excise and Preventive Service (CEPS), textile
lecturers and textile merchandisers as parent population. The target population for the
study is grouped into five categories as follows:

a) Workers of selected textile factories in Ghana, comprising technical and

administrative staff of GCCL, VSTL, ATL and TGL.
b) Textiles lecturers– KNUST, UEW, Kumasi and Takoradi Polytechnics.
c) Government agencies with specific reference to MOTI and CEPS.
d) Cotton farmers in the northern region of Ghana (Tamale).
e) Textile merchandisers – Sales agents of Woodin shops, market women and men who
trade in textiles.
The total potential or accessible population for the study was 370 respondents as
shown in Table 3.1.

3.4 Sampling Technique

The purposive or convenience (non-probability) sampling technique was used in
the selection of interview respondents from the accessible population to be studied. This
was used alongside with stratified sampling technique which was used primarily in
collecting data through questionnaire from a section of the population. Since the potential
or accessible population for the study was 370, 185 respondents were selected for the
study which represents 50% of the accessible population. This figure is fairly adequate
for the study since Cohen & Manion (1980) assert that, for quality research, 30% of the
population for the study is a fair representation for an acceptable accuracy of results. The
four textile factories were purposefully chosen with the aim of gathering specific relevant
data on each of the factories for discussion to meet the set objectives. Ghana Cotton
Company Limited (GCCL) was selected based on the fact that it is the only surviving
large-scale cotton processing company in Ghana. Testyles Ghana Limited (TGL)
formerly GTP was selected in the sense that the factory is among the first few large-scale
textile factories that were established in the 1960’s. The factory had also been leading the
72
textile manufacture sector in Ghana for years and is still in operation. Akosombo Textiles
Limited (ATL) was considered viable for the study because it is also among the first
established textile firms in Ghana and currently the only textile company operating in a
vertically integrated production system in Ghana (i.e. from fibre processing to fabric
printing). Volta Star Textiles Limited (VSTL), formally JTL, was selected for the study
because it is the only existing textile factory that produces cotton yarns and production of
grey cotton fabrics in Ghana.
Leedy and Ormrod (2005) postulate that, in purposive sampling, people or units
are chosen for a particular purpose. They explain further that, more often, qualitative
researchers are intentionally non-random in their selection of data sources. Their
sampling is purposeful to select those individuals or objects that will yield most
information about the topic under investigation. Fraenkel and Wallen (1993) add that,
based on previous knowledge of a population and the specific purpose of the research,
investigators use personal judgement to select a sample that will yield accurate results.
Because the research focused on specific textile factories and the fact that the
resource persons in this area were less available, purposive sampling technique was used
to select specific and resource persons from the selected factories for the study. This
category was made up of high ranking textile industrialists and other resource persons
comprising; administrative managers, personnel managers, production managers, sales
managers and textile lecturers. The use of purposive sampling technique made it possible
to collect relevant data from experts in the field of textile production and sales with
regards to challenges and prospects. In addition, stratified sampling technique was
employed, after purposefully selecting the factories and interviewing the key resource
persons, to solicit data from selected technical staff of the respective textile factories to
support and authenticate the data collected through interview. This category consisted of
assistant managers and supervisors from ginning, spinning, weaving, dyeing and printing
departments. The stratified sampling technique was appropriate in the sense that the
population for the study was heterogeneous in nature. Tables 3.1 and 3.2 show the
accessible population and stratification of the accessible population; Figure 3.1 illustrates
the schematic overview of the proportional stratified and sampling procedure used to
randomly sample the 185 respondents for the study.

73
Table 3.1: Distribution of Accessible Population for the Study
Population for the study Accessible Population
Textile Industries:
ATL 60
VSTL 60
TGL 60
GCCL 60
Textile Lecturers:
KNUST 10
UEW 10
Kumasi Polytechnic 10
Takoradi Polytechnic 10
Government Agencies: MOTI & CEPS 20
Cotton farmers (Tamale) 20
Textile merchandisers:
Central market (Kumasi) 20
Makola market (Accra) 20
Woodin Shops 10
Total Population 370

Table 3.2: Stratification of Accessible Population

Strata Population for the Study Accessible Population
ST - 1 Textile Industries
ATL
VSTL
TGL
GCCL 240

ST – 2 Textile Lecturers
KNUST
UEW
Kumasi Polytechnic
Takoradi Polytechnic 40

ST - 3 Government Agencies (MOTI & CEPS) 20

ST - 4 Cotton Farmers (Tamale) 20

ST - 5 Textile Merchandisers
Central market (Kumasi)
Mokola market (Accra)
Woodin Shops 50
Total Population 370

74
Population level
Total Population
370

ST1 ST2 ST3 ST4 ST5

Proportional
Stratification level 240 40 20 20 50

Randomisation
Level (Sampling)
50% 120 20 10 10 25

Total Randomised
Stratified Sample
185
(Data Level)

* ST – Stratum
All figures used in sample design are estimates

Figure 3.1: Schematic Diagram of the Stratified Sampling Design

3.5 Data Collecting Instruments

Interview and observation were employed as the main instruments for data
collection. However, questionnaire was used in some instances to collect data from
respondents with busy work schedules and could not be available for interview. Interviews
were conducted to collect relevant data from cotton farmers, textile industrialists and
merchandisers. With the cotton farmers the interview was conducted through focus group
discussion method with maximum of five farmers at a time in the Tamale metropolis. The
group discussion helped the researcher to interact with the farmers who gave out their
heartfelt concerns on the cotton production in the region. One-on-one interview was
conducted with high ranking staff of the large-scale textile factories and textile
merchandisers. The use of interview was significant in the study because it made it
possible to get immediate responses from the respondents. Moreover, it helped in the
collection of data from the market textile traders with little or no formal education and for

75
that matter could not respond to a questionnaire. Structured interview guide was designed
and used in this regard (see appendix B). The use of interview guide helped in asking
relevant questions that yielded relevant responses from the interviewees.
Participant observation was used to collect primary data from the selected textile
factories. Participant observation according to Sidhu (1984) deals with the behaviour of a
person or a group who plays an active role in the situation or context in which the
behaviour is recorded. This type of observation was employed in the study using an
observational check list (see appendix A) to record observable findings. With participant
observation, the infrastructure, raw materials, quality control processes, personnel, mode
of production, working environment and machinery in the various factories were critically
observed and recorded. The researcher also embarked on market survey to observe the
various forms of textiles on the Ghanaian market and took photographs where necessary
for discussion. Observation as a research tool helped in collecting first hand or natural
information from respondents.
Structured questionnaire with both close and open ended questions was also used to
collect data from a section of the research population comprising textile industrialists and
textile lecturers for the study (see appendix C for sample questionnaire). The use of
questionnaire provided an opportunity for a written response which was relatively less
expensive than interview and observation.

3.6 Data Collection Procedure

Collection of data for the study was done through the qualitative approach. Data
were collected from field research mainly through direct observation, interview, audio-
visual documentation and questionnaire. The researcher toured the respective textile
factories located in the Northern, Eastern, Volta and Greater Accra regions together with a
research assistant to collect relevant data.
At Tamale in the Northern region, the Ghana Cotton Company Limited was visited
and selected top ranked personnel were interviewed. Other staff were selected at random
and given samples of the questionnaire to respond to. The interviewees comprised; field
operational manager, ginning operational manager, monitoring and evaluating manger and
administrative manager. Those given copies of the questionnaire were field supervisors
and ginning operators. The production line of the Tamale ginnery with its infrastructural
capacity was observed. Other ginneries in the region such as Nulux Plantation Company
76
Ltd, Plantation Development Company Ltd, Juni Agro Company Ltd, Bafcot Company
Ltd, Agrostar Company Ltd, Intercontinental Farms Co. Ltd, A.A. Ibrahim, Upper West
Cotton Company, Amantin Complex Farms Ltd, etc. were also visited to observe the state
of the cotton industry. Cotton farmers in the locality were also engaged in focus group
interview (five cotton farmers in a group) to discuss the problems they encounter in their
business and solicit their views toward revamping the cotton industry. The first group were
made up of executives of the Cotton Farmers Association including the president and the
secretary of the association. The discussion was based on how the farmers organise
themselves to negotiate lint cotton prices at the beginning of every cotton farm season and
how they obtain farm inputs and financial assistance from the cotton processing companies
and the government. With the second group which was purely made up of cotton farmers
(out-growers), the discussion was geared towards the problems they encounter as cotton
growers and what they thougt must be put in place to motivate them to remain in the
cotton farming business.
At Akosombo in the eastern region, the Akosombo Textile Limited was the focus.
After a thorough observation and recording of the factory’s production line and machinery,
the personnel and production managers were interviewed. At the Accra office, the
administrative manager together with the sales and design managers were interviewed. The
types of prints that were on display at their sales and distribution outlet (CTD) were
observed together with smuggled pirated ATL print designs which had been intercepted
and were in store at the design section. The technical director, personnel, quality control,
spinning and weaving operation managers of Volta Star Textile Limited, Juapong in the
Volta region, were interviewed. The factory’s production line, machinery and products
were observed and findings recorded. At Texstyles Ghana Limited, Tema, the group
administrative manager, production manager, design manager, marketing manager, and
safety control manager were interviewed and the factory’s plant and processes observed
and findings recorded. At all the four factories, copies of questionnaire were administered
to selected technical staff to respond to (Table 3.3).
Visits were also made to the Ministry of Trade and Industries (MOTI), Customs,
Excise and Preventive Service (CEPS), and selected textile merchandisers to solicit
relevant information for the study. At CEPS, five (5) workers in charge of smuggling of
textiles were interviewed to find out the rate of textile smuggling in the country, causes
and measures to curb it. At MOTI, five (5) staff from the Textiles Section were
interviewed. The MOTI interview was conducted to find out government policies and
77
interventions toward sustainable development of the local textile industry. At the Makola
(Accra) and Central Market (Kumasi), twenty (20) men and women who trade in textile
goods were interacted with to find out the rate of patronage of locally made textiles as
against the foreign types. Five (5) respondents were selected from Woodin Shops in Accra
and Kumasi to get their views on similar issues. The prices of the locally made textiles
were assessed with the foreign types based on quality, competitiveness, and affordability.
The interviews were recorded trough written notes and audio tape with prior permission
from the respondents, whereas findings made on observation were recorded using
observational check lists (see appendix A) and by snap shots with digital camera where
this was allowed.
Data were also sourced from the country’s major tertiary institutions that offer
textile programmes to train students for the textile industry. These institutions were;
KNUST, UEW, Takoradi Polytechnic and Kumasi Polytechnic. The study focussed mainly
on lecturers who teach in textiles to find out the relevance of their programmes to the local
textile industry, the collaboration between them and the industry, and seek their opinions
on the challenges confronting the textile industry and suggest ways to revamp the industry.
Some textiles students were randomly picked to solicit their views on the subject with
special reference to the type of training they were being given to meet the challenges of the
industry. Table 3.3 shows the percentage distribution of copies of questionnaire and their
responses.

Table 3.3: Percentage distribution of questionnaire and responses

Respondents Copies Percentage Copies Percentage Copies Percentage
Administered (%) Retrieved (%) Lost (%)
GCCL 25 20.8 22 18.3 3 2.5
ATL 25 20.8 23 19.2 2 1.6
VSTL 25 20.8 25 20.8 0 0
TGL 25 20.8 20 16.6 5 4.2
Lecturers 20 16.6 18 15.0 2 1.6
Total 120 100 108 89.9 12 9.8

Inferring from Table 3.3, 108 out of 120 copies of questionnaire (89.9%)
administered were retrieved representing 89.9%. The 120 respondents administered with
questionnaire made up 65% of the total sample population of 185 respondents (which is
50% of the accessible population). The remaining of the sampled population, i.e. 65

78
respondents 35% were however, engaged in different forms of interviews to collect
relevant data for the study. The various groups that were engaged in interview are
represented in Table 3.4.

Table 3.4: Interview respondents

Respondents Number Percentage (%)
Cotton farmers 10 15.4
ATL 5 7.7
VSTL 5 7.7
TGL 5 7.7
GCCL 5 7.7
CEPS 5 7.7
MOTI 5 7.7
Central market (Kumasi) 10 15.4
Mokola market (Accra) 10 15.4
Woodin shops 5 7.7
Total 65 100

It must be clarified that the questionnaire was used to obtain data to support and
validate the data collected through direct interview and observation as the study focused
on qualitative enquiry. Prior to the field study, arrangements were made with the factory
authorities regarding the visits. The date and time for the visits were scheduled
conveniently to the factories and the interviewees. The interview schedules were also fixed
to suit the preference of the respondents. Copies of introduction letters were first sent to
the factories via fax machine and e-mails with follow up calls. A personal follow-up visits
to the factories were made prior to the actual study schedule to remind the authorities
about the visits, and to make personal introduction and built a rapport with them. Copies of
the interview guides were given to the respective respondents to go through and copies of
questionnaire administered.
As Leedy & Ormrod (2005) posit, it is purposeful in qualitative research to collect
data that will yield most information about the topic under investigation. This is
imperative in order to ascertain the best results in answering the research question(s) and
to meet the set objective(s). To achieve this, library research was conducted prior to the
field research to search for relevant secondary data from books, publications, and
unpublished theses and dissertations to provide enough theoretical data to support the
study. Additional data were sourced from database and internet to obtain current
information on the subject.

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 Four parameters (Creswell, 1994) must be noted when collecting data in qualitative
study; the setting - the research environment, the actors or the respondents - the people to
be observed or interviewed, the event - what to be observed or interviewed about the
actors, and the process - the nature of event the actors undertake within the setting. Based
on the parameters outlined by Creswell, data for the study were collected in response to
the research questions right at the research setting through triangulation of research
instruments as shown in Table 3.5.

Table 3.5: Triangulation of research instruments for data collection

I Interview Questionnaire Observation Focus group
Q discussion
1 √ √

2 √ √ √ √

3 √ √ √

4 √ √

The use of triangulation ensured validation and credibility of data. This is because
it provided the platform for comparison to be made with specific data collected with
different instruments leading to determination of factual data for acceptance, or otherwise
rejection of a particular date during assembling, synthesis, and discussion of data.

3.7 Data Analysis Plan

The researcher after data collection, subjected the raw data into a thorough
examination in order to find linkages between the findings and the formulated research
questions. In doing this, the researcher remained open and objective to new developments
and insightful ideas and made possible effort to refrain from premature conclusions.
Recorded interviews were played back, listened to, transcribed, and compared with written
notes made during the interviews to ascertain its authenticity. Responses from the
questionnaire and ticked observation guides were sorted out and common and varied
opinions together with observable findings recorded to support the interview responses.
Digital photographs taken from the research sites were downloaded onto computer and
relevant ones selected, edited and used in support of the data collected. Discussion and
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presentation of data were done descriptively and supported with tables, figures and plates
in the fourth and fifth chapters of the dissertation. Both primary and secondary data
obtained were assembled, synthesized, analysed, and interpreted to draw conclusions and
recommendations made toward the invigoration of the Ghana Textile Industry.

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 CHAPTER FOUR

PRESENTATION AND DISCUSSION OF FINDINGS

Overview
The chapter presents and discusses the findings of the study. As a multiple case
study, it focuses on four major textile factories in Ghana with special reference to their
production, sales operations, internal challenges and prospects of the selected factories.
The chapter specifically looks at the internal and external challenges and prospects of the
factories, measures put in place to mitigate the challenges, and the implications of the
challenges on textiles education in Ghana.

4.1 Production and Sales operations of the selected Textiles Factories

This section presents findings on the production and sales operations of the Ghana
Cotton Company Limited (GCCL), Volta Star Textiles Limited (VSTL), Akosombo
Textiles Limited (ATL) and Texstyles Ghana Limited (TGL).

4.1.1 Ghana Cotton Company Limited (GCCL)

A survey of the Ghana Cotton Industry GCCL revealed that, the factory is situated
at Lamashegu, a suburb of Tamale industrial area in the Northern region of Ghana. The
company, being the largest cotton processing mill in the region, produces lint cotton for
the local textile factories and for export. It serves as one of the major employers in the
region providing jobs to the natives of the region who are predominantly farmers.
Production of cotton in northern Ghana, according to the administrative manager of
GCCL (Personal communication, May 25, 2010), started in the late 1960s with the
establishment of the Cotton Development Board (CDB) in 1969. He explained further that
the core objective for its establishment was to develop cotton to feed the local textile
factories for sustainable development of the textile sub-sector. Production capacity reached
11.000 tons of seed cotton by 1976 but declined tremendously to almost zero by 1984. The
decline, among other factors, was attributed to low capital investment necessary to lift the
cotton production to appreciable level. Government, recognising the important role cotton
plays as a significant cash crop aside cocoa to the country’s GDP (i.e. the employment it
generates, foreign exchange it accrued, as well as serving as the main raw material base for
the textile factories, among others), decided to invest in the development of cotton
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production. This led to the establishment of the Ghana Cotton Company which started
operation in April, 1986. The prime objectives for the establishment of GCCL as
enumerated by the administrative manager include:
a) The development of the cotton industry in Ghana

b) Provision of technical and extension services, inputs and credit to farmers.

c) Marketing, processing, handling, transportation, distribution and export of

cotton.

d) Determination and guarantee of producer price of cotton.

e) Undertaking of research or arrangement of research facilities for the development

and promotion of the cotton industry.

The shareholding structure of the company when it was incorporated as private

limited liability firm with floating shares which allowed extensive public participation is
exhibited in Table 4.1.
Table 4.1: Share holding structure of GCCL
List of Shareholders Total No of Shares % Shares
Akosombo Textiles Ltd 7,600 6.44
Akotex Synthetics 7,600 6.44
GTMC 5,800 4.92
Freedom Textiles Ltd 6,200 5.25
Juapong Textiles Ltd 25,143 21.31
Printex 8,600 7.29
Tema Textles Ltd 564 0.48
West Coast Spinning Ltd 112 0.09
Textile Trico Ltd 2,857 2.42
Najim Industries Ltd 3 2.54
Zakour Textiles Ltd 666 0.56
Asma Production Ltd 71 0.06
Local Cotton Production Ltd 342 0.29
SIAT (Gh) Ltd 10,996 9.32
Wienco (Gh) Ltd 17,924 15.19
Reiss & Co (Gh) Ltd 1,125 0.95
Agric Dev. Bank 18,000 15.25
Chemico (Gh) Ltd 1,000 0.85
Agroverts Ltd 400 0.34
Total 118,000 100.00%
Source: ADB (2001)

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 A former MD of GCCL (Personal communication, May 24, 2010) narrated that
GCCL was incorporated as a private limited liability company after taking over asserts of
the erstwhile Cotton Development Board (CDB) and the Upper Region Agricultural
Development Programme (URADEP). Seventy percent (70%) of its shares were held
privately and 30% by the Government of Ghana. Under the Ghana Government’s
divestiture programme, the 30% share held by the Government was further divested to the
private sector with the Agriculture Development Bank (ADB) taking 20% of the
government shares and the other 10% shares going into other private investors who were
mainly textiles firms. With 320 workers, the company provides employment to about
50,000 farm families with each farm family having an average of five or six farmers. This
indicates that GCCL alone provides jobs and better living conditions to over 250,000
farmers and their dependents, in addition to 320 staff of the company and their dependents
which is very significant in terms of employment rate in the region and for that matter the
country at large.

Operations of GCCL
The administration manager of GCCL (Personal communication, May 25, 2010)
established that, the company’s operations mainly fall under administration, cotton
production (farming), and cotton processing (ginning) adding that the offices of the
Internal Auditor, Public Affairs and Monitoring and Evaluation are located in Tamale but
report directly to the Managing Director whose office is in Accra. The main production
operations of the company are in the hands of the field operation manager who is in charge
of field cotton production (i.e. cotton farming), and the ginnery operation manager in
charge of processing of seed cotton into lint cotton. The company currently does not have
substantive board to spearhead its activities. It is now operating under an acting managing
director. The organisational structure of the company is shown in Fig 4.1.

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 Board of Directors

Managing Director

Internal Financial Accra Office Monitoring & Public Affairs General

Auditor Controller Manager Evaluation Manager Manager Manager

Divisional Heads
(Tamale, Bolga, Tumu)

Account Field Operation Administration Ginnery

Operation Manager Manager Manager Manager

Zonal Officers

Cotton Production Assistants/Field Extension Officers

Cotton Farmers

Figure 4.1: Organisational Chart of GCCL

Cotton Production (Farming)

The Field Operation Manager of GCCL (Personal Communication, May 26, 2010)
explained that Cotton production by GCCL and other cotton processing companies in the
northern Ghana is organised mainly on out-grower basis. The companies, first and
foremost, determine inputs prices through market survey and look out for creditors or
suppliers (buyers) to establish financial agreement with them. Registration of the out-
growers follows once the company has acquired enough capital to commence production.
The registration of out-growers is done in groups by Zonal officers under the auspices of
the field operation manager. The cost of production, excluding labour, of each out- grower
is pre-financed by the company from the funds obtained exclusively from ADB and other
financial institutions with commercial interest rates. The loans are used primarily to
provide inputs for registered out-growers. Such inputs include; land preparation services
such as clearing and ploughing, provision of cotton seeds and agro-chemicals including
fertilizers and pesticides.

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 The Field Operation Manager added further that, in addition to inputs supply, the
cotton company provides extension and field supervision to support its registered out-
grower to maximize their productivity and to ensure quality yields for the benefit of both
the company and the farmers. Each out-grower cultivates a minimum of one unit (i.e. 0.5
hectare) within each production season. The out-growers are categorized into two main
groups; the individual farmers with the production capacity of 1 unit (0.5 hectare) i.e. 5000
square metres and the commercial farmers with the production capacity of up to 5 units
(2.5 hectares) equivalent of 25000 square metres. Farm maintenance and picking of
matured cotton, on the other hand, are undertaken at the expense of the farmers who have
no other option than to sell the seed cotton generated to the company at a pre-determined
price fixed at the onset of the production season through negotiation between the cotton
farmers association and the cotton processing company with Ministry of Food and
Agriculture (MOFA) as an intermediary body. Each out-grower is paid according to the
quantity and quality/grade of seed cotton supplied by the processing company.
The study observed that, the work of the out-growers starts with land acquisition.
Land for cotton farming is acquired without pay and readily available. Cotton production
in the region is highly labour intensive where farmers work without any mechanized
means. They also depend solely on the rains for cultivation. In view of this clearing and
ploughing of the land is done in advance with the assistance of the cotton company to
allow the rain to fall before cultivation. Regular farm maintenance culture is carried out
after cultivation by the individual farmers under the supervision of the field operation
officers and the agricultural extension officers to ensure better yields. The type of cotton
grown by the farmers is the short staple type (American cotton) with shorter maturity
period of 120 days (about 4 months) and up to 6 months to be harvested. The farming
season begins in March with land preparation and by September the seed cotton is ready to
be harvested. Picking of cotton in the region is done manually by hand and mostly by
women who are employed and paid by the farmers themselves which adds up to their cost
of production. After picking the seed cotton is graded into A, B and C depending on the
quality. The graded cotton is baled and weighed to ascertain its volume. The weighed
cotton in kilograms is computed and multiplied by the pre-determined unit price per kilo to
get the actual value of the farmer’s output. As at June, 2010, the unit price per kilo of seed
cotton was 60Gp for grade “A”, the total cost of land preparation and agro-chemical inputs
for one hectare of land was 125 Ghana cedis, and the labour cost for picking one unit (0.5
hectare) of cotton farm was 40 Ghana cedis excluding food and water. The company
86
finally calculates its inputs cost and deduct it from the total value of the farmers output and
the remaining is what goes to the farmer. Out of this figure the farmer pays the pickers and
other labour expenses. Interactions with the farmers indicate that a hard working cotton
farmer get a maximum profit of 300 Ghana cedis per annum on 0.5 hectare cotton farm.
However, due to labour intensiveness of cotton farming, most farmers get an average of
100 Ghana cedis per annum on 0.5 hectare of cotton farm.

Ginnery Capacity and Operation (GCCL)

According to the Ginning Operation Manager of GCCL (Personal Communication,
May 27, 2010) the company has four ginnery systems installed in Tamale, Tumu and
Bolgatanga operating in different capacities with total of 47,000 metric tonnes of seed
cotton as indicated in Table 4.2.

Table 4.2: Ginnery Capacities of GCCL

Location Type of Ginnery Capacity
Tamale 2 Lummus Gin Stands of 128 saws each 10,000mt
Tumu 2 Lummus Gin Stands of 128 saws each 10,000mt
Tumu 1 Murray Gin Stands of 90 saws 2,000mt
Bolgatanga 2 Lummus Gin Stands of 178 saws each 25,000mt
Total 47,000mt

Source: Field Research (2010)

He explained further that, the Bolgatanga ginnery is newly installed modern facility
(i.e. 2 Lummus Gin Stands of 178 saws) with an output capacity of 25,000mt. This
notwithstanding, the company upgraded its ginnery systems at Tamale and Tumu (i.e. 2
Lummus Gin Stands of 128 saws to 158 saws) with the intention of maximizing its
production capacity. However, due to insufficient supply of cotton raw material, the
company has not been able to utilize its ginnery capacity to the fullness to maximize
productivity as expected. Plate 4.1 reveals a section of GCCL’s Tamale Ginnery facility.

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 Plate 4.1: The front section of Tamale Ginnery, GCCL
Source: Field research (2010)

Other Ginneries in the Northern Sector

Aside GCCL, there are a number of private owned cotton ginnery firms working in
different production capacities and employing appreciable number of workers and farmers
which add up to the workforce of the entire cotton industry in the northern region of
Ghana. These include; Nulux Plantation Company Ltd, Plantation Development Company
Ltd, Juni Agro Company Ltd, Bafcot Company Ltd, Agrostar Company Ltd,
Intercontinental Farms Co. Ltd, A.A. Ibrahim, Upper West Cotton Company, Amantin
Complex Farms Ltd, etc. Some of these ginneries have folded up while others have
diverted into other farm produce as the world market price of cotton continues to
depreciate season to season. The ginning capacities of other cotton ginneries that are still
in operation with GCCL are presented in Table 4.3.

Table 4.3: Ginning capacities of other ginnery companies in the north

Company Type of ginnery Location Capacity

Nulux Plantation 4 Jinshi Stands of 91 saws each (China) Tamale 10,000mt
Plantation Dev. Ltd 4 Jinshi Stands of 91 saws each (China) Wa 10,000mt
Inter C/A.A Ibrahim 1 Jinshi Stand of 91 saws each (China) Tamale 3,000mt

Total 23,000mt

Source: ADB (2010)

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 The existing ginnery companies have a total capacity of 70,000 metric tonnes of
cotton. The 47,000mt capacity of GCCL ginnery, however, makes it the largest ginnery in
the region. The ginnery operation as explained by the ginning operation manager of
GCCL is a continuous process. The baled seed cotton fibres are transported from the farm
to the mill by means of trucks. At the mill the cotton fibres are reweighed to check
whether or not the weighed figures recorded by the field staff are accurate. The seed cotton
in bales are off-loaded from the trucks and stored at the company’s ware-houses to be
processed later. In most cases, the trucks carrying the seed cotton are made to park at the
delivery section of the gin where a telescopic sensor mechanism is made to suck the seed
cotton pneumatically into the gin to be processed directly into lint cotton. In the gins the
seed cotton is subjected to series of cleaning process after which the cotton flows into the
front side of the gins where the ginning process actually takes place, thus, the separation of
the fibres from the seed. The type of ginnery system employed by GCCL operates on saw
teeth technically known as Saw Gin. A number of saws lined up together in these ginning
systems with each saw in a form of a metallic plate or disc having a number of teeths
around its circumference. The number of saws in a gin determines the output capacity of
that particular gin. Plate 4.2 shows 2 Lummus Gin Stands of 158 saws of Tamale ginnery,
GCCL.

Plate 4.2: Lummus Gin Stands of 158 saws, GCCL-Tamale

Source: Field research (2010)

Prior to the dressing of the bale after processing, a sample of the lint cotton is taken
to a quality control unit to be examined to ascertain the quality and other characteristics of
the baled lint cotton. Based on the examination results from the quality control unit, the

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bales are labelled with the following descriptions; the name of the company, the gross
weight of the bale in metric tonnes, the year of manufacture, serial number of the bale, and
the quality/grade mark of the bale. Because cotton is very volatile and combustible in
nature, friction from the various machine parts during the ginning operation may generate
fire which may be burning gradually inside the bales unknowingly. In light of this the
cotton bales are left on the open floor of the ginnery room for two to three days to cool
down and also to detect burning of cotton through smelling in order to prevent any fire
disaster.

Sales of lint cotton

An interview with the administrative manager of GCCL (Personal Communication,
May 25, 2010) revealed that, the local textile factories have been the major consumers of
the lint cotton produced by GCCL and other ginnery firms operating in the northern
Ghana. The company used to supply the bulk of its lint cotton to the former Juapong
Textile Limited, now Volta Star Textiles Limited and Akosombo Textiles Limited.
Currently, due to insufficient supply of seed cotton by cotton farmers, the cotton
companies are not able to produce enough lint cotton to meet the demands of the few
existing textile factories in the country. This has resulted in the situation where the textile
firms have lost faith in the Ghana Cotton Industry and have rather directed their focus to
the neighbouring countries such as; Mali, Burkina Faso, Cote d’Ivoire, Togo and Benin as
well as other Asian countries like; China, India and Pakistan for imports of lint cotton for
continuous production. In view of this, GCCL and most cotton ginnery firms in northern
Ghana mostly embark on “forward sales” involving middle men (suppliers/buyers) who
order for the production of the lint cotton and sell or supply them to textile firms and other
cotton consumers within and outside the country. With the forward sales, the buyer or the
supplier negotiates the price with the company to agree on a reasonable price prior to
production. After production the company had no other option but to deliver the quantity
of lint cotton produced to the supplier at the initially agreed price without any amendment.
With this arrangement the buyer always get the opportunity to buy the lint cotton at a low
or reduced price irrespective of the cost of production or the changes in world market price
of cotton within the period of production and this adversely affect the profit margin of the
ginneries who run at loses as a result.

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4.1.2 Volta Star Textiles Limited (VSTL)

Highlighting on the profile of Volta Star Textile Limited, Technical Director of the
company (Personal Communication, June 7, 2010) narrated that, VSTL was incorporated
in November 2007 after the closure of Juapong Textile Limited in June 2005. The closure
of JTL was occasioned by management decision of Vlisco Ghana Limited, the then
majority shareholder and managers of the factory, to pull out and concentrate on their core
business of printing and finishing textiles at GTP, now Texstyles Ghana Limited. The staff
of the factory were accordingly laid off and the factory put on liquidation. The other
shareholders before the closure and the subsequent initiation of the liquidation process,
were the Government of Ghana and Freedom Textiles Investment Company of Hong
Kong. The Government of Ghana through the Ministry of Trade and Industry (MOTI)
stemmed the liquidation process and acquired the plant from Vlisco Ghana Limited in the
same year 2005 with the intention of revitalizing the company.
A technical committee comprising former technical staff of JTL and officials from
MOTI was set up by the Ministry to ascertain the condition of the plant to support
production activities. The committee submitted its report to the Ministry and indicated that
the plant was technically sound to support textile manufacturing. The Government through
MOTI then embarked on massive rehabilitation and refurbishment of the factory to
position it to restart manufacturing. In response to this the factory was officially
commissioned on 11th by the former president, John Agyekum Kuffour and later
incorporated in November 2007. The factory has since started production on test run basis
engaging a few hands in the process.

Production Lines (VSTL)

A survey of the plant of Volta Star Textiles Limited revealed that company’s
production line is segmented into two departments; the Spinning and Weaving
Departments. The Spinning Department is subdivided into three sections: Preparatory
Section involving blow-room processes, carding, drawing/drafting, and roving; Ring
Spinning Section; and Cone Winding Section. The Weaving Department is also
subdivided into three sections: Preparatory Section which involves pirn winding, warping,
sizing, and drawing-in; Weaving; and Finishing Section which primarily involves quality
control processes; inspection, mending, folding and packaging.

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Spinning Operation
According to the Technical Director of VSTL, the company acquires its main raw
material (lint cotton) mainly from GCCL, OLAM, WIENCO, as well as other African
countries including Burkina Faso, Benin, Togo, and Mali. The bales of lint cotton that are
received from the suppliers are kept at the Blow-room storage section ready for blowing
which is the first stage of the spinning process . A management trainee of VSTL (Personal
Communication, June 8, 2010) explained that the Blow-room section is equipped with a
number of opening, blending and cleaning systems. Notable among them are; Blendomat
(BDT)/Plucker, Condenser (LVSA), Axi-Flow 1 (AFC), Electromagnetic Detector (EMA),
Multipurpose Mixer (MPM), Condenser 2 (LVSA B), Cleanomat (CVT3) and Dustex
(DX). The blowing operation aims at; beating and opening of baled cotton to loosen the
fibres, cleaning the cotton to remove all the foreign matter present, and mixing and
blending the cotton to get a homogeneous material. Carding follows the blowing operation
to individualize, clean, align, and partially draft the fibres for sliver formation. The carding
operation of VSTL has taken slightly new dimension where the older lap feeding system
has been replaced by the tuft feeding system. With this new development the card is fed
directly with tufts of cotton thereby skipping one complete production operation i.e.
scutching, with which the tufts of cotton have to be converted into lap prior to the carding
process.
After carding the slivers are subjected to drawing and drafting actions where they
are doubled to attain uniformity in length and in thickness, and then drafted to attenuate
the size of the sliver and aligned into parallel formation. Several slivers are put together
(doubling) and drafted for homogenous mixing thereby achieving uniformity in length and
thickness. The fibres are further drafted by attenuation action to align them properly in
parallel formation. This is done to ensure smooth twisting of the fibres during the roving
and subsequent spinning process. The drawn sliver, which is of an extremely high count
(i.e. great number of fibres in its cross section), has to be reduced so that it can be wound
onto bobbins. Roving is therefore carried out to further draft and twist the slivers into
partially strong continuous strand and wound into packages (bobbins) suitable for the
spinning operation. The spinning operation which is the final stage of the yarn formation
process aims at drafting and twisting the drawn slivers into yarns and winding them onto
bobbins. Volta Star Textiles Limited (VSTL) employs the Ring Spinning System for its
yarn manufacturing operation. According to the Technical Director, the company has 86
Ring Frames with maximum of 35,000 spindle capacity; the biggest in the country. The
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material at this stage is given a final draft from Tex 600 to Tex 19.69 which is the required
count of VSTL yarn production specification. The final product of the spinning department
is repackaged into a suitable form for weaving. As a usual practice of VSTL, the spun yarn
package (cop) is rewound into cone package using series of Cone Winding Systems. This
is very essential to remove certain defects that may be present in the spun yarn. These
defects may include; fluffs, slubs, thick and thin places which are not desirable for
weaving and must be removed. The main objectives of the cone winding operation
include; removal of thick and thin places from the spun yarn, removal of slubs and fluffs
from the spun yarn and rebuilding the spinner’s yarn package into a suitable package for
weaving. Operational flow chart (material flow) of the spinning processes of VSTL is
shown Fig 4.2.

COTTON BALES
Conditioning of cotton prior to production

BLOWING
Opening of baled cotton into tufts, cleaning and mixing (Blendomat or
Plucker, Condenser 1, Axi-flow, Electromagnetic detector, multipurpose
mixer, Condenser 2, Cleanomat, Dustex)

CARDING
Removing trash and short fibres, unraveling neps, individualizing fibres,
parallelizing fibres, drafting and forming sliver (Card)

DRAWING
Drafting, mixing, removing hooks and forming drawn sliver (Draw frame)

ROVING
Drafting, inserting slight twist, winding, forming roving (Roving /Speed
frame)

RING SPINNING
Drafting, twisting, winding, forming yarn (Ring frame)

CONE WINDING
Removing thick and thin places, removing slubs, packaging on cones
(Cone winder)

Fig. 4.2: Flow chart of the spinning processes of VSTL

93
Weaving Operation
The study observed that, the weaving department of VSTL is segmented into five
sections with each section having special machinery performing specific functions. The
operational flow chart (material flow) of the weaving department is presented in Fig. 4.3.

PIRN WINDING
Winding pirns to be placed in shuttle for weaving (Lakshmi Pirn Winder)

WARPING
Laying the warp sheet, removing weaker portions in the yarn, packaging the
warper’s beam (High Speed Beamer)

SIZING
Strengthening, smoothening and lubricating the ends. Winding the weaver’s beam
(Slasher)

DRAWING-IN TYING-IN
Passing the ends through the eyes of Knotting the ends from an exhausted
the droppers, healds and the dents of beam to those on a fresh beam
the reed (Drawing-in Stand) (Uster Knotter)

WEAVING
Interlacing ends and picks at right angle to form a fabric (1515 Automatic Loom)

Fig. 4.3: Flow chart of the weaving department, VSTL

Source: Courtesy of VSTL (2010)

The pirn winding operation (weft preparation) of VSTL, according to a

management trainee of VSTL (Personal Communication, June 8, 2010), aims at winding a
suitable weft package which is placed in the shuttle for weaving. Pirn winding eliminates
weaker portions in the yarn and render it uniform. Since the warp and weft yarns are
subjected to different levels of tension and friction during weaving, it may be necessary for
them to possess different properties such as strength, twist, count, etc., which are imparted

94
to them during spinning. It is a normal practice to select yarns with high tenacity for warp
and that of relatively low tenacity for weft. That notwithstanding, VSTL uses yarns of the
same tenacity for both warp and weft but the warp yarns are sized to give them the
required strength. The company has two types of pirn winding systems; Scharer and
Lakshmi, but only the Lakshmi is in use due to its relatively high speed which is beyond
that of the Scharer. The settings of the Lakshmi pirn winders allow each unit to run at
approximately 12,000rpm producing a full pirn within 2 minutes, 45 seconds. Prior to
weaving, warp preparation is carried out by laying a required number of ends on a warp
roller which is mounted on the loom for weaving. The warp ends are arranged in parallel
formation and evenly spaced. The essence of warp preparation is laying and packaging of
the warp sheet and determining, to some extent, the warp density. Prior to warping, certain
factors are considered which include: the count of yarn to be used, the number of ends
required in the entire width of the fabric, the number of warper’s beams to be mounted at
sizing.
Explaining further, the management trainee indicated that sizing/slashing which is
the next process aims at treating the warp sheet with size liquor primarily to improve its
smoothness and tensile properties to withstand the vigorous motions of the loom during
the weaving process. The size liquor of VSTL is made up of water which act as a solvent
in dissolving the other components, Vicol and Kollotex acting as binding agents to hold
the individual fibres together thereby strengthening the yarns, and Alcowax as a lubricant
to smoothens the surface of the yarn. The presence of Vicol in the size solution also serves
as an antifungal agent in the solution preventing fungi attack. After slashing, drawing-in is
undertaken which primarily involves threading or passing the warp ends through the
eyelets of the drop wires, healds and dents of the reed according to a predetermine weave
plan. Because VSTL products are mainly grey baft which is basically a plain weave
structure, the following weaving particulars are used:

Heddling order = 1, 3, 2, 4
Tie-up = Treadle 1 – shafts 1 and 2
Treadle 2 – shafts 3 and 4
Stepping order = 1, 2

The actual weaving involves interlacing of two sets of yarns; warp and weft yarns
in producing a plain weave fabric using 1515 Automatic Looms. The weft yarn, previously
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prepared on pirn, is placed in the shuttle which is placed in one of the two shuttle boxes.
The warp, on a weaver’s beam, is also mounted on the loom for the weaving operation to
commence.

