Financing Ghana’s textile and apparel sector remains a critical challenge, underscoring the need for a catalytic, multi-stakeholder financing framework to drive growth and competitiveness.
This multi-stakeholder scheme, centered on mobilizing private capital (from financial, development finance and philanthropic institutions), while leveraging existing technical support from development cooperation agencies, is the result of a study, Modelling of context-tailored Catalytic Capital Scheme for SMEs in the textile and agribusiness sectors in Ghana and Nigeria, respectively.