Quality Control Operation

The quality control section of VSTL embarks on a number of tests and inspections
which according to a quality control expert at VSTL laboratory (Personal Communication,
June 9, 2010) are carried out to ensure that there is proper adjustments of the machinery
for maximum performance, attainment of high quality products from the various
production lines, and production processes are carried out diligently in accordance with the
company’s set standards. VSTL has a testing laboratory facility equipped with textile
testing devices that are used to check the quality levels of chemicals, machine performance
and product quality. The following were the testing equipment that the study observed at
the VSTL testing labouratory.
a) Fibrograph: for determining the staple length of a fibre.
b) Yarn twist tester: for determining the twist level of a spun yarn, i.e. the number of
turns per inch in a given yarn.
c) Sliver/Roving testing machine: for determining the count and weight of the card
sliver and the material from the roving frame.
d) Neps detector: for determining neps and other particles in the form of foreign
matter in cotton yarns.
e) Yarn strength tester (Statimat): for determining the strength of a single yarn.
f) Uster tester: for checking the evenness of the roving and yarn and their count.
g) Ring spinning reeling tester: for determining the count of the yarn.
h) Blackboard tester: to determine the grades of the fibres and the spun yarns.
i) Tachometer: for determining the speed of the running machines and adjusts them
accordingly to yield a good result.
j) Testometer: for checking the amount of moisture in raw cotton to the finished
product.

Finishing/Make-Up
Observation made at the finishing/make-up section of VSTL shows that, the section
primarily embarks on examination of the loom state cloth (grey baft) to check all weave
faults present in the cloth and possibly mend them. The section detects weave faults that
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such as neps, knots, smash, running weft, floats, etc. The main activities that take place at
this section are; inspection, folding, cutting, joining, grading and packaging.

Sales Operation
With respect to sales, the Acting Technical Director of VSTL (Personal
Communication, June 7, 2010) indicated that the company markets its products mainly
through orders from textile printing firms both within and outside Ghana. The company do
not embark on any special or intensive marketing strategies to sell its grey cloths as there
is high demands and readily available market for the products. However the sales
management team make routine contacts with textile firm and other consumers of grey
cloth both locally and offshore, to seek market orders for production. The target market is
the textile printing manufacturing companies who uses the products as the main raw
material for production. Prior to the company’s re-designation as Volta Star Textiles
Limited in 2007, during the era of Juapong Textiles Limited under the technical
supervision of Vlisco who was also the major shareholder of the company, the Acting
Technical Director established that the bulk of the company’s products (about 70%) were
made for consumption of GTP, which was a sister company of JTL. Limited percentage of
about 20% went to the other textile firms and flour mill companies on request bases; while
a mere 10% were supplied to grey cloth merchandisers who traded them in open market to
batik and tie-dye producers.

4.1. 3 Akosombo Textiles Limited (ATL)

Highlighting on the profile of the company, the Administrative Manager of ATL

(Personal Communication, June 14, 2010) established that, Akosombo Textiles Limited
commenced production in 1967. He further added that, the main factory, covering about
47 acre site of land, is situated at Akosombo in the Eastern Region of Ghana with close
proximity to the west of the bank of the Volta Lake, and on the south of Akosombo
Hydroelectric Dam. The factory’s Headquarters, with its administrative departments, is
situated in Accra, where also the Design Studio and the main marketing and distribution
outlet (CTD) are located. It is one of the surviving large-scale textile companies in Ghana
operating in a vertically integrated system with its production line involving all stages in
textiles manufacturing involving spinning, weaving, dyeing, printing, and finishing. The
company is one of the major employers in the Eastern region employing about 1,500

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workers. Akosombo Textiles Limited (ATL) is a subsidiary of CHA group of companies, a
leading textile group in the world and a multinational conglomerate. The CHA Textiles
Group according to the Administrative Manager was founded by Mr Cha Chi Ming in
1949 in Hong Kong. The Group principally engages in traditional textile manufacturing
with its activities covering spinning, weaving, dyeing, printing and non-woven industrial
products. The mission of ATL is to clearly and firmly establish its position as the leading
textiles company in Ghana, to serve as a main conduit in textile production in a friendly
environment and to distribute excellent quality, fashionable but reasonably priced textiles
fabrics in Ghana, West Africa and beyond. The company’s shares is owned privately with
the CHA group holding majority shares of 80% with only 20% shares held by two
Ghanaians; Frimpong Ansah and Frank Bechem. The factory produces various kinds of
fabrics with much emphasis on the manufacturing of African fancy and wax prints, using
100% mercerized cotton and imported chemicals and dyestuff for the consumption of local
consumers and export. It operates on three shifts within 24 hours a day. At the moment,
the factory produces about 1.5 million linear yards of African prints comprising fancy and
wax monthly. The company has seen a new development in the area of printing and dyeing
with the merger and move of ABC (Manchester), one of the world’s leading textiles
manufacturing companies of the CHA group to ATL’s premises at Akosombo.

Management Structure of ATL

Outlining the management structure of ATL, the Administrative Manager indicated
that, ATL is managed by Board of Directors, Chief Accountant, Personnel Manager and
Chief Engineer. He elaborated that, the Board is the top hierarchy of the company that
makes decisions pertaining to the smooth running of the company. The Chief Accountant
is responsible for preparing financial statements and accounting reports for distribution to
the company’s managers for their planning, control, and decision-making needs. The
Personnel Manager is responsible for training and recruitment of workers for the company.
He also seeks the welfare of both workers and staff and ensures efficiency in the various
departments of the company. The Chief Engineer makes sure that all machines used for
production are working efficiently and are in good condition. The managerial outline of
ATL is given in Fig. 4.4.

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 Fig. 4.4: Organizational Chart of ATL
Source: Courtesy of ATL (2010)

Product range

The main products manufactured by ATL include grey cloths, printed fabrics with
emphasis on real wax and fancy prints for funerals and other social occasions. The various
print derivatives as outlined and defined by the Design Manager of ATL (Personal
Communication, July 2, 2010) include the following:

a) Indigo print:A wax print with blue-violet colour design.

b) Cracko Print: Wax print with crackled effect without block design.
c) Cracko Block 1: Cracko print printed with 1 block design.
d) Cracko Block 2: Cracko print with 2 block designs.
e) Sepia print:A printed cloth with shade of reddish brown colour. Just as cracko
print, sepia may be printed with 1 or 2 block designs that given description as
Sepia Block 1 and Sepia Block 2 respectively.
f) Superior Fancy: A high quality fancy print usually with modern designs.
g) Classical Fancy: A fancy print with conventional designs.
h) Double Print: An already printed fabric, either wax or fancy, that have been
reprinted with another design.
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 According to the Design Manager, there are specific base colours which are
introduced to differentiate the various prints. He explained that, for wax prints, there are;
Sepia 31 (Blue base), Sepia 41(Green base), Sepia 11 (Wine base), and Sepia 23 (Coffee-
Brown base). These form the base colours on which the various block design colours are
made. The block design colours vary from yellow, lemon green, orange, etc. The
Guarantee Real Wax designs include; Indigo Wax Prints with blue and white colours,
Sepia Wax Block Prints that comes with various range of base colours, and Clacko Wax
Prints with dark waxes. There are also evergreen designs in bright colours made to suit
every occasion. The Fancy (Java) range comprises; Double Prints, Black and White Prints,
Black Prints (Brisi) and Black and Brown Prints, which are mostly used for funerals. The
design team also create other Fancy print designs with unique colours ways for Classical
and Superior Prints as well as Traditional and Seersucker Prints. The newer developments
in ATL’s designs are the high class gold and silver printed fabrics known as “Treasure”,
with conceptualized inspiration from the structural patterns of the indigenous Ghanaian
woven fabrics which is doing very well in both local and international markets. Another
novel print is Daviva, a printed cloths with “Woodin” resemblance which offer customers
and fashion designers a varied colour ways (combination of plain and printed fabrics) to
help them produce interesting garment silhouettes to meet the taste of their consumers,
especially the youth. In order to monitor the quality of fabrics delivered to customers, the
factory grades its print quality which determines the level of output of production. The
products after production are grouped into A, B, C, D and E and interpreted as; ‘A’
(excellent), ‘B’ (good), ‘C’ (fends), ‘D’ (tabs) and ‘E’ (rugs).

Production Lines (ATL)

The study observed that, Akosombo Textiles Limited has six main production
departments consisting of design, spinning, weaving, pre-treatment, printing and dyeing,
and making-up. Other supporting departments of the factory include; quality control,
maintenance, purchasing and marketing and sales departments.

Design Studio operation

Survey of the factory’s design operation revealed that, the Design Studio of ATL is
situated in Accra opposite the former Kingsway, within the factory’s main administration
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block. The design department primarily embarks on design research and development to
create a variety of designs to meet the demands of their clients. It was observed that, the
factory mostly produces for specific clients on request basis. In view of this, the design
team usually interacts intensively with the clients to know their taste and requirements for
the intended print design. They also engage in the development of new design concepts for
specific print to promote and enhance their product range at both local and international
markets.
In an interview with the Design Manager (Personal Communication, June 14,
2010), he noted that, the design team are predominantly Ghanaians drawn from KNUST,
Polytechnics and other textile institutions. Some of the designers are products from
Ghanatta College of Art, who have been given in-service training by Chinese and British
designers and working as designers and design assistants at the design studio. Periodically,
selected designers are sent outside the country to be acquainted with new textile design
technology and updated with current computer software programmes for textile designing.
A focus group discussion with ATL designers (June 15, 2010) revealed that, the designers
take inspiration from natural and artificial objects. They also rely on designs in magazines
as well as geometric patterns to generate print designs. The designers periodically embark
on field trips in search for new design sources to enhance their work. They also conduct
market survey to find out the type of designs that are available on the market, which
type(s) sell best, colour schemes that attract consumers, what the customer looks for in
making his or her choice of printed designs, etc., to give them enough background
information to set the stage for the design process. Experimental designs are usually made
manually using colours and brushes and finished with the computer to attain the necessary
precision, required colour schemes and to create special effects such as wax crackle and
bubble effects that may otherwise be difficult to achieve by hand. In this case, the painted
hand design on paper is scanned to transfer the design unto the computer to be refined
using a suitable computer software programme, usually Adobe Photoshop. Sometimes, the
designs are created entirely by hand or computer. In generating designs using the
computer, the ATL designers usually combine Photoshop with Corel Draw to achieve
better results. Institutional designs for schools and companies, for instance, usually require
incorporation of lettering. In creating such designs, the designer employs Corel Draw
which offers much flexibility in lettering creation. The Corel Drawn lettering thus
obtained is imported to Photoshop which, on the other hand, facilitate effective rendition
of motifs, textures and colours to produce a desirable textile design. The design team is
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tasked to produce a variety of high quality print designs to meet the demands of their
customers. Each designer is charged to produce a certain number of designs per week and
must have at least one of his designs selected for printing within a month.

Spinning Department/Operation
Operating in a vertically integrated factory system, the Sinning Manager (Personal
Communication, June 28, 2010) noted that, ATL embarks on processing of fibres into
yarns and convert the spun yarn into fabric which is finished through series of dyeing and
printing processes in a continuous manner. The study observed that, the spinning processes
of ATL is similar to that of VSTL. The difference lies in the type of machinery, set
standards and flow of material in the line of production (Fig. 4.5).

Raw Cotton from Warehouse

Blow Room & Mixing Opened and Mixed Cotton

Carding Carded Sliver

Draw Frame Draw Sliver

Speed/Roving Frame Roving

Ring Spinning Yarn (wound on Bobbin)

Yarn (wound on Cone)

Cone Winding

Fig. 4.5: Flow Chart of the Spinning Department (ATL)

Weaving Department/Operation
The weaving department of ATL, from observation, has five sub-sections
comprising; Pirn Winding, Warp Preparation, Sizing, Drawing-in, and Weaving. Figure
4.6 is a flow chart of the ATL’s weaving department. In order to attain suitable yarn

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package for weft, a supervisor at the weaving department of ATL (Personal
Communication, June 28, 2010) explained that, the yarn in cone packages is further
rewound onto pirns to be fixed into shuttles for weaving. He added that, just as yarn in
cone packages are rewound unto pirns for weft, cone packaged yarns are wound unto warp
beams which are mounted on the loom for weaving. The products of ATL require 3,551
ends for Java print and 3,789 ends for Wax print. A supervisor in charge of the sizing
section (Personal Communication, June 28, 2010) noted that the sizing liquor of ATL is
prepared with locally available materials, which is equally effective and much more
economical compared to the imported sizing agent.

Yarn from Cone Winding

Warp Preparation Processes Weft Winding Processes

Warping Pirn Winding

Sizing

Drawing-in

Weaving process

Figure 4.6: Flow Chart of the Weaving Department (ATL)

It was observed that, the drawing-in operation of ATL is done by only one person
and not two as the case is at VSTL and this reduces labour cost. The weaving department
has total installed capacity of 2000 tappet looms which are all in operation. The looms are
arranged in horizontal layout with spaces in between them which allow for easy movement
of workers. There are loom attendants who see to the smooth and continuous running of
the looms. Their major duty is to mend broken yarns and restart the loom when necessary.
Like VSTL, the looms at ATL are all shuttle tappet looms producing only plain weave
structures. The personnel manager (Personal communication, June 29, 2010) noted that,

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the looms have been in operation for the past four decades with regular maintenance and
some kind of retrofitting for effective performance. This notwithstanding the obsolete
nature of the looms increases power consumption thereby adding to the cost of production
with relatively low productivity. Again, the looms require regular which consequently
results in high cost of production.
After weaving, the grey cloths are transported to the inspection unit where detection
of weave faults is carried out as part of the quality control process of the factory. At the
inspection unit, three main processes are undertaken; Inspection, Mending, Joining, and
Folding. The inspection is done basically to detect faults caused by mechanical
malfunction of the loom parts and weak yarns. Because ATL engages in vertically
integrated production, the inspected grey cloths are made to go through a series of pre-
treatment, dyeing and printing processes for value addition. The pre-treatment department
carry out singeing, desizing, scouring, bleaching, mercerization and stentering processes to
transform the grey cloth into white lustrous and absorbent fabric which provides a good
ground for dyeing and printing. Figure 4.7 shows the flow chart of the Pre-treatment
Department.

Singeing

Desizing

Scouring

Bleaching

Mercerization

Figure 4.7: Material flow of ATL Pre-treatment Department

Printing and Dyeing Operation (P&D Department)

The P&D manager (Personal communication, June 30, 2010) asserted that the core
business of the P&D department is to convert the mercerized cotton fabric into
dyed/printed cloth based on the design specifications that are received from the Design
Studio in Accra. He explained further that, the design comes with an order form
specifying the type of print (i.e. ATL/ABC wax or fancy print), number or yards to be
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printed, deadline for production, name of the client, and most importantly the codes of the
base and cover colours. These serve as production guide (design brief) for the P&D
department to meet the request. After determining the type of print, the design is sent to
the respective section for production to commence. There are two main sections operating
under the P&D department; the Wax Printing and Rotary Screen Printing (RSP) sections.
With the merger of ABC, some of the production lines of these two sections have been
doubled with the installation of additional machines operating under the same roof but
with different design concepts and standards. Where the production line demands two sets
of machinery for ATL and ABC products, the systems are set adjacent and parallel to each
other to run simultaneously in the same direction with enough space between them to
facilitate movements of workers and moveable equipment. In some cases the same
machine is used for both ATL and ABC prints but with different parameters and
characteristics with regards to colour scheme (brilliance and shades), type of finish
required, fabric width, number of base and cover colours, etc.
According to the P&D manager, the Wax Printing at ATL is made up of two
sections; Hand Block Wax Printing and Machine Wax printing. The wax printing
operation starts by engraving the designs on copper roller at the Engraving unit. Based on
the Duplex printing principle both sides of the cotton fabric are printed simultaneously
with molten wax from two engraved rollers as the cloth passes between them. Dyeing of
fabrics was formally done in pits. However, with the introduction of CID (Continuous
Indigo Dyeing) and Sepia dyeing systems, ATL has discarded its traditional indigo dyeing
operation which makes use of dyeing pits. The P&D manager also recounted that, the pit
indigo dyeing is a discontinuous process which was found to be highly labour intensive,
very cumbersome, time consuming and requires more space. Both CID and Sepia
machines, on the other hand, are continuous systems requiring less time and less labour
with competitive production output. These continuous dyeing systems perform four main
functions in one line of production, i.e. dye application, washing, drying, and fixation. He
continued that, oxidation and dewaxing follow immediately after the fabric had emerged
from the dyeing range adding that the oxidation process of ATL is achieved with
atmospheric oxygen instead of oxidizing agent which reduces cost of production. During
dewaxing, some of the wax spots are left deliberately in the fabric to achieve bubbled or
marbled effect. In order to achieve this, the dyed fabric with the wax is subjected to
crashing and crackling actions prior to dewaxing and printing of cover designs (fittings).
The function of the Crashing Machine is to indicate or demarcate the bubble areas for the
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Crackling Machine to remove the wax outside the demarcated areas in the fabric. Material
flow of the P & D Department of ATL is presented in Fig. 4.8.

Preparatory (Padding the Calico) Real Wax Section

Wax Printing

Dyeing

Crashing

Crackling
Rotary Screen Printing (RSP)

Caustic Washing

Stentering (Pin)

ABC Fitting

Alkali Shock Fixation

& Washing
After- treatment

Finishing

Inspection

Finished Goods Store

Fig. 4.8: Material flow of ATL P&D Department

Distinctions can be drawn between bubbles and marbled effects of ATL and ABC
prints in terms of sizes. ATL bubbles are smaller in sizes as compared to ABC bubbles.

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The wax removed from the fabric is recovered and channelled through series of connected
pipes into the factory’s Wax Recycling Plant (Plate 4.3) for reuse. Other chemicals such as
wood resin and processing oil that are added to the wax solution to render it shiny, thick
and to facilitate accurate print registration are also recycled to ensure environmental
friendly production. Sixty five percent (65%) of wax is recovered chemically, whereas
35% is recovered mechanically.

Plate 4.3: Wax Recycling Plant (ATL, 2010)

Printing of wax cover designs (fittings), according to the P&D manager, are done
manually by hand blocks in the conventional method, and mechanically by roller or rotary
screen printing machines in the recent times emphasizing that about 80% of the company’s
products are printed with the RSP system. Hand block printing is mainly used on request
by the clients due to its labour intensiveness. Unlike the manual hand block printing, the
RSP (Plate 4.4) is faster and registers the repeats in accurate manner with excellent colour
brilliance. It also requires limited labour thereby reduces cost of production. The final
stage of production is the finishing operation which consists primarily of fixation and
calendaring after which the finished printed fabric is sent to the Make- up Department for
inspection, folding, cutting, labelling, and packaging.

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 Plate 4.4: Rotary Screen Printing System (ATL, 2010)

Aside the main production lines of ATL, The Production Manager (Personal
communication, June 29, 2010) cited Quality Control, Safety, Maintenance, and
Purchasing as other departments that operate within the Production Department. He
elaborated that, the Quality Control Department embarks on series of tests to ensure that
high quality standards are attained at the various levels of production. They check and do
follow-ups on inputs and outputs and suggest means of improving on quality of the
products. The Safety Control Department is concern about the safety of the workers on the
plant. Akosombo Textiles Limited has risk allowance and insurance policy for all the
workers working on the plant from spinning to finishing. The Maintenance Department
sees to the repair of mechanical, civil, electrical faults of the machines and other
infrastructure which include boiler house and steam maintenance. They also set and adjust
the machinery for effective running to maximize productivity. The Purchasing Department
is responsible for the buying and importation of spare parts, equipment, and raw materials
such as chemicals, cotton fibres, grey cloth, as well as fuel, black oil, and power required
for production. The Production Manager however noted that, ATL sources free water for
production from the Volta Lake which is of close proximity to the factory via its installed
high capacity Water Plant (Plate 4.5) adding that as textile production demands high water
consumption, the construction of the water plant has really minimized cost of production
significantly. However, the factory purchases electricity directly from VRA at subsidized
rates for production.

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 Plate 4.5: Water Plant (ATL, 2010)

Sales and Distribution Operation

Responding to the question regarding how the sales and distribution department of
ATL operate, the Sales Manageress of ATL (Personal communication, July 1, 2010) noted
that, the Char Textiles Distributors (CTD), an affiliation of ATL was established in 1999
to market the company’s products. This is done through CTD outlets and other major
distributors located all over Ghana in the regional and some district capitals including
Accra, Bolgatanga, Cape Coast, Kumasi, Sunyani, Takoradi, Tamale, and Techiman.
These are managed under the auspices of the company’s Marketing Department. Their job
is to ensure that the products get to the doorstep of the right consumers. The Sales
Manageress also emphasized that, the Marketing Department conducts market research
into consumer behaviour and recommends to the production unit the kind of products that
would satisfy the taste of consumers. She further recounted that, the company’s current
production is based primarily on orders both locally and internationally. The Marketing
and Sales Department takes the orders from the clients and distributors and submit the
design brief to the Design Studio for the design to be developed which after showing it to
the client for verification and approval is sent to the factory for production. The sales
management team follow up the orders to ensure that deadlines are met. They also receive
report from the production team to check whether or not the design specifications and
quantity ordered are attained.
ATL target both local and international markets to sell its products. The wax prints
are mostly exported with the fancy dominating in the local market. The Sales Manageress
established that, ABC wax prints are 100% exported together with about 40% ATL wax
prints. The remaining 60% ATL wax is marketed solely by CTD locally. The fancy prints

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are, however, marketed by ATL sales outlets and retailers in Ghanaian open markets. The
company promotes its products through beauty pageant, grand sales, TV advertisement,
newspapers and billboards.

4.1.4 Texstyles Ghana Limited (TGL)

Giving an account on the profile of the company, the Health and Safety Manager
(Personal Communication, July 7, 2010) elaborated that, Texstyles Ghana Limited (TGL)
formally Ghana Textile Printing (GTP) was originally set up by the late president of
Ghana, Dr. Kwame Nkrumah at a cost of about 240 pounds. The factory was then known
as National Textile Company. The initial shareholding structure stood at 51% shares for
Government of Ghana and 49% shares for United African Company (UAC), a multi-
national corporation. The company was originally set up as a fancy (Java) printing factory
before it became a wax printing factory in 1969. In August 1960, Ghana Industrial
Development Corporation (IDC) and Messrs Alexander Drew and Sons Limited / Messrs
Dodwell Co. Limited signed an agreement to build a textile print works at Tema. In March
1963 the factory was constructed, and production started in 1964. Due to political
idiosyncrasy the agreement was terminated and new ones made with Unilever and Anglo
Dutch African Textiles Investigation Group (ADATIG).
In 1966 the company was incorporated as Ghana Textiles Printing Company (GTP)
and handed over to United African Company (UAC) under joint management agreement
by the then National Liberation Council (NLC) and UAC. The agreement stated that the
company was to be run by United African Company from 1967 to 1977, (ten years period).
Fifty five percent (55%) of the shares were retained by the Government. The United
African Company acquired 30% of the shares whilst Vlisco of Holland had 8% shares.
United African Company had absolute control of the company although it had only 30% of
the shares. The successive governments did not show any interest over the years in the
affairs of Ghana Textile Printing. This was due to non-representation of government
officials on the management board of the company. The loss of interest worsened when in
1977 United Africa Company began to incur losses. Workers therefore created an
awareness of the state of the company by the rise of the 31st December, 1981 revolution. In
1982, the workers of Ghana Textile Printing Company asked the management of United
African Company to use some of their repatriated profits to restructure the company but
instead, United African Company callously decided to lay off workers and asked them to

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choose between going into foodstuff production individually or to retire with their
entitlements.
In the early years of the 31st December revolution, September 1982 to be precise,
workers took over the factory’s administration and as a result Unilever lost its
management control and the offshore shareholders were also disenfranchised. In
November 1988 Ghana government closed down the factory for alleged malpractices by
the workers’ administration and re-opened it one month later to be managed by a
government appointed committee, headed by Dr. Kwasi Botchwey. As at 1991, there were
1,800 workers and 73 management staff and by 1994, the total workforce had reduced to
980 whilst the management staff had increased to 105.
In November 1992 a memorandum of understanding was signed between the
Ghana government and the offshore shareholders; thus restoring their shareholding right.
Government appointed Board of Directors in January, 1993 to monitor the management of
the company. In 1994, the government floated its shares of 51% and Unilever (Ghana)
having retained majority shares resumed management control of the company with a ten
(10) year programme to reach full production capacity by 2004. GAMMA Holdings,
represented by Vlisco, acquired majority shares in 1996 and assumed management control.
By 1998, GAMA Holdings had taken over assets of the company after buying off
Unilever’s shares to become the sole management body of the company. Texstyles Ghana
Limited (TGL) was incorporated in 2004 by management. The shareholding structure of
the company production unit now stands at GAMMA, represented by Vlisco BV 70%,
Truebrook (Holland) 12.95% and Ghana government 16.07%.

Management Structure of TGL

Figure 4.9 shows the management structure of Tex Styles Ghana Limited.

Fig. 4.9: Organizational Chart of Texstyles Ghana Limited

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Product range
The main products of TGL, according to the Production Manager (Personal
Communication, July 5, 2010), are wax and fancy prints which come in the following
derivatives such as; Indigo print, Indigo block 1 and 2, TNI print, TNI block1 and 2, Sepia
print, Sepia block1 and 2, Woodin, and Diva prints. He elaborated that each type of print
has its related base colours for specific prints; TNI (Traditional non-indigo) having Azoic
dyes with wine, brown, and mauve base colours; NNI (New non- indigo) with blue, green,
and black; Indigo group: Vat dyeing; Black Sepic with the combination of indigo and non-
indigo; and Plain dyeing where the base colour is dyed without the use of wax.
The Production Manager explained further, as a rule, the prints are coded with
figures to give a description of the various colour ways and the type of product. Whereas
the non-indigo products are designated with the figure (7), indigo prints are considered
unique and are designated with (00). The various commonly used colours are however
coded as follows; white (1), yellow (2), orange (3), red (4), violet (5), blue (6), green (7),
brown (8) and black (9). This coding rule apply only to NNI, TNI, Black Sepic, Cover
colours and Azoic colours that are not base colours. It does not apply to Hand blocking
colours and pads. For example, TNI prints are coded as 740 (red), 751 (violet), 780
(brown), whereas NII prints come in the range of 760 (blue), 771(green) and 790 (black).
Indigo (blue) prints are designated (00). It was observed that, TSG periodically develop
new brand of products to stay in competition within the African print market. Recent
development in this regard include “Nustyle” which is designed to target the youth and
“Prestige” a high quality print of gold and silver colours for a niche market.

Production Lines (TGL)

Operating on horizontally integrated production system with the focus on dyeing
and printing, the main production lines of TGL as outlined by the Production Manager
are; Preparation, Printing, Finishing and Making up (Personal Communication, July 6,
2010).

Designing process (Design Studio)

Just as ATL, the study observed that, TGL’s production operation starts with
designing but the design studio is located inside the main manufacturing premises. Designs
are made specifically for the different wax products as well as fancy prints. Designers of
the factory work from hand paper designs to computer aided designs (CAD). As a well

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known company in terms of classical designs, most of the old and popular designs are
replicated (Knock-off) with slight modifications for elderly consumers. Such designs are
very symbolic in colour and motifs. New designs are made to target the youth and the
modern fashion.

Pre-treatment operation
According to the Production Manager, the preparation department embarks on
singeing, desizing, scouring, bleaching, mercerization and stentering processes. He
recounted that, the company used to obtain its grey cloth from the formal JTL which was a
sister company under the management of Vlicso but due to the break in linkage between
the two companies, TGL now import the bulk of its grey cloth from China, Pakistan,
Thailand, and India for production. The hydrophobic nature of the grey cloth necessitates
several pre-treatment processes prior to dyeing and printing. Upon receiving, the grey
cloth are subjected to inspection to detect various weave defects and other vital technical
consideration such as length, width, weight and tensile strength. The grey cloths are either
stored in the Grey room or passed on for the various pre-treatment processes to be carried
out. Figure 4.10 shows material flow of the pre-treatment process of TGL.

Grey Cloth (Imported or local)

Grey room

Singeing/Desizing

Scouring

Bleaching

Mercerization

Stentering

Figure 4.10: Material Flow of Pre-treatment Department of TGL

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 To begin the pre-treatment process, the Production Manager explained that, the grey
cloth is made to pass through a singeing machine whose duty is to burn off hairs or fibres
projecting on the surface of the cloth. This is followed by a desizing process which
involves the removal of starch by treating the cloth with enzyme and left to stand for four
hours which as a result decomposes the starchy matter in the cloth to render it susceptible
to dyes and chemicals and to prevent uneven or patchy dyeing in the subsequent processes.
The desized grey cloth is rinsed with water at the temperatures between 80-85ºC to remove
all broken down starch. The cloth is then impregnated with caustic soda and sent to a J-
Box at a temperature of 100ºC for an hour. This process, called scouring, removes all oils,
facts and other impurities in the fabric. With hydrogen peroxide solution, the cloth is
bleached in a second J-Box to remove the colouring matter which renders it white. The
next stage after bleaching in the pre-treatment process involving treatment of the cloth
with strong solution of caustic soda under tension in a process called mercerization. The
mercerization process makes the cloth readily absorbent, lustrous, dimensionally stable,
and increases its tensile strength. The final pre-treatment process, stentering, aims at
setting the cloth to the required width, straightens the fibres, beams the fabric straight
without folds and damaged selvedges, prepares or naphtholates the cloth, with the ultimate
aim of getting the required cloth dimensions with respect to the company’s standards.

Printing and Dyeing (P&D Department)

The study observed that, the P&D department of TGL has three sections; rotary
screen printing, roller printing and hand block printing with two main production lines
which are the wax and the fancy printing lines.

Wax print production

As a resist printing process, the Production Manager of TGL explained that, the
company makes use of natural resin which is recovered via a Tri-X (Trichloroethylene)
range by means of breaking-off through extraction and distillation. The company’s wax
recycling plant makes it possible to recover 91% used resin which 9% is added for
reproduction. The quality of resin is daily monitored through content analytical laboratory
assessment based on three main parameters; viscosity at 120 ºC, ash content and Tri
content. Using Matta and Platt duplex printing system both sides of the cloth is printed
with molten wax. The cloth is then subjected to a vigorous washing to remove some
amount of wax from it. The remaining wax particles are fixed in a Festoon dryer for
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reinforcement to facilitate the resist process. The cloth is subsequently dyed in vat
(indigo), azoic (TNI) or phtalogen (NNI) depending on the type of print. This process
creates accidental random crackle or bubble effects in the cloth after dyeing, printing and
dewaxing processes. A distinction can be drawn between bubbling and crackling. Whiles
bubbles are found in all first colours with large, medium and small types, crackles are
executed in indigo prints with large, medium and heavy types.
According to the Production Manager, TGL produces three distinctive wax
products. These are wax prints, wax block prints and wax cover prints. The wax prints
have no other colours apart from the base colour that is dyed after the wax print design.
Wax block prints are those that come with first colour (always with bubbling) and
additional colour(s) incorporated into the print with block design. The wax print covers
employs roller printing machine (RPM) or rotary screen printing machine (RSP) to
introduce additional colour(s) on wax printed base.
Observation made at the wax printing department revealed that, TGL uses the
Matta and Plat system which operate in the same manner as the duplex system where
identical designs are first engraved on two rollers which are fixed unto the machine to
print molten wax on both sides of the fabric prior to dyeing and dewaxing processes. With
regards to the hand block wax printing, the study observed that, though the technique
provides unique effects, it is manually operated and as such time consuming. The process
makes use of hand block designs in printing on motifs or on the ground. The hand blocks
are made of three layers of which two outer layers of wood function as stabilizers to
minimize deformity of the block which may be caused as a result of wetting and drying. A
layer of felt is glued to the wooden base and by means of a tracing film, specific areas of
the design are removed to obtain a relief pattern which is polished and washed for printing.
During printing, colour in reservoirs is spread even with the movement of brush from one
end to the other. The printer fetch the ink from the pad and stamped it on the cloth which
has been laid flat on a padded resilient table and moves intermittently along with a back
grey which absorbs excess colour. After blocking, the cloth is dried in a chamber at 60-80
ºC, beamed and sent for inspection and fixation.

RPM/RSP wax print production

In order to increase productivity, the study found that, roller or rotary screen
systems are now employed by TGL instead of blocks to introduce additional colours to

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wax print base. These are usually applied to new product range like Nustyle to reduce cost
and save time. Figure 4.11 present the flow chart of TGL’s Wax Printing process.

Grey Room

Pre-Treatment

Wax Printing

NNI TNI INDIGO

Breaking-off

Festoon

Hand blocking

Alizarine

Finishing

Make-Up

Fig 4.11: Material flow of the Wax Printing Department of TGL

Alizarin section
Observable evidence at the Alizarin section indicate that the section undertakes
three main processes; fixation, dewaxing, and rinsing/washing. With respect to fixation,
two distinctive processes were found; cold fixation (in case of resin on the cloth) and hot
fixation (without resin on the cloth). This, according to the Production Manager, is aimed
at achieving the required shade of colour with the use of Sodium. He added that,
trichloroethylene is used in the dewaxing process to remove all resins from the cloth

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followed by a neutralization process which involves washing and rinsing the cloth with
water to remove excess dyestuff and other chemicals and thickeners. The cloth then moves
to a drying chamber to be dried.

Finishing and Make-Up

At the finishing and make-up department of TGL, it was observed that calendaring
was the major finishing treatment which is given to the printed fabrics to enhance its
aesthetic appeal and marketability.

Production of Fancy Prints

According to the Production Manager, TGL produces fancy prints using rollers
(RPM) and rotary screens (RSP). He added that, three main systems; the Stenter, the
Baking oven and the Calender are main systems used. The stenter has many combined
functions which include; controlling the width of the cloth, adding chemical finishes to the
cloth for crease resistant, optical brightness, and adding colour in the cloth (pad). The
Baking oven fixes the chemicals and the pigment pads at temperatures of 130 ºC for
pigment pads and 150 ºC for crease resistant finishes. The final finishing process is the
calendaring where the printed cloth is made to pass through metallic rollers which iron and
add lustrous finish to it. The making up department basically deals with inspection of the
printed fabrics to eliminate portions that have defects to be graded as seconds or otherwise
rejected. The work of the Make-Up also involves folding the cloth into the required
yardage, labelling and baling for sales and distribution. Figure 4.12 is the process routine
for TGL Fancy print production.

Grey Room

Pre-treatment

RSP/RPM

Finishing

Make-Up

Fig 4.12: Material flow of Fancy print production of TGL

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 The production statistics of the company’s Fancy prints as at June, 2010, revealed
that 90% is printed with RSP with only 10% printed with RPM. The major categories of
Fancy prints produced are institutional prints, Diva and Woodin prints. Just like ATL, the
study found that, TGL have other departments whose contributions are paramount to
maximizing production and achieving better results. These include quality control,
marketing, maintenance, security, and purchasing departments.

Sales and Distribution operation

The Marketing Manager of TGL (Personal communication, July 6, 2010) stated
that, Premium African Textiles Company Limited is the major sales and distribution outlet
of TGL who engages in wholesale marketing of the company’s major prints. He added
that, GAMMA group of companies represented by Vlisco BV holds 100% shares of
Premium Textiles. The company market and distribute a wide range of TGL products
which comprises; Real wax (Blocks 1and 2, Nustyle and Institutional prints), Fancy
(Woodin, Diva, and Institutional). Wax prints of TGL are solely distributed by Premium
Textiles on wholesale basis to clients and retail merchandisers. The sales and distribution
outlets are spread throughout the major towns within the country. Specific locations as
enlisted by the marketing manager are; Accra (Okaishie, Osu, Accra Mall, ), Tema (Tema
Mall), Koforidua (Commercial Road), Ho, Agona Swedru, Akim Oda, Kumasi (Adum,
Harper Road), Sunyani, Techiman, Tamale, Bolga, Takoradi (Market Circle), Cape Coast
(Kotokoraba Road), Dunkwa Ofin, etc. Like ATL, TGL also produces on request basis but
primarily targets a niche market with the mass market being a secondary priority. Aside
the local market with the target of about 80%, 20% of the company’s prints are exported to
other countries to generate foreign income. Statistics of the company’s sales shows an
average of about 14 million yards of printed fabrics annually with monthly sales of 55,000
yards.

4.2 Internal Challenges and Prospects of the Selected Factories

This section identifies and discusses internal challenges and prospects of the
selected textile factories.

4.2.1 Challenges of the Ghana Cotton Industry with Special Reference to GCCL
A survey of cotton farms and ginneries in the Northern region of Ghana (Tamale to
be specific) revealed a devastating state of the Cotton Industry as it is found to be
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confronted with a number of challenges leading to the closure of most ginneries in the
region with most farmers diverting into farm produce. The major cause of the decline of
the Ghana Cotton Industry from interview and questionnaire responses as well as
observable findings is attributed to inter-play of low productivity level of the local out-
growers and the recession in world market price of seed cotton. This section, as part of the
internal challenges, addresses the low productivity levels of the industry.

Low Production Performance

The study found that, the performance of the cotton industry in the country over the
past decade has not been favourable as expected. Statistics on productivity levels of the
industry provided by the former MD of GCCL (personal communication, May 24, 2010)
reveals that there was a considerably decrease in production from 89,539.00 unit cultivated
in 1998 to 71,280 units in 2000. These figures represent reduction from 20% to 11% of the
targeted cultivated units within a three year period. According to him, a total of 87,600
units were targeted for cultivation in 1999 season out of which 80,383.25 units were
achieved representing about 10.22% reduction in 1998/99 production season. Within three
years of production seasons, production of cotton reduced considerably as indicated in
Table 4.4.

Table 4.4: Cotton Production from 1996-2000

Cotton Production 1998 1999 2000

Unit Cultivated (0.5ha) 89,539.00 80,383.25 71,280.00
Seed Cotton Produced (mt) 38,700.74 36,664.40 32,076.00
Lint Cotton Recovered (mt) 15,480.29 14,665.76 12,224.60
Cotton Seed Recovered (mt) 20,898.40 19,794.45 16,507.67

Source: ADB, Tamale (2010)

Productivity figures in Table 4.1 shows that the industry recorded a total of
89,539.00 units cultivated in 1998 which is equivalent to 44,769.50 hectares. This yielded
38,700.74mt of seed cotton with a total of 15,480.29mt of lint cotton. However, production
level dwindled in 1999 season where a total of 80,383.25 units were cultivated out of the
targeted 87,600 units representing 10.22% reduction. This was further reduced by 11% in
2000 season. These statistics clearly shows that about half of the unit cultivated each
season is lost in the course of production. A further reduction, about half the quantity of
seed cotton obtained is lost during processing of the seed cotton into lint. These losses
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therefore suggest the low output performance of both out-growers and ginneries.
Comparatively, Ghana’s performance in cotton production with some African countries
around the same period has not been encouraging as countries like Benin, Burkina Faso,
Cote d’Ivoire, Mali, Togo, among others, are doing quite better (Cotton Outlook, 2001) as
indicated in Table 4.5 of the 2000/2001 cotton production seasons.

Table 4.5: Lint cotton production of some African countries (2000/2001)

Country 2000 (Lint cotton mt) 2001 (Lint cotton mt)
Benin 130,000 135,000
Burkina Faso 115,000 140,000
Cote d’Ivoire 122,000 145,000
Mali 105,000 200,000
Togo 50,000 60,000
Ghana 13,000 9,864

Source: Cotton Outlook (Sept, 2001)

An obvious indication from Table 4.5 is that, as there was a significant increase in
the productivity levels of other African countries, Ghana invariably experienced a major
decrease in cotton production within 2000 and 2001 seasons with maximum of 9,864mt in
2001 season. Statistics of GCCL from 2000/2001 to 2009/2010 cotton seasons as
presented in Table 4.6 indicate abysmal decline in the company’s productivity.

Table 4.6: GCCL output performance (2000-2010)

Production Seed Cotton Lint Cotton Produced
Season ginned (kg) No. of Bales Weight (kg
2000/2001 4,426,005 7,392 1,699,781
2001/2002 1,876,410 3,164 723,812
2002/2003 1,208,040 2,111 481,594
2003/2004 1,410,930 2,585 582,846
2004/2005 2,383,580 4,196 941,012
2005/2006 4,155,050 7,521 1,713,540
2006/2007 3,091,067 5,610 1,247,777
2007/2008 2,323,270 4,285 950,781
2008/2009 1,803,549 3,272 737,475
2009/2010 810,598 1,482 332,323
Source: GCCL, Tamale (2010)

In the 2000/2001 season, the company out of 4,426,005kg of seed cotton ginned
obtained 1, 699,781kg lint cotton which is equivalent to 7,392 bales. Although the
2005/2006 season output of the company was quite significant, there was low and

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 inconsistent production performance within the period and by 2009/2010 season, lint
cotton production had declined to 332,323kg equivalent to 1,482 bales. This was attributed
to low yield of seed cotton as a result of improper farm culture among out-growers,
according to Monitoring & Evaluation Manager of GCCL (personal communication, July
22, 2010).
Deducing from the figures in Table 4.6, it could be established that the company’s
productivity within the last decade declined by 79.95% indicating a very poor performance
of the largest ginnery company in Ghana with total installed ginnery capacity of 47000mt
(Table 4.7) as against total of 23000mt capacities of other ginneries in the region (Table
4.8).

Table 4.7: Ginnery Capacities of GCCL

Location Type of Ginnery Capacity
Tamale 2 Lummus Gin Stands of 128 saws each 10,000mt
Tumu 2 Lummus Gin Stands of 128 saws each 10,000mt
Tumu 1 Murray Gin Stands of 90 saws 2,000mt
Bolgatanga 2 Lummus Gin Stands of 178 saws each 25,000mt

Total 47,000mt

Source: GCCL, Tamale (2010)

Table 4.8: Ginnery capacities of other cotton processing companies (Northern Ghana)

Company Type of ginnery Location Capacity

Nulux Plantation 4 Jinshi Stands of 91 saws each (China) Tamale 10,000mt
Plantation Dev. Ltd 4 Jinshi Stands of 91 saws each (China) Wa 10,000mt
Inter C/A.A Ibrahim 1 Jinshi Stand of 91 saws each (China) Tamale 3,000mt
Total 23,000mt

Source: ADB, Tamale (2010)

The study reveals that Ghana’s total cotton production in the 2008/2009 season
amounted to 4000mt of lint cotton (Former MD of GCCL, personal communication, May
24, 2010). Comparing this figure with the previous year’s performance with specific
reference to the 1998 output of 15,480.29mt of lint cotton, it can be established that the
Ghana Cotton Industry is operating at a very low performance considering the current total
installed ginnery capacity of 70,000mt. These figures show that the cotton industry of

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Ghana is making use of only 5.7% of its total installed capacity which suggests
underutilization of the available machinery assets of the industry. Major internal factors
accounting for the low productivity level of the local cotton industry that the study
identified are discussed in the following sections with much emphasis on the activities of
both ginneries and out-growers.

Lack of Incentives for Small-Scale Cotton Companies and Individual Cotton

Farmers
The study revealed that, small-scale cotton producing companies which do not
have their own ginnery facilities lack the necessary incentives to enable them work as
expected to boost seed cotton production in the region. The former MD of GCCL
(personal communication, May 24, 2010) indicated that, the large-scale ginnery companies
are fond of ginning their own seed cotton before accepting seed cotton from their smaller
counterparts for ginning. This culminates in long delays of up to 6 months after harvesting
leading to great loses on the part of the smaller cotton producing companies and individual
cotton farmers. In confirmation of this, the general secretary of Cotton Farmers
Association and Abubakar Wumbei, a cotton farmer (personal communication, May 28,
2010) disclosed that problems that emanate from the long delays of seed cotton ginning
include; loss of market opportunities, decrease in quality and quantities of seed cotton, fire
out-breaks, high cost of storage as well as high cost of debt servicing which discourage
cotton farmers and others who want to venture into cotton production. The delays in
ginnery with its associated problems, to the researcher, are avoidable in the sense that,
Tamale alone has the capacity to gin up to 23000mt if ginnery capacities of GCCL, Nulex
Plantation and Inter Continental/AA Ibrahim are put together (Tables 4.3 and 4.4). GCCL
with proper planning can take up the task by giving special ginning offer to self-financed
small-scale cotton producers and individual cotton farmers as a means of motivation to
farmers to attract more people into the cotton farming in order to increase productivity
levels.

Ineffective Utilization of Land by Out-growers

Ten (10) cotton farms randomly selected and observed (May 31 to June 11, 2010) in
the Tamale metropolis revealed that cotton production is organised primarily on out-
grower basis. Commenting on the activities of the out-growers, the Administrative
Manager of GCCL (Personal communication, May 25, 2010) indicated that GCCL
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provides land preparation services, seeds, fertilizers, agro-chemicals and other inputs to the
out-growers who cultivate a minimum of one unit or 0.5 hectare each. He concluded that
an average production yield per hectare should be about 1,500kg; however, the current
seed cotton yield per hectare is 800kg representing about 50% of the expected yield per
hectare as indicated in Fig. 4.13.

1600
1400
1200 Expected yield per
1500 kg hectare
1000
800 Current yield per
600 hectare
800 kg
400
200
0

Fig. 4.13: Cotton yield per hectare in kg

Source: Field Survey (2010)

The former GCCL MD in an earlier interview had noted that, advocates for the
local cotton industry have always been optimistic of Ghana having the requisite resources
and potential to boost its cotton production considering its hot climatic conditions that
favour cotton. This is in line with the assertion made by Asante and Associates (2009) that,
the climate and soils of the country are generally favourable except, perhaps, in the
southern part of the country.
Despite these favourable climatic conditions, out-growers have been experiencing
low yield and this according the Field Operation Manager of GCCL (personal
communication, May 26, 2010) is attributed to poor farm practices and maintenance
culture. In a counter reaction, the General Secretary for Association of Cotton Farmers
(personal communication, May 28, 2010) contended that the low yield is as a result of
poor seedlings the farmers are supplied with by the ginnery firms and not because of poor
farm practices. Based on these views, conclusion could be drawn that, although the
climatic conditions in Ghana favours cotton production, much more efforts are required
from both out-growers and ginnery companies with respect to good farm practices and
maintenance culture and provision of quality seedlings to increase yield in cotton
production in Ghana.

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Inconsistent Technical Supervision by Extension Officers
A focus group discussion conducted with ten (10) cotton farmers made up of
members of the Association of Cotton Framers of the North Central Division of GCCL
(June 14, 2010) revealed that most of the out-growers have no formal education and for
that matter have little or no technical knowledge in cotton farming and for that matter lack
the requisite technicalities regarding proper farm maintenance practices that are essential
in cotton farming. For this reason, the services of Agric Extension Officers are
inevitability required to educate and reinforce the activities of the farmers for better yield.
The Field Operation Manager of GCCL admitted that cotton cultivation requires high level
of technical knowhow to increase yield. Ghana Cotton Company Limited (GCCL)
knowing the high illiteracy rate among out-growers periodically send Agricultural
Extension Officers to monitor the activities of the out-growers and offer technical advice
to them with the aim of increasing seasonal productivity of cotton. However, due to the
limited number of Agricultural Extension Officers to supervise over 60,000 GCCL’s
registered farm groups, the work of the extension officers has not been fruitful. The
extension officers are not able to patrol all the farms to render their services to the out-
growers as expected. He added that, government’s paid extension officers who are
supposed to coordinate with the out-growers to offer technical advice for fruitful
productivity are also not consistent in their work, hence, resulting in low productivity of
out-growers season by season. With the limited Agricultural Extension personnel available
coupled with high illiteracy rate among out-growers, the researcher concludes that the best
proactive approach in curbing the situation would be for the ginnery companies in
collaboration with Agricultural Extension Officers to organise periodic workshops and in-
service training programmes to out-growers to enlighten and equip them on best cotton
farming practices.

Relatively Low Solar Radiation and Inconsistent Rainfall Pattern

The study reveals that, the low intensity of sunlight and inconsistent rainfall pattern
as a result of the global climate change is generally having an adverse effect on the
production of cotton in Ghana. Interviews with the Former MD and the Field Operation
Manager of GCCL revealed that cotton requires hot climatic condition to be able to thrive
well for better yield. This confirms the assertions made by Tortora and Merkel (2005) and
Adu-Akwaboa (2010) that, cotton thrives best in sub-tropical and warm temperate regions
in the world. The former MD of GCCL was emphatic that the change in whether pattern in
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recent times with low intensity shed of solar energy had led to decrease in seasonal cotton
yield adding that the situation is consequently killing the interest of cotton producers as
they rely solely on the weather for production. The Field Operation Manager of GCCL
noted that, as an annual perennial crop with 5 to 6 months maturity cycle, it is the usual
practice for out-growers to prepare the land for cultivation around March, wait on the rains
for cultivation and by September the seed cotton should be ready for harvesting. This
timely period in cotton production has changed considerably as the rainfall pattern keeps
on changing season by season. The researcher observed that, as at June 2010, cultivation
has not been started and out-growers were still waiting for the rains to commence
cultivation which was certainly going to delay harvesting, ginning and marketing. It was
evident that, the over reliance of out-growers on the rains for cultivation creates a lot of
uncertainties to both out-growers and the ginnery companies causing many of them to
leave the cotton production scene. To resolve this therefore requires installation of
irrigation system as an alternative for cultivation of cotton by out-growers. This will help
them to meet timelines of the cotton production season to save them from loses that may
emanate as a result of changes in climate or rainfall pattern.

Labour Intensiveness of Cotton Production

Observable findings by the researcher (May 31 to June 11, 2010) based on the
production activities of the out-growers of ten (10) randomly selected farms show that
cotton production is labour intensive. Right from the preparation of the land to harvesting,
both out-growers and the cotton companies have to hire intensive labour to ensure proper
farm maintenance for a better yield. Land preparation is mainly done by the cotton
companies with high duty mechanical equipment with high fuel consumption to clear and
plough the land at the expense of the out-growers. An alternative ploughing method used
by the out-growers, from observation, is a bullock system which is relatively cheaper as
compared to the mechanical ploughing systems. Aside labour for land preparation, the out-
growers (Focus group discussion, June 14, 2010) indicated that they usually employ more
hands by hiring people to assist them in cultivation depending on the size of the land to be
cultivated. The out-growers confirmed the fact that cotton production is labour intensive
stressing that cotton requires proper farm maintenance culture such as; frequent pruning,
weeding and spraying which demands more time and labour. Additional labour, according
to the out-growers, is required during harvesting of the matured cotton, also at the expense
of the out-growers.
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 The researcher observed that the absence of mechanical pickers, makes out-
growers solely dependent on hand picking which though produces high quality lint cotton
is very expensive in terms of labour and time consuming. According to the out-growers,
the charges for hand picking as at June, 2010 was GH¢40 per one unit (0.5 hectare of land)
of cotton farm excluding food and water. They estimated an average income of a very
hardworking farmer to be GH¢300 per unit for each cotton season. However, the labour
intensiveness nature of cotton production makes most out-growers earn an average of
GH¢100 per unit for a season making the cotton farming business not lucrative to most
young farmers in the region to venture. Considering the large sizes and over 60,000 cotton
farms registered under GCCL alone with the hope of increasing the number to increase
productivity level, the researcher posits that the cotton production activities must be
mechanized with modern technology. The onus is therefore on the ginnery companies to
acquire modern and more efficient machinery such as mechanical planters for cultivation
and pickers for harvesting to reduce manual labour in order to attract more farmers into the
cotton production scene. This will in turn increase production speed and output
performance of the industry for economic gains.

Diversion of Inputs and Seed Cotton by Out-growers

The Administrative Manager of GCCL (Personal communication, May 25, 2010)
noted that fertilizers and pesticides are distributed to the out-growers in proportionate to
their farm sizes with the aim of boosting productivity levels adding that, out-growers are
under obligation to strictly use all the agro-chemicals only on the registered cotton farms
under the supervision of the Agricultural Extension Officers assigned to the various farms.
He argued that, a situation is created where out-growers are found of diverting some of the
agro-chemicals to other unregistered farms on the detriment of the ginnery companies due
to inconsistent supervision by Agricultural Extension Officers. This, results in low
productivity which adversely affect the ginnery companies as the funds for the provision
of inputs are sourced through loans with commercial interest rates.
According to the M & E manager of GCCL (personal communication, June 15,
2010), in some cases, the out-growers after picking divert their seed cotton to other
ginnery companies who have not pre-financed the production. These practices have
become very common with out-growers as the M&E manager was emphatic that about
30% of the seed cotton harvested by the company’s registered out-growers is diverted to
other ginnery companies but was not certain as to the percentage of inputs the company
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loses in the course of production. The out-growers, to the researcher, deliberately do this to
gain knowing very well that the value of the inputs provided by the ginnery companies is
eventually going to be deducted from their gross output rate of seed cotton. Those who
divert the seed cotton to other companies are not given any sanction to deter others to
desist from such unscrupulous practices and for that matter continue the act. Out-growers
must therefore be made to sign an agreement of compliance with appropriate sanctions
which may include double payment of the cost of land preparation and inputs to deter
others from such practices.

Poor Pests Control Habit by Out-Growers

Diversion of agro-chemicals by out-growers to their individual farms according to
the Former MD, GCCL leads to deficit in agro-chemicals to embark on intensive pest
control. He continued that, the cotton plant is vulnerable to high pests attack. Leaf eaters
attack the leaf making numerous holes in them which prevent the plant to develop to the
fullest. Moreover, strainers such as American bolo warm changes the colour of the seed
cotton which affect the quality of the resultant lint cotton. In addition, the Field Operation
Manager of GCCL made it clear that, inconsistent spraying of cotton plant by out-growers
renders the plant susceptible to pest attacks which consequently lead to low yield. This
was proven through observation made by the researcher which revealed that, the out-
growers aside the registered cotton farms have other farms which they depend to cater for
their food needs. It is on these farms that they divert the inputs supplied to them by the
ginnery companies which are meant for use solely on the registered cotton farms. This
situation, to the researcher, has been so because the out-growers are given the inputs to be
used on their own under no supervision by the officers of the ginnery companies. To check
this situation however requires putting in place stringent monitoring measures that will
involve supply of inputs to the out-growers directly on the respective farms for application
under strict supervision of the Field Operation Officers. This is the only way that the
ginnery companies can ensure 100% utilization of inputs supplied by out-growers on the
cotton farms to reduce pests attack for better yield.

High Cost of Inputs

Elaborating on how the ginnery companies work with the creditors and out-
growers, the Administrative Manager of GCCL explained that, the cotton companies at the
beginning of every cotton season determine inputs prices and look out for creditors or
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suppliers to establish financial agreement in order to solicit enough capital to enable them
provide the requisite inputs for out-growers. Inputs supplied to the out-growers are in the
form of land preparation and agro-chemicals. He concluded that, the high cost of inputs
deprives the ginnery companies of getting appreciable profit as the bulk of their working
capital is spent on inputs. It is estimated that, the total cost of land preparation and agro-
chemical inputs for one hectare of land (2 units) for cotton cultivation is GH¢125 as at
June, 2010 (The M&E manager, GCCL, June 15, 2010). The M&E manager added that
GCCL alone serves about 60,000 farms with inputs with minimum of each farm size being
1unit to a maximum of 5 units. This therefore indicates that at every cotton season GCCL
spent between GH¢ 7,500.000 to GH¢ 37,500,000 on inputs supply. The Administrative
Manager contended that, although the loans given to the ginnery companies to provide
inputs to out-growers carry commercial interest, the inputs advanced on credit to the out-
growers do not include any interest component adding that land preparation, field
extension and other related services offered to out-growers are subsidized and for this
reason in the periods of cotton price slump, the ginnery companies are the most affected in
terms of profit. Evidently, the cost of inputs is very high and this, from the researcher’s
point of view, is due to the obsolete cotton production technology being used by the
farmers which require high pesticide control. The high cost and usage of pesticides can be
brought to the barest minimal through the use of more efficient and environmental friendly
cotton production technologies which require little or no pesticides such as Genetically
Modified cotton (GM) as projected by Dip (2011) and Organic cotton (Organic Cotton,
2010). This will reduce the cost of production of the domestic cotton industry
significantly.

Low Seed Cotton Price and Delays in Payment

The out-growers in a focus group interview argued that the price of seed cotton is
relatively low and this is one of the major factors causing many farmers to leave the cotton
scene which has resulted in low productivity figures in recent times. The general secretary
of the Association of Cotton Farmers established that most of the cotton farmers have
diverted into other farm products which require less labour and provide them with food
and appreciable profits compared to cotton. The price of seed cotton per kilo as at June
2010 was 60Gp for grade A, whereas grade B was selling at 45Gp per kilo. However, as
one of the country’s most significant cash crop considered second to cocoa, the out-
growers argued that the current rates for selling seed cotton is not encouraging,
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considering the labour intensiveness of its production coupled with the usefulness and
value of the crop.
The discussion with the out-growers revealed that, although some cotton farmers
have vowed to stay in the cotton farming business, one disturbing factor dwindling their
faith is the delays in payment by the ginnery companies upon delivery. The out-growers
claimed that, payment is sometimes made 2 to 3 months after they have supplied the seed
cotton to the ginnery companies; perhaps, the ginnery companies want to process and sell
the lint cotton before paying the out-growers. This, as a result, had persuaded some
farmers to leave the cotton scene with others diverting their seed cotton as the out-growers
consider this as injustice or foul-play on their part. Commenting on the issue of low seed
cotton price, the GCCL Administrative Manager clarified that the price of cotton is
determined by the international market and for that matter the ginnery companies have
little to do as far as the price is concerned. He added that, the Association of Cotton
Farmers is given the chance to negotiate the price with the ginnery companies prior to the
commencement of every cotton season; hence, the out-growers have no cause for complain
about the price during sales. With regard to delays in payment, he admitted that this
sometimes happens as the loans they source from the banks for production are mostly used
up on inputs supply and for this reason have no option than to process and sell the cotton
before payment can be made to out-growers. In light of this, the researcher projects that,
government intervention in subsidizing cotton production in the form of inputs supply can
help resolve the delays in paying out-growers.

Falsified Weighing of Seed Cotton at the Ginneries

In another development regarding sales of seed cotton, the out-growers through
focus group discussion (June 14, 2010) complained of the ginnery operators fraudulent
activities during weighing of seed cotton. Upon long period of observation, the out-
growers claimed to have noticed anomalies in cotton seed weighing with the view that the
weighing officers do adjust the weighing scales to read in their favour. The researcher
observed that, the act of “give and take” between the ginnery operators and out-growers
has become the norm in the cotton industry where the ginnery companies have become
very much aware of the unscrupulous behaviour of out-growers regarding diversion of
inputs provided to them to boost their yields for the benefit of both parties into other farm
produce other than on the registered cotton farms. Because the ginnery companies find it
difficult to determine whether or not the farmers fully utilized the inputs given to them as
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required, the weighing period provides a good platform for the ginneries to recover their
losses through scale adjustments.

Unavailability of Cotton Seedlings in Ghana

Interview with the former GCCL MD revealed that cottonseeds are not locally
available but are obtained outside the country by the ginnery companies for cultivation. He
added that, the importation of cotton seeds adds up to the production cost making the final
profit of the ginnery companies very marginable since the seedlings are given to the out-
growers free of charge. The out-growers in a focus group discussion complained of poor
quality cotton seeds given to them and attributed the recent low cotton yield to the inability
of the ginnery companies to obtain high quality cotton seeds for cultivation. To the out-
growers, the cotton seeds supplied to them are 4th and 5th generation seeds which are of
less quality and results in low yields. However, both the former GCCL MD and general
secretary of the Association of Cotton Farmers were in consensus that, the use of high
quality cotton seeds is one of the main key factors underlining the success in cotton
production of some countries in the sub-region like Burkina Faso, Mali, and Cote d’Ivoire.
These countries, according to the Former MD, have advanced into the cultivation of
genetically modified cotton seeds which is less labour intensive with high yields compared
to the 5th generation seeds.
The study reveals that, GCCL has been dependent on Burkina Faso for cotton
seeds over the years; but, interactions with the Administrative, Field operation, and
Monitoring and Evaluation managers of GCCL indicate that Burkina Faso had declared its
intention to discontinue supply of cotton seeds to the company as it now engages in
cultivation of genetically modified cotton seeds. This therefore poses a serious threat to
Ghana cotton industry if the country should still remain in cultivation of 5th generation
cotton seeds. A proactive action to safeguard this situation is for the domestic cotton
industry to find ways of developing its own cotton seeds for which SARI could be
strengthened and brought to task in this regard.

Accumulation of High Debts

The study found that, poor production performance of the cotton industry has led to
accumulation of high unpaid debts of the cotton companies. The former GCCL MD (now
ADB Portfolio Manager, Scheme Development Finance Unit) disclosed that, the total
indebtedness of the Cotton Industry to ADB alone as at March, 2010 stood at
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GH¢111,875,729. The details of this debt with respect to the various cotton companies,
including accumulated interests are shown in Table 4.9.
The debt statistics presented in Table 4.6 has been accumulated through long
unpaid loans from ADB since 1996 according to ADB portfolio manager. It is apparent
from the figures that, the total accumulated interests of some of the companies far exceed
their principal loan figures. Some of these companies, from the survey of the industry,
have gone off production and this justifiably suggests that they are incapacitated to repay
their debts. The ADB portfolio manager who is also in charge of cotton development
stated that the high accumulated debts place statutory limitation on the Bank’s capacity to
further invest in the cotton industry. He concluded that it is management’s intention of
moving into the companies that are indebted to them to seize and sell their assets to repay
the debts.

Table 4.9: Accumulated debts of the cotton companies as at March, 2010

Name of Company Total Outstanding Balance
Principal (GH¢) Interest (GH¢) Total (GH¢)
Ghana Cotton Company 12,655,263.02 5,077,744.74 17,733,007.76
Nulux Plantation Co. Ltd 2,768,861.45 20,084,450.45 22,853,311.90
Plantation Dev. Co. Ltd 4,464,676.75 32,385,361.41 36,850,038.16
Juni Agro Company Ltd 6,717,537.37 2,535,186.84 9,252,724.21
Bafcot Company Ltd 7,280,640.34 2,747,700.91 10,028,724.25
Agrostar Company Ltd 6,335,963.59 2,391,181.56 8,727,145.15
Intercontinental Farms Co. Ltd 1,877,204.60 708,453.73 2,585,658.33
A.A. Ibrahim Farms Co. Ltd 681,222.27 428,182.55 1,109,404.82
Upper West Cotton Prom. Co. 919,180.63 1,004,204.84 1,923,285.47
Amantin Complex Farms Ltd 388,393.13 424,319.49 812,712.62
Total 44,088,943.15 67,786,786.52 111,875,729.66
Source: ADB, Tamale (2010)

Tribal Disputes among Out-Growers

One major sociological problem facing the cotton industry as revealed in the study
is numerous unresolved tribal disputes among out-growers in the region which have
contributed to the low production performance of the cotton industry. The Ginnery

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Operation Manager of GCCL (Personal communication, May 27, 2010) noted that the
company in 2004 embarked on infrastructural expansion with the aim of maximizing its
production capacity which led to the installation of two modern ginnery stands at
Bolgatanga with total capacity of 25,000mt and upgraded both the Tamale and Tumu
ginneries. The installation of two additional gins increased the total ginnery capacity of the
company to 47,000mt which suggests that more raw materials are required in order to
make full utilization of the systems. The Ginnery Operation Manager emphasized that,
because the Bolgatanga ginnery is new with high capacity compared to that of Tamale and
Tumu, it became necessary for the company to send more seed cotton from Tamale and
Tumu to Bolgatanga to be processed to meet the company’s set target. This, according to
him, did not work as out-growers in Tamale and Tumu protested against any transit of
seed cotton from their locality to Bolgatanga with the contention that farmers in
Bolgantanga should produce enough seed cotton to feed the newly installed ginnery. This
was confirmed by the General Secretary for the Association of Cotton Farmers (personal
communication, May 28, 2010) who also added that, the out-growers do not want to form
groups with their brothers from other tribes as there is high rate of tribal conflicts in the
area. The Bolgatanga ginnery is now sitting idle waiting for raw material to be processed
and GCCL has no option but to encourage out-growers in the area to increase their
productivity to feed the ginnery.

Rampant Fire Out-Break within the Cotton Growing Areas

Observation made by the researcher indicated that, illicit farm and hunting
practices by some farmers amidst excessively dry weather conditions cause rampant bush
fire in the region leading to deforestation and destruction of many farms. The former MD
of GCCL in an interview asserted that cotton farms are the most affected in this regard due
to the volatility and combustibility nature of cotton which makes it very susceptible to fire.
The General Secretary for the Association of Cotton Farmers also added that, long storage
of seed cotton due to the delays in purchasing by the ginnery companies increases the
probability of the cotton to risk of fire. He continued that, there has been frequent fire
disaster on seed cotton on storage with the recent one leading to the death of two children
of a cotton farmer. The children were burnt to death whiles they were asleep in the absence
of their parents as the seed cotton on storage caught fire from an unidentified source. What
the ginnery companies can do to avoid these situations is to put in place proper purchasing
mechanism plan that will allow them to buy the seed cotton from the out-growers on credit
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immediately after picking to be stored in their warehouses under proper storage conditions
or processed the seed cotton for sale and pay the out-growers within an agreeable period of
time.

High Cost of Cotton Production

The use of obsolete farm equipment, ginnery machinery, old vehicles coupled with
high electricity consumption of the ginnery as well as high cost of input for farmers
increases cost of production as indicated by the Ginnery Operation Manager of GCCL
(Personal communication, May 27, 2010). He explained that, the GCCL’s Tamale and
Tumu ginneries, for example, were installed in early 1960’s and have ever since received
no retrofitting except the 2004 upgrading. He therefore concluded that, the efficiency of
the gins has reduced resulting in high energy consumption adding that an average cost of
electricity consumption is estimated at GH¢70,000 per production. Stressing on the high
cost of production, the Field Operation Manager attributed this to the poor conditions of
the company’s farm equipment and trucks which make them consume more fuel. This, in
addition to high input cost between GH¢7,500,000 and GH¢35,500,000 per each
production season as already indicated, coupled with purchasing of seed cotton logically
indicate that the company’s production is not cost effective.

Absence of Substantive Management and Board of Directors (GCCL)

One other major setbacks of the cotton industry, with reference to GCCL, has been
management instability. The former MD of GCCL in an interview indicated, a company’s
success is determined, to the greater extent, by good expert and technical directives,
decisions and policies by both management team and board of directors who are elected or
appointed to oversee to the company’s affair for sustainable development. He added that,
as ceremonial management team, the board takes decisions and makes policies ostensible
for the well being of the company whereas management sees to the day to day running of
the company. Based on the assertions made by the former MD, it can be established that,
absence of these two bodies or even one, makes a company vulnerable with respect to
developing and implementation of pragmatic policies and taking strategic decisions toward
sustainable development of the company. That notwithstanding, the Administrative
Manager reported that, since 1994 GCCL as a limited liability company has operated
without any substantive Board of Directors and management. He continued that,

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management has evolved from Taskforce under ADB regime, through Interim
Management Committee to the current Acting Management. ADB’s involvement in the
affairs of the company, according to Former Interim MD of GCCL, was in line with the
Bank of Ghana’s financial sector rationalization process in 1989 when it became necessary
to raise enough funds to support the cotton industry through floatation of shares and
mandated ADB to take up this responsibility. He elaborated that, under the Ghana
Government’s divestiture programme when the 30% share of the government were further
diversified into the private domain, ADB acquired additional 20% shares and became a
majority shareholder with 80% shares. In order to protect its investments as a financial
institution, the bank moved in with interim management team to accomplish its objective.
The dynamisms and vigour that the management team of ADB brought into the company,
however, made some workers felt restless and agitated for the removal of ADB
management. Government then came in to pay off the 80% shares of ADB, took over
assets of the company and currently the company is being managed by an acting managing
director under the government.
These are but some of the major internal challenges confronting the domestic
cotton industry that need to be addressed in order to revive the industry. Considered as the
second significant cash crop next to cocoa in Ghana, there is the need for cotton to be
given a priority as cocoa and other food crops to help sustain the local textile industry.

4.2.2 Prospects of the Ghana Cotton Industry

In spite of the numerous challenges confronting the local cotton industry, the study
found that the industry can boast of a number of prospects that could serve as a catalyst to
revitalize its operation. As projected by Asante and Associates (2010), Ghana has the
capacity in terms of land and manpower to cultivate about 400,000 hectares of cotton
which could yield 216,000mt of seed cotton and 160,000mt of lint cotton with the
estimated value of about US$250 million annually. These projected figures can be
achieved based on the evidence that there are available key prospects for the local cotton
industry to even do better.

Availability of Land for Cotton Cultivation

The study revealed that, the northern Ghana exhibits vast available land for cotton
production. This was evident from observable findings and questionnaire responses of a
section of GCCL staff as shown in Fig. 4.14. Responding to a question on whether or not
134
there is available free land for cotton production, 18 out of 22 respondents representing
82% indicated that land for cotton farming is readily available and obtainable free of
charge. Two (2) of the respondents representing 9% responded that land for cotton farming
is readily available but were not sure as to whether or not it is free. The remaining two (2)
representing 9% think that land for cotton farming is available but not free.

Available free land

9% 9%
Available land but not sure
as to whether or not is free
82% Available land but not for
free

Fig. 4.14: Availability of land for cotton farming

Source: Field Survey (2010)

In support of available free land for cotton production, the General Secretary of
Association of Cotton Farmers in an interview confirmed that acquisition of land for
cotton production is virtually free adding that, all that farmers need to do is to identify a
portion of land, inform the owners and prepare it for cotton production. He also stated that,
as the major cash crop in the region which provides employment to most farmers, chiefs
and family heads are always ready to release land for cotton growers without any payment.
He however concluded that, the only problem is that cotton producers have to cultivate
within their tribal terrain or jurisdiction to avoid tribal conflicts which result from cross-
border farming in the region.

Favourable Soil and Climatic Conditions for Cotton Production

Table 4.10 presents the views of 22 respondents on favourability of soil and
climatic conditions in the northern part of Ghana for cotton production. Fourteen (14)
otwenty two (22) representing 63.6% were of the view that the soil in the area is
favourable for cotton production, with 4 (18.1%), 3 (13.6%), and 1 (4.5%) indicating that
the soil is very favourable, fairly favourable, and poor respectively. With reference to the
climate, 12 that is 54.5% think the climatic condition in the area is favourable for cotton

135
production, whereas 6 (27.2%), 2 (9.0%), and 2 (9.0%) indicated that the climate is very
favourable, fairly favourable, and poor respectively.

Table 4.10: Multiple responses on soil and climate favourability for cotton production

Item Poor (%) Fair (%) Favourable (%) Very Favourable (%)
Soil 1 4.5 3 13.6 14 63.6 4 18.1
Climate 2 9.0 2 9.0 12 54.5 6 27.2
Source: Field Survey (2010)

From Table 4.10, it is evident that northern Ghana presents favourable soil and
climatic conditions for cotton production. This therefore offers cotton producers the best
opportunities to increase their yields. The study observed that cotton farmers in the north
due to the favourable climate and soil conditions have depended greatly on these factors
for cultivation over the years. Although the recent climatic change is having adverse
effects on cotton production as indicated by the former MD of GCCL, both cotton
companies and out-growers can study the changes in climate and reschedule their
production activities accordingly to boost productivity levels.

Available Human Resource for Cotton Production

The study finds significantly high population of farmers available in the region for
cotton production. Statistics given by GCCL Administrative Manager show that GCCL
alone serves about 60,000 farm families with each comprising 5 or 6 farmers. This implies
that there are more than 250,000 farmers who are engaged in cotton farming. A survey of
the cotton production industry (May 31 to June 10, 2010) revealed that, some of the
farmers predominantly peasant, are now idle whereas others have diverted into food crop
farming. In the focus group interview conducted with the Association of Cotton Farmers,
the farmers were optimistic that more farmers would be joining the cotton farming
business if better conditions are put in place and the problems confronting the industry are
brought to the barest minimum. The farmers have keen interest in cotton production but
most of them have temporarily left the cotton business due to the recession in the world
market price of cotton and lack of subsidy for cotton farmers. These need to be addressed
in order to increase the workforce in the cotton production industry to maximize returns.

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Readily Available Market for Ghana Cotton
Responding to the question on demand or market prospects for cotton, both the
Ginnery Operation and Administrative Managers of GCCL were in agreement that the
demand for cotton is exceptionally high which presents a good opportunity for industry to
capitalize upon to revamp its operation. They however noted that the local cotton industry
due to low productivity as a result of insufficient supply of seed cotton, are not able to
meet their demands. The Ginnery Operation Manager concluded that, most fabric
manufacturing companies, both domestic and offshore, make Ghana cotton the first target
because of its quality due to the hand picking method employed by the farmers which
minimizes impurities as much as possible in the process. It was observed that, due to the
inability of the local cotton companies to feed the fabric manufacturing factories with lint
cotton, the textile factories have stopped depending on the local cotton industry for lint
cotton. The local cotton companies have therefore redirected their focus completely to the
exportation of lint cotton which, to them, earn them more profit than they could earn from
the supply to the local textile factories.

High Ginnery Capacity for Cotton Processing

As presented in Tables 4.4 and 4.5, the summation of ginnery capacities of cotton
processing companies that were in operation in the north as at July, 2010 stood at
70,000mt. This capacity is high enough to put Ghana at a better position in terms of cotton
production to compete keenly with other producers in the sub-region. The 47,000mt
ginnery capacity of GCCL, as the study revealed, has been under-utilized where the
company’s production level is currently pegged below 20% of the installed capacity. The
other ginneries with the total of 23,000mt capacity were not in production as at the time of
the research.

Available Technical Expertise for Cotton Production

The study finds appreciable number of technical experts in the cotton production
industry with special reference to GCCL. Although the company is faced with managerial
instability with frequent change of management, its sustainability could be attributed to
presence of qualified and experience staff who are still at post and continue to render their
services to the company. These include top level management and technical staff made up
of field operational officers, ginnery operation experts, mechanical and electrical

137
engineers, and agricultural extension officers who have minimum of first degrees with five
to ten years working experiences in their respective fields.

4.2.3 Challenges of Volta Star Textiles Limited (VSTL)

Since the government became the sole shareholder after acquiring and taken over
assets of the then JTL under the management of Vlisco Ghana Limited in 2005 with the
intention of revitalizing the industry, production of the company has dwindled in the sense
that no effort of recapitalization in any form has been done according the Acting Technical
Director of VSTL (personal communication, June 7, 2010). The major challenges of the
factory as revealed from the interviews conducted with selected staff of the interim
management, questionnaire responses by selected technical staff of the company and
observation of the company’s production operation are discussed here.

Lack of Working Capital

The Acting Technical Director of VSTL in an interview stated that the company in
pursuit to commence full production on commercial basis lacks the needed working capital
to operate. He added that as a state owned company, several proposals for capital injection
have been made to government with the aim of sourcing vital raw materials, spare parts
and other technical equipment. One of such proposals was made to Export Development
and Investment Fund (EDIF) for consideration since the company’s operations promote
export trade. EDIF, after studying the proposal came to the rescue of the company with a
grant of GH¢3 million which saw the company through some form of expansion in
productivity. This, to the Acting Technical Director, was inadequate to propel the
company to utilize fully its installed capacity to increase productivity. Responding to the
questionnaire on the challenges of the company, all the twenty five (25) technical staff that
is 100% who were administered with questionnaire indicated lack of working capital as the
major challenge confronting the company. However, eighteen (18) of the staff,
representing 72% attributed this to lack of government commitment for the textile
industry, five (5) that is 20% blamed the financial institutions for their unwillingness to
make loans available to the textile factories, but two (2) of the staff were indecisive (Fig.
4.15).
This therefore confirms the Acting Director’s view that the company lacks needed
working capital to operate.
138
 Lack of government
commitment for the
8%
industry
20%
Unwillingness of Banks
72% to release loans to the
industry
Lack of private
investors for the
industry

Fig. 4.15: Reasons for lack of working capital of VSTL

Source: Field Survey (2010)

It was observed that, the problem of inadequate working capital is adversely

affecting the company’s operation thereby making it vulnerable to maximize its
productivity on commercial basis. The earlier the government injects capital to revamp the
industry the better, as some of the machines of the company were found to be deteriorating
as a result of long period of inactivity. Alternatively, government may call on foreign
investors to invest into the company to sustain and expand its operation.

Low Capacity Utilization Leading to Low Productivity

As the largest commercially viable spinning and weaving company in Ghana with
total installed plant capacity of 86 Ring Frames and 35,000 spindle capacity; the biggest in
the country producing 65,000 yards in three shifts per day, the Acting Technical Director
established that, VSTL is now operating at 30% of its installed capacity. In confirmation
of this, the Production Manager of VSTL (Personal communication, June 8, 2010) agreed
that only 30% of the company’s installed machinery capacity is being utilized adding that
most of the company’s machines now stand idle and as a result some have developed
faults. He continued that, in order to ensure good standing of the machinery, the
maintenance department of the company embark on frequent servicing, lubricating and
dusting of the machines which add up to maintenance and labour cost although these
machines are not in operation and for that matter do not add up to production output of the
company. In response to factors attributing to low productivity performance of the
company, eight (8) of the 25 technical staff of GCCL respondents representing 32% were
of the view that frequent power outbreak is a major attributing factor, three (3) that is 12%
indicated long down times, one (1) being 4% ticked lack of technical expertise, six (6)

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representing 24% indicated the use of obsolete machinery, seventeen (17) that is 68%
noted lack of raw materials, whereas twenty one (21) representing 84% indicated lack of
spare parts as major factor. This evidently shows that lack of spare parts, lack of raw
materials, and frequent power outbreaks are the major factors for low productivity levels
of the company (Fig. 4.16).

Frequent power outbreaks 32%

Long down times 12%

Lack of technical expertise 4%

Obsolete machinery 24%

Lack of raw materials 68%

Lack of spare parts 83%

Fig. 4.16: Factors attributing to low productivity of VSTL

Source: Field Survey (2010)

Lack of Spare Parts for Repairs and Maintenance of Machinery

Interview with both the Acting Technical Director and the Production Manager
revealed that out of the company’s 86 Ring Spinning Frames with maximum spindle
capacity of 35,000, only 24 are operational. Moreover, 300 out of 960 weaving looms of
the company are currently in use. The remaining spinning frames and looms, according to
the Production Manager, have developed faults in one way or the other and for that matter
require spare parts for repairs and maintenance. Nevertheless, the difficulties and high cost
of acquiring spare parts to put the machines in good shape to maximize their efficiency for
maximum output is among the major factors that is crimpling the company’s production
operation. This is evident in Fig. 4.17 where twenty two (22) out of the twenty five (25)
respondents representing 88% indicated that 90% of the company’s spare parts are
imported with only 10% obtainable locally. The remaining three (3) indicated that the
company acquires its spare parts both locally and abroad but did not specify the
percentages.

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 10%
Inported spare
parts

Locally
available spare
90%
parts

Fig. 4.17: Accessibility of spare parts (VSTL)

Source: Field Survey (2010)

It was noticed however that, the obsolete nature of the machinery, especially the
spinning and weaving systems, makes their spare parts not easily accessible from the
international market as most manufacturers have stop producing such machinery. This is
confirmed by the assertion made by Lord and Mohammed (1982) that shuttle looms had
almost been replaced by shuttleless looms due to their slow production rate adding that
projectile, rapier, air-jet and water jet looms have become extensively operational with
their exceptionally high rate of production. Although, the company’s maintenance
department sometimes tries to improvise some of the spare parts when production
necessitate a higher capacity other than the one which is currently in use, it was observed
that such attempts have not been fruitful as such spare parts get worn out in no time.
Installation of fast speed modern looms with available spare parts on the market, from the
point of view of the researcher, will be a better option to salvage the situation.

The use of Obsolete Machinery for Production

Barely four decades now that the installation of machinery was undertaken for the
company to commence production under the management of JTL, no major form of
refurbishment and development according to the Acting Technical Director, have taken
place as far as machinery is concerned. He added that, some form of machine retrofitting
took place in the early 2000 at the spinning department with specific reference to blowing
and carding systems, but this was not implemented throughout the entire plant. Observable
findings by the researcher show obsolete state of weaving looms, pirn and cone winding
systems, testing and inspection machine with a number of broken down machines which
need replacement. Moreover, it was observed that, the Testing Laboratory of the Quality

141
Control Department lacks the requisite equipment to undertake effective testing
operations. The adverse effects of the use of obsolete machinery from questionnaire
responses by technical staff of the company include; high energy consumption, high labour
cost, poor product quality, and low productivity as shown in Fig 4.18. Installation of
modern and high speed systems equipped with microprocessor for effective performance
(Strolz, 1988) will address these problems to give the company a face-lift.

Low productivity 52%

Poor product quality 72%

High labour 66%

High energy consumption 75%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Fig. 4.18: Multiple responses on the effects of the use of obsolete machinery (VSTL)
Source: Field Survey (2010)

High Cost of Production

Figure 4.19 shows multiple responses on factors causing high cost of production of
the VSTL. It is evident that from Fig 4.19 that, twenty (20) out of the twenty-five (25)
respondents representing 80% consider high energy consumption (electricity) as a major
factor leading to high production cost, twelve (12) that is 48% think high usage and cost
of RFO is the major cause, fifteen (15) representing 60% believe the major cause is high
cost and scarcity of spare parts, eight (8) thus 32% chose water, whereas five (5) that is
20% went in for high labour. This therefore suggests that, high cost of electricity and spare
parts are major attributing factors to high cost of production of the company. The
Production Manager of VSTL (personal communication, June 8, 2010) indicated that, the
nature of the company’s machinery requires high labour, frequent maintenance and repairs
which lead to long downtimes thereby minimizing productivity. He added that, the
company though resides closer to the Volta Lake from which Ghana generates a greater
percentage of its hydroelectric energy depend solely on paid electricity and water from
Electricity Company of Ghana (ECG) and Ghana Water Company (GWC) with
commercial rates.
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 90%
80%
70%
60%
50%
40% 80%
30% 60%
48%
20%
32%
10% 20%
0%
High energy High usage High cost and High labour The use of
consumption and cost of scarcity of paid water
RFO spare parts

Fig. 4.19: Multiple responses on factors attributing to high cost of production (VSTL)
Source: Field Survey (2010)

Moreover, the company does not have any standby or alternative source of power to
ensure continuous operation. He however indicated that, the company used to have a
power plant belonging to Vlisco, the then majority shareholder of JTL, but it was taken
away to GTP after the closure of JTL in June 2005 by management decision of Vlisco
Ghana Limited to pull out and concentrate on their core business of printing and finishing
of textiles at GTP. The absence of standby power plant however leads to long downtimes
especially during light-out hours making the workers idle which results in low
productivity. The high cost of utility bills the company incur on electricity as a result of
high duty and obsolete machinery, coupled with high labour, water, importation of spare
parts and RFO consequently lead to high cost of production making it difficult for the
company to break even.

Inadequate Supply of Raw Materials

As a spinning and weaving company, lint cotton is the major raw material base of
VSTL. However, with reference to the low productivity performance of the local cotton
industry as already discussed, the study found that VSTL is faced with the problem of
frequent shortage and insufficient supply of lint cotton which lead to low productivity. In
order to ensure continuous operation, however, both the Acting Technical Director and
Production Manager disclosed that, the company, apart from occasional supply of cotton
from ginnery companies in the northern Ghana, now relies significantly on importation of
lint cotton from the neighbouring African countries with specific reference to Mali,

143
Burkina Faso, and Cote d’Ivoire as alternative sources for production at a cost higher than
that obtained locally. The researcher is optimistic that the revamping of the Ghana Cotton
Industry will resolve these problems to the barest minimum.

High Cost of Importation of Raw Materials and Machinery

The Acting Technical Director of VSTL reported that, before JTL was closed down
under the management control of Vlisco, 70% of the company’s raw materials were
imported with only 30% obtained locally to fully utilize its plant capacity. He however
added that, since 2005 when the company was reopened with only 30% utilization of the
total plant capacity, lint cotton which is the chief raw material base of the company has
been sourced locally. This notwithstanding technical staff who responded to questionnaire
hold varied views. Fifteen (12) respondents, that is 48% asserted that, 70% of the
company’s raw materials are imported with 30% obtained locally, four (4) that is 16%
stated 89% local and 11% foreign, two (2) that is 8% indicated 60% local and 40%
foreign, two (2) being 8% stated 80% local and 20% foreign, another two (2) that is 8%
indicated 50% local and 50% foreign, and three (3) representing 12% noted 90% local as
against 10% foreign (Fig 4.20).

30% local and 70% foreign

12%
8% 89% local and 11% forign

8% 48% 60% local and 40% foreign

8% 80% local and 20% foreign

16% 50% local and 50% foreign

90% local and 10% foreign

Fig.4.20: Respondents views on utilization of imported

raw materials as against local types
Source: Field Survey, VSTL (2010)

Evidently (Fig 4.20), majority of the respondents, thus 48%, confirm the Acting
Technical Directors assertion that 70% of the company’s raw materials are obtainable
abroad and 30% locally. The imported materials, from observation, basically include

144
cotton lint and sizing agents such as vicol, kollotex and alcowax. Aside GCCL which is a
local ginnery company, the lint cotton is imported mainly from Burkina Faso, Benin,
Togo, and Mali. The importation of these raw materials adds extra cost on production due
to high import duties and this makes the company’s grey baft quite expensive than those
obtained abroad. It was also observed from the company’s production lines that 100% of
the machines were acquired abroad and it requires huge capital to purchase such textile
production essentials. Sizing agents are basically starchy compound which could be
produced locally and with the local cotton industry revamped, the researcher believes that,
VSTL can source most of its raw materials locally and only rely on imported machines for
production. This will reduce the company’s cost of production considerably.

Poor Remuneration
The closure of JTL led to complete redundancy of workers according to the Acting
Technical Director of VSTL. He added that when the company was reopened, the interim
management decided, in a short run, to re-engage few hands to produce on trial basis with
half pay. The idea was to temporarily embark on some form of production whiles
soliciting funds from the government to start full production activities before regularizing
the appointment of the workers and hire more. However, the study found that as at June
2010, that is five years down the line since their appointment in 2005, the workers have
been working as temporal staff with half pay with no sign of optimism of permanent
appointment. The Acting Technical Director lamented that, a number of financial
proposals have been submitted to the government by the management for consideration
but all have proved futile leaving the workers in the state of despair. Some of the workers
interacted with have plans of leaving the company upon getting a new permanent job with
better remuneration.

Inability to Meet Local Demand

With only 30% of the installed capacity being utilized, the study revealed that the
company’s production output, as at June 2010, stood at 7,000 yards of grey cloth per day,
running only on one shift (8 hours) with maximum workforce of 300. All the twenty five
(25) respondents administered with questionnaire confirmed these statistics. The daily
output of 7,000 yards represents just 8% of the company’s plant capacity of 65,000 yards
of grey cloth per day. The Acting Technical Director noted that, GTP alone consumes 19
to 22 million yards of grey cloth annually. Considering this figure with VSTL’s current
145
production capacity of 7000 yards per day which is approximately 2,562,000 yards per
annum, it could be concluded that VSTL cannot even meet GTP’s grey cloth demand, not
to talk of the demands of other local textile manufacturing companies like Printex, GTMC,
ATL as well as that of the small-scale textile producers and flour mill companies who
make use of grey cloth in their production. This therefore suggests that there is readily
available market for VSTL grey cloths which set a good platform for the company to take
advantage to improve its performance.

Lack of Product Competitiveness

The study observed that, since the company assumed production in the 1969, not
much has been done in the area of product development. The company still sticks to the
production of cotton yarns and grey fabrics with limited value addition. This therefore
places a limitation on the utilitarian purposes of the company’s products and with limited
market size. There is therefore the need for the company to develop new variance products
with aesthetic and functional characteristics to make its products competitive to similar
foreign products on the market.

Absence of Substantive Management and Board of Directors

Interview with the Acting Technical Director revealed that, prior to the
commissioning and start of test production activities of VSTL, the Ministry of Trade and
Industry entered into a four year management contract with U-Rich, a Chinese Textiles
and Garment company based in Hong Kong. This Memorandum of Understanding (MOU)
was effective 8th September, 2006. The contract agreement enjoined U-Rich to provide
six-member Chinese expatriate staff who arrived in the country and assumed the
responsibility of running the factory. By the end of 2008, according to the Acting
Technical Director, all the Chinese staff had proceeded on leave to China but failed to
return to Ghana after their leave period had expired. A management vacuum was therefore
created and the urgent need to take key management decisions to kick-start the operations
of the company on commercial basis became necessary. In view of this, the Ministry of
Trade and Industry (MOTI) constituted an interim Management Team on 9th December
2008 with the team made up of four technical staff of the factory and two officials from
MOTI who were to compliment the technical staff to provide Financial and Human
Resource services of the factory and steer the affairs of the company. The researcher
observed that, the current management is headed by an Acting Technical Director, who
146
was the former technical director of Juapong Textiles Limited. As at the time of this
research, it was observed that the Board of Directors of the company has not yet been
constituted and this, to the researcher, put the interim management on difficult grounds to
take bold decisions to be implemented to revitalize the company.

4.2.4 Prospects of VSTL

Though the company is in critical state due to the challenges it is confronted with, it
can count on some significant prospects and strengths that provide hope for revitalization.
These include readily available market for the company’s grey cloth, available technical
expertise, the largest spinning and weaving plant in the country, opportunity of the school
uniform scheme by the government, world class grey cloth quality, capacity to diversify
and expand product range, and proximity to the Volta Lake.

Readily Available Market for the Company’s Grey Cloth

Evidence of the study revealed high demand and readily available market for the
company’s grey cloth. According to the Acting Technical Director, the company receives
substantial orders both locally and internationally due to its high quality grey cloth.
International orders mainly come from Canada, Germany, Italy, etc., which the company
rarely meet supply. The company also supplies grey cloth in limited quantities to some
local textile firms and some neighbouring countries on demand. The Acting Technical
Director emphasized that GTP alone is prepared to take supply of 19 million yards of
VSTL’s grey cloth annually. Besides, there are small-scale textile firms like batik and tie-
dye producers, flour mill companies as well as grey cloth merchandisers across the country
whose work rest on grey cloth to remain in operation which can consume substantial
quantity of the company’s products.

Available Technical Expertise

The Personnel Manager of VSTL (Personal communication, June 9, 2010)
established that, there is high skilled labour waiting to be hired for full commercial
production to take off. He added that, the closure of JTL led to high rate of redundancy.
However, the study observed that due to the limited job opportunities in the area, most of
the workers that were affected are still struggling to get jobs whiles others have diverted
into other businesses. A section of the staff who were engaged in focus group interview
indicated that most of the workers are willing to come back if they are recalled. The
147
Personnel Manager noted that, these workers are made up of both technical and
administrative staff with well over 10 years industrial experiences adding that the senior
staff have minimum of tertiary education with HND and first degrees in relevant field of
study such as textiles, mechanical and chemical engineering, and business administration.
With these technical experts waiting to be hired, human resource for expansion and
commencement of full production will not be a problem.

The Largest Spinning and Weaving Plant Capacity

As indicated earlier, VSTL has 86 Ring Spinning Frames with 35,000 spindles and
960 power looms making it the largest spinning and weaving firm in the country
(Production Manager, VSTL, personal communication, June 8, 2010). The study found
that, when these capacities are fully utilized, the company can produce 65,000 yards of
grey cloth a day and an average of 2,562,000 yards per annum and will employ an average
of about 1000 workers. It can be deduced therefore that, if these capacities are properly
restructured, numerous opportunities with enhanced multiplier effect on the economy
would be created. Moreover, the researcher observed that, the company has enough
infrastructure and space to expand its current total plant capacity to increase output
performance.

Taking Advantage of the Government’s Free School Uniform Policy

As part of exercising its civic responsibilities, The Acting Technical Director noted
that the company has plans of taking advantage of the Government’s Free School uniform
Policy when additional machinery are installed in medium term basis. He was optimistic
that, the implementation of such production activity will provide extra jobs and maximize
productivity thereby reducing imports of foreign textile materials for school uniforms in
the country which will in turn limit government expenditure to save revenue.

Producers of World-Class Grey Cloth

VSTL’s grey cloth is considered as one of the best qualities in the world by both
local and international consumers according to the Acting Technical Director. He in
addition stated that the quality accredited to VSTL grey cloth has made it received high
patronage in Ghana and abroad. Fabric structure analysis conducted by the researcher on
VSTL’s grey cloth with that from abroad showed that the foreign types usually made of
cotton-polyester blends of low yarn count, lighter in weight, and less absorbent. That of
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VSTL is 100% cotton, highly absorbent, takes dyes and other chemicals readily and for
that matter provides good ground for dyeing and printing; hence recon high in terms of
quality in the cotton grey cloth trade. In view of this, it is envisaged that recapitalization of
the company’s operation to maximize productivity to meet both local and international
demands will reposition the company on a better pedestal to contribute its quota to
enhance the country’s economy.

Capacity to Diversify and Expand Product Range

According to the Acting Technical Director, the company’s operation has been
horizontally integrated since its establishment where the product range is limited to only
cotton yarns and grey cloths which serve as raw materials to other textile firms for value
addition. The bulk of the company’s grey cloth (Production Manager, VSTL, personal
communication, June 8, 20101) serves as a raw material base for Texstyles Ghana Limited
who pre-treat the grey cloth through singeing, scouring, bleaching and mercerization
processes and further adds aesthetic quality to the cloth through series of dyeing and
printing processes. However, the study observed that VSTL has the requisite capacity to
diversify and expand its product range by engaging in the production of mercerized cotton,
dyed and printed fabrics. A number of factors could be assigned for this but notable ones
as observed by the researcher include; availability of land for expansion, building
infrastructure, available technical expertise, housing for senior staff, among others. The
diversification and expansion of the company’s production activities will transform its
operation from the current horizontally integration into vertically integration to create
more jobs and maximize returns.

Proximity of the Company to the Volta Lake

With approximately 7 kilometres from the Volta Lake, the researcher is of the
opinion that, the close proximity of VSTL to the Volta Lake could offer the company the
best opportunity to tap free water and possibly acquire hydroelectricity at reduced rates for
production. Responding to the questionnaire with regard to source of water and electricity
for production, Twenty (20) out of twenty five (25) respondents representing 80% stated
that the company source water and electricity from Ghana Water Company and Electricity
Company of Ghana respectively. This therefore shows that, VSTL depend mainly on paid
electricity from ECG and water from GWC with commercial rates for production despite
its close proximity to Volta Lake. This invariably increases the company’s cost of
149
production leading to low returns. The researcher is of the view that, establishing a water
plant and storage facility to access free water from Volta Lake would help the company to
save substantial amount of money on long term basis. Moreover, the company instead of
accessing electricity from EGC on commercial rates can negotiate with Volta River
Authority (VRA) to source hydroelectricity on subsidized rates to cut down cost on
electricity. In this way production cost can be reduced considerably.

4.2.5 Challenges of Akosombo Textiles Limited (ATL)

Although the study finds Akosombo Textile Limited to be on top in terms of

productivity with competitive market advantage compared to other local textile
manufacturers, the company is also confronted with a number of challenges. Among the
major ones are presented and discussed in the following sections of the dissertation.

Strong Competition from Other Local Textile Companies

With only four large-scale textile factories remaining in operation nationwide, there
has been a stiff competition among the local industries according to the Administrative
Manager of ATL (Personal communication, June 14, 2010). He added that, ATL is being
competed keenly by Texstyles Ghana Limited (TGL) and Printex Ghana Limited (PGL) in
terms of product range and quality. This is due to the fact that the companies are privately
owned and are all fighting hard to lead the local market. Once a leading textile company
with a wider consumers and big branding name in quality African prints and classical
designs, the Administrative Manager of ATL acknowledged the fact that TGL prints set a
high standard for ATL prints with Printex taking its share of funeral and thanksgiving
prints which is moderately priced compared to ATL and TGL prints.

Inadequate Supply of Cotton Lint

With the current crisis facing the local cotton industry leading to poor productivity
performance as indicated earlier, acquisition of lint cotton for full production is now one of
the greatest challenges of the ATL as disclosed by the Manager in charge of Spinning
(Personal communication, June 28, 2010). The Spinning Manager lamented that, as the
only vertically integrated textile factory engaging in spinning, weaving and printing,
supply of the company’s raw material base has not been regular and this is seriously

150
affecting productivity. At full production operation, the factory runs three shifts twenty
four (24) hours a day. However, the study as at June 2010 observed that the factory’s
spinning and weaving departments were running a maximum of three working days from
Monday to Wednesday in a single shift as a result of the shortage in lint cotton supply. The
factory, according to the Spinning Manager, now imports lint cotton from Burkina Faso
and Mali to remain in operation due to the inability of Ghana Cotton to meet their lint
cotton demand. This therefore makes the company to incur extra cost thereby increasing
the cost of production.

Difficulty in Accessing Residual Fuel Oil (RFO)

Observation made on the company’s plant revealed the use of highly mechanical
machinery which necessitates frequent maintenance and lubrication to ensure effective
performance to maximize productivity. This requires high utilization of residual fuel oil
(black oil) which also serves as a means to power the machinery. In connection with the
crisis of Tema Oil Refinery regarding scarcity of crude oil and the subsequent fire
outbreak that damaged the plant of the Refinery in the early 2010, the Administrative
Manager of ATL established that, assess to RFO became one of the greatest challenges of
ATL. He however added that, the company had no option than to source RFO from
individual dealers from Benin and Cote d’Ivoire at a very high cost. It was revealed that,
the company utilizes an average of 54,000 litres equivalent to about four small tankers or
two large tankers of RFO daily for production; thus, a monthly consumption excluding
Saturdays and Sundays of 1,242,000 litres. A litre of RFO costs about 64 cent per litre
which is approximately GH¢ 1. This implies that the company spent a total of about GH¢
1,242,000 monthly on RFO which, to the Administrative Manager, takes a chunk of the
company’s working capital. As a bi-product of crude oil it makes economic sense, to the
researcher, for the company to get supply of RFO internally from Tema Oil Refinery
(TOR) which is cheaper compared to that imported. The challenge however is the ability
of TOR to supply to meet the demand of the company.

High Energy Consumption

The rate of energy consumption by the company is indisputably high. Observation
made on the company’s plant reveals that about 90% of the machines, from spinning to
finishing, are powered via hydroelectric energy. The study found that, ATL unlike VSTL
takes advantage of its close proximity to the Volta Lake by souring hydroelectricity
151
directly from the Volta River Authority (VRA) at subsidized rate for production. Out of
twenty three (23) technical staff who responded to questionnaire, twenty (20) representing
89% indicated that ATL receives electricity directly from VRA with only three (3) that is
11% who were not sure of the company’s source of electricity. This notwithstanding,
statistics of the company’s energy consumption indicate an annual energy consumption of
24,455,252KWh. Quantifying this in monitory value, the Administrative Manager
estimated that an average of GH¢ 400,000 is spent annually only on energy which is
comparatively close to the company’s total annual salary of GH¢ 450,000. This is
substantially high and for the company to breakeven other source of energy like gas or
steam energy might be a better option considering the company’s high rate of energy
consumption.

The Use of Obsolete Machinery

Although, the Personnel Manager of ATL (Personal communication, June 29, 2010)
noted that the company embarks on periodic retrofitting to upgrade its machines to put
them in good condition for production, observable findings by the researcher on the
factory’s plant revealed that most of the machines have not been totally replaced for
modern ones since the establishment of the company in 1967. It was evident that the
company has adequate machines and building infrastructure for production considering the
current range of products it embarks on with specific reference to African prints. However,
the question is whether these machines are unable to work efficiently to achieve maximum
output as required. Although the Administrative Manager sees no problem with the nature
of the machinery using the company’s product range as basis for this argument and the fact
that they are Swiss and German machines, the researcher thinks otherwise as there are
modern systems with characteristically high speed of production, enhance fabric quality,
less labour and production costs, variety, etc., in the weaving industry as indicated by Lord
and Mohammed (1982) and Strolz (1988).

Underutilization of Plant Capacity

Theoretically, the total production capacity of ATL is 36 million metres per annum
but in reality, the company is able to produce 28 to 30 million metres of printed fabrics per
annum as noted by the Personnel Manager in an interview. These figures indicate a yearly
loses of 6 to 8 million meters. Both the Administrative and Personnel Managers attribute
this to the fact that ATL has directed its focus to niche production other than mass
152
production. In confirmation of this the Sales Manageress of ATL (Personal
communication, July1, 2010) indicated that ATL now produces based on orders and the
number of orders received yearly determines the yearly output capacities and this has
contributed to the company’s inability to utilize its plant capacity to the fullest. The
researcher observed that the local mass market of the African prints has taken over by less
quality foreign prints mostly from China with very keen competition in terms of price
which the local textile factories find it extremely difficult to compete and for that have
redirected their focus to orders instead of producing for the mass market.

Inability to Meet Demands and Late Delivery of Orders

Arguably, the company’s inability to utilize its plant capacity to the fullest as the
Administrative, Personnel and Sales Manageress attributed to total orders received within
the year, from the researchers point of view, may be quite misleading in the sense that as at
July, 2010, the company still has huge outstanding orders to be produced and sales
management were being pressurized by clients whose orders were still pending (Sales
Manageress of ATL, personal communication, July 1, 2010). She attributed this to
frequent shortage of materials for production mainly RFO which results in delays and late
delivery of orders. This apparently suggests that the company is not even able to meet its
orders due to high demands for its products. The Sales Manageress explained that it is the
company’s policy to meet orders within a maximum of three months; however, this has
become a formality. Under normal circumstances, the company must produce both for sale
and for orders. But the study observed that the inability of the company to meet orders on
time makes it incapacitated to produce for the open market though there is ready market
for its products. This has also compelled the management to close down some of its sales
and distribution outlets nationwide. The statistics of the company’s sales activities shows
that, greater percentage of its wax prints is exported. ABC wax prints, for example, are
100% exported together with about 40% of ATL wax prints. The remaining 60% of ATL
wax is marketed solely by CTD. The fancy prints are, however, marketed by ATL sales
outlets and retailers in Ghanaian open markets (Fig. 4.21).

153
 120%
100%
100%
80%
60% Export market
60%
40% Local market
40%
20%
0% 0%
ABC Wax ATL Wax
.
Fig. 4.21: Export and Local markets for ATL/ABC wax
Source: Field Survey (2010)

4.2.6 Prospects of ATL

In spite of the challenges confronting the company, ATL can boast of some
significant prospects which could serve as catalyst to improve its performance. These
include high plant capacity, high product demand, vertically integrated production system,
free access to water from the Volta lake, transfer of ABC assert to ATL premises, and
level headed technical expertise.

High Plant Capacity

The plant capacity of ATL is currently the largest in West Africa according to the
Administrative Manager of ATL. He added that, in 2006 the company embarked on
installation of new machinery when ABC moved aspect of its production to ATL premises
due to strong affiliation of the two companies. The plant of ATL now has the capacity of
producing 36 million metres per annum which the Administrative Manager is optimistic
that fully utilization of the current capacity will increase productivity and maximize the
returns of the company for sustainable development. The researcher observed, with the
merger of ABC, some of the production lines like printing of wax and fancy have been
doubled with the installation of additional machines operating under the same roof but
with different design concepts and standards. Where the production line demands two sets
of machinery for ATL and ABC products, the systems are set parallel to each other to run
simultaneously in the same direction with enough space to facilitate movements of
workers and moveable equipment. In some cases the same machine is used for both ATL
and ABC prints but with different parameters and characteristics with regards to colour
154
scheme (brilliance and shades), type of finish required, fabric width, number of base and
cover colours, etc. This has increased the company’s product range and productivity levels
and the company now make good use of space, machinery and labour for cost effective
production.

High Product Demands

The demand for ATL prints, according to the Design Manager of ATL (personal
communication, July 2, 2010) is high due to the quality of the prints the company produces
with unique designs and colour ways. In support to this, the Sales Manageress noted that,
ATL prints are attracted to both the youth and the adult which set high demand for the
company adding that the company’s inability to meet its demands with annual production
capacity of 28 to 30 million yards clearly justifies high demand for ATL products. The
researcher noted that, the move of aspect of ABC assets to ATL provide the company with
a wider market opportunity to explore with a more demanding expectations. International
demands for ABC prints now largely rest on ATL which when fully exploited can boost
the foreign exchange earning of the company for economic development of the country.

Vertically Integrated Production System

As the only textile company operating on vertically integrated system, the study
observed that ATL has the power to increase its productivity, add value to its products and
develop new range of products to attract wider consumers under one umbrella. With the
vertically integrated system of production, products can be designed to suit current fashion
trends and monitored through the various levels of production to achieve the best result
within the company’s budget at an agreeable timetable. With such system of production in
place, the researcher believes that time and material waste can be minimized as much as
possible by ATL through integration of all the tasks in the chain of production so that no
unnecessary waiting occurs, or by concurrent engineering, that is overlapping some phases
of the production such as concept, design and production process to meet timelines
(Theories of Production, 2010). This will prevent the long queues and frustrations
customers have go through to get their orders delivered.

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Accessibility of Free Water from Volta Lake
Sitting on the banks of Volta Lake, the study revealed that the company get free
access of water from the Volta Lake via its high capacity water plant for production. The
Personnel Manager of ATL (personal communication, June 29, 2010) noted that, this
laudable initiative has reduced the company’s expenditure on water immensely. It is a fact
that, production of textiles demands high water consumption. With reference to Wasif and
Chinta (1998), about 50% of the textile mills are using approximately 200-300 litres of
water per a kg of fabric produced while about 20% of the mills are using below 200 litres
of water per kg of cloth depending on the process sequence and water utilization practices
adopted in the mill. This invariably adds extra cost to production if water supply is paid
for. Statistics of ATL whose production is wet processing inclined indicate that, the
company’s average annual water utilization is 1,093,000m3. However, with the
construction of water plant, the company can save the money which would have otherwise
been spent on water for reinvestment to expand and produce at competitive and affordable
prices.

The Merger of ATL and ABC with Installation of Additional Printing Systems
With reference to ABC Wax, His Excellency, the former President John A. Kufour
in December 21, 2005, officially inaugurated ABC's new production facility at Akosombo
Textiles Limited. The goal of this initiative as indicated by the Administrative Manager of
ATL was to move ABC standard wax to Ghana based on the need to respond more quickly
to the changing demands of the local African consumer. He added that, new machines
were therefore installed at the Akosombo site and the workers were highly trained by ABC
technical managers so that ABC's high production standards could be maintained. The
study observed that, this new development has not only expanded the company’s
production capacity, but had also improved quality of products, created product variety,
and efficiency of machinery. ATL can now boast of modern printing machines which are
currently operating concomitantly with the old types under different product specifications
and qualities. The transfer of ABC assets to ATL, to the researcher, therefore provides the
company with the best opportunity to dominate and take significant lead in the West
African market of African prints. Moreover, as the largest producer of ABC prints in West
Africa, ATL can now produce for export to compete keenly with similar products in the
international market to earn substantial foreign exchange for national development.

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Available Technical Expertise
Reporting on the technical expertise of the company, the Personnel Manager of
ATL (personal communication, June 29, 2010) stated that the merger of ATL and ABC
has strengthened the company’s technical expertise with excellent collaboration with high
calibre of technical team working together and sharing experiences under one umbrella.
The foreign technical experts, according to the Personnel Manager, are expatriates from
China, Hong Kong, France, Switzerland, and Manchester who have joined their Ghanaian
counterparts to offer technical advice to the company. This, to the researcher, provides a
good platform for development of new technologies, products improvement, mentorship
and training of staff and new range of products to ensure sustainable development of the
company.

4.2.7Challenges of Texstyles Ghana Limited (TGL)

Once the leading textile company in African print production the study found that
the company is now struggling hard to survive. A number of operational challenges
confront the production and sales of the company of which the major ones discussed here.

Difficulty in Accessing Water for production

As a textile printing firm with lots of wet processes from pre-treatment to finishing,
the study found water as an indispensable resource in the company’s production activities.
It was observed that, the location of the company (Tema Industrial Area) unlike ATL does
not allow it to get free access of water for production; hence, the company relies on GWC
for treated tap water which is purchased on commercial rates as indicated by the
Production Manager of TGL (Personal communication, July 5, 2010). This, according to
the Energy Manager (Personal communication, July 6, 2010) cost the company a lot of
money considering the high water consumption of the company which adds up to cost of
production making the products of the company relatively expensive.
To manage water judiciously as part of sustainable practices of the company,
however, TGL in collaboration with Ghana Energy Foundation and International Institute
of Sustainable Development, Canada, embarked on some measures to reduce waste of
water and energy consumption in a two year period (1999-2000) which resulted in a
reduction of water consumption by 234,000 cubic metres, that is 23% with a cost saving
of 304 million old Ghana cedis(Van Heist, 2000). Although the Production Manager could
157
not provide the current statistics on the company’s water consuption, it could be deduced
from the figures provided by Van Heist that the company was consuming an average of
10,173,913m3 of water in 2000 at a cost of 1,321,734,130 cedis in two years period. This
therfore implies an averange annual water consumption of 5,086,956m3 at a cost of
660,867,065 cedis (that is, 66,086,706 New Ghana cedis) after the implementation of the
water and energy saving practices.Aside the high utility bills incurred on water, a very
disturbing situation that has been a deterring factor to the company’s production activities,
according to the Energy Manager, is the frequent shortage of water supply by GWC which
leads to long down times and prevent the company to meet delivery timelines. In order for
TGL to reduce cost of water on long term basis and prevent the problem of frequent
shortage of water by GWC, the researcher proposes construction of an industrial water
plant facility (Bore-hole system) as an alternative water source to supplement that obtained
from GWC.

High Consumption/Cost of Energy

Observation of the company’s plant indicates that most of the heavy duty industrial
machines are electrically powered with high energy consumption. These machines include
heavy duty boilers, steamers, drying ranges, calenders, stenters, singeing, bleaching,
mercerizing systems, among others. The Energy Manager noted that, the use of electric
energy is inevitable in the factory’s operation and for that matter, the company sources
electric energy exclusively from ECG on commercial rates with no form of subsidy. It is
estimated that the company spent an average of about GH¢ 200,000 monthly on electricity
which as a result increases production cost abysmally (The Health and Safety Manager,
personal communication, July 7, 2010).
The study revealed that the company’s previous energy consumption per month was
higher than the current estimated figure as the sustainable energy and water measures
embarked upon in 1999-2000 show a reduction in electricity consumption by 6.5%, that is
from 294.7kWh to 275.55kWh per 1000 yards of textile produced in 1998 and 1999
respectivly(Van Heist, 2000). These measures includes improvement in boiler efficiency;
continuous monitoring of energy consumption and comparison with production levels;
employee education to switch off lights and equipment when they are not in use;
installation of steam traps and scale prevention devices; and power factor correction.
These nothwithstanding, the researcher still thinks the monthly energy consumption of
GH¢ 200,000 that is GH¢ 2,400,000 annually is high. Sourcing energy directly from VRA
158
at subsidized rates as the case is for ATL; in addition to the good energy practices they are
already practicing will reduce cost of production and save the company lots of money.

Electricity Supply Fluctuations

The Energy Manager of TGL also noted that, besides high cost and consumption of
energy, frequent fluctuation of power supply is a problematic factor to the company’s
operations. He added that, the source of energy supply to TGL unreliably rests in the hands
of ECG. The company’s production is greatly interrupted by frequent unannounced power
cut-offs which, in addition, damages the machines and causes long downtimes leading to
reduction in productivity. The Health and Safety Manager added that about 70% of
machine damages are caused by sudden cut off of power supply and fluctuations.
According to him, to repair a damaged machine depending on the type of fault it has
developed sometimes requires management to fly in expert(s) to fix the problem. The
study observes that, the company owns a power plant which could be used as an
alternative source of energy to power the plant, but the cost of powering the company’s
machinery with the power plant for production, according to the Energy Manager, is
higher than the cost of power supply from ECG. For this reason the power plant is engaged
during light out hours to reduce downtimes and ensure continuous operation of the factory.

Difficulty in Accessing RFO for production

Accessibility and quality of Residual Fuel Oil (RFO) for production, according to
the Production Manager of TSG (Personal communication, July 5, 2010) is one of the
major setbacks hindering the company’s productivity. Statistics on the company’s daily
usage of RFO show an estimated value of GH¢ 24000 within five working days with a
monthly consumption of GH¢ 528,000. The Production Manager noted that, the difficulty
in accessing RFO locally compels the company to source supply from middle men oil
vendors in the neighbouring countries like Benin at high cost. He added that, the cost of
transportation of RFO from outside the country even makes it much more expensive
thereby increasing the cost of production. The researcher observes that the issue of
availability of RFO is one of the major challenges that confront all the local textile
factories in Ghana as the study found a similar situation at VSTL and ATL. The solution to
this problem is for TOR to expand its capacity in order to make RFO readily available
locally at a subsidized cost for the textile industries.

159
Undercapitalization and High Interest Rates
The shareholding structure of Texstyles Ghana Limited (TGL) from the
Presentation made to the Deputy Minister for Trade and Industry (2010) shows that
GAMMA Holding (represented by Vlisco BV) holds 70% shares which has been bought
by Artis, Truebrook (Holland) holds 12.95% shares, and Ghana
government holds 16.07% shares. With the majority shares of over 82% being held
privately, both the Production and Health & Safety Managers of TGL agreed that the
company’s major source of financing for production is through bank loans with
commercial interest rates, adding that the high interest rates on loans ranging from 22% to
38% make it difficult for the company to break even. They however concluded that,
because the company is under capitalization, management has no option than to continue
the practice of soliciting loans with high interest rates from the banks to remain in
production which to the researcher does not help the company to maximize profit.

Low Productivity and Underutilization of Plant Capacity

With the total installed plant capacity of 25 million yards of printed cloth per
annum, the company is able to produce maximum of 17 million yards of printed cloths
annually as shown in Fig 4.22.

Overview production 1994-2008

30 Start of 15M€ 30
investment program
actual production (M yards)

installed capacity (M yards)

25 25

20 17.1 16.8 20
14.8 15.5 15.4 16.1 15.5
15 12.7 13.6 15
9.8 10.3 10.3 10.6
10 7.5 10
5.1
5 5

0 0
94

95

96

97

98

99

00

01

02

03

04

05

06

07

08
19

19

19

19

19

19

20

20

20

20

20

20

20

20

20

year

Production (Million yards) Installed capacity (Million yards)

Fig 4.22: Overview of TGL’s production levels (1994-2008)

Source: Courtesy of TGL (2010)

Figure 4.22 evidently shows inconsistency in the company’s production activities

with the lowest production figure of 5.1 million yards recorded in 1994 which represent
20% of the total installed capacity of the company and the highest production figure
160
recorded in 2000/2001 production season with 17.1 million yards representing 68% of the
installed capacity. This figure declined to 10.3 million yards in 2005/2006 rising up to 16.8
million yards in 2008. As at July 2010, the study revealed a further reduction in the
company’s productivity with an annual production level of 14 million yards of printed
cloth as indicated by the Production Manager. In confirmation of this, statistics given by
the Sales Manager (Personal communication, July 6, 2010) show average sales of 14
million yards of printed fabrics annually with monthly sales of 55,000 yards. He added
that, the fluctuation in productivity is attributed to the quantum of yearly product demands
by client and the fact that the company now produces on orders or request basis.
Observation of the company’s production line shows that TGL still sticks to the use of
obsolete manual technology like hand block printing which slows up productivity and
therefore unable to meet its demands as interview with the Sales Manager unearthed a
number of orders cued up for production and delivery.

Instability in Management Control

Historical evidence with reference to the Presentation made to the Deputy Minister
for Trade and Industry (2010) indicates that the company since its establishment in 1963
had gone through diverse management control from the initial government control under
the management of National Textiles Company to a two joint management control;
Unilever and Anglo Dutch African Textiles Investigation Group (ADATIG) through to
UAC management, workers’ management, government appointee management, and back
to Unilever who gave way to GAMA Holding represented by Vlisco BV who incorporated
Texstyles Ghana Limited in 2004. The current management, according to the Health and
Safety Manager, is the Artis Group of Companies who has bought the 70% shares of
GAMA Holding and is in the process of restructuring the company. He further contended
that, the frequent change of management control had not help the company with regards to
development; thus, implementation and achievement of long term strategic goals for
sustainable development of the company. This he associated it to the fact that new
management always come in with new policies and vision that usually require
restructuring of the entire company to meet their targeted objectives towards achievement
of their vision. Most often than not, the study found that experienced technical experts and
other supportive staff suffer redundancy as a result of change in management control. This
to the researcher does not only affect the company’s production activities but also
increases rate of unemployment in the country.
161
Difficulty in Accessing Raw Materials
The study found that, the major raw material base of the company is grey cloth
which is mainly imported. Eighteen (18) out of twenty (20) respondents representing 90%
indicated that 100% of the company’s raw materials are imported with only two (2) that is
10% asserting that the company’s raw materials are locally obtained (Table 4.11).

Table 4.11: Accessibility of raw materials-TGL

Source of raw material Frequency Percentage Freq.
Exclusively imported 18 90%
Both local and imported 2 10%
Source: Field Survey (2010)

The Production Manager estimated a total consumption of about 22 million yards

of grey cloth annually which are 100% obtained mostly from China, Pakistan, and India.
He added that, the importation of the grey cloth by TGL from abroad has become
necessary due to the fact that the local grey cloth manufacturers are unable to meet the
company’s yearly demands. General observation made by the researcher on the local
textile industry shows that ATL and VSTL are the only existing spinning and weaving
factories in the country. ATL with its vertically integrated production system produces the
grey cloths for internal consumption. VSTL, which was initially established as JTL to
operate horizontally with the former GTP now TGL to supply it with grey cloth now
produces only 7,000 yards of grey cloth per day amounting to a maximum of 1,932,000
yards per annum which is comparatively far below TGL’s 22 million yearly consumption
of grey cloth. This, to the researcher, gives a clear indication that the local grey cloth
manufacturers cannot be reliable if TGL is to remain in fruitful productivity. This
notwithstanding, the Production Manager noted that grey cloth from China in addition to
import duties is cheaper compared to that produced locally by VSTL. Moreover, they
stand equal quality to grey cloth produced locally. Based on these justifications, the
researcher is of opinion that it makes economic sense for the company like TGL, a profit
making entity with majority of its share holdings privately owned to import grey cloth
from Asia to remain in business. It probable that the company will revert to the use of
local grey cloth on condition that their demands would be met coupled with competitive
price advantage.

162
Difficulty in the Acquisition of Machinery and Spare Parts
Like VSTL and ATL, the study observed that the machinery of TGL are all
imported types and for that matter acquisition of spare parts for maintenance and repairs to
ensure maximum efficiency of the machinery is one of the major challenging factor of the
company. The questionnaire responses in Table 4.12 confirms this where all the twenty
(20) technical staff of TGL indicated that the company’s machines are 100% imported.
With respect to acquisition of spare parts, however, fifteen (15) respondents, that is, 75%,
noted that the company acquire spare parts exclusively from abroad whereas five (5)
representing 25% indicated that, spare parts are obtained both locally and abroad. This
therefore suggests that TGL rely mainly on imported machinery and spare parts for
operation.

Table 4.12: Acquisition of machinery and spare parts-TGL

Source of spare parts Frequency Percentage Freq.
Exclusively imported 18 90%
Both local and imported 2 10%
Source: Field Survey (2010)

It was however observed that, the scarcity and high capital intensiveness in
accessing spare parts from abroad has rendered some damaged machines of the company
idle for long time with some completely out of repairs.

Utilization of Obsolete Technology

In the 21st Century of technological advancement in textile manufacturing
processes, the study observed that, TGL still employs old technology and machinery in
some of its production lines. With reference to Wax and Hand-Block printing production
lines, it was observed that Pit Dyeing processes are still in operation. These processes,
from observation, are not only slow but labour intensive and space demanding. The
Production and Health/ Safety Managers argued that the continuity in hand block wax
production is due to the preference of the products to some clients and are usually
produced upon orders or for a niche market. They posit that, plans are far advance to close
down the Pit Dyeing and Hand Block sections of the Wax Printing Department, but this
will not be done abruptly but in gradual manner for the sake of workers currently working

163
in these areas. Considering the low production speed and high utilization of labour for Pit-
Dyeing and Hand Block printing technologies, the researcher projects that, replacing these
old technologies with more advance high speed systems which requires less labour like
RSP and Duplex printing systems will help the company to attain high production index
with wider target market for better returns.

Operating on Horizontally Integrated System of Production

Operating on horizontally integration production system, the study observed that
the company’s production with regards to material flow is not continuous. The Production
Manager (Personal communication, July 5, 2010) pointed out that, the total dependency of
TGL on foreign grey cloth, though cheaper compared to the local type, occasionally makes
the company vulnerable when there is scarcity of grey cloth for production. He added that
this impedes the company’s production operation thereby hindering prompt delivery and
results in long cue of orders. Products range of TGL, from observation, is also limited
compared to that of ATL, due to its horizontally integrated system of production.
Comparative advantage of ATL has an advantage over TGL in that, its vertically
integrated system of production offer the company a continuous and smooth running line
of production within a localized geographical area which provides a better opportunity for
it to produce wide range of products such as yarns, grey cloths, mercerized fabrics, dyed
and printed fabrics of a different variety. This prevents unnecessary time wasting and
reduces transportation cost (Theories of Production, 2010) and therefore recommended to
TGL for consideration.

4.2.8 Prospects of TGL

The study found that TGL was once the leading textile factory producing best quality
African prints for both local and international consumers. The factory, despite its
numerous operational challenges, can boast of some significant prospects which are
discussed in the following sections.

Quality Brand Name in African Prints

The study revealed that, TGL has been accredited as number one brand name in
terms of quality African prints in the sub-region. The company’s product is proven to be
of high quality based on the assessment of Nielsen Brand Equity Global Norms (2010).

164
The Brand Equity Index assesses about 13,239 brands in 73 countries worldwide as shown
in Figure 4.23.

Figure 4.23: Brand Equity Index Norms

Source: Courtesy of TGL (2010)
The BEI assesses products based on the following parameters:
• BEI > 3 = Strong Brands

• BEI <3 >1 = Moderate Brands

• BEI < 1 = Weak Brands

Inferring from the graph in Figure 4.23 it is apparent that majority of the brands
have BEI less than 3 which designates such brands as weak and moderate. The brands that
have BEI above 3 are considered as high quality. 18% of the brands fall within the strong
zone whereas 45% falls within the moderate zone with 37% falling within the weak zone.
The Brand Equity Index of African prints from major textile producing firms/countries
with reference to Nielson Brand Equity index (2010) are however presented in Figure
4.24. It is evident from the graph that TGL products top the group with BEI of 4.92 which
falls within the strong zone and therefore designated as high using the parameters in
Figure 4.23 which assesses products with BEI of 3 and above as high quality as the basis
for this justification. ATL brands come second with BEI of 1.87, and Printex third with
BEI of 1.51. Other notable brands like ‘Hollandais’ is rated 1.34, Woodin 1.03, ABC wax
0.26, High Target 0.18, Da Viva 0.14, and Chinese wax 0.11. This assessment goes to
buttress the point that TGL is the number one brand name in African prints with Chinese
prints being the least among the group with BEI of 0.11 BEI which are rated as weak

165
products. This achievement by TGL gives the company a competitive edge to attract more
consumers to increase demands through public sensitization of it quality products.

6
4.92
5

2 1.87
1.34 1.15 1.03
1
0.26 0.11 0.14 0.18
0
ABC Wax ATL Chinese Da Viva TGL High Hollandais Printex Woodin
Wax Target

Fig. 4.24: Brand Equity Index of African Prints

Source: Nielson Brand Equity Index (Courtesy of TGL, 2010)

Introduction of Machine Wax Printing Technology

The recent development in the company’s wax printing process, from observable
findings, is the introduction of RSP for printing cover designs (fittings). This technology,
compared to hand block wax printing, is faster and less labour intensive, hence the
resultant prints are less expensive. The use of RSP in wax printing also provides wider
range of colour ways with a variety of contemporary designs. This category of wax print is
known as “Nustyle” which according to the Sales Manager (Personal communication, July
6, 2010) is aimed at targeting the youth who do not take delight in the usage of African
prints. The market advantage of the “Nustyle” prints over classical hand block wax prints,
as observed by the researcher, was that it is packaged in six yards (Half piece) and retailed
in any yardage which makes it affordable to wider consumers. It also comes in varied
youthful colours and contemporary designs.

Capacity to Increase Productivity to Maximize Returns

As previously indicated in Fig 4.22 in page 162, the company’s total installed
capacity is 25 million yards of printed cloths per annum. However, the company is able to
produce the best of 17 million yards of printed fabrics annually which implies that over
7million yards worth of printed cloths is lost every year. The company can therefore make

166
a strategic effort to expand its product range in order to fully utilize its installed capacity in
order to make up for the losses.
High Technical Expertise
Although the management control of the company has now been transferred to the
Artis Group of Companies, the study observed that, Vlisco’s experienced technical team is
still in place; hence the expertise of the company is unquestionable. Interview with the
Health and Safety Manager revealed that, with over three decades of partnership with the
company, the Vlisco team had been working harmoniously with the local team with
excellent performance. The researcher therefore opines that, the coexistence among the
two partners provides a good platform for sharing and exchange of knowledge, training of
staff, development of new technology and products brands, among others, for betterment
of the company.

High Product Demands

Estimated figures given by the Sales Manager indicates that, the company makes
monthly sales of 55,000 yards and about 14million yards annually. He in addition
indicated that the company is not able to meet its orders timely and for that matter
production is now mainly focused on orders and exports than producing for the open
market. As at September 2010, the company was in short supply of 2million yards which
indicates that the company’s demand highly exceeds its supply. With such an increasing
demand for TGL products, the company is assured of high patronage and for that matter
can increase its production level for better returns.

Automation and Upgrading of Machinery

Observation of the company’s production lines by the researcher shows significant
innovations in some of its production processes. Notable among them include the
automation of the wax printing system in which all the process parameters are control on a
panel for easy detection of fault and control of the various processes which requires less
labour. It was also observed that, a lesser engraving system has been introduced to replace
the old pantograph system which has speeded up the engraving process. According to the
Production Manager, the lesser engraving system is capable of producing an average of 90
design rollers per week compared to the old engraving technology which was low and time
consuming with maximum of 20 design rollers per week.

167
New Management Control to Recapitalize the Company
Commenting on the current management control of TGL, the Health and Safety
Manager (Personal communication, July 7, 2010) noted that, GAMA Holdings has sold its
70% shares to the Artis group, who has become the new management of TGL effective
from September, 2010. He emphasized that, the management of Artis is currently in the
process of restructuring the company. As already indicated, one of the major challenges of
the company is under capitalization. The researcher is therefore hopeful that, with the new
management in place as a profit making entity, the company will see a recapitalization
process to ensure that it is well resourced for better performance.

Water Recycling Plant for Judicious use of Water

Confronted with frequent water shortages and high consumption of water, the
Health and Safety Manager asserted that, TGL as part of its strategic plans to save water
and also to move into environmental friendly production constructed a Water Recycling
Plant with three huge overhead and underground reservoirs. About 70% of used water,
according to the Production Manager, is recycled for reuse which as a result had reduced
the utility bills significantly and had won the company an award for judiciously use of
water.

Power Plant for Ensuring Continuous Productivity

As already indicated, one of the major challenges of TGL is frequent power
fluctuation. This notwithstanding, the study found that TGL has installed heavy duty
Power Plant which is used to power the plant during light out periods (Energy Manager,
personal communication, July 6, 2010). Though the cost of powering the power plant is
higher compared to that of hydroelectric power obtained from ECG as indicated by the
Energy Manager of TGL, the researcher observed that, the use of power plant by TGL
reduces downtimes to the barest minimum and ensures continuous and smooth production
operation which as a result increases productivity.

The Practice of Environmental Friendly Production

In pursuit to conform to the worldwide advocacy for environmental friendly
production with attempts made by textile manufacturers worldwide to install costly water–
purification equipment to reduce water pollution (Frings, 2001), the Health and Safety
Manger noted that, TGL’s production is now geared towards environmentally friendly
168
production where recycling of water, wax, and other chemicals that are considered as toxic
or harmful carcinogens are carefully collected and disposed-off properly. This move,
according to the Health and Safety Manager of TGL, does not only save the company
money but also reduces the health risks of the staff and people living around the
neighbourhood of the company. The practice of environmentally-friendly production
makes the products of TGL internationally endorsed as harmful free or eco-friendly
products; hence, widening the market prospects of the products.
Deducing from the presentation and discussion of findings so far, it could be
established that, the four selected factories have multiples of diverse and common internal
challenges and prospects. Evidently, the manner in which they operate (mainly on
horizontally integrated production system) makes one factory’s operational challenge or
prospect affect the others. The Cotton Industry, with specific reference to GCCL, with its
distinctive production lines different from that of VSTL, ATL and TGL, have peculiar
problems although some of its problems directly influence the operations of VSTL and
ATL whose production lines involve spinning and for that matter make use of lint cotton; a
finished product from GCCL as their chief raw material for production. The challenges
identified with VSTL as a spinning and weaving firm directly affect ATL and TGL as
these two factories employ grey cloth; a finished product of VSTL as their main raw
material for production. Obviously, the extent of the effect this has on the two companies
varies in that ATL has its own spinning and weaving lines that feed its printing and dyeing
department with grey cloth and is usually not dependent on VSTL for supply of grey cloth.
For TGL, its grey cloth supply solely comes from VSTL and also from offshore companies
since it is basically a printing firm. In view of this, a problem of VSTL indirectly affects
TGL.

4.3 External Challenges of the Ghana Textile Industry

Multiple responses on major external challenges confronting the Ghana textile
industry from one hundred and eight (108) questionnaire respondents made up of technical
staff of the four selected textile factories and selected textile lecturers from KNUST,
UEW, Kumasi and Takoradi Polytechnics show varied opinions as indicated in Table 4.13.

169
Table 4.13: Multiple responses on external challenges facing the Ghana textile in
industry
Challenge Frequency Percentage (%)
Influx of foreign textiles 92 81
High imports vis-a-vis low export of the industry 39 36
Variety of textile products on the local market 22 20
Price competitiveness of foreign prints as against the local prints 45 42
Illicit trade/smuggling of textiles 68 62
Knock-off of local print designs 65 60
Absence of policy document on textile production in Ghana 33 30
Lack of subsidy for the textile industry 57 53
Lack of capital investment in the textile sub-sector 38 35
Lack of research and development in the textile sub-sector 19 18
Recession in world market price of cotton 22 20
Lack of collaboration between the industry and the institutions 55 51
Relevance of courses of the institutions to the industry 16 15
Global concern for eco-friendly production 5 5
Effects of trade linearization 85 79
Effect of AGOA 2 2
Effects of ISI 2 2
Source: Field Survey (2010)

Evidently, the majority of the respondents; ninety two (92) representing 81%
indicated that influx of cheap foreign textiles is the major challenge crippling the Ghana
textile industry with only 2% going in for effects of AGOA and ISI. Eighty five (85)
respondents being 79% indicated the effects of trade liberalization as the major challenge
with 62% and 60% indicating illicit textile trade (smuggling) and knock-off of local print
designs as the major challenge. Inferring from the views of the respondents in Table 5.1, it
can logically be established that as trade liberalization allows in-flow of goods without
quantitative restrictions, its operation will definitely results in the influx of foreign goods.
Concurrently, as importation increases on the ticket of liberal trade with high import
tariffs, importers will strife to find a means of escaping payment of right taxes in order to
make more profit and this eventually wil leads to upsurge in smuggling.

170
4.3.1 Influx of Cheap Foreign Textiles
The Ghana textile industry, according to the Administrative Manager of ATL
(Personal communication, June 14, 2010) is faced with a keen competition of cheap
foreign textiles that are flooded into the Ghanaian market. He added that, those textiles
which come in with a wider variety are mainly imported from Asia and Europe. A survey
of selected Ghanaian open market by the researcher (November, 2010) with specific
reference to the Makola market in Accra and Kumasi Central market reveals huge
quantities of foreign textiles in various degrees of qualities ranging from new brands,
seconds, used or second-hand types in display at almost every textile merchandising outlet.
It was also observed that, a number of textile merchants, mostly from the neighbouring
countries such as Togo, Nigeria, Cote d’Ivoire, Benin and Burkina Faso, engage in streets
and house-to-house sales of foreign textiles of all kinds bringing such products to the door
steps of consumers to the extent of crediting the prints to consumers to be paid by
instalments. The observation revealed that such textiles are very cheap and are ready-made
and used clothing such as shirt, pants and trousers that sell at GH¢1, whereas very good
quality (First selection) is sold at GH¢5. Selected consumers that the researcher interacted
with on the spot buying those textiles established that, they prefer the readymade foreign
clothing due to their quality and affordability as compared to the locally made types. They
emphasized that buying the ready-made foreign clothing saves them from the long
processes involved in, for example, sewing a trouser at a cost not less than GH¢20 or a
Kaba and Slit at GH¢35 with a local print which, in most cases, does not fit properly due
to the ignorance and lack of technical competences of some local tailors and seamstresses.
It is disturbing to note based on the foregoing findings that, the local textile market
has become a dumping ground for cheap ready-made, second-hand and used clothing of
all categories which as a matter of affordability have attracted many consumers and
thereby gradually relegating the locally made prints to the background for selected few
consumers. As indicated in Table 5.1, ninety two (92) out of one hundred and eight (108)
respondents representing 82% attributed the proliferation of cheap foreign textiles on the
Ghanaian market as the major threat to the local textile industry. Taking sides with the MP
for Subin (In the House TV Discussion, December 27, 2010), the researcher contends that
the excessive flood of second-hand foreign textiles in the country is due to the fact that
Ghana has no Anti-dumping law to check the excessive importation of used products
which is gradually turning the country into a mess with its associated health risks and
therefore need immediate attention by policy makers.
171
4.3.2 High Imports vis-a-vis Low Exports
Focus group discussion (July 12, 2010) with five (5) respondents of the Textiles
Unit of MOTI revealed that Ghana imports assorted textile products mainly from China,
India, Netherlands, Pakistan, Hong Kong, Korea, Switzerland, United Arab Emirates,
Thailand, United Kingdom, Germany, and some African countries including Togo,
Burkina-Faso, Senegal, Benin, Mali, South Africa, among others. This is confirmed by
statistics on Textile Trade (MOTI, 2010) from 2005 to 2008 which show a variety of
imported textiles including unbleached plain weave cotton (grey baft), corded cotton,
handkerchiefs, men’s and boys’ singlets, T-shirts (knitted) and trousers, knitted fabrics of
all kinds, sacks and bags, printed bed-linen of cotton, women’s and girls’ dresses, printed
woven fabrics (polyester/cotton blends), dyed plain cotton, lint cotton, etc. This source
also reveals that Ghana’s textiles export mainly comprises printed woven cotton fabrics;
real and imitation wax and fancy prints, lint cotton, cotton linters, grey baft, men’s and
boys’ cotton shirts, and Kente cloths. Table 4.14 presents the statistical figures of the
imports and exports of textiles within a four year period from 2005 to 2008 whereas Figure
4.25 gives a graphical picture of the trend of imports and exports over the same period.

Table 4.14: Ghana’s Imports and Exports of Textiles (2005-2008)

YEAR IMPORTS (GH¢) EXPORTS ( GH¢)

2005 131,078,447.96 6,580,067.40

2006 162,350,407 215,778,163
2007 201,155,605.78 28,723,831.30
2008 247,384,092.81 17,698,259.67
TOTAL 741,968,553.55 268,780,321.37
Source: Textile Trade-MOTI (2010)

172
 800,000,000.00 IMPORTS (GH¢)
700,000,000.00 EXPORTS ( GH¢)
600,000,000.00
500,000,000.00
400,000,000.00
300,000,000.00
200,000,000.00
100,000,000.00
0.00
2005 2006 2007 2008 TOTAL

Fig. 4.25: Ghana’s Imports and Exports levels of Textiles (2005-2008)

Source: Textile Trade-MOTI (2010)

A clear indication from the Fig. 4.25 is that whereas importation of foreign textiles
has increased consistently, exportation of locally made textiles has inversely decreased
over the period. It is evident from Table 4.14 that, Ghana made a total revenue of
GH¢215,778,163 in 2006 from exportation of assorted textile products but this figure
reduced drastically to GH¢17,698,259.67 in 2008. Comparing the total revenue on
exportation of local textiles of GH¢268,780,321.37 to the total value of
GH¢741,968,553.55 spent on importation of textiles, it could be deduced that a difference
of GH¢473,188,232.18 was lost in the country’s textiles export and import activities. With
reference to African prints, the statistics of Ghana Statistical Service (2010) from 2002 to
2008 indicate that importation of wax prints increased drastically between 2005 and 2006
as shown Fig. 4.26 and the trend kept rising till 2008. The rate of increase in the
importation of wax prints was gradual between 2002 and 2005 whereas exportation of
local wax prints increased significantly in 2005 with a sharp decrease from 2006 and
continued to dwindle till 2008 as presented in Figure 4.27.

Fig. 4.26: Importation of African prints (2002-2008)

Source: Ghana Statistical Service (2010)

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 1200000
1000000

Net weight(Kg)
800000
600000 y = -60385x + 1E+08
400000 R² = 0.0681

200000
0
2004 2005 2006 2007 2008
Year

Fig.4.27: Exportation of local prints (2004-2008)

Source: Ghana Statistical Service (2010)

These statistics of Ghana’s imports and exports of textiles clearly show that the
import levels far outweigh that of exports. Whiles importation of foreign textiles keeps on
increasing, exportation of local textiles is decreasing. This suggests that the country’s
production level of textiles is low and consequently does not add much to its GDP in terms
of foreign exchange. A graphical picture of Ghana’s local textile production within a 6-
year period from 2002 to 2008 is shown in Fig. 4.28.

Figure 4.28: Trend in local textile production (2002-2008)

Source: Ghana Statistical Service (2010)

A clear indication from Fig. 4.28 is that production of locally made textiles had
experienced frequent fluctuations with low levels of production figures within the past
years. Local textile manufacturers with specific reference to Administrative and Personnel
Managers of ATL, Technical Director of VSTL and Health and Safety Manager of TGL
interviewed in the study attributed this to the surge in the importation of cheap African
textile prints usually from Asia which has dominated the local textile market with high

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patronage and thereby compelling the few existing domestic textile factories to produce
mainly to meet orders. Such scenario, from the perspective of the researcher, is not a good
implication for the country which is still under developing and need to develop and sustain
its domestic industries.

4.3.3 Competitive Range of Textile Products on the Market

Observation made by the researcher through market survey (November, 2010) on
the range of textile products on the Ghanaian market with specific reference to Makola
market (Accra) and Kumasi Central market revealed lack of product variety of the locally
made textiles which makes the foreign textiles with their wider range of product variety
get a competitive edge over the them in terms of fabric utilization. As indicated by
Spandex (2009), technological advancement in the global textile manufacturing has
brought about development of high performance and technical fabrics to serve the need of
wider consumers. Such textiles with their competitive advantage have brought dynamism
in fabric utilization providing consumers with a wider range of textile items that meet
almost every possible need. Despite the worldwide growing need for wider range of
textiles, the products of the Ghana textile factories reveal limited range of textiles
compared to their foreign counterparts as shown in Tables 4.15 and 4.16.

Table 4.15: Product range of the local textile factories on the Ghanaian market
Yarns Fabric structure Prints Design Application
cotton yarns plain weaves wax, fancy, Symbolic clothing
metallic patterns,
Colourful
Source: Market Survey (2010)

Table 4.16: Range of foreign textiles on the Ghanaian market

Yarns Fabric structure Prints Design Application
cotton, silk plain weave, wax, java, floral, clothing, curtain,
polyester, twill, sateen, fancy, geometric, bedspread, carpeting,
nylon, rayon, satin, pile, lace, metallic, pictorial, upholstery, napkins.
wool, blends. knitted, knotting, discharge, Abstract,
braided, non- transfer. plain, dyed.
wovens .
Source: Market Survey (2010)

Table 4.15 clearly shows that, locally made textiles are only cotton yarns with plain
weave grey, mercerized and printed cotton fabrics. The printed designs are oriented toward

175
African cultural and aesthetic values. The foreign textiles however come with assorted
range of natural and man-made fabrics and blends with varied structural and surface
pattern designs for wider application. This goes to buttress the point made by Frings
(2001) that natural and man-made fibre producers work together to research and develop
fibre blends of which textile engineers find the best properties in combining them in
satisfactory proportions to maximize their best characteristics; hence, broadening the scope
of their utilization. This is evident in the findings made on foreign textiles in Ghanaian
market which, to the researcher, makes the foreign textiles receive higher patronage in the
local market compared to the locally made textiles.

4.3.4 Price Competitiveness of Imported Textiles

The market survey conducted (Makola-Accra and Kumasi Central markets,
November 2010) on price points also revealed significant differences in local and foreign
textiles with the local prints costing about twice higher than the foreign types (Table 4.17).

Table 4.17: Price points of local and foreign African prints (November, 2010)
Company Type of print Price per half piece
TGL (Local) Nustyle GH¢35
Hand Block Wax GH¢42
Vlico Wax (Hollandaise) GH¢116

Woodin (Local) Plain GH¢39

Design GH¢45
Metalic GH¢51
Fancy GH¢22

ATL (Local) Excellence GH¢24

ABC Wax GH¢48
CTD ABC Local GH¢48
VIP Gold GH¢55
Osikani GH¢45

Da Viva (local) Treasurer GH¢46

Ultimate GH¢36
Plain GH¢30
Combination (Alphadi) GH¢44
Fancy GH¢35

Chinese–Hitarget (Foreign) Fancy GH¢12

Wax GH¢24
Source: Market Survey (November, 2010)

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 Evidently, the least price among the local prints is ATL fancy which costs GH¢22
per half a piece. This figure is even twice higher than the Chinese fancy which is sold at
GH¢12 per half a piece. Incidentally, the high price points of TGL, ABC, Woodin, Da
Viva and ATL brands make them reserved for selected few consumers who are enthused
for quality local prints irrespective of their price. The researcher observed that, most of the
prints of ATL, TGL, ABC and Hollandaise are now niche products on Ghanaian market
giving the Chinese and other cheap foreign prints a competitive price advantage over them.
ATL Administrative Manager (Personal communication, June 14, 2010) noted that, the
issue of price competitiveness of the foreign textiles as against locally made types has
generated much public concerns on the future of the local textile industry. He therefore
concluded that, Ghana being a developing country with majority of its citizenry with low
per capital income levels coupled with high rate of unemployment, affordability becomes a
major determining factor for purchasing textile prints. Concurrently, interactions with
randomly selected consumers by the researcher on the spot of buying (November,
2010)from Makola and Kumasi Central markets of Accra and Kumasi respectively
confirm that majority of consumers consider affordability as number one factor in buying
local prints due to their low income levels. It is however logical to conclude that the cheap
Asian prints stand a greater chance of higher patronage than the local prints.

4.3.5 Illicit Textile Trade/Smuggling of Textiles

The study finds that, smuggling of textiles in the country is on the increase. It is
estimated that the State loses about 300bn Ghana cedis annually through textile smuggling
(Chronicles, Friday October 24, 2003). Statistics of CEPS shows that smuggling figures of
African prints keep increasing at Aflao and Ho entry points where smuggled prints are
frequently intercepted. As indicated in Figure 4.29, the rate of textile smuggling increased
unprecedentedly between 2004 and 2006 with a gradual decrease from 2006 to 2007.
However, smuggling of textiles shoots up in 2007.

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 60000

50000 y = 8720.5x - 2E+07

R² = 0.78

Quantities (pieces)
40000

30000

20000

10000

0
2002 2003 2004 2005 2006 2007 2008
Year

Figure 4.29: Smuggling of African prints at Aflao and Ho entry points (2002 -2008)
Source: CEPS (2010)

A focus group discussion (July 13, 2010) with five (5) staff of the Operations
Department of CEPS in charge of examination of goods and assessing the amount of duty
payable revealed that, the sharp increase in smuggling of African prints between 2004 and
2006 especially at Togo-Aflao border was due to the ban of importation of textiles through
no entry point other than Takoradi port with the aim of monitoring the flood of foreign
textiles and minimizing smuggling of textiles into the country. They argued that there were
difficulties in enforcing this directive as most importers due to inconveniences of long
transits and meeting deadlines could not pass their goods through Takoradi port as
directed, and for that matter were compelled to use unapproved roots to get their goods
through without paying the requisite taxes. This, consequently, has had an adverse effect
on government revenue since the ban was enacted.
The directive, according to Asare (2010) was detrimental to small-cross-border
importers who only import a few tens or hundreds of pieces of products and for that matter
it becomes practically impossible for them to procure their ware from across the border
and ship such small quantities to the Port of Takoradi for clearance. Asare therefore
proposes the customs principle of “canalization and concentration” as a means through
which proper monitoring could be done to control smuggling of textiles. This will involve
a selection of stations to be adequately staffed and resourced to carry out whatever controls
a policy directive may seek to enforce at a greater efficiency. Contrary to this, the
Administrative Manager of ATL thinks otherwise with the contention that CEPS officials
are part of the upsurge in smuggling of textiles in the country with the justification that,

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CEPS officials make personal profits through the activities of the small-cross-border
importers by taking bribes from them and allowing them to cross the borders with the
smuggled goods and for that matter are against the ban.

4.3.6 Knock-off of Local Print Designs by Textile Importers and Merchandisers

Copying of locally printed designs has become the habit of most textile importers
and traders. The focus group discussion (July 13, 2010) with five (5) staff of the
Operations Department of CEPS also revealed that the culprits for this illicit textile trade
do not only smuggle their prints through unapproved roots to escape payment of right
tariffs, but also engage in pirating and printing large quantities of local print designs to be
sold in Ghanaian market on the detriment of the original local prints and their
merchandisers. Samples of pirated local prints (Plate 4.6) intercepted at Togo-Aflao border
which the researcher observed at ATL Design Studio, Storage Section in Accra (July 2,
2010) confirms this with evidence of complete knock-off of motifs, textures, and colour to
the extent of, sometimes, copying the labels of the local firm together with the production
codes and serial numbers of the prints.
The Design Manager of ATL (Personal communication, July 2, 2010) attested to
the fact that within a maximum of three months a new local design is printed and introduce
into the market, knock-off of such design is seen on the market. He elaborated that the
local print designs are usually sent to China and other Asian countries by Ghanaian textile
merchandisers to be printed and smuggled into the country to be sold at a very cheap price
to local consumers. This situation is very worrisome and creates unfair competition in the
domestic textile market in the sense that the dealers of the imitation prints sell their
products far below the domestic production cost as they manage to import these prints
without paying the right taxes. This, as a result, leads to high patronage of the imitation
prints due to the ignorance on the part of the local consumers who are unable to
distinguish the original prints from the imitation (Plates 4.6 and 4.7).

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 Plate 4.6: Original wax print (ATL) Plate 4.7: Pirated wax print (Hitarget)
Source: Field Survey, ATL (2010)

Looking at the two prints above, it is obvious that a lay person will find it extremely
difficult to make out the differences in terms of motifs, textures and colour as the design
has been professionally copied without glaring defects. The copied print even exhibits
excellent colour brilliance compared to the original. But technically, the wax effects in
both prints can be distinguished by critical observation to identify the real from the
imitation. Whereas the real wax reveals accidental and random placement of wax bubbles
with blur edges and crackle effects, the imitation exhibits well calculated placement of
wax bubble effects with very fine edges. The reason is that in real wax, the wax effect is
achieved with wax application by duplex technology which creates accidental crackle
effects and makes the resultant print assumes identical images on both sides of the cloth.
But with imitation wax print the wax effect is replicated and consciously printed on only
one side of the cloth with a rotary screen or roller printing machine.
The ATL Administrative Manager (Personal communication, June 14, 2010) argued
that the CEPS officials at the borders have little or no knowledge about the prints and
thereby find it difficult in determining the differences when the prints are intercepted at the
borders due to their close likeness. For this reason, they always have to depend on
representatives of the various local textile factories who have to travel long distance to the
borders to identify the prints. In most cases the factory representative are unable to visit
the borders due to their tight schedules at the factory and smugglers manage to sail
through. This has incidentally increased the rate of smuggled textiles in the country. The
staff of the Operations Department of CEPS engaged in a focus group discussion (July 13,

180
2010) called for training programmes for their staff by the textile factories to enlighten
them on the prints for easy identification in order to help reduce copying and smuggling of
local print designs. However, the Administrative Manager of ATL argued that detecting of
imitation from original prints require technical expertise and professionalism and as such
there is the need for CEPS to work closely with the factory representatives or employ
textile professionals at the borders to do such job. He also established that, right from the
onset when the textile factories wanted to collaborate with CEPS and Ghana Standard
Board to assist check smuggling of textiles, CEPS rejected the idea. The rejection of such
collaboration by CEPS made the factory representatives suspected that CEPS has a
devious agenda in the smuggling of textiles.

4.3.7Absence of a National Policy Document on Textile Production in Ghana

One of the major factors accounting for the inability of the Ghana textile industry to
operate effectively is the absence of a national policy document for the sub-sector. This
stems from the evidence that the textiles and garment sector was given no significant
attention in the 2001 review policy (Ghana Trade Policy Review, 2001). Appallingly,
while most textile producing countries like China, India, Kenya, Nigeria, etc., have
developed and are implementing pragmatic national policy documents for sustainability of
their textile industries (China's Textile Industry, 2009; Omolo, 2006; and Oyejide, 1975),
the Ghana textile industry is operating in a vacuum with no sense of direction and vision.
On the issue of policy document on textiles, the Administrative Manager of ATL
(Personal communication, June 14, 2010) challenged the Ministry of Trade and Industry to
prove if its outfit has a policy document for the textile industry. In respond to this, the five
(5) selected staff of MOTI engaged in a focus group discussion (July 12, 2010) in a
confirmation clarified that, a number of directives and policies have been put in place to
develop and invigorate the textile industry since 1960s, but as to a complete policy
document with regard to production and sales of locally made textiles that has been
developed and implemented or yet to be implemented, there is no such document
available. The researcher noted that, the industry has been dependent mainly on external
policies and Acts to operate. These include; Import Substitution Industrialization policy,
Trade liberalization policy, AGOA, among others, which were adopted generally to help
the growth of the domestic industries (Quartey, 2006). These policies have rather imposed
a number of challenges on the domestic textile factories making it difficult for them to
survive. The obvious reason for this from the researcher’s point of view is that, these
181
policies were formulated based on the philosophies and developmental plans of the home
countries, and therefore adopting them for another country may be a risk adventure.

4.3.8 Lack of Subsidy for the Textile Industry

Amidst globalization with high product price competitiveness, most countries have
devised ways and means to subsidize their domestic industrial production to reduce cost of
production. The study reveals that whiles Ghanaian textile factories do not enjoy any form
of subsidy on production and exportation, their Asian counterparts, with specific reference
to China, get subsidies on production and tax rebates on textile export from the
government (China's Textile Industry, 2009). Former Ghanaian President Kufuor, in his
May Day speech (2005), stated that Ghana cannot subsidize textiles production as done in
Nigeria, because the country does not have the resources to do so.
Commenting on the issue of subsidy on textile production, the Administrative
Manager of ATL noted that, Chinese textile firms power their machinery through steam
energy which is supplied freely by the government indicating that such companies spend
very less on energy. Besides, Chinese textile companies get 13% rebate on exportation of
their products which is aimed at promoting domestic textile companies and encourage
them to engage substantially in textile exportation. This implies that, when a company
exports $100,000 worth of goods to say Ghana, the company is given $13,000 as rebate.
This goes to buttress the point made in China’s Revitalization Plans for the Textile
Industry (2009) that stresses on the move by the China government to give more export tax
rebates to encourage textile enterprises and increase profits of the whole industry. The
unfortunate situation in Ghana is that, despite the fact that the textile factories embark on
exportation of locally made textiles to some ECOWAS countries, no tax rebates or
incentives are given to encourage them increase their export activities. According to the
ATL Administrative Manager, after exporting for one year, what Export Promotion
Council does is to look at the company’s total export value and if it is beyond certain
margin, an award in the form of a plaque or citation is given to honour the company. This
is no incentive and does not encourage domestic industries to grow.
A similar situation exists in the cotton industry where the Administrative Manager
of GCCL (Personal communication, May 25, 2010) asserted that, as a very significant cash
crop serving most of the fabric manufacturing companies worldwide, it is a common
practice to see most governments of cotton production countries subsidizing cotton
production to lessen the burden on both cotton growers and ginnery firms, making specific
182
reference to China, US, India, Pakistan, and in the sub-region Burkina Faso, Benin, Mali,
and Cote d’Ivoire. The situation in Ghana, according to the GCCL Administrative
Manager is different as cotton production is not subsidized in any form by the government.
He however noted that, food crop production in the region is subsidized by the government
to encourage farmers to produce more foodstuffs. Moreover, the General Secretary of
Cotton Farmers Association (Personal communication, May 28, 2010)added that, a
number of NGO’s have gone into sponsorship of food crop production in the region
making it more attractive and for that matter causing most of the cotton farmers to divert
into the production of food crops. This from observation has created a great vacuum in
cotton production industry resulting in reduction in cotton yields.

4.3.9 Lack of Capital Investment in the Textiles Sub-Sector

An apparent observation made by the researcher which was confirmed by the
Acting Technical Director of VSTL and the Administrative Manager of GCCL was lack of
capital investment in the sub-sector by government, financial institutions and stakeholders.
As indicated in the chapter four of this dissertation, textile factories whose management
control is by the government are confronted with serious financial constraints and are
crying for the government to recapitalize the factories. Those with the private management
control are calling for financial institutions and other stakeholders to invest or assist them
to recapitalize their factories. In support of the assertion made by MOTI (1973), the Acting
Technical Director of VSTL confirmed that running a textile factory is capital intensive
and therefore requires the state or foreign investors to come in to ensure efficiency and
sustainability. Taking sides with each other, both the Acting Technical Director of VSTL
and the Administrative Manager of ATL contended that, successive governments have not
been supportive due to high financial demand and lack of interest in the textile sub-sector.
Political aspirants, according to them, make flimsy promises during their political
campaigns and fail to deliver their promises after they have come to power. Very
disturbing issue that the researcher noticed is the discontinuity of past governments’
policies or agenda which continues to cripple the industry as new governments always
want to pursue their own manifesto agenda leaving the unfinished projects of previous
government to die out. This trend affects the state owned companies the most as they
usually rely on the government for recapitalization. The private owned companies on the
other hand have no option than to depend on loans from some financial institutions with

183
high commercial interest rate to remain in business. The result of this is high indebtedness
of most textile manufacturing companies.

4.3.10 Lack of Research and Development in the Textile Sub-Sector

A survey of the various plants of the four selected textile factories; GCCL, VSTL,
ATL and TGL indicate that the industry still sticks to the production of plain weave
cotton fabrics with high dependency on obsolete machinery and technology for
production. It was observed that the local textile industry employs only tappet looms
which have limited design possibilities with limited application. A factory like TGL still
utilizes cumbersome dyeing and printing technology such as pit dyeing and hand block
printing. An obvious revelation from the survey is that, since the inception of the textile
industry in the 1960s, not much significant research and development have been made in
the sub-sector to position the industry at a competitive level so as to rub shoulders with its
offshore counterparts who have advanced into research and development of fibre/fabric
variance and functionality with much emphasis on production of fabrics for technical,
industrial and high fashionable applications. This is affirmed by the observation made by
Majory (1986) that, since 1960s, major changes in the production and manufacture of
fibres, yarns, and fabrics have occurred where the development of fibre variance and
modifications, and new methods for processing fibres into ultimate end-use products have
affected finishing and colouring fabrics at the manufacturing level and behaviour in use
and care at the consumer level.
Contrary to this phenomenon that has become a trend in worldwide production of
textiles, questionnaire responses of textile lecturers from the country’s high academic
institutions with specific reference to KNUST, UEW, Kumasi and Takoradi
polytechnics(Figure 4.30) revealed little research and development in the textiles sub-
sector. Evidently, twelve (12) out of eighteen (18) respondents representing 66.6%
indicated that there has been little research and development in the textiles subsector, with
three (3) that is 16.6% going in for no research and development in the subsector, whereas
two (2) representing 11.1% hold the view that there has been significant research and
development in the subsector.

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 11.1% Little research and
16.6% develoment
66.6% No research and
development
Signficant research
and development

Fig. 4.30: Research and development in the textiles subsector

Source: Field research (2010)

Very unfortunate observation made by the researcher at the country’s high academic
institutions offering textiles is that research findings in the form of theses and dissertations
by both lecturers and students usually end up in the shelves without any impetus for
implementation of such findings in the industry as there is no form of action plan or
programme that allows for such development to take place.
It was also observed that the local cotton industry is faced with frequent shortage and
poor quality of cotton seeds due to lack of research in cotton production by the research
institutes in the country. According to the Administrative Manager of GCCL (Personal
communication, May 25, 2010), Savannah Agriculture Research Institute (SARI)
established with one of its core objectives to research into cotton for the sustainability of
the cotton industry has directed its focus into other agricultural produce other than cotton,
given cotton growers and ginneries no option than to import cotton seeds from the
neighbouring cotton producing countries like Mali, Cote d’Ivoire, and Burkina Faso who,
according to the General Secretary of the Cotton Farmers Association supply farmers with
poor quality seeds leading to low yield each season.
The Administrative Manager of GCCL further stated that, some attempts were
made by Ministry of Trade and Industry in 2006 to support SARI in the development of an
improved seeds for use by cotton farmers and as a result, SARI came out with three seed
varieties of which the National Varietals Release Committee (NVRC) released two for
cultivation. A lot more, to the researcher, is required in this direction as much more
improved cotton varieties with less inputs requirement and high yield are increasingly
being developed by cotton producing countries worldwide for economic reasons. For
instance, with the introduction of Genetically Modified Policy (GM) in cotton production

185
which is aimed at reducing heavy reliance of pesticides, most cotton producing countries
in both the developed and developing worlds such as US, India, and China have shifted to
GM cotton production to reduce cost of inputs and for that matter production cost, and also
to boost their output performance (Genetically Modified Cotton, 2010). The
Administrative Manager of GCCL added that cotton producing countries in Africa like
Cote d’Ivoire, Mali, Burkina Faso, among others have as well moved in this direction to
produce significant quantities of cotton for local consumption and for export. But due to
the Ghana government’s unpreparedness to implement the Genetically Modified Policy
(GM), the researcher finds that not much has been done in this area and the cotton industry
suffers the most with a very blur future.

4.3.11 Recession in World Market Price of Cotton

The former MD of GCCL (Personal communication, May 24, 2010) established that,
the sustainability and growth of the cotton industry has been determined by the world
market price; however, as the world markets price of cotton continues to experience acute
recession, the local cotton industry struggles to survive the crisis. Overview of the world
market price of cotton from 1994 to 2001 indicates a considerable decrease in price of
cotton with an average price of lint cotton falling from 120 US Cents/lb to 40 Cents/lb
representing about 200% decrease over a seven year period (Asante and Associates, 2010).
The 2004 season recession in world market price of cotton, according to Administrative
Manager of GCCL, devastated the local cotton industry to the extent that the industry has
not been able to revitalize its production activities. He continued that GCCL was the most
affected in that the company at this same period recapitalized its infrastructure with the
aim of maximizing productivity. However, the depreciation in world market price caused
many farmers to leave the cotton scene which created a great vacuum in cotton production
leading to insufficient supply of seed cotton to meet the capacities of both the upgraded
and newly installed ginneries. A graph of the trend in world market prices of cotton over a
7-year period is shown in Figure 4.31.

186
 140
120
100

US Cent/lb
80
60
40 Price (US$
20 Cents/lb.)
0

Year

Fig. 4.31: World market price of cotton-1994-2001

Source: Asante and Associates (2010)

Responding to questions on price depreciation in world market price of cotton, both

the Administrative Manager and the former MD of GCCL noted that, the producer price of
seed cotton paid to the out-growers does not follow the trend in the world market price.
The few out-growers who are still in the cotton business enjoy relatively higher prices
since the cotton companies are not able to pass the exact world market price to the out-
grower at the negotiation table for the fear of farmers’ agitation, or completely losing
them.
It could be deduced from the discussion that Ghana, a member of WTO (Ghana
Trade Policy Review, 2001), is obliged to trade its cotton in accordance with the world
market price set at the onset of every cotton season. Although the researcher observed that
there is considerably high demand for lint cotton, the problem of price instability and acute
recession in the world market price of cotton within the last decade has caused the local
cotton industry to decline tremendously to the extent that most of ginneries have folded up
leaving many cotton farmers jobless in the region; a scenario that poses a serious threat to
the local fabric manufacturing industries.

4.3.12 Global concern for Eco-friendly Production Practices

The Health and Safety Manager of TGL (Personal communication, July 7, 2010)
responding to questions on environmental friendly production asserted that, the global
concerns for environmental protection, health, and safety issues have compelled most
industries including domestic textiles manufacturers to engage in environmentally friendly
production. He further noted that TGL has even won an award for judiciously use and
recycling of water aimed at saving the environment from toxic chemicals. This buttresses
187
the point made by Frings (2001) that the American and European textile companies have
made a move to maintain health, safety and clean air and water leading to the introduction
of E3 (Encouraging Environmental Excellence) programme which urges producers to
protect the environment.
In order to break-even and have a fair share of patronage in the international
markets, however, the researcher observed that some domestic textile companies like
VSTL, ATL and TGL have made some attempts into environmental friendly production to
make their products acceptable in the international markets. These include installation of
water, wax, and other chemicals recycling systems, which ensure safe disposal of toxic
production substances thereby reducing the risk of pollution these pose on the water
bodies, air and the environment as a whole. Provision of nose and ear protective devices to
employees for their safety with enforcement of safety precaution norms was apparent in
the factories. This is in line with the assertion made by Majory (1978) that, employees are
now provided with nose and ear protective devices to protect them from inhalation of
fumes from boilers that in the past has been responsible for a variety of illness among
employees, and high sound vibration that has an adverse effect on the hearing of workers.
However, the researcher observed that, local textile factories have not been able to engage
fully in E3 programme due to the high capital cost involved in eco-friendly textile
production which according to Frings (2001) makes some textile producers, especially
those from the less developed countries, kick against environmental friendly production.
For the domestic textile industry to get fully into eco-friendly production in order to cope
with global trends, a lot more has to be done in terms of capital and machinery
infrastructure, production processes and material utilization, as well as enforcement of
safety policies for personnel, among others. The following alternatives as suggested by
Frings could be considered by the domestic textile manufacturers:
a) The use of alternative methods of picking systems requiring water or air on
modern looms to bring to the barest minimum the high sound vibration that
characterized shuttle looms which has an adverse effect on the hearing of
workers.
b) Installation of water–purification equipment to reduce water and air pollution.
That is alternative use of solvents and foam technology for the reduction of water
pollution which requires less energy consumption for effective textile production.
c) Cleaning and filtering air to reduce or eliminate interior pollution.

188
 Although the installation of various controls required in the reduction of noise,
water and air pollution add to the cost of production and consequently affects the price of
the finished textile products, manufacturers have no option as environmental friendly
production has become mandatory in some developed worlds. This poses an unforeseen
threat to the future of the local textile industry as environmental friendly production is
increasingly becoming a global phenomenon in industrial processes.

4.3.13 Effects of Trade Liberalization

The Administrative Manager of ATL (Personal communication, June 14, 2010) was
emphatic that, trade liberalization is not a bad phenomenon in that it brings about
competition and encourages improvement of quality of domestic products and consumer
benefits. He however was in contention that, the untimely enforcement of liberal trade
policy in Ghana in the 1980’s as part of the conditionality of World Bank and IMF for the
country to access funds from them was a major cause for the near collapse of the textile
industry. This confirms the argument by Egu (2009) that the collapsing of the textile
industry in Ghana is attributed to the trade liberalization policy emphasizing that the
liberalization in trade in Ghana led to the flood of textile products from China and other
countries which due to their relatively cheaper prices compared to those produced in
Ghana made it difficult for the local producers to cope with the competition. Stakeholders
have proposed that, it is good to protect the textile industry from external factors since it
forms part of the production sector of the economy. However, whiles the industrialists
oppose the trade liberalization policy, economists have argued that trade protectionism
flies against the theory of comparative advantage, which suggests that opening up world
markets, and reducing trade barriers (Trade liberalization) would lead to gains from trade
for all concerned (Globalization & Gender Brief Series, 2009).
The ATL Administrative Manager was of the view that, government should have
devised expedient measures to elevate the standards of those domestic factories which
were sub-standard and vulnerable in terms of capital and physical infrastructure to an
appreciable level, strong enough to produce quality products at reasonable affordable price
which could compete keenly with products from the foreign countries before going ahead
to implement the trade liberalization policy. This, according to him, was not done before
the policy was introduced and within three years of its implementation, the textile
factories, which were in the excess of about 300 comprising large and medium scale
industries, reduced drastically to nine (9). This was because the products of those domestic
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firms could not compete with the imported types in terms of quality and price. The
unfortunate issue is that, some of the imported textiles come in not necessarily under the
same competition as some foreign textile producers get subsidies from their government to
cut down production cost which is not the case in Ghana; hence accounting for the
collapse of many local textile factories with the existing ones struggling hard to survive.
These opinions by the ATL Administrative Manager are proven by MOTI’s report
(2004) which affirms that, most industries went out of business and the situation
deteriorated under trade liberalization, which formed part of the Structural Adjustment
Programmes (SAP) pursued in the 1980s and 1990s by the government. Hence,
employment in textiles sub-sector declined from 7,000 in 1995 to 5,000 in 2000. The
reforms led to increased importation of textiles and other used apparel, which facilitated
the closure of many textile industries in Ghana. This, to the researcher, is a clear indication
that the woes of the country’s textile industry is primarily as the result of the introduction
of trade liberalization policy.
It is therefore economically important for the government to put in place stringent
measures that will serve as safeguards to the textile industry as other developing countries
in the sub-region like Kenya and Nigeria have done to protect their domestic textile
factories from collapsing. As indicated by Omolo (2006), between the time of Kenya’s
independence and the end of 1990, the government systematically introduced controls in
the sector to protect the local industry by imposing 100 percent duty on imported textiles.
This ensured rapid growth of the local textile industry hitting an average production
capacity of over 70 percent. However, by the mid-1980s, the textile and garment industry
started to decline as a result of the implementation of trade liberalization which affected
Kenya’s economy. As one of the key sectors targeted for employment creation and poverty
reduction in the country, the Kenya government, according to Omolo, determined to revive
the dwindling fortunes of the industry by outlining a number of policies to promote the
growth and development of the textile sector. To increase trade and investment within the
sector, the government made proposals to review trade licensing agreements to provide
market information to Kenya textile manufacturers, support the private sector in
identifying new markets, improve the quality of Kenyan goods and to reduce non-
commercial risks. The government also pledged to improve the business climate by
developing a new regulatory framework for financing and infrastructure, strengthening the
rule of law, improving security and reducing the number of regulations and steps required
for investing in the country.
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 Faced with fierce competition from outside, the Federal Republic of Nigeria,
according to Oyejide (1975), introduced a number of restrictions on imports between 2001
and 2004 to encourage local production and consumption. For instance, the number of
broad product groups under import ban rose from 27 in February 2003 to 35 in January
2004. In 1989, for example, close to 96% of the tariff lines for textiles and clothing were
subjected to an import prohibition regime (GATT, 1991). This was done to ensure that
domestic textile factories in Nigeria are protected by restricting products that are judged to
be ‘not essential’ or compete with domestically produced goods that are available in
adequate quantities. Ghana can learn from these experiences to protect and sustain its
textile industry.

4.3.14 Effects of African Growth and Opportunity Act (AGOA)

The African Growth and Opportunity Act (AGOA) enacted into law in 2000 aimed
at offering tangible incentives for African countries to continue their efforts to open their
economies and build free markets. It provides opportunities to eligible African countries to
export about 64,000 products to United States without tariffs or quotas (Appiah, 2002).
However, when asked about the benefits that local textile factories have derived from
AGOA since its inception in 2000, the Personnel Manager of ATL (Personal
communication, June 29, 2010) asserted that they have not been benefitting from AGOA
in the sense that the Act does not make any provision for them since their products do not
fall within the categories of AGOA products. He maintained that, AGOA mainly favours
the small and medium scale enterprises whose cheap labour is being exploited to the
benefit of US in the sense that AGOA imposes stringent rules and restrictions that make it
difficult for most domestic industries to take advantage which has resulted in the decline
of Ghana’s textile exports to US market on the ticket of AGOA in the recent times.
Statistics show that, Ghana’s export of textiles and apparel to US reached $9.507 in 2006
but decreased drastically to $0.718 as at January, 2009 (AGOA Implementation Guide,
2000).
The decrease in exportation of textiles to the US, from the researcher’s point of view,
is due to the strict rules governing the Act. This is buttressed by Appiah (2002) who
emphasizes that AGOA insists on specific categories of textiles and apparel products that
are permissible to enter US on duty free and quota free treatments. The various categories
are; apparel assembled in Sub-Saharan Africa from fabrics wholly formed and cut in the
United States, from yarns wholly formed in the United States; apparel cut and assembled
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in United States or Sub-Saharan Africa, using thread or fabrics wholly formed in the
United States; sweaters knit to shape from cashmere or certain wool. The sweater must be
in chief weight of cashmere, or 50% or more by weight of Merino wool measuring 18.5
microns in diameter; apparel cut or knit to shape and assembled in Sub-Saharan from
third-country yarn or fabric in short supply. Yarns and fabrics currently deemed to be in
short supply include; silk, linen, fire count cotton circular knit fabric for certain apparel,
cotton vehement, fine count cotton corduroy, Harris tweed, batiste fabrics, and high thread
count broadloom fabrics for men’s and boy’s shirts; and handloom, handmade and folklore
articles.
A clear indication from these categories of textiles which are acceptable to the US
market through AGOA is that, apart from the handloom, handmade and folklore articles
that the traditional kente industry can take advantage of, the rest give preference to US
fibres, yarns and fabrics wholly assembled or otherwise cut in US which comprises silk,
linen, merino wool, cashmere, cotton with specific reference to circular knit fabric,
vehement, corduroy, etc. which are not in favour of the local textile factories whose
production is confined to plain woven and printed cotton fabrics. The local textile
factories could have taken advantage of the De Minimize Rule which makes room for
apparel products assembled in Sub-Saharan Africa with some fibres or yarns not wholly
formed in the United States or the beneficiary of Sub-Saharan African Country. The
problem with the De Minimized Rule, however, is that the product will only be eligible as
long as the total weight of all such fibres and yarns is not more than 7% of the total weight
of the article (Appiah, 2002). This requires fibre/ yarn blend, a technology which is not
practiced in Ghana.
From the above discussion, it is evident that the offer of duty-free and quota-free
access to the US does not apply to all African textiles and clothing exports. It does not
apply to exports of African prints produced with locally processed fibres and yarns which
indicate that AGOA does not support development of local resources. However, the
restrictions in terms of product specifications and standards have made vulnerable African
countries like Ghana not benefiting fully from AGOA as projected by Salinger (2001) that,
the extent of benefits that African countries can tap from AGOA depends on how Africa's
industries are learning to compete internationally. Salinger was of the view that AGOA
may offer duty and quota advantages to African exporters, but potential suppliers will have
to be commercially competitive if they are to realize any tangible gains for their industries
and for their people from the bill. But the unfortunate scenario is that most of the African
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countries are not able to compete with the international market, hence, unable to tap the
benefits of AGOA. AGOA also requires that African countries eliminate barriers to US
trade and investment which open doors to the US to export quantum of quality textiles and
clothing into the member country to compete with the domestic types and as a result kill
the market for the locally made textiles.

4.3.15 Effects of Import Substitution Industrialization (ISI)

Making reference to Ghana’s past industrial policies, both the Technical Director of
VSTL (Personal communication, June 7, 2010) and the Administrative Manager of ATL
(Personal communication, June 14, 2010) admitted that Ghana initially engaged in Import
Substitution Industrialization which made significant impact on the activities of the textile
factories. The two managers established that, the ISI made the textile sub-sector to
dominate the manufacturing sector and contributed significantly to livelihood. This goes to
affirm the assertion made by Quartey (2006) that Ghana textile industry employed about
25,000 of the labour force which accounted for 27% of the total manufacturing
employment and operated at about 60% of plant capacity and that the textile sub-sector
was an important source of foreign exchange in Ghana in the 1960s and 1970s. Like many
African countries, Quartey posits that Ghana’s industrial strategy was meant to provide
economic dependence; hence, manufacturing industries were established to produce items
that were previously imported.
Despite the benefits that the country derived by the implementation of ISI, the
Administrative of ATL noted that the textile industry suffered a setback in the 1980s due
to shortage of foreign exchange for importation of raw materials which resulted in the sub-
sector operating at extremely low capacity. Most industries, according to Quartey, went
out of business and the situation deteriorated under implementation of trade liberalization
policy. Ghana textile industry which was operating comfortably under the ISI encountered
a strong competition from foreign textiles imported into the country during the SAP period
on the ticket of trade liberalization. This was due to the fact that Ghana’s Import
Substitution Industrialization was inward-looking in that it focused on production for
domestic consumption and for that matter did not attach much priority to outward-looking
principle which, according to Blouet and Blouet (2002), promotes exports and therefore
aims at strengthening domestic industries to work efficiently to produce quality products
to meet international standards to enable them compete fairly with their offshore
counterparts.
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 Based on the views expressed by the ATL Administrative Manager in support of
the assertions made by Quartey and Blouet and Blouet on ISI, it is palpable that the
shortage of foreign exchange in the 1980s on importation of raw materials that crippled the
textile industry was due to the fact that the industry did not attach much precedence to
exportation of its products as it primarily targeted the domestic market during the era of
ISI which resulted in lack of foreign exchange to import raw materials and other
production essentials to sustain the industry. Moreover, because production was oriented
towards local consumption, the probability of attaining economy of scale or efficient
production by the local textile industry was less feasible considering the relatively small
local market size as well as the low purchasing power of local textile consumers. This is
exemplified by Blouet and Blouet that, the more units of anything manufactured a factory
can sell, the better the chances of that factory to achieve economy of scale that is efficient
production. Hence, larger and richer economies with high per capital incomes were more
likely to make ISI succeed efficiently than smaller countries with low per capital incomes.
This, from the researcher’s point of view, proves why Ghana has failed to succeed with ISI
in a free market global economy which frowns on quantitative restrictions and allows the
influx of varieties and quantities of products into member countries and therefore
competition becomes a vital key to success. Taking sides with the Administrative Manager
of ATL, the researcher opines that what Ghana should have done was to strengthen its
domestic industries during the era of ISI to make them very efficient to produce to meet
international standards, and also maximize their productivity for exports to obtain
economy of scale which would have earn the country significant foreign exchange for
sustainable development of the textile sub-sector.

4.4 Measures Implemented to Salvage the Textile Industry

Ghana had been experiencing a virtually collapsing textile sub-sector; a decline in the
manufacturing industry due to strikes that has led to limited access to credit, high interest
rates, high cost of production, dumping and smuggling activities of foreign exporters.
Local textile manufacturers unrelentingly complain about the influx of cheaper textiles
made in China and huge stocks of used garments from the United States of America and
Europe. As a means to mitigate or bring the rising challenges of the textile industry to the
barest minimum, the study finds that a number of stringent measures have been put in
place by the government since 2000 to sustain and develop the industry. According to the
findings of the study the measures have, however, not yielded the expected results due to
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the challenges that are associated with their implementation as discussed in the following
sections.

4.4.1 Implementation of National Friday Wear Policy

In June, 2006 a National Friday Wear initiative was launched by the to promote
patronage of locally made textiles. This initiative was to transform Ghana’s economy by
promoting the textiles and garments sector to create employment, generate income, to
create a national identity and also to alleviate poverty (Asaam, 2010). In line with this
directive, the study observed that many private and government institutions have made the
attempt to adopt suitable textile prints for Friday wear which has boosted the patronage of
locally manufactured textiles.
The Design Manager of ATL (Personal communication, July 2, 2010) attested to this
by saying that his team now works on institutional prints more than any other prints due to
the National Friday Wear directive and was very optimistic that if Ghanaians are
encouraged to wear local printed fabrics, the textile industry will be revived. He
elaborated that, with the introduction of the National Friday Wear Policy, the banks and
other financial institutions which are noted for the compulsory use of the suits and necktie
as official dressing code in discharging their duties and were initially not ready to
compromise its use for any alternatives as this fetches them some form of allowances now
make use of local prints for Friday wear. From observation, a number of academic
institutions have also taken to the use of local prints for outing dresses and even school
uniforms. The general Ghanaian populace is not left out; they have been exhibiting in style
every Friday the wearing of a variety of locally printed textiles all towards the agendum of
promoting ‘made- in- Ghana’ textiles.
Despite the positive impact that the Friday wear initiative is having on the locally
printed textiles, the study observed that the imported textiles are competing keenly with
the local textiles with regard to their use for Friday wear, although the Ghanaian
government’s vision for the initiative was to promote only locally made textiles. Some
consumers make use of imported fabrics for Friday wear on the bases of affordability
thereby depriving the locally made textiles from benefiting fully from the initiative. This
buttresses the assumption made by De Voest and Holtzman (2006) that, the campaign to
wear locally made clothes on Fridays has had little impact on the patronage of locally
made printed textiles as it possibly accounts for less than 5% of the locally produced
African prints. From all indications, it can be foreseen that if nothing is done to check the
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usage of imported textiles for Friday wear in Ghana, foreign textiles will eventually
takeover locally made textiles to kill the vision of the initiative.

4.4.2 Restriction to allow textiles imports to pass through only Takoradi Port
In July 2005, the Ministry of Trade and Industry and the President’s Special
Initiative, through the Customs Excise and Preventive Service (CEPS), the implementing
agency, issued a directive to prohibit importation of African Prints to Ghana through any
Entry Point other than the Port of Takoradi (Asare, 2010). This, though not a complete
ban, was to limit the unbridled importation of cheaper African textile prints. This was very
crucial as it was necessary for the government of Ghana to protect the local textile industry
from collapsing as a result of stiff and unfair competition of cheaper textiles from abroad
and also, to make importers pay the right tariffs on their goods and also check the
smuggling of textiles.
A focus group discussion with five (5) staff of the Operations Department of
CEPS, (July 13, 2010) revealed that, the directive remained in force until December 17,
2008 which according to them had negative impact on the businesses of small cross-border
traders who dealt in the importation of African prints. Asare opines that there were
difficulties in enforcing the directive and several allegations were made with the reason
that the implementation of the directive was the cause of the increase in smuggling of
African prints between 2005 and 2008 as previously indicated in the graph in Figure 4.29
(p 178).

4.4.3 Implementation of President’s Special Initiative (PSI) on Textiles and Garment

As a catalyst to support the private sector investment in garment and textiles
industry in Ghana, the Ex-President of Ghana, His Excellency John Agyekum Kufuor, in
September 2002 lunched PSI (President’s Special Initiative) to develop new pillars for
economic growth and lift the country up to a top agro-industrial nation (Asaam, 2010).
Asaam adds that the initiative was also meant to promote healthy co-operation between
public and private sectors, wherein Government helps the private sector to source
resources. Government’s main vision for the initiative was to facilitate the realization of
the president’s vision to create “Golden age of business”, and to show Ghana’s response to
AGOA in order to take full advantage of it. Among the expectations of the initiative were;
the creation of 70,000 jobs with targeted revenue of $3.4 million in four years, and to build
a capacity of 100 enterprises to operate as SMEs (MOTI, 2002). But the PSI faced serious
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obstacles, in spite of genuine interest shown by the Government for its implementation
(Asaam, 2010).
Findings from a survey of selected factories operating under PSI (November, 2010)
show that, the operations of the PSI primarily focused on production of garments for
exports through AGOA and therefore did not encourage the operations of large-scale
textile factories as their products did not meet AGOA conditionalities. This confirms the
earlier assertion made by the Personnel Manager of ATL (Personal communication, June
29, 2010) that, the textile factories have not been benefitting from AGOA in that the Act
does not make any provision for them since their products do not fall within the standards
set by AGOA. Evidence from the survey of the six (6) factories operating under PSI
within Accra and Tema metropolis indicated that, the production of garments is their
major concern though the PSI is supposed to capture garment and textiles. The factories;
Dignity Industry-Accra, Oakbrook Limited-Tema, Manise Designs-Tema, Sleek
Garments-Accra, Premier Quality Limited-Tema, and Decent Touch Clothing-Accra, are
all garment SMEs. A focus group interviews with a section of MOTI staff in the Textiles
Department (July 12, 2010) revealed that the operation of PSI has been dwindled in terms
of the number of industries, personnel, and output capacity. This is in confirmation of the
survey findings made by Quartey (2006) on 40 textiles and garments industries in 2005
within Accra and Tema industrial areas which projected that about 44 percent of industries
have cut down on employment, adding that from the total number of firms that had shed
staff, 59 percent have laid off up to 5 percent of their workforce, 24 percent have laid off
up to 6-10 percent and 11 percent have cut down employment by over 70 percent between
2000 and 2005.
Again, the study found lack of working capital as one of the major setback of the
PSI. According to Asaam (2010), funds provided by the government to the PSI firms were
only enough to acquire the needed machinery to commence production and therefore the
firms rely exclusively on bank loans with high commercial interest for production. Asaam
also notes that, hired garment construction experts mostly from Sri Lanka and India are
paid from this same money which costs the companies a lot resulting in temporary closure
of some of the factories. Assessing the achievement of the PSI, Assam indicates that the
initiative has been quite a failure in the sense that after 8 years of its take off, the garment
and textile industry under the PSI employs less than 10,000 workers which is apparently
far less than the initial projection of 70,000 employments that the initiative was expected
to provide. The researcher however opines that, considering the potentials of the PSI, its
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capability of bringing in foreign exchange and creation of more jobs, it is prudent for the
Government restructure, strengthen and expand the PSI factories to increase their
competitiveness and functional efficiency in order to fully tap the benefits governing the
initiative for economic development.

4.4.4 Reduction of Import Duties on Textile Essentials

The Ghana textile industry, as previously indicated by the managers of ATL, TGL
and VSTL, imports most of its production essentials including grey cloth, mercerized
cotton, dyestuff, printing ink, wax, spare parts and other chemicals from abroad which
takes the bulk of its working capital due to high tariffs it pays on the importation of those
essentials. A focus group discussion with five (5) staff of the Operations Department of
CEPS, (July 13, 2010) revealed that, in 2004 the Government of Ghana removed import
duty of 5% on essential textile inputs in an attempt to develop the domestic industry as a
form of relief to ease the burden in order to encourage the local textile industries to remain
in operation,. The staff noted further that, plans are far advanced to remove import tariffs
on textile essential inputs which form part of several tax rebates by CEPS to help local
manufacturers reduce their cost of production. This affirms Quartey’s assertion that, tariffs
on all imported textiles manufacturing raw materials are to attract zero percent (0%) tariffs
in order to reduce cost of production for locally manufactured textiles. This initiative,
according to the former Deputy Minister of Ministry of Trade and Industry, Mr Kofi Osei-
Ameyaw (Myjoyonline-Business News, 2006), is among the strategic plans of the
government to save the domestic textile industry from sinking into the doldrums. He noted
further that tariffs on textile imports such as dyestuffs and colours have dropped down
from 10% to 5% in 2004. The step was taken to reduce the cost of manufacturing of
textiles as the Ministry has been in talks with the domestic textile producers possibly of
helping them to re-organize their plants to enable them hike their production capacities.
Moreover, the local cotton industry is being re-organized to take initiative in support of the
textile industry, which would make the sector more competitive in the global cotton
market.
Contrary to these assertions, the Administrative Manager of ATL (Personal
communication, June 14, 2010) argued that, the move by the government and the
institutions concerned to make imports of textile production essentials such as raw
materials and spare parts duty free is only a hoax as they still go through long procedures
to pay high tariffs on their imported goods. He established that, imported textile raw
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materials attract 41% of the total value but spare parts and machinery attract no tariffs.
This increases production cost of locally made textiles considerably making it difficult for
the factories concerned to break even which incidentally affects the price and patronage.

4.4.5 Increase in Import Duties and Taxes on Wax Prints

One of the mitigation measures that the government has put in place to check high
imports of foreign textiles into the country is the increase in tariffs and others taxes which
forms part of the steps to save the domestic textile industry from total collapse (Personnel
of Operations Department of CEPS, focus group discussion, July 13, 2010). Responding to
the question regarding increase in import duties on wax prints, all the 20 importers of
Chinese wax prints randomly selected and interviewed from Makola and Kumasi central
markets (14 and 16 July, 2010) respectively, were strongly against the government for the
sky-high rise in import duties and other taxes on importation of textiles, arguing that it has
really affected their business. They blame the domestic textile factories for causing the
government to take the decision of increasing import taxes as their products are threatened
by the strong competition posed by the foreign textiles. The importers contended that if the
local prints are affordable for ordinary Ghanaian consumer, they would not have engaged
in the trading of foreign textiles; they argued also that the domestic textile firms also
import textiles to be sold in Ghana. In reaction to this, the Administrative Manager of ATL
(Personal communication, July 20, 2010) admitted that his company and other local
textile firms in Ghana do import from their sister companies within and outside Africa, but
however emphasized that they pay the requisite import taxes. He continued that, the prints
they import are original and not knock-offs as the importers are fond of doing.
Statistics on importation of wax prints (Table 4.18) shows that, the Free On Board
(FOB) of a quantity of 198 bales of Chinese imitation wax print imported on May, 2005
before the increase of import tariffs was $62,964. The figure for the same quantity on June
9, 2005 after the increase was $365,528. The Cost Insurance Freight (CIF) for the same
quantity in May was $65,532.43 as against $368,726.37 when the import duty went up
from $13,106.49 to $73,745.27. With regard to Value Added Tax (VAT) and National
Health Insurance Levy (NHIL), the figures rose from $9,829.86 and $1,965.97 to
$55,308.96 and $11,061.79 respectively (Importation of Wax Prints, 2009).

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Table 4.18: Statistics before and after increment of import duties on 198 bales of
Chinese prints
Type of import duty Before After Percentage
increment increment of increment
Free On Board (FOB) $62,964 $365,528 82.77%
Cost insurance freight (CIF) $65,532.43 $368,726.37 82.23%
Value added tax (VAT) $9,829.86 $55,308.96 82.23%
National Health Insurance Levy (NHIL) $1,965.97 $11,061.79 82.23%

Source: www.ghanaweb (29 June, 2009)

It is evident from Table 4.18 that, there was over 80% increase of import duties on
the various tax components which according to the importers of foreign wax prints
interviewed at Kumasi central market and Makola market in Accra is extremely high and
had consequently put some of the traders in difficult situation, in terms of taking delivery
of their containers due to lack of funds to clear the items. They therefore lamented for
reduction in tariff rates on importation of African prints to help them remain in business.
That notwithstanding, observable findings from the major textile merchandising
outfits and open markets revealed that the rise in import duties had not deterred importers
from trading in foreign textiles, though they claimed to have been affected greatly by the
increase of import duties on foreign prints. It was obvious that the quantities of foreign
textiles on Ghanaian market far outweigh that of the locally made ones despite the increase
in import duties. This is confirmed by the graphical curve shown earlier in Fig. 4.26 which
indicates a boost in African prints imports after the upward adjustment of import duties in
2005. It could however be established that, although the action was taken to avoid
dumping of imported wax prints in the domestic market to protect domestic industries, the
rise in import duties has rather resulted in the upsurge of textile smuggling in the country
as the importers, with their inability to pay the high tariffs required, had to device dubious
means of bringing in their goods without paying the right tariffs in order to remain in
business.

4.4.6 Establishment of the African Textile Print Committee (ATPC)

An interview with the Administrative Manager of ATL revealed that, as industrial
policing strategy to monitor and check smuggling and pirating of local printed designs, the
African Textile Print Committee (ATPC) was formed in 2006 by a collaborative effort of
the local textile factories. The committee is made up of representatives of the Ghana
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Standard Board, Ministry of Trade and Industry, Textile factories, and textile importers.
He continued that the committee, among its major responsibilities, meticulously vet or
screen any textile design that is to be imported into the country taking into account the
country of origin, fabric composition, motif, colour and label, to ensure that the design is
original and 100% free of knock-offs of local print designs. In addition, the committee is
tasked to work closely with Ghana Standard Board which is responsible for assessing
products before their entry into the country at the National Enquiry Point (NEP) based on
standard technical regulations, trade regulations, and conformity assessment procedures
which include; testing, inspection, certification, verification, accreditation, sampling,
evaluation and registration.
This joint collaborative effort was to help detect fraud in the activities of the parties
involved to ensure fairness and equity. However, the work of the committee, according to
the Administrative Manager of ATL (Personal communication, July 20, 2010), have not
been fruitful due to the increasing rate of smuggling by importers through unapproved
roots and ‘leaky’ borders (making reference to Aflao border) which due to the
ineffectiveness of the operation of CEPS has caused huge increases in smuggling of
textiles in the country. The researcher is of the view that, ideally CEPS should have
partnered with the committee to champion the fight against smuggling and pirating of local
textiles, in the sense that, their work is indispensable as far as importation of textiles into
the country is concerned.

4.4.7 Registration of local textile designs

In order to claim total ownership of a textile design, the textile factories patent their
designs by registering them at the Registrar General Department under the Copyright Law
of 1985 (PNDC Law 110). Copyright protection generally last or subsist for 50 years,
although some countries have recently extended it to 70 years (Ghana Publishing
Corporation, 1973 as cited in Krome, 2002). Contrary to this, the Design Manager of ATL
(Personal communication, July 2, 2010) disclosed that, registration of each textile design
costs GH¢500 with copyright validity of up to 15 years. This implies that, after 15 years,
the design must be registered again, other than that, it loses its protection under the
Copyright Law and for that matter could be adopted or replicated by any company or
individual without seeking any permission from its right owner. According to the Design
Manager of ATL, a design for registration must pass originality test in terms of motifs,
colour-ways, and textures. Other information such as company’s name, brand name,
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manufacturing date, and serial number are required for authentication of the design. It was
observed that, despite the fact that the textile factories now make it compulsory to register
their designs to protect them from piracy, copying of local textile print designs has not
seized. The culprits of such practices do not get deterred by the sanctions that go with it,
that is seizing and instantly burning of the pirated goods, as they continue to copy and
smuggle textiles bearing local motifs into the country. See Plates 4.6 and 4.7.

4.4.8 Monitoring of Knock-off Textiles by a Taskforce

To ensure that the activities of smugglers are brought to the barest minimum,
Association of Ghanaian Industries (AGI) has formed a taskforce whose main duty is to
frequently patrol local markets to check on knock-offs of local print designs and smuggled
textiles and provide information for the police to arrest defaulters (Health and Safety
Manager, TGL, personal communication, July 7, 2010). The Health and Safety Manager of
TGL contended that, although the taskforce operation had led to some arrests, intensifying
its operation will help in the reduction of smuggling and copying of local print designs in
order to sustain the industry.

4.4.9 Cotton promotion Grant for Out-growers and Ginnery Companies

In response to a question regarding government’s assistance to cotton production,
five (5) personnel of the Textile Unit of MOTI (focus group discussion, July 12, 2010)
reported that, http://www.fibre2fashion.com/textile-market-watch/textile-price-
trends.aspin view of poor cotton seed quality and subsequently low yields of Ghana cotton
production, in 2006 the Government made a frantic effort to support 10,000 cotton farmers
to cultivate 10,000 hectares of land in the three northern regions by providing them with
agro inputs worth 20 million Ghana cedis which was channelled through the Ghana Cotton
Company Limited (GCCL); Nulux Plantation Limited, Plantation Development Limited
and other reputable ginnery companies. The inputs included ploughing and procurement of
300 tons of certified cottonseeds from Burkina Faso for the farmers. The respondents
added that, through the Ministry of Food and Agriculture (MOFA) Government supported
Savannah Agricultural Research Institute (SARI) to develop improved seeds for use by
cotton farmers as a result of which SARI developed and released three seed varieties of
cotton for cultivation. The Administrative Manager of GCCL in an interview (May 25,
2010) noted that, extra efforts were made by the Government in 2010 to secure a grant
from EDIF to support cotton farmers in the form of inputs supply to encourage out-
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growers to boost cotton production in the region. These efforts, to the researcher, show
some form of Government’s commitment towards the rehabilitation of the cotton industry
as the vehicle for reviving the textile industry in Ghana. A lot more of such developments,
according to the General Secretary of Cotton Farmers Association (Personal
communication, May 28, 2010), is expected to revive the cotton production which serves
as the major source of income to the three northern regions and the main raw material base
for the textile manufacturing companies in Ghana.

4.4.10 New Tracking System by CEPS to monitor Transit Operations

The study finds that, the Ghana Customs and Excise Preventive Service (CEPS) has
deployed a Satellite Tracking System to monitor transit operations in the country as part of
its modernization service and reform programme. The system, according to the Staff of
Satellite Tracking Units (STUs) of CEPS (Focus group discussion, July 13, 2010),
commenced operation August 1st, 2007 and each transit vehicle was required to attach a
tracking unit to its roof using a magnetic mountings and a wire security strop. Vehicles
without a normal horizontal metal roof were required to have a horizontally welded metal
plate of at least 25cm x 25cm to the top of the vehicles to help monitor their movement
along the approved transit routes. This directive, to the staff of STUs, has indeed resulted
in effective monitoring of transit vehicles which are now compelled to use the authorized
routes and pay the requisite taxes at the entry points. It has also led to the discontinuity of
escorts of transit vehicle which was the practice previously; hence, reducing and
facilitating their work. Transistors are required to pay an Administrative Fee of GH¢ 50.00
per vehicle for the facility and any breach of the directive, according to the CEPS officials,
constitutes an offence and punishable under Customs Laws. This development is hoped to
curb smuggling of textiles into the country to the barest minimum as it involves
computerized monitoring of vehicles with imported goods.

4.4.11 Instant Burning of Smuggled Textiles

One of the mitigation measures put in place to fight smuggling of textiles in the
country is the instant burning of seized foreign textiles bearing trademarks of local textile
manufacturers in order to protect local textile businesses. This decision, as revealed in an
interview with the Administrative Manager of ATL (July 20, 2010), was enforced through
collective consensus and a Memorandum of Understanding (MOU) signed by CEPS,
MOTI, together with four local textile manufacturing firms i.e. ATL, TGL, PGL and
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GTMC. This was to ensure co-operation and support from the parties involved to protect
intellectual property of manufacturers. In order to ensure effectiveness of this directive,
however, the ATL Administrative Manager further established that, CEPS was provided
with copies of albums of trademarks of the local textile manufacturers’ registered designs
from the Registrar General's Department. This was meant to educate them on the
trademarks of local textile printed designs so as to seize imported textiles with trademarks
of local manufacturers.
With reference to the GNA (July 6, 2010), the burning of pirated and smuggled
textiles, according to the Acting Director of Import/Export Division of MOTI, is in line
with the World Trade Organization obligations that, pirated goods are not to be allowed to
enter into the country and for that matter the country has no option but to burn them since
there is no place to keep them. He therefore appeals to Ghanaians not to attach any
emotional sentiments to the decision agreed on by the parties since it would go a long way
to protect the local firms as well as the health needs of the people.
These are but some of the mitigation measures put in place by successive
governments of Ghana as part of the efforts towards sustainable development of the textile
and garment sub-sector. These notwithstanding, the Design Manager of ATL and the
Health and Safety Manager in a separate interviews (July 2 and 7, 2010 respectively)
shared a common view that the government is paying lip service in promoting made in
Ghana goods making reference to the government’s decision to outsource a mass of
printing of the Ghana’s Golden Jubilee cloth to Chinese textile companies with the view
that the local textile companies do not have the capacity to produce to meet the short
deadline of the jubilee cerebrations considering the huge quantum of prints involved. The
two managers argued further that the government actually ordered the cloths from China
before submitting the designs to the local textile companies. This apparently shows that
the government lacks confidence in the local textile factories.
The General Secretary of the Ghana Textile, Garment and Leather Workers Union
(Public Agenda, 2007) commenting on the jubilee cloth indicated that, for all these years
Ghana has been preaching against dumping of cheap textiles from China; so the
government’s decision to import the jubilee cloth from China is an endorsement of cheap
imports. He emphasized further that GTP, GTMC, PGL and ATL together could have
produced any quantity of cloth needed for the entire country if they had been given the
designs ahead of time. This therefore debunks the view that the local textile industries lack
the capacity to produce huge quantities as it is obvious that some people want to make
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money by awarding the contracts to Chinese companies and for that matter do not bother
the consequences thereof on the local companies. According to the General Secretary of
the Ghana Textile, Garment and Leather Workers Union, the immediate consequences of
the marginalization of local textile firms would be job losses adding that if we are
celebrating 50 years, we must be able to print our anniversary cloths, otherwise what are
we celebrating? (Public Agenda, 2007).
Inferring from the foregoing discussion, it is apparent that the rise of import duties
was initiated in June 2005. This was after when the government had come out publicly in
May, 2005 to say that its outfit cannot subsidize production of textiles as other countries
do because the country lacks the needed resources to do so. To sustain the domestic textile
industry, however, a number of stringent measures were put in place which restricted
textile imports to pass through only Takoradi port in July 2005. Faced with high financial
demand to import their goods through the rightful roots, the importers of African prints
sought dubious means to import their goods through unapproved roots which resulted in
the upsurge of textile smuggling in 2005. Counter measures were put in place by the
government to curb smuggling of textiles into the country but the industry still suffers the
unbridled flow and competition of foreign textiles. Textile activists blame the government
for lack of commitment and unfavourable policies in the sub-sector as major attributes for
the collapsing local textile industry. However, the textile industry can boast of some
prospects and opportunities to revamp its operations. These include; taking advantage of
the oil industry for RFO, high demands for lint cotton and locally printed textiles, the Free
School uniform and National Friday Wear policies, availability of land for cotton
production, availability of human resource and technical expertise and political stability to
attract investors.

4.5 Implications of the Challenges for Textiles Education in Ghana

The study observed that, many textiles students experience the frustration of not
getting the required preparation for their desired career before leaving school as a results
of lack of partnership between the institutions of higher learning and the industries that are
expected to team up to plan a competency-based curriculum and relevant linkage
programmes that will help students acquire the needed industrial skills during their course
of study. This situation per the findings of the study has been created as a result of myriad
of challenges that confront the textile industry and for that matter are unable to admit
expected number of students for attachments and internships which according to Ruiz
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(2009) aim at helping students to gain industrial experience. The result is that the study of
textiles in the institutions of higher learning in the country has become theoretically
oriented which considerably affects the performance of their products in the job market.
This, coupled with the limited available textile factories, has rendered many textile
graduates unemployed with others diverting into banks, teaching, and trade and commerce
other than the specific fields they were trained for.
Traditionally, college education emphasizes on theoretical knowledge, but industry
demands practical skills and practice. However, since one of the major expectations of the
higher education is to prepare students for future careers (Accredited syllabus for HND
Fashion Design and Textiles Technology, 2007), the researcher opines that with regard to
textile education, more emphasis must be placed on practical skills by translating the
theories into practice. In the light of this, the study assessed the kind of linkages that exist
between the textile industry and academia with respect to attachment and internship
programmes, relevance of qualification of lecturers in the academic institutions offering
textiles related programmes, infrastructure and facilities available for training,
curriculum/course content, which act as the main engine for effective impartation of
knowledge and competency skills to students to fit into industry.

4.5.1 Linkage programmes of the textile educational institutions and industry

The ATL Administrative Manager and the VSTL Technical Director (Personal
communication, June 7 and 17, 2010) in response to questions regarding collaboration
between the industry and academic institutions argued that, the academic institutions have
not given them the platform to provide the necessary industrial inputs in their curriculum
which to them is the surest way of ensuring training of graduates with high technical
know-how who will fit well in the industry. They added that, as much as their inputs are of
paramount importance in curriculum development of academia, their presence is of equal
importance to serve as committee members in the development and revision of curriculum
for both old and new programmes. According to the Health and Safety Manager of TGL
(Personal communication, July 7, 2010) key players from the textile industry can serve as
visiting industrialists, industrial project supervisors, or resource personnel to present
seminars, lectures, give technical demonstrations to both students and lecturers, provide
technical advice to the academic board on industrial issues in order to create a strong
collaboration with the academic institutions offering textiles. To these top heads of textile
factories, the academic institutions do not see the need for such linkages and have not
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involved them in academic affairs. On the contrary, lecturers and instructors of the
selected universities and the polytechnics interacted with, disputed the allegation with the
view that, the textile factories rather have not been opening up to them adding that they go
through a difficulties in getting students to embark on industrial attachments, field trips,
and internships.
This clearly shows that there is lack of collaboration between the industry and
academia which affects the quality of graduates produced by the academic institutions.
This confirms Mpairwe’s (2010) assertion that, several studies have concluded that a gap
really exists between the quality of graduates produced and what the market demands and
for that matter, training institutions and employers have accepted the need to bridge the
gap in the form of attachments, internships, seminars, workshops and industrial visits in
the degree and non-degree programmes. Partnership in this direction, to the researcher, is
one of the surest ways of bridging the gap and improving the quality of graduates
produced by the institutions for the benefit of the industry, since the academic institutions
lack the requisite training facilities to produce the kind of graduates that the industry
requires.
As a major part of the Vocational and Technical Education aimed at training
graduates to become middle and higher level personnel for the country’s needs (Accredited
syllabus for HND Fashion Design and Textiles Technology, 2007), the polytechnic
programmes, per the findings made on the Fashion and Textiles Studies programmes of
Takoradi and Kumasi Polytechnics, make room for industrial experience. A whole
semester is allotted for industrial attachment to equip students with the requisite practical
skills for industry. Unlike the polytechnics, it was observed that the universities offering
textiles related courses, with specific reference to KNUST and UEW, do not make
provision in their programmes for attachment but occasionally embark on field trips or
industrial visits and permit students to go on attachment during vacations voluntarily. It
was however noted that, the greatest challenge facing the authorities of the academic
institutions is the difficulty in getting students to go on attachment as the authorities of the
textile factories have been very reluctant to admit students due to the fact that there is lack
of collaboration between the industry and academia.
A comparative analysis of the situations at the textile factories and the academic
institutions based on the observable findings of the study revealed that, whereas the intake
of students in the academic institutions keeps increasing considerably, the local textile
industry, inversely, is fast dwindling in terms of numbers, sizes, output capacities and
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infrastructural developments amidst operational and external challenges. It is however
practically impossible to allow more than 20 students to be admitted in one factory to do
industrial attachment since their presence in the factory requires that managers and
technicians of specific departments who have to play a double role by attending to the
students and as well as carrying out their daily duties satisfactorily. This, according to the
Personnel Manager of ATL (Personal communication, June 29, 2010), affects the
operations of the factories in terms of productivity since there is no well-structured
programme developed to ensure smooth linkage between the industry and academia. It is
apparent that, instead of tapping the benefits that linkage programmes offer academia and
industry in training students, the situation is rather the opposite and for that matter,
stakeholders do not value the graduates that pass out the academic institutions. The
benefits that linkage programmes offer include evaluation of students for full-time
employment upon graduation, providing employers with access to quality candidates,
students’ contributions of new ideas to industry, increase in productivity, helping
businesses to promote their line of work, helping students to develop their communication
and interpersonal skills in context of work, job experience, among others (Ruiz, 2009;
Astin et al., 2000). These are key to sustainable developments of both the industry and
academia.
The need to restructure and strengthen the link between the industry and academia
is therefore paramount in the quest for revitalization of the textile sub-sector. In doing so
other internship programmes such as externship, service learning, practicum, cooperative
education and field experience (Tanner, 2012) could be considered alongside attachment
and industrial visits which the study found as the most commonly used linkage
programmes by industries and academic institutions in most developed or successful
economies.

4.5.2 Relevance of curriculum/course content of programmes of the educational

institutions to industry
The study revealed that the textiles programmes offered at the tertiary level in
theory are generally relevant to the industry which go to buttress the assertion that, special
emphasis are being put on the study of Technical and Vocational Education at the tertiary
level with the hope that, relevant skills would be acquired to enable graduates from such
institutions contribute to the socio-economic development of the nation (Amankwah,
2007). However, with the exception of Takoradi Polytechnic B-Tech programme where
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students have options for specialization, the study identified that the course contents of the
other programmes such as KNUST and UEW are too general to produce graduates with
specific expertise to satisfy specific needs of the industry. Table 4.19 gives a summary of
programmes and courses of the various academic institutions that study textiles.

Table 4.19: Textiles programmes and courses in the country’s higher institutions
Institution Programme Relevant courses/subjects
Kumasi HND Fashion and Pattern Technology, Garment Technology, Fashion
Polytechnic Textiles Studies Drawing and Illustration, Textiles, Creative Design
and Working Drawings, Millinery and Dress
Accessories, Clothing Production Technology,
History of Fashion, Beauty Care and Culture,
Fashion Marketing and Merchandizing, Industrial
Attachment, Business Law and Projects.

Takoradi HND Textiles Fibres and yarns, fabric construction, chemical

Polytechnic processing, fabric decoration, fabric finishing,
CAD.
Option 1-Fibre and Yarn Spinning Technology.
B-Tech in Textiles
Option 2- Weaving and Maintenance Processes
Option 3- Dyeing and Printing Technology
Option 4-Garment Manufacture and Fabric
Decoration

UEW Bachelor of Textile design, weaving, textile printing

Education in Textiles technology, fibre production, yarn manufacture,
CAD, alongside educational courses.

M-Tech in Fashion Textile design, fashion, garment construction,

and Textiles research methodology, computer education, quality
control.

KNUST Bachelor of Industrial Textile design, textile printing, textile testing, non-
Art (Textiles) wovens, synthetic fibres, regenerated fibres, fabric
structure, dyes and dyeing processes, weaving
calculation, management and entrepreneurial skills,
seminar, knitting technology, weaving mechanism,
cotton spinning, computer aided design (CAD).

Master of Fine Art textile design, fabric studies, textile printing

(Textile Design) technology, study tour, independent study, research
and thesis writing, research methodology,
computer aided design (CAD), seminar
Source: Field Survey (2010)

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 At the polytechnic level, it is evident that programmes like Higher National
Diploma in Fashion and Textiles Studies (Kumasi Polytechnic), Higher National Diploma
in Textiles and Bachelor of Technology in Textiles (Takoradi Polytechnic) are offered. At
the university level, programmes offered include Bachelor of Education in Textiles, and
MTech in Fashion and Textiles (UEW), Bachelor of Industrial Art (Textiles), and Master
of Fine Art in Textile Design (KNUST). It is evident from Table 4.19 that all the
programmes of study in these academic institutions make provision for Computer Aided
Design (CAD) to equip students in computer in designing which has become indispensable
in the global design industry.
With specific reference to KNUST, programmes of study make room for other
relevant courses to be offered which go beyond the scope of the domestic textile industry
whose operation is limited to conventional power loom weaving. Courses like knitting
technology, non-wovens, synthetic fibres, regenerated fibres, and advance weaving
mechanisms with much emphasis on shuttleless loom systems that have become very
instrumental and economical in the global fabric manufacturing processes are dealt with.
This is in connection with global trends of textile manufacturing which have seen
tremendous developments with innovations. According to Lord and Mohammed (1982),
conventional power looms that work on crank shaft and cam shedding mechanisms with
limited design capabilities as well as the traditional method of weft insertion that employs
shuttle, have almost been replaced by newer methods that are based on the principle of
shuttleless loom mechanisms.
Evidently, the programmes of the academic institutions are not job specific to meet
specific needs of the industry, but rather, the courses studied under each of them are too
many and make students do a lot of work but master none at the end of their study. This
buttresses the assumption (IAD, 2010) that specialised areas have not been designed for
the textiles programme of the university which make students overburdened in an attempt
to cover all courses for a degree certificate in Textile Design. This leads to a situation
where graduates leave school knowing bits of everything but mastering none, making it
difficult to market themselves on the job market which has become very competitive more
than ever although the current needs of the country and trends in the global textile and
fashion industry demand training of specialized manpower to handle the design and
technology of production of textile and fashion goods. Again, no priority is made in the
programme for traditional or indigenous textiles production, rather emphasis is placed on
factory textile production. To this end, per the number of challenges confronting the large-
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scale textile factories with their focus on factory-made textiles and for that matter unable
to absorb appreciable number of graduates that pass out every year from the country’s
textile institutions, it becomes prudent to review of the curriculum of the various textile
programmes to make room for specializations to address specific textile production needs.
There should be specializations in traditional textile production, factory textile production,
textile merchandising and textile entrepreneurship, among others, for students to select
options. This will allow students with interest in entrepreneurship to go in for
specializations other than factory textile production which have limited job vacancies.
Such curriculum approach will encourage students to partner and go into textiles SMEs
right after school without wasting time to look for seemingly non-existing and so called
white colour jobs. They may even employ few unskilled labourers which will help to
reduce the high rate of unemployment situation in the textile sub-sector. The approach will
also help in sustainable development and promotion of traditional textiles since some
students will also opt for a specialization in traditional textile production.

4.5.3 Relevance of qualifications/quality of academic staff of the textile educational

institutions
One major set-back that the study identified with the country’s institutions of
higher learning where textiles is offered is that, most lecturers teaching textiles do not have
relevant masters degree in Textiles. In the Kumasi and Takoradi polytechnics, all the
lecturers teaching textiles hold Bachelor of Arts (Textiles) but have masters’ degrees in
other fields of study. The same was apparent in UEW (Winneba) where one out of the four
textile lecturers holds Master of Fine Art in Textile Design. It is only in the KNUST that
the study found 6 out of the 8 lecturers holding relevant masters’ degrees in their subject
areas. Although all the lecturers have the masters’ degree which is the requisite
qualification for the appointment as lecturers in tertiary educational institutions in Ghana;
the current policy is that lecturers should have masters and preferably a doctorate in the
subject they teach. This means that the qualifications of the aforementioned lecturers are
not ideal for effective teaching of textiles at the tertiary level. It was noticed also that, this
has happened because it is difficult for the institutions to get lecturers who have
specialized in textiles to handle textile courses effectively; hence, the institutions have no
option but to appoint lecturers who have equivalent qualifications in those areas of study.
This situation, according to Arkhurst (2011), is the biggest challenge that hinders effective
teaching of textiles at both the bachelor and masters’ degree levels. This implies that, even
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if the textiles curriculum is relevant to industry, the mastery of lecturers in their courses
may be limited which could drastically affect their delivery of facts as Entwistle (1996)
contends. He says, the assumption that anyone with a good degree will automatically be
able to impart knowledge to others is completely incorrect and that instructors of any
programme are required to have a complete knowledge and understanding of what to teach
and the ability to teach it well to elicit their effectiveness.
Aside lecturers not having relevant masters degrees in their areas of instruction, it
was observed that some lecturers use the same lecture notes they obtained during their
Bachelor degree at the universities in teaching at the polytechnic level. This creates
similarities in the programmes of the universities and the polytechnics though the two
academic institutions have different and specific aims and objectives. Not only was this
phenomenon found to be lack of clearly defined scope of curricula of both the university
and the polytechnics, but the fact that most of the lecturers teaching HND and B-Tech
Textiles in the Kumasi and Takoradi Polytechnics are products from KNUST with their
masters degrees in Art Education; hence, they turn to rely mainly on the knowledge and
teaching materials acquired from the university for teaching. This trend is not only making
the polytechnics to gradually lose focus from their core objective of developing the middle
and higher level manpower, but also defeating the acceleration development plan for
education by government which places high importance on Technical/Vocational
education which are practical oriented training and has served as the basis for the
introduction of Secondary/Technical schools, polytechnics and universities to produce
the needed technical scholars f o r national development (Baffour, 2000). This situation,
to the researcher, could also be attributed to lack of qualified lecturers which have relevant
qualifications in the line of HND, B-Tech and M-Tech to teach at the polytechnics.
To this end, the authorities of the academic institutions are expected to hire
experienced lecturers who have relevant qualifications or train and develop their staff
through further studies in order to impart positively to their students so as to ensure that
they meet the polytechnic’s core vision and also perform creditably in industry after
graduation to help in the realization of the general philosophy of Ghanaian education
which aims at poverty alleviation and wealth creation (Mensah, 2006).

4.5.4 Availability of infrastructure and facilities for training at the textile educational
institutions

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 A survey of the selected academic institutions revealed lack of the requisite
facilities to help students acquire in-depth industrial knowledge and skills to fit well into
the textile industry. Textile manufacture is undoubtedly a technological process which
necessitates high technical expertise and experience in industrial practice. In view of this,
it is very essential for students studying textiles to acquire in-depth industrial knowledge
and skills for the job market. In view of this, infrastructure and facilities for training
become very vital. Observation made at the selected academic institutions with specific
reference to Kumasi and Takoradi polytechnics, KNUST and UEW, Winneba clearly
shows lack of infrastructure, industrial and other relevant training facilities and so the
institutions rely on the local textile factories for attachments and field trips to provide
students with industrial experience. Ideally, per the content of the courses offered in each
of the programmes of study of the selected academic institutions (Table 4.19), certain
facilities are indispensable for effective training of students. The courses cover, among
others, fibres and fibre production, yarn and fabric manufacture, fabric decoration,
finishing. These require industrial textile facilities such as ginning and spinning facilities,
automatic weaving and knitting machines, printing and dyeing facilities, pre-treatment and
after treatment facilities and a well equipped textile laboratory since the programmes
prioritize industrial textile production. However, of all the four academic institutions that
the researcher visited, it was observed that, none of the aforementioned industrial facilities
was available.
At the KNUST, 1 industrial Jacquard, 1 Dobby, and 1 Tappet looms were seen but
were all beyond repairs though they are still in place for demonstrational lessons.
However, there were 2 weaving sheds with 10 manually operated broadlooms and 6 table
looms which students use for their semester weaving project works. In addition to these
were 2 manual printing tables, 2 semi-automated developing tables housed in 2 separate
dark rooms with dyeing and printing studios, which serve about 180 students every
academic year. With reference to the Takoradi Polytechnic, the study found 8 broadlooms,
3 traditional looms, 3 manual printing tables, 2 screen developing tables, a dyeing and
printing studio which serve an average students’ population of 120. At UEW, the Textiles
Section has only 1 weaving studio with 10 broadlooms and 2 traditional looms, a printing
studio and a darkroom which serve about 200 students every academic year. Kumasi Poly
on the other hand has only 1 broadloom with printing and dyeing studios. Evidently, no
industrial facility is available in all the institutions to embark on any effective training;
even the manually operated facilities are woefully inadequate using the students’
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population at each institution as basis for justification. The implication is that students
from these institutions of higher learning may be vulnerable as far as industrial experience
is concerned and for that matter they will not find their feet in the industry when given the
opportunity. Arguing on the non-performance of the university and polytechnic graduates,
the Personnel Manager of ATL (Personal communication, June 29, 2010) emphasized that,
ATL prefers recruiting SHS graduates and training them for the job and pay them average
salaries than employing university and polytechnic graduates who will otherwise be
retrained on the job but take huge salaries. This notion of the industry has made most
textile students and graduates disappointed and helpless since their chances to get job after
school are uncertain.
Evidence of the study has shown the extent to which the challenges confronting the
textile factories have crippled their operations leading to low productivity, redundancy of
workers, increase in unemployment rate in the textile sub-sector and closure of most of the
factories. The situation is having adverse implications on the institutions of higher learning
that are entrusted with the responsibility to train students to acquire requisite knowledge
and skills to help in the operation and management of the textile industry with the priority
of practical exposure and experience of the working environment (Proposal for Upgrading
the KNUST Textiles Section to Department, 2010). Contrary to this vision, the study
found that textiles graduates from the academic institutions pass out with little or no
industrial experience as a result of lack of collaboration between the industry and
academia. Industrial and academic collaboration is expected to create the needed platform
for collaborative research to solve industrial problems, increase students’ access to
industrial experience through internship and attachment programmes, staff development
programmes, infrastructure developments, stakeholders’ inputs and participation in
academic curriculum development to reflect industrial processes. These indicators, to the
researcher, are very crucial for holistic restructuring and improvement of the textiles
education in Ghana to produce qualified and quality textile professionals to meet the needs
of the industry for sustainable development. To achieve this will necessitate collaboration
of both the textile industry and the academic institutions to develop and implement a
competency-based or an industry-oriented curriculum that will satisfy both establishments
with the focus on stakeholders’ requirements and needs. Figure 4.32 exhibits a proposed
model which prioritized stakeholder’s requirements and needs with the justification that
whether a company is high tech or low tech, operating in an age-old industry or one of the

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 newer service or knowledge, its success will depend, more than anything else, on the
satisfaction of the needs and desires of each unique stakeholder (Hickman, & Silva, 2009).

Requirements of Stakeholders

Programme Content of Organization of Didactic Student

Specification programme programme concept assessment Achievement
Expected

Quality of Quality of Profile of Students Facilities & Outcomes

Learning academic staff support staff students advice support infrastructure

Graduates
Outcome Student Curriculum Staff development Benchmarking
Evaluation design activities

Satisfaction of Stakeholders

Fig. 4.32: Industry-oriented cu

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 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Summary
The study sought to unearth the operational challenges and prospects of selected
large-scale textile factories with specific reference to production and sales, and based on
the findings propose feasible projections toward the invigoration of the Ghana textile
industry and institutions of higher learning that offer textiles to create more jobs to reduce
the unemployment situation in the country. Four major textile factories were purposefully
selected for the study with the aim of collecting data that could be used to make
generalizations for the industry. In order to get a fair representation of the entire Ghana
textile industry to make generalizations, the factories were selected based on their main
production operations from processing of basic raw material (Lint cotton) to the finished
printed fabric. Ghana Cotton Company Limited was chosen for being the largest cotton
ginnery company in Ghana. Volta Star Textiles Limited, the only surviving spinning and
weaving company was also selected. The other two major Ghanaian textiles factories
selected for the study were Akosombo Textiles Limited whose production is vertically
integrated from spinning to printing, and Texstyles Ghana Limited (formally GTP) whose
production now focuses only on printing.
A thorough library search was embarked upon to collect relevant data for the
review of related literature to establish theoretical and empirical framework of the study.
The multiple case study method based on the qualitative research approach was employed
with descriptive analysis. The instrumentations used were mainly interview and
observation with critical factory and market surveys of the selected factories. The
production lines of the selected factories were critically observed and findings recorded on
observational check list. Top ranked personnel of the factories were engaged in one-on-
one personal interviews. Focus group interview approach was employed for selected
respondents involving primarily cotton farmers, market women who trade in textiles, as
well as personnel of CEPS and MOTI. All these were done to collect factual primary and
secondary data aimed at finding out the challenges of the Ghana Textile Industry and
making feasible projections toward its invigoration to maximize productivity for
maximum returns. The study revealed a number of internal challenges that cut across
acquisition and processing of raw material to finishing amidst some critical external
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challenges which have crippled the operation of the factories to maximize productivity.
These are summarized in the following sections vis-a-vis the major prospects of the
respective factories.

Challenges and prospects of GCCL

From the Cotton Industry with special reference to Ghana Cotton Company
Limited, the study identified low production performance as the major challenge of the
industry’s production output as at 2008/2009 season. This was only 4000mt as against the
total installed capacity of 70,000mt. Factors that attributed to this as evident from the
findings of the study include:
a) Lack of incentives for small scale cotton companies to boost their production.
b) Ineffective utilization of land by cotton out-growers.
c) Inconsistent technical supervision by extension officers.
d) Inconsistent rainfall pattern as a result of global climate change.
e) High labour intensiveness of cotton production.
f) Diversion of inputs and seed cotton by out-growers.
g) Poor pest control habit among out-growers.
h) High cost of inputs.
i) Low priced seed cotton.
j) Poor grade of cotton seed for production.
k) Non availability of cotton seed in Ghana.
l) Accumulation of high debts by ginnery companies.
m) Tribal disputes among out-growers.
n) Rampant fire out-breaks within the cotton growing areas.
o) High cost of production.
p) Absence of substantive Management and Board of Directors (GCCL)

These notwithstanding, the study identified some significant prospects that can serve
as catalysts for the cotton industry to make amends. These, among others, include:
a) Availability of land for cotton farming.
b) Favourable soil and climatic conditions for cotton cultivation.
c) Available human resource for cotton production.
d) High demand and readily available market for Ghana cotton.
e) High ginnery capacity for cotton processing (70,000mt).

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 f) Technical expertise for cotton production.

Challenges and prospects of VSTL

With reference to Volta Star Textiles Limited which is the only yarn and fabric
manufacture company in Ghana, the study finds the following as the major challenges
confronting the factory’s operation.
a) Lack of working capital.
b) Low capacity utilization.
c) Inability to meet demand.
d) Absence of substantive Management and Board of Directors.
e) Lack of spare parts for repairs and maintenance of machinery.
f) The use of obsolete machinery.
g) Inadequate supply of cotton raw materials.
h) High cost of production.
i) High cost of importation of raw material, spare parts and machinery.
j) Poor remuneration of staff.
k) Lack of product competiveness.

The factory, in spite of the above challenges, can boast of some notable prospects to
revitalize its operations. These, among others, include:
a) Readily available market for its products.
b) High technical expertise.
c) Largest spinning and weaving capacity in the country.
d) Opportunity to take advantage of the Ghana’s School Uniform Policy.
e) World class grey cloth quality.
f) Capacity to diversify and expand product range.
g) Proximity to the Volta Lake for free access to water.

Challenges and prospects of ATL

As the only textile industry operating on a vertical integration system with
multiples of production lines, ATL is not devoid of problems as it is confronted with a
number of operational challenges. Major challenges of the company as revealed in the
study are:
a) Competition from other local textile companies.

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 b) Inadequate supply of cotton lint.
c) Accessibility and high cost of RFO.
d) High energy consumption.
e) Obsolete machinery.
f) Underutilization of plant capacity.
g) Inability to meet demands and late delivery of orders.

However, ATL can count on the following prospects:

a) High plant capacity.
b) High demands of the company’s products.
c) Accessibility to free water supply from Volta Lake.
d) Transfer of ABC assets to ATL.
e) High level-headed technical expertise.

Challenges and prospects of TGL

Texstyles Ghana Limited was the last company studied. With its production line
confined to only printing of African prints, the company, like the others, has some crucial
challenges despite the great name it has made for its products as far as quality in African
prints is concerned. The following are the major challenges facing the factory:
a) High cost and reliability of water supply.
b) High consumption/cost of energy.
c) Electricity supply fluctuation.
d) RFO quality and availability.
e) Under capitalization and high interest rates.
f) Low productivity and underutilization of plant capacity.
g) Instability in management control.

However, evidence of the study shows, among others, the following prospects of the
company:
a) Quality brand name in African prints.
b) Introduction of machine wax printing technology.
c) Capacity to increase productivity to maximize returns.
d) High level-headed technical expertise.
e) High product demand.
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 f) Automation and upgrading of some machinery.
g) Environmentally friendly production.
h) New management control.
i) Water recycling plant.
j) Power plant.

External challenges of the Ghana Textile Industry

Concurrently, a holistic perspective of the Ghana textile industry in the study
uncovered a number of external challenges that threaten the operations of the industry.
These include:
a) Influx of cheap foreign textiles.
b) High imports and low exports.
c) Competitive range of products on the local market.
d) Price competitiveness of foreign textiles.
e) Illicit trade/smuggling of textiles.
f) Lack of subsidy for the local textile industry.
g) Lack of capital investment in the sub-sector.
h) Lack of research and development in the sub-sector.
i) Recession in world market price of cotton.
j) Lack of collaboration between the industry and the academic institutions.
k) Relevance of courses of the academic institutions to the industry.
l) Global concerns for eco-friendly production.
m) Effects of Trade Liberalization.
n) Effect of AGOA.
o) Effects of ISI.

Measures implemented to salvage the textile industry

As stringent measures to combat the numerous external challenges that confront
the textiles sub-sector, attempts have been made by the government to put in place certain
directives within the last five years to save the industry from total collapse. These
measures include:
a) National Friday Wear initiative.
b) Restriction of textiles imports through only Takoradi Port.
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 c) Presidential Special Initiative (PSI).
d) Reduction of import duties on textiles essentials.
e) Increment in import duties and taxes on wax prints.
f) Establishment of African Textile Print Committee.
g) Intensifying the registration of local textile print designs.
h) Enforcement of Textile Taskforce operation.
i) Establishment of Cotton Promotion Grant.
j) New Satellite Tracking System by CEPS to monitor transit operation.
k) Instant burning of smuggled textiles.

Despite all the efforts made by the government and stakeholders to redeem the
textile industry from its seemingly insurmountable crisis, the situation continues to worsen
as competition from the foreign textiles becomes greater and greater. The study finds lack
of commitment and unfavourable government policies in the sub-sector as major attributes
for the collapsing of the local textile industry. The situation is having adverse implications
on the institutions of higher learning where lack of industrial experience as a result of the
inability of the industry to admit textile students for attachments and internships has
rendered most textiles graduates jobless.

5.2 Conclusions
The production and sales operations of the Ghana textile industry could be described
on the principle of symbiosis system, in that, the factories operate interdependently from
the production of raw material through the processing of fibres, yarns, and fabric
production to the finishing. Only ATL can be described as operating independently with
its vertically integrated system of production; it also relies on other companies for raw
material supply. In view of this, challenges faced by one factory directly affect the others
and this explains why all the textile factories are experiencing a common crisis.
The major set-backs of the local textile industry have been the lack of policy
document, commitment and unfavourable policies by the government in the sub-sector.
The study shows that, the move in the 1960s and 1970s by the government to promote
Import Substitution Industrialization has led to the establishment of light industries to
produce goods locally and operated behind tariff barriers which initially made the textile
sub-sector to dominate the manufacturing sector and contributed significantly to
livelihood. However, the shortage of foreign exchange for the importation of raw materials

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in the 1980s resulted in the sub-sector operating at extremely low capacity with most of
its factories going out of business. The situation deteriorated under trade liberalization
policy which formed part of the Structural Adjustment Programmes (SAP) pursued in the
1980s and 1990s by the government that frowns on quantitative restriction of trade
barriers. It can therefore be concluded that, the influx of cheap foreign textiles into the
country, dumping of second-hand clothing and textiles, increase in smuggling of textile
goods, low patronage of locally made textiles, are all consequences of the trade
liberalization policy which has led to the collapse of most local textile factories leaving
thousands of Ghanaians jobless.
From all indications, the findings of the study show that, the Asian textile industries
with specific reference to the Chinese textile firms have become serious threats to most
giant world economies like US and EU, but the vulnerable developing countries in Africa
suffer the most. In view of this, some countries in the ECOWAS sub-region such as
Nigeria and Kenya have formulated strategies to restrict excessive flow of foreign textiles
into their countries on the ticket of trade liberalization to protect their domestic firms from
total collapse. This include; the prevalent use of import prohibition as an instrument of
trade policy to promote domestic industry, employment and balance-of-payments
objectives in the context of import substitution-industrialization strategy, and reducing the
country’s imports judged as ‘not essential’ or when they compete with domestically
produced goods that are available in adequate quantities (Oyejide, 1975 as cited in Asare,
2010), while at the same time ensuring the availability of raw materials and capital goods
which cannot be obtained from domestic sources.
Moreover, evidence from the study reveals fast technological advancement in the
world of textiles. Global overview of the industry shows significant developments and
innovations emanating from Asia and Europe, through development of efficient shuttleless
looms with high production capacity and speed, development of fibre variants and
modifications, as well as new methods of processing fibres into ultimate end-use products,
which have affected finishing and colouring fabrics at the manufacturing level and
behaviour in use and care at the consumer level (Majory, 1986). Findings from the field
survey, however, indicates that the local textile industry has not been moving in this
direction as it still sticks to the use of obsolete technology with inefficient less productive
shuttle looms with high energy consumption.
The textile industry, as the study indicates, plays enormous contribution to the
national development providing employment opportunities to many people in the society,
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reducing unemployment and ensuring better living conditions of the people. It is
considered as one of the largest industry worldwide; if all facets of the vast economic
giants are taken into account, it will probably be found to involve more people with high
economic value than any other industry in the world. Even if we take only the growth,
production, manufacturing and processing of fibre to fabric, the textile industry is still very
near the top industries of the world in terms of labour force and economic value, not to
talk about marketing and use aspects. In view of this, most of the economic giant
producers such as China, US, EU, India and Pakistan in the world largely depend on
textile production for sustainability and development of other sectors (WTO, 2004). The
Ghana textile industry, as the study reveals, contributed significantly to the country’s
economy in the 1970s employing about 25,000 of the labour force which accounted for
27% of total manufacturing employment of the country and operated at about 60% of plant
capacity. The operation of the textile industry was strongly felt in the country’s economy.
Currently, employment rates of the four major textile companies studied (out of the six
surviving textile firms in Ghana) stand at only 3,020 which represents 87% reduction of
the 1970s workforce of 25,000 which concludes that employment level in the subsector
has reduced drastically since 1970. There has been an abysmal reduction in utilization of
plant capacity leading to low productivity at all levels from raw material to finishing with
workers suffering high redundancy in the subsector. Conclusively, the economic benefits
that the country enjoyed in the 1970s through the operations of the textile industry have
dwindled abysmally as the industry struggles to survive the turbulent times.
The study concludes that, despite the numerous challenges facing the industry, the
country has the requisite capacities and resources to revitalize the collapsing state of the
textile industry considering the availability of prospects and opportunities in terms of
human resources, technical expertise and physical infrastructure. What the industry needs
most is a holistic and strategic policy document with good and favourable policies to
champion the course of textile production and sales, exports and imports of textiles and
textiles essentials in the country. As one of the surest and key industrial sectors for
national development with its commercially viable production, employment creation for
poverty reduction, coupled with its socio-economic and cultural significance, it is very
imperative that government, stakeholders, textile industrialists, textile institutions,
merchandisers, fashion designers, consumers, and other textile activists come together to
make collaborative and frantic efforts to initiate policies ostensibly to promote its growth

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and development of the Ghana Textile industry and the academic institutions for the
benefit of all.

5.3 Recommendations
Based on the findings and the conclusions of the study, the following
recommendations have been made for consideration toward the invigoration of the Ghana
textile industry.

The need for the government of Ghana to look at the trade liberalization policy
Considering the negative impact that the influx of foreign textiles have on the local
textile industry because of liberal trade, it is recommended that the government puts in
place stringent measures to safeguard the textile industry as other developing countries in
the sub-region such as Kenya and Nigeria have done to protect their domestic textile
factories from collapsing. Among such measures may include; introduction of systematic
controls in the sector by imposing 100% duty on imported textiles, as Kenyan government
has done amidst trade liberalization that has ensured rapid growth of the local textile
industry to hit an average production capacity of over 70 percent. The government can as
well increase trade and investment within the sector, establish trade licensing agreement to
provide market information to local textile manufacturers, support the private sector in
identifying new markets, assist local textile manufacturers to improve the quality of their
products to compete keenly with imported textiles.
Taking clues from the experience of the Federal Republic of Nigeria when faced with
fierce competition of imported textiles, some kind of restrictions on imports can be
enforced to encourage local production and consumption. That is, importation of textile
products that are considered as ‘not essential’ or those that compete with domestically
produced types which are available in adequate quantities could be restricted from entering
the country to protect the industry. Again, the government can implement anti-dumping
law to check excessive flow of seconds, used and rejected offshore clothing and textiles
into the country which do not only affect the sale of locally made textiles but have very
serious health risks on local consumers.

Eco-friendly textile production for sustainable development of the textile industry

It is obvious that, Ghana has a long way to go if it should compete keenly with
offshore countries in terms of technological advancement in textile manufacture. It
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therefore becomes economically prudent for the country to move into other textile
production areas other than what the foreign competitors are engaged in. One such area
that is increasingly gaining popularity due to its eco-friendliness but stands unique with
limited quantities worldwide of which Ghana has resource to pursue is organic cotton
production.
The advocacy for organic cotton as the study has highlighted is based on the
premise that, it reduces premature death and suffering associated with pesticide control
which include; health risks in cancer and skin irritation, preservation of water bodies,
reduction of air pollution, preservation of nature’s insect predators, fisheries protection,
and building of healthy soil for safety food, among others. Again, organic cotton unlike
inorganic cotton production requires natural farm maintenance practices without the use of
pesticides, fertilizers and other chemicals which in the long run reduces the cost of inputs
and for that matter the cost of production at the advantage of the producer. Most
significantly, the product is highly endorsed in the international market and highly priced
with readily available market. In view of this, it is recommended that, as Ghana struggles
to compete with the masses of inorganic cotton products from the foreign countries, a
better option to sustain the cotton and textile industry is to divert into the production of
organic cotton for domestic use and export to earn substantial foreign exchange for the
country. Alternatively, the cotton industry can move into GM (Genetically Modified
cotton) production which has been developed primarily to reduce heavy reliance on
pesticides and thereby reduce cost of production.
Moreover, the demand for more environmentally friendly products has generated a
new awareness and ingenuity at each level of the textile industry. The establishment of
Encouraging Environmental Excellence (E3) programme by the American Textile
Manufacturers Institute was to urge producers to protect the environment (Frings, 2001). It
is therefore recommended that the domestic textile manufacturers fully embark in
environmentally efficient manufacturing and finishing processes. In doing so, the theory of
Ecology of production must be considered, i.e., the flow of materials during production,
usage and discarding the various products, and developing methods for minimizing the
negative effects to the environment, such as the use of materials, pollution and production
of waste. This should include development and utilization of effective recycling and
replenishing technologies for waxes, water and other chemicals for reuse to cut down cost
of production for sustainable development.

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Focusing on the ECOWAS sub-region textiles market
The ECOWAS sub-region offers a wider market for the domestic textile and clothing
industry. The fact that the so called African prints (Mummy prints) gained popularity in
Africa with special reference to West African designate the sub-region as the major
consumers of the prints. It is also proven that, some bench-marked textile printing firms in
the world such as Vlisco and ABC target the sub-region as their major market. This
indicates that, there is no better market for the local industry anywhere than within the
sub-region. Evidence of the study has also proven that the foreign or international market
requires meeting certain standards which sometimes restricts entry of most domestic
products. It is however recommended that, in the short and medium term projections, the
industry should focus on the West Africa market, applying the inward looking principle of
ISI which in the 1970s helped the textile sub-sector to dominate the manufacturing sector
and contributed significantly to livelihood, and in the long term consider the outward-
looking principle of ISI which places emphasis on production for export. This will help to
develop the domestic textile industries to take control of the local textile market and by
doing so device means to make progress into the international market.

Recapitalization and modernization of the textile industry

The study has shown the continuous use of obsolete machinery and technology by
the local textile factories which result in inefficiency and high cost of production. Low
speed shuttle looms installed over four decades ago still dominate the operation of the
Ghana textile industry. This shows clearly that there is the lack of capital investment in the
subsector by the government. The industry therefore needs capital injection to refurbish its
machinery and technologies with modern system with high speed of production coupled
with less noise systems such as projectile, rapier, water and air jets looms to expand and
maximize productivity for maximum returns. The expansion of the industry will lead to
creation of more jobs to improve the lives of Ghanaians.
Another alternative solution is to encourage private and foreign investors to take up
the mantle to develop the local textile firms to compete keenly with similar products from
abroad. In doing this, the government must improve the business climate by developing a
new regulatory framework for financing and infrastructure, strengthening the rule of law,
improving security and reducing the number of regulations and steps required for investing
in the country.

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Development and implementation of a holistic national policy on textiles
One of the surest ways for the country to develop and sustain its textile industry is
to formulate and implement strategic policies to serve as a blue-print or action plan to
guide and accelerate smooth production and sales operations of the local textile industries.
This is very crucial as the study finds no policy document on the subsector which has been
one of the woes of the industry’s progress. Developing a holistic national policy document
for the textiles sub-sector will necessitate collaborative effort of government and
government agencies which are directly and indirectly involved in the operations of the
textile industry, stakeholders, management of the textile industries and textile institutions
to discuss and formulate pragmatic strategies in short, medium and long terms towards the
invigoration of the industry. This will essentially require a thorough study of the industry
from the raw material base to finishing and marketing by experts in the field and a paper of
the true picture of the industry presented to serve as a basis for the development of the
national policy.

Need to strengthen the institutions whose operations have direct and indirect influence
on the Ghana textile industry
It is apparent from the study that, the collapsing state of the textile industry is not
only attributed to internal factors of the factories but also external factors involving the
institutions whose operations have direct or indirect influence on the industry. These
institutions include; CEPS, MOTI, AGI, Fashion industries, Research centres, and the
Universities and Polytechnics offering textiles programme. There is the need therefore to
strengthen the operations of these institutions to be efficient to help provide the necessary
contributions toward the revival of the textile industry.
The unbridled upsurge of smuggling of textiles and excessive flood of all sorts of
textiles into the country and knock-off have been directly linked with the inefficiency, lack
of technical know-how in textile print design identification and dubious operations of the
CEPS officials at the borders. For effective operation of CEPS, it is recommended that the
principle of “canalization and concentration” be employed as one of the means to control
smuggling of textiles in the country by adequately staffing and resourcing the various
entry points and CEPS checking stations to enforce all policy directives at a greater
efficiency for proper monitoring of the operations of the small-cross-border importers who
have been identified as the major culprits of textile smuggling in the country. CEPS must
in this regard employ textile experts or involve representatives of the local textile firms in
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their work at the borders and stations to help identify pirated and smuggled textiles as they
enter the country so that they can be intercepted for immediate action to ensure effective
control of smuggling of textiles goods in the country.
As revealed in the study, the textile and clothing industry is managed by a small
unit under the Ministry of Trade and Industry with inadequate technical expertise and
facilities to champion the huge course of the sub-sector. Considering the significantly large
size of the textile industry, its indispensable products for society, and the high rate of
employment it offers which makes it a viable industrial base for socio-economic
development, it is recommended that a whole Ministry be created for the Textile and
Clothing Industry to manage and address the concerns.
It is also recommended that the operation of the Ghana Standard Board be
strengthened and extended to cover all categories of textile goods that enter the country to
ensure that they pass the requisite standard test and regulations before their entry. This will
ensure control of the influx of second hand clothing and textiles into the country as most
of the textiles and clothes imported into the country do not pass through any standard test.
Also, the operations of the local textile taskforce under the auspices of AGI must be
revitalized to check smuggled textiles on the market and institute appropriate sanctions to
culprits to deter others from such practices.

Collaboration between the academic institutions and the textile industry

Effective collaboration between the academic institutions and the textile industry is
strongly recommended to ensure that textiles taught in the academic institution are
relevant to the industry. Establishing such linkages will lead to effective industrial
attachment and training practices, collaborative research between industrialists and
academics to identify feasible solutions to the challenges of both parties. The knowledge
will also develop cost effective technologies and innovative products with diverse design
possibilities to meet consumer needs and current trends, among others, purposely to give
the sub-sector a face lift. Moreover, it is recommended that the existing research centres
such as SARI (Savannah Agriculture Research Institute) be supported with the necessary
resources and expertise to enable them research and develop new varieties of cotton seeds
that will be economically significant to the cotton industry. Ideally, the establishment of
exclusively Cotton Research and Development Centre (CRDC) is proposed in any or if
possible, all of the three northern regions where cotton production evolves to ensure
intensive research and development of cotton which is considered as the major cash crop
228
in the region for sustainable development of the cotton industry as is the case for the
cocoa industry in Ghana.
The growing fashion industry is fond of using foreign textile materials with the
justification that such fabrics offer wider application with regard to structure and design
possibilities that meet the current trends of fashion than the local textiles. Collaboration
between the textile industry and the fashion industry is therefore recommended as the
fashion industry directly relies on the products of the textile industry to operate. This will
enable the textile industry develop and create appropriate designs and products that are
commercially viable to meet the demands of the fashion industry to increase patronage of
locally made textiles to sustain the two industries.

Expanding the scope of the Ghana’s National Friday Wear Policy

The fact that the Ghana’s National Friday Wear Policy has increased significantly
the patronage of locally made printed textiles in the last five years cannot be
overemphasized. More efforts have to be made to encourage the use of locally made prints
throughout the week for both formal and casual dresses. One area that can make a
significant impact on the patronage of locally made prints is using them as uniforms for all
academic institutions of first, second and even third cycle institutions. A policy by the
government to make it compulsory for all academic institutions to use locally printed
fabrics bearing the school’s name, logo, colour and philosophy as school uniforms will not
only have positive economic impact on the textile industry but bring sanity in the schools
through easy identification; and also promote the Ghanaian identity.
It has been observed that, although some government institutions have made some
efforts to patronized locally printed textiles for Friday wear, the Judiciary, Military, Police,
and security and other law enforcement institutions have not made much move in this
direction. Perhaps, the nature of their jobs restricts them in this regard. The question is, are
the personnel of such institutions not tired and uncomfortable in their heavy nylon, stiff
Khaki and gabardine uniforms which are less absorbent and poor in air circulation under
hot climatic conditions in discharging their duties? The researcher being a fabric expert
pities them a lot and think that they get alternatives, knowing very well that such fabrics
are not meant for hot climate but for the cold temperate climate which have been copied
blindly for the security and law enforcement agencies without considering the health
implications associated with their usage. It is therefore recommended that the security and
law enforcement institutions adopt local prints as alternative fabrics for uniforms. The
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designs can be engineered to reflect the functional and aesthetic needs of the various
institutions using light weight cotton fabric for comfort. Such move will increase
patronage of local prints substantially.

Zero percent (0%) tariff on importation of textile essentials

The textile industry as the study indicates imports most of its production essentials
from abroad with the payment of 41% import duty on the total value which abysmally
increases the cost of textile production. In order to encourage the local textile industry to
remain in production, it is recommended that the government makes importation of all
textiles manufacturing essentials such as raw materials, machinery and spare parts tariff
free in order to reduce cost of production of locally manufactured textiles. This will
eventually make locally printed fabric affordable to receive high patronage.

Government to subsidize production of locally-made textiles

The study reveals that most textiles producing firms now receive subsidies in the
form of imports and exports tax rebates and free energy supply to motivate them remain in
operation. However, faced with strong price competition by cheap foreign textiles, the
Ghana textile industry struggles to compete as it receives no form of subsidy from the
government. It is therefore economically prudent that a form of subsidy be given to the
local textile manufacturers by the government to enable them cut down production cost,
increase productivity and exports to keep them in business. This could be rebates in water
and electricity bills as the sub-sector consumes great energy and water for production.
Again, input supply to the cotton out-growers must be subsidized to serve as incentive
package to attract more farmers into cotton production in order to increase productivity to
sustain the industry.

Need for the domestic textile industry to build a competitive edge through adoption of
competitive operational strategies
Evidence of the study shows a high competition in both domestic and international
textiles market as a result of liberal trade. The offshore companies have managed to
dominate the subsector with their perceived quality but low priced products making it
extremely difficult for the domestic textile industry to compete. There is the need therefore
for the textile industry to adopt effective competitive operational strategies to build a
competitive edge over their competitors in the local market and beyond. The study
230
therefore recommends competitive advantage strategies such as Just in Time (JIT) or
Time-Based Competition which provides the customer with quick response and flexibility
and helps the company to manage operations with little or no delay time or idle inventories
between one process and the next, with the aim of reducing cycle times, improving quality,
flexibility and various cost (Flynn et al., 1995). It is observed that the textile factories in
order to breakeven and remain in production have resorted to “We Win You Lose”
strategy (takeover) which has led to redundancy of many worker as it is based on the
principle of taking over a weak business with other people’s money and making it strong
by mass shutdowns and layoffs of its weakest elements. The researcher opines that this
strategy is not the best as it increases unemployment and raises a lot of ethical questions.
The study however recommends the “win-win” strategy instead which invests not just
mainly money but also training and helping in implementation of customer-centred
quality, efficiency, and continuous improvement (Schonberger and Knod, 1997). The
continuous strategy in this sense accounts for the needs of customers and competencies of
competitors and must build on the organisation’s internal capacities and capabilities.
Value chain which focuses on product quality and usefulness at low cost is one of
the best competitive approaches that the domestic textile industry could adopt as the study
found that most of the domestic textile customers quest for quality but low cost products.
This, together with Total Quality Management (TQM) approach which epitomizes high
quality, flexibility, service, low cost, minimal variability, would be the best combined
antidote for customer satisfaction. The industry can also consider benchmarking
techniques to build a competitive edge by searching for best practices from whatever
source to be used in improving a company’s own process (Schonberger and Knod, 1997).
Finally, it is recommended that the industries combine defensive and offensive strategies
(Fornell, 1992) to maintain existing customers and attract new ones. This is the only way
the textile industries could take their fair share of the porous and competitive textiles
market to remain operational.

5.4 Suggestions for Further Studies

The study in the course of unearthing the challenges and prospects of the Ghana
Textile Industry identified two major research gaps which require a further investigation to
help address the numerous challenges of the sub-sector. These areas are:
1. The link between the Ghana textile industry and the academic institutions.
2. Development of a holistic national policy for the Ghana textile industry.
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 Other researchers are therefore urged to take up the mantle to investigate the
aforementioned gaps to help find a lasting solution to the numerous challenges of the
Ghana textile industry and the academic institutions for national development.

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 APPENDICES

APPENDIX A: OBSERVATIONAL GUIDE/CHECK LISTS

A.1: COTTON FARMS IN THE NORTHERN REGION

1. Cotton farms: In operation
Out of operation
Divested into other farm products
2. Magnitudes/ dimensions of the cotton farms:
Small-scale medium-scale large-scale
3. Types of cotton: Organic Inorganic
Local varieties-Sonko Deti Je Kadeanyigha
Nigerian variety- Ishan
4. Quality/Grade of cotton grown: High Average Low
5. Method of farming: Manual Mechanical
6. Production capacity: High Average Low Nil
7. Class of people who are into cotton farming........................................................
..............................................................................................................................
8. Availability of land for cotton farming.................................................................
...............................................................................................................................
9. Geographical locations of the cotton farms...........................................................
...............................................................................................................................
10. Observable challenges facing cotton farmers........................................................
...............................................................................................................................
...............................................................................................................................
11. Observable prospects for cotton farmers...............................................................
...............................................................................................................................
..............................................................................................................................

A.2: GHANA COTTON COMPANY LIMITED

1. Geographical location of the mill:..............................................................................
2. Stages in processing of cotton fibres:.........................................................................
.......................................................................................................................
3. Proximity to the textile factories: Far How far?...................................

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 Near How near?.................................
4. Employees: Skilled Unskilled Both
5. Technical expertise: ........................................................................................
6. Machinery capacity: ......................................................................................
7. Production capacity: High Average Low
8. Source of raw material: Local Foreign Both
9. Target market: Local Foreign Both
10. Demand of processed cotton: High Average Low
11. Observable challenges and prospects of the cotton mill.................................
.........................................................................................................................
.........................................................................................................................
12. The state of the company: Fully operational
Partly operational
Closed down
13. General observation:
Challenges..........................................................................................................
...........................................................................................................................
Prospects...........................................................................................................
...........................................................................................................................

A.3: LOCALLY MADE TEXTILES ON GHANAIAN MARKET

1. Types: Wax Java Fancy
2. Quantity: Wax- High Average Few
Java-High Average Few
Fancy-High Average Few
3. Prints from Texstyles Ghana Limited:
Types: Wax Java Fancy Other types.................................
Quantity: Wax................... Java........................ Fancy.................................
Cost per yard: Wax....................... Java......................... Fancy.................
4. Prints from ATL:
Types: Wax Java Fancy Other types...............................
Quantity: Wax................... Java........................ Fancy..................................
Cost per yard: Wax......................... Java......................... Fancy.................
5. Products from VSTL:
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 Grey baft Mercerized cotton fabrics Yarns
Quantity: Grey baft........................................... Cost per yard.............................
Mercerized cotton........................... Cost per yard.............................
Yarns............................................... Cost per hank/cone...................
6. Location: Open market Quantity: High Average Few
Super market Quantity: High Average Few
Woodin shops Quantity: High Average Few
Sales Outlets Quantity: High Average Few
7. Patronage: GTP- High Average Low
ATL-High Average Low
8. Target market: Mass Niche Both
Local International Both
9. Design quality and originality...............................................................................
10. Fabric types............................................................................................................
11. Colour quality and fastness...................................................................................
12. Competitiveness: High Average Low Other comments............
...............................................................................................................................
...............................................................................................................................

A.4: FOREIGN TEXTILES ON GHANAIAN MARKET

1. Types of prints: Wax Java Fancy Others...................
.........................................................................................................................
2. Fabric types: Cotton Polyester Blends Different variety
3. Originality in design: Original Adaptation Knock-off
4. Colour fastness: Excellent Good Average Poor
5. Imitation of Ghanaian designs: High Average Low Non
6. Patronage: High Average Low
7. Competitiveness: Design quality: Excellent Good Average Poor
Print quality: Excellent Good Average Poor
Application: Wide Average Less
8. Available market: Mass Niche Both
9. Location: Open market Quantity: High Average Few
Super market Quantity: High Average Few
Woodin shops Quantity: High Average Few
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 10. General observation:
Challenges........................................................................................................
.........................................................................................................................
.........................................................................................................................
Prospects..........................................................................................................
.........................................................................................................................
.........................................................................................................................

A.5: SALES AND DISTRIBUTION OUTLETS OF THE SELECTED FACTORIES

PREMIUM TEXTILES- TEXSTYLES GHANA LIMITED WOODIN SHOPS
CHAR TEXTILES DISTRIBUTORS (CTD) AKOSOMBO TEXTILES LIMITED
1. Location....................................................................................................
2. Proximity to the target market: Close Far
3. Types of prints on display: Wax Java Fancy Others
4. Quantities: Wax: High Average Few
Java: High Average Few
Fancy: High Average Few
Others: High Average Few
5. Patronage: Wax: High Average Low
Java: High Average Low
Fancy: High Average Low
Others: High Average Low
6. Competitiveness: Design quality: Excellent Good Average poor
Print quality: Excellent Good Average Poor
Application: Wide Average Less
7. Advertising strategies: TV Radio Billboard Others........
8. Promotions: Exhibition Grand Sales Beauty Pageant
9. General observation:
Challenges.................................................................................................
Prospects....................................................................................................

A.6: SELECTED TEXTILE FACTORIES

Texstyles Ghana Limited (Formally GTP)
Akosombo Textiles Limited (ATL)
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Volta Star Textiles Limited (VSTL)
1. Geographical location..............................................................................
2. Proximity to the raw materials: Close Average Far
3. Proximity to the target market: Close Average Far
4. Source of energy: Paid electricity Generators Others......................
5. Source of water: GWC Internal generated water Other source
6. Labour force:...............................................................................................
7. Skilled labour: High Average Low
8. Unskilled labour: High Average Low
9. Technical expertise: High Average Low
10. Departments: Spinning Weaving Inspection Design studio
Dyeing Printing Make-up Others................
11. Machine capacity: High Average Low
12. Machine type: Modern Old Both
13. Source of machinery: Imported Locally built Both
14. Machine efficiency: High Average Low
15. Factory layout: Vertically oriented Horizontally oriented
16. Recycling systems: Water Cotton waste Chemicals
17. Raw material base: Cotton fibres Cotton yarns Cotton fabrics
Dyes and dyeing auxiliaries Printing ink Bleaching agent
Scouring agent Mercerizing agent Size liquor
Others...................................................................................................
18. Source of raw materials: Cotton: Imported Local Both
Dyes and dyeing auxiliaries: Imported Local:
Print paste: Imported Local
Pre-treatment finishes: Imported Local
Size liquor: Imported Local
19. Country of importation of raw
materials:..........................................................
20. Production lines:
• Blow room processes and systems.......................................................
.............................................................................................................
• Spinning processes systems.................................................................

245
 .............................................................................................................
• Warp preparation and systems............................................................
............................................................................................................
• Pirn winding processes and system.....................................................
• Weaving processes and systems..........................................................
• Inspection processes and systems.......................................................
• Pre-treatment processes and systems..................................................
• Dyeing processes and systems............................................................
• Engraving processes and systems.......................................................
• Printing methods and systems.............................................................
• Finishing treatments and systems.......................................................
• Make-up processes and systems.........................................................
21. Workers attitude towards work:
• Time consciousness: Punctual Lateness Regular Irregular
• Responds to safety precautions: High Average Poor
• Approach to work: Proactive Lackadaisical Others..........
Supervision: Strict Affable Loose Others...............

A.7: DAILY USAGE OF LOCALLY MADE PRINTS

1. Types of prints: Wax: Local: High Average Low
Imported: High Average Low
Java: Local: High Average Low
Imported: High Average Low
Fancy: Local: High Average Low
Imported: High Average Low
Other prints................................................................
2. Users: Adult: High Average Low
Youth: High Average Low
Children: High Average Low
Educated: High Average Low
Illiterates: High Average Low
3. Application: Formal wear: High Average Low
Casual wear: High Average Low

246
 Specific occasion: Evening wear: High Average Low
Wedding/bridal wear: High Average Low
Institutional wear: High Average Low
Church service: High Average Low
Friday wear: High Average Low
Other festivities........................................................................................
4. Prints used in Friday wear: Local: High Average Low
Imported: High Average Low
5. General observation.................................................................................
...................................................................................................................

APPENDIX B: INTERVIEW GUIDE

B.1: INTERVIEW GUIDE FOR COTTON FARMERS IN THE NORTHERN REGION

1. Name and age of the farmer

2. Tribe/Nativity
3. Educational background
4. How long have been into cotton farming?
5. Are you still into cotton farming?
6. If no, give reasons for quitting cotton farming business?
7. If yes, why are you still into cotton farming?
8. What is the size of your cotton farm?
9. What is your yearly production capacity?
10. Which type(s) of cotton do cultivate and why?
11. How do you grade the quality of cotton you produce?
12. Which method of farming do you employ?
13. Is there ready market for the cotton that you produce?
14. Whom do you produce the cotton for?
15. Apart from textile production, what other use do you produce the cotton for?
16. Do you receive any kind of assistance from the government or any other
sources?
17. If no, how do you fund your farming?
18. Will you continue farming in cotton if government assist you financially?
19. What about Bank loans?

247
 20. Are you able to supply enough cotton to meet the demand of the cotton
mills?
21. What is your level of income per month or annum?
22. Is the production of local cotton cost effective?
23. Give reasons to your answer in 21.
24. Is there enough available land for cotton farming?
25. If yes, how do you get access to the land for cotton farming?
26. Are there available human resources (Agric extension officers) for cotton
farming?
27. What are your challenges regarding cotton farming?
28. What do you think must be done to sustain the cotton farming industry in the
region?

B.2: INTERVIEW GUIDE FOR TEXTILE INDUSTRIALISTS (ATL, VSTL, GTP,

GCCL)

B.2.1 Administrative Managers/Technical Directors

1. Name................................................................................................................
2. Factory/Specific Location................................................................................
3. Speciality/Position.............................................................................................
4. Year of establishment........................................................................................
5. Brief historical overview of the factory
6. Do you have adequate building infrastructure?
7. What is the total machinery capacity of your factory?
8. State in percentages those that are in operation and those out of operation.
9. Are your machinery old or modern types?
10. Are the machines locally built or imported?
11. What is the output capacity or efficiency of your machinery?
12. How do you finance your production?
13. What is the raw material base of your production?
14. What is the current total workforce or employment level of the factory?
15. How will you compare the current workforce to the previous-1970s?
16. Do you have appreciable technical expertise in the factory?
17. Do you organise periodic workshops and in-service training for your staff?
18. What printing technologies do you employ?
248
 19. Are your production technologies cost effective?
20. What is the current production capacity per day, month and annum?
21. How do you source for water and energy/electricity for production?
22. What is the total consumption of electricity and water per day, month and
annum?
23. Does the factory have standby generators to support production?
24. What textile product(s) do you produce and why?
25. What is the demand for your products?
26. What is your target market?
27. What are your major challenges and prospects regarding production and sales
of your products?
28. Do you receive any form of assistance from the government?
29. How favourable are government policies to the production and sales of locally
made textiles
30. What are the exports and imports levels of the factory?
31. Who are your keen competitors and why?
32. How will you describe the current state of the Ghana’s textile industry?
33. What do you think must be done to invigorate the industry?
The role of the government...................................................................................
Textile industrialists..............................................................................................
Textile institutions.................................................................................................
Textile merchandisers...........................................................................................
Ghanaians...............................................................................................................
34. What are your future plans toward the sustainability and the development of the
factory?
35. How do you envisage the future of the Ghana’s textile industry?

B.2.2: Design Managers

1. Name................................................................................................................
2. Factory/Specific Location.................................................................................
3. Speciality/Position.............................................................................................
4. Do you have adequate building and machine infrastructure?
5. Which types of machines or equipment do you employ in your design process?
6. Do you design manually or with computers?

249
 7. Which computer software do you use in generating your designs and why?
8. What types of designs do you produce?
9. From which sources do you develop your designs and why?
10. How many designs do you produce per day or month?
11. How many designs are printed within a month?
12. What are your range of colours and why?
13. What is your target market and why?
14. Do you design for international market?
15. Which of your designs sells best in the market and why?
16. Who are your main competitors?
17. Are your designs able to compete with the foreign types?
18. If yes, how competitive are your designs?
19. Do you have qualified design experts?
20. What are their qualifications?
21. Are your designs really copied by foreign textile firms?
22. Why do you think the foreign companies copy your designs?
23. Do you have any idea of how they copy and smuggle the deign into Ghanaian
market?
24. What are you doing to curb copying and smuggling of Ghanaian textile
designs?
25. What are your major challenges and prospects as textile designers?

B.2.3: Production Managers

1. Name................................................................................................................
2. Factory/Specific Location................................................................................
3. Speciality/Position.............................................................................................
4. Do you have adequate building and machine infrastructure?
5. What is the total machinery capacity of your factory?
6. State in percentages those that are in operation and those out of operation.
7. Are your machinery old or modern types?
8. Are the machines locally built or imported?
9. What is the output capacity or efficiency of your machinery?
10. How do you finance your production?
11. What is the raw material base of your production?

250
 12. What is the current total workforce or employment level of the factory?
13. How will you compare the current workforce to the previous-1970s?
14. Do you have appreciable technical expertise in the factory?
15. Do you organise periodic workshops and in-service training for your staff?
16. What printing technologies do you employ and why?
17. Are your production technologies cost effective?
18. What is the current production capacity per day, month and annum?
19. How do you source for water and energy for production?
20. What is the total consumption of electricity and water per day, month and
annum?
21. Does the factory have standby generators to support production?
22. What textile product(s) do you produce and why?
23. What is the demand for your products?
24. What are your major challenges and prospects regarding production?
25. Do you receive any form of assistance from the government?
26. How favourable are government policies to the production of locally made
textiles?
27. What are the exports and imports levels of the factory?
28. Who are your keen competitors?
29. How will you describe the current state of the Ghana’s textile industry?
30. What do you think must be done to invigorate the textile industry?
The role of the government....................................................................................
Textile industrialists...............................................................................................
Textile institutions.................................................................................................
Textile merchandisers............................................................................................
Ghanaians...............................................................................................................
31. What are your future plans toward the sustainability and the development of the
factory?
32. How do you envisage the future of the Ghana’s textile industry and why?

B.2.4: Personnel Managers

1. Name................................................................................................................
2. Factory/Specific Location.................................................................................
3. Speciality/Position.............................................................................................

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 4. What is the current total workforce of the factory?
5. How will you compare the current workforce to the previous-1970s?
6. Do you have appreciable technical expertise in the factory?
7. Do you seek technical expertise from foreign textile firms? If yes, why? If no,
why?
8. How do you assess the performance and attitude of workers towards work?
9. Do you organise periodic workshops and in-service training for your staff?
10. How lucrative is the remuneration of staff?
11. Does the factory have an insurance policy and risk allowances for workers?
12. What safety precaution measures do you have for workers?
13. Have provided adequate safety gadgets for workers?
14. What are the workers attitudes toward safety rules?
15. How do you employ personnel in your factory?
16. What is the level of education for your staff?
17. Where do you recruit most of your staff and why?
18. Are there any challenges or prospects with regards to personnel management?
19. How will you describe the current state of the Ghana’s textile industry?
20. What do you think must be done to invigorate the textile industry?
The role of the government....................................................................................
Textile industrialists...............................................................................................
Textile institutions.................................................................................................
Textile merchandisers............................................................................................
Ghanaians...............................................................................................................
21. What are your future plans toward the sustainability and the development of the
factory with reference to personnel?
22. How do you envisage the future of the Ghana’s textile industry and why?

B.2.5: Marketing Managers

1. Name................................................................................................................
2. Factory/Specific Location.................................................................................
3. Speciality/Position.............................................................................................
4. What is your main duty as a marketing manager?
5. How do you distribute and sell the products of the factory?

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 6. What is your target market and why?
7. Do target international market to sell your products?
8. Give reasons for your answer in 6.
9. Where are your sales and distribution outlets located and why?
10. What are your sales/marketing strategies and how effective are they?
11. Who are your competitors?
12. What are your total sales per day, month, or annum?
13. How do you compare the current sales rate to the previous years?
14. Do you have qualified personnel for your sales and distribution operations?
15. Which people mainly patronise your products and why?
16. Are your products affordable to all Ghanaians?
17. What do the customers mostly consider in buying your products?
18. Do you think copying and smuggling of local textile designs have adverse
effects on the sales of locally printed textiles? If yes why?
19. What other major challenges or factors inhibit patronage of locally printed
textiles?
20. Are there any prospects for sales of the locally printed textiles?
21. How will you describe the current state of the Ghana’s textile industry?
22. What do you think must be done to invigorate and sustain the textile industry?
The role of the government....................................................................................
Textile industrialists...............................................................................................
Textile institutions.................................................................................................
Textile merchandisers............................................................................................
Ghanaians...............................................................................................................
23. What are your future plans toward the sustainability and the development of the
factory with reference to personnel?
24. How do you envisage the future of the Ghana’s textile industry and why?

B.3: INTERVIEW GUIDE FOR SELECTED STAFF OF MOTI-TEXTILES DEPT.

1. Name..................................................................................................
2. Position................................................................................................
3. Can you give a brief historical account of the Ghana’s textile industry since 1960?
4. Briefly comment on the current state of the textile industry?
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 5. How many textile factories are currently in operation?
6. Do you testify to the fact that the industry has declined tremendously?
7. If yes, what do you think might have accounted for the decline?
8. What has the government done or is doing to revamp the textile subsector?
9. What is the total production capacity the textile subsector?

10. Can you quantify the total raw material base for the textile industry?
11. Is the infrastructural base for the industry in terms of building and machinery
substantial?
12. Does the textile industry have enough qualified technical expertise?
13. What is the statistics on imports of foreign textiles from 2000 to 2010?
14. What is the statistics of exportation of locally made textiles from 2000 to 2010?
15. What is the total value of importation of raw material and spare parts for textile
production from 2000 to 2010?
16. What benefits are derived from the textile subsector?
17. Does the textile industry have a strong financial/capital base?
18. Does the government subsidize textile production?
19. Are government policies regarding the textile industry favourable?
20. What major challenges confront the textile industry?
21. Are there any prospects for the textile industry?
22. What is the MOTI doing towards sustainable development of the textile industry?
23. What is the fate of the future of the Ghana’s textile industry?

B.4: INTERVIEW GUIDE FOR SELECTED STAFF OF CEPS

1. Name.....................................................................................................................
2. Position..................................................................................................................
3. Do you testify to the fact that there is an alarming rate of smuggling of textiles in
the country?
4. If yes, what is the rate of smuggling of textiles in the recent years?
5. Have you made any arrest of textile smugglers?
6. If yes, who are involved in the smuggling activity?
7. What measures have you put in place to combat smuggling of textiles?
8. Do you involve the police in your activities in checking smuggling of textiles?
1. What types of textiles are the smuggled goods made of?
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 2. Are the smuggled textiles of good quality?
3. From which countries are the textiles smuggled into the country?
4. Are there any sanctions for the culprits/smugglers? If yes, what are they?
5. Do you confiscate the textile goods on the arrest of the smugglers?
6. If yes, how are the confiscated smuggled goods treated?
7. What is the government doing to curb smuggling textiles?
8. What impact does the smuggling activities has on the textile industry?
9. What do you think must be done to control smuggling of textiles?

B.5: INTERVIEW GUIDE FOR TEXTILES MERCHANDISERS

1. Name.......................................................................................
2. Location....................................................................................
3. How long have you dealt in textile merchandising?
4. What types of textiles do you sell?
5. Where do you get them from?
6. Which of the prints sell best and why?
7. How do you compare the foreign and local prints in terms of quality?
8. Which of the prints are affordable and why?
9. Which type receives high patronage and why?
10. What is the value of duties/tariffs on imported textiles?
11. Do the duties/tariffs affect the selling price of the textile?
12. Can you testify to the fact that some of your colleagues indulge in smuggle of
textiles?
13. If yes, which countries and roots do they embark their smuggling operation?
14. How do you justify the cost of local textiles as against the foreign types?
15. What strategies do you employ to attract more customers and why?
16. What are your challenges in the sale of textile prints?
17. What are you doing to address the challenges?
18. How lucrative is textile merchandising?
19. What do you think must be done to invigorate and sustain the textile industry?
The role of the government....................................................................................
Textile industrialists...............................................................................................
Textile institutions.................................................................................................
Textile merchandisers............................................................................................
255
 Ghanaians...............................................................................................................
20. How do envisage the future of the locally made textile merchandising?

256
APPENDICX C: QUESTIONNAIRE

C.1: Questionnaire for Textile Industrialists

KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

COLLEGE OF ART AND SOCIAL SCIENCES, FACULTY OF FINE ARTS
DEPARTMENT OF GENERAL ARTS STUDIES

Questionnaire for Textile Industrialists

This questionnaire is designed to solicit data on the challenges and prospects of the
Ghana’s Textile Industry with special reference to production and sales. The vision of the
study is to help make pragmatic projections toward the invigoration of the textile sub-
sector. As a multiple case study, the research focuses on ATL, GTP and VSTL but also
quest for relevant data from other companies and institutions whose operations may have
direct or indirect influence on the subject. Data collected will be treated with the necessary
confidentiality and purely for academic purpose. It will therefore not be used outside its
intended purpose. Thank you.

Instruction: Please thick (√) what you think is the right answer from the alternatives given
and provide written answers where necessary.

Section A: General Background of the respondent

1. Factory: ATL [ ] GTP [ ] VSTL [ ] GCC [ ]
2. Specific Location of the
Factory:…………………………………………………………….
3. Year of Establishment:……………………………
4. Sex: a. Male [ ] b. Female [ ]
3. Age a. 15 -25 [ ] b. 26-35[ ] c. 36-45 [ ] d. 46-55[ ] Above 56 [ ]
3. Level of education: a. Primary [ ] b. JHS [ ] c. SHS [ ] e. Tertiary [ ]
Other.......................
4. Position: a. Technician [ ] b. Supervisor [ ] c. Manager [ ] Other……………
6. How long have you been working with factory? a. less than a year [ ] b. 1 -5years[ ]
c. 6 -10 [ ] d. 11-20 years [ ] Above 20 years [ ] Specify………………………
7. Please state your area of specialization?.............................................................................
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8. Were you trained on the job? Yes [ ] No [ ]
9. If no, how did you obtain your training? Apprenticeship [ ] Technical school [ ]
Polytechnic [ ] University [ ] Other…………………………………………

Section B: The factory’s operations

1. How equipped is the factory in terms of building infrastructure?
a. Well-equipped [ ] b. Fairly-equipped [ ] c. Poorly equipped [ ] Other ............
2. How do you rate machinery capacity of your factory?
a. Adequate [ ] Fairly adequate [ ] inadequate [ ] Other..............................
3. State in percentages the machines that are in full operation.
a. 1-25% [ ] b. 25-50% [ ] c. 50-75% [ ] d. 75-100% [ ]
4. Are your machinery old or modern types? a. Modern [ ] b. Old [] Other.................
5. Are the machines locally built or imported?
a. Locally built [ ] b. Imported [ ] Other..............................................................
6. What is the output capacity or efficiency of your machinery?
a. Very efficient [ ] b. Fairly efficient [ ] c. Inefficient [ ] Other..................
7. How do you finance your production? a. Internal generated funds [ ]
b. Government [ ] c. Bank loans [ ] other sources [ ] Specify...........................
8. What are the main raw material base for your production:............................................
........................................................................................................................................
9. Are the raw materials locally available or imported?
a. Local available [] b. Imported [ ] c. Both [ ] Specify the quantities in
percentages......................................................................................................................
10. What is the current total workforce of the factory? .......................................................
11. How will you compare the current workforce to the previous years?............................
........................................................................................................................................
12. Do you have appreciable technical expertise in the factory? a. Yes [ ] b. No [ ]
13. How do you assess the strength of the technical expertise of your factory?
a. High [ ] b. Average [ ] c. Low [ ] d. Other..................................................
14. Do you organise periodic workshops and in-service training for your staff?
a. Yes [ ] b. No [ ]
15. If yes, how frequent does this happen? a. Monthly [ ] b. Quarterly [ ]
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 c. Half a year [ ] d. Yearly [ ] e. Other....................................................................
15. What are your production processes?...........................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................

16. Are your production technologies cost effective? a. Yes [ ] b. No [ ]

17. Justify your answer in 16.................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
18. What is the current production capacity per day, month or annum?................................
..........................................................................................................................................
19. How do you source for water and energy/electricity for production? .............................
..........................................................................................................................................
..........................................................................................................................................
20. What is the total consumption of electricity and water per day, month or
annum?.............................................................................................................................
.........................................................................................................................................
21. Does the factory own standby generators to support production? a. Yes [ ] b. [ ]
If yes, at what time do you use them?............................................................................
22. What type of textile product(s) do you produce and why?
.........................................................................................................................................
.........................................................................................................................................
23. What is the demand for your products? a. High [ ] b. Average [ ] c. Low [ ]
24. Give reasons to support your answer in 23.....................................................................
25. Are your products affordable? a. Yes [ ] b. No [ ]
26. Justify your answer in 25.................................................................................................
27. What is your target market?.............................................................................................
28. What are your major challenges with regard to production and sales of your products?
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................

259
29. What are your prospects regarding production and sales of your products?
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................

Section C: External Factors that influence the factory’s operations

1. Do you receive any form of assistance from the government? a. Yes [ ] b. No [ ]
2. If yes, what kind of assistance do you receive from the government?
..............................................................................................................................
...............................................................................................................................
3. How do you assess government’s policies with regard to production and sales of
locally made textiles? a. Very favourable [ ] b. Less favourable [ ] c. Not
favourable [ ]
4. What are the exports and imports levels of the factory in terms of following?
• Raw materials:....................................................................................................
• Products:.............................................................................................................
• Machinery and spare parts:................................................................................
5. Do you pay tariffs on imported textiles raw materials and equipment?
6. If yes, how reasonable is the tariff? a. Very reasonable [ ] b. Quite reasonable [ ]
c. Not reasonable [ ] d. Other comment......................................................................
7. Who are your major competitors and why?....................................................................
8. How will you describe the current state of the Ghana’s textile industry?........................
..........................................................................................................................................
..........................................................................................................................................
9. What do you think must be done to invigorate the industry?
a. The role of the government..................................................................................
b. Textile
industrialists..............................................................................................
c. Textile institutions................................................................................................
d. Textile merchandisers...........................................................................................
e. Ghanaian textile consumers .................................................................................

260
10. What are your future plans toward the sustainability and the development of the
factory?............................................................................................................................
..........................................................................................................................................
.........................................................................................................................................
11. How do you envisage the future of the Ghana’s textile industry in general?
..........................................................................................................................................
..........................................................................................................................................
12. Please provide any other suggestion(s) you think can help in revitalizing the textile
industry and why you think so.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
.........................................................................................................................................

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C.2: Questionnaire for Textile Lecturers
KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY
COLLEGE OF ART AND SOCIAL SCIENCES, FACULTY OF FINE ARTS
DEPARTMENT OF GENERAL ARTS STUDIES

Questionnaire for Textile Lecturers

This questionnaire is designed to solicit data on the challenges and prospects of the
Ghana’s Textile Industry with special reference to production and sales. The vision of the
study is to help make pragmatic projections toward the invigoration of the textile sub-
sector. As a multiple case study, the research focuses on ATL, GTP and VSTL but also
quest for relevant data from other companies and institutions whose operations may have
direct or indirect influence on the subject. Data collected will be treated with the necessary
confidentiality and purely for academic purpose. It will therefore not be used outside its
intended purpose. Thank you.

Instruction: Please thick (√) what you think is the right answer from the alternatives given
and provide written answers where necessary.

Section A: General Background of the respondent

1. Status: Assistant Lecturer [ ] Lecturer [ ] Senior Lecturer [ ] Other [ ]
(Specify)…..
2. Age: Below 30 [ ] 31-40 [ ] 41-50 [ ] 51-60 [ ] Other [ ]
(Specify)……………..
3. Sex: Male [ ] Female [ ]
4. Institution: KNUST [ ] UEW [ ] Kumasi Poly [ ] Takoradi Poly [ ]
5. Highest Education: Bachelor [ ] Masters[ ] Doctorate [ ] Other………………
6. Specialization: Textile Design [ ] Textile Science [ ] Textile Technology [ ]
Textile Management [ ] Fashion Design [ ] Other [ ] (Specify)………………
7. Subject Area: Textile Design [ ] Textile Science [ ] Textile Technology [ ]
Textile Management [ ] Fashion Design [ ] Other [ ] (Specify)………………
8. For how long have you taught in textiles? Less than 5 years [ ] 6 -10 [ ] 11-20 years
[ ] Above 20 years [ ] (Specify)……………………………..

262
Section B: The relevance of the textile institutions to the local textile industry
9. What is the enrolment level of your institution? Very high [ ] Average [ ] Low [ ]
10. Justify your answer in question9.
11. Which textile programmes do you run in your institution? Please list them:...................
..........................................................................................................................................
...
..........................................................................................................................................
..........................................................................................................................................
12. Which major courses do you offer under each respective programme you have listed in
question11?........................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
13. How relevant are the courses to the local textile industry?
...........................................................................................................................................
...........................................................................................................................................

14. Do you have qualified instructors and technicians? Yes [ ] No [ ]

15. If yes, how qualified are they?..........................................................................................
...........................................................................................................................................
......
16. Is there any form of collaboration between your institution and the textile industries?
Yes [ ] No [ ]
17. If yes, specify the kind of collaboration you have with the factories?.............................
..........................................................................................................................................
.......................................................................................................................................
18. Do you organise periodic industrial tour and attachment programmes for your
students? Yes [ ] No [ ]
19. If yes, how frequent are these done? Once every month [ ] Once every semester [ ]
Once every two semesters [ ] Other [ ] Specify...........................................................
20. Do you have adequate relevant facilities at your institution to acquaint students on
industrial processes and mechanisms? Yes [ ] No [ ]
21. Assign reason(s) to your answer in question 18................................................................
..........................................................................................................................................
..........................................................................................................................................

263
22. What is the level of employment of textile graduates in the textile industries?
High [ ] Average [ ] Low [ ]
23. Are there appreciable job prospects for textile graduates you train? Yes [ ] No [ ]
24. Justify your answer in question 23...................................................................................
...........................................................................................................................................
...........................................................................................................................................
25. In your opinion what do you perceive as the major challenge(s) facing textile graduates
after school?......................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
26. How do you assess the performance of your graduates at the industries?
Excellent [ ] Very good [ ] Good [ ] Average [ ] Poor [ ]
27. What do you think might account for the assessment you have given in question 25?
..........................................................................................................................................
..........................................................................................................................................
Section C: Challenges and prospects of the textile industry
30. What are the major challenges of the textile industry in Ghana?
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
.........................................................................................................................................
31. What are the major prospects for the textile industry in Ghana?
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
32. How will you describe the current state of the Ghana’s textile industry?........................
..........................................................................................................................................
..........................................................................................................................................
33. What do you think must be done to invigorate the textile industry?
a. The role of the government.......................................................................................
b. Textile industrialists..................................................................................................
c. Textile institutions.....................................................................................................
d. Textile merchandisers.................................................................................................
e. Ghanaian textile consumers........................................................................................
264
34. How do you envisage the future of the Ghana’s textile industry?
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
35. Please provide any other suggestion(s) you think can help in revitalizing the textile
industry and why you think so?..................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................

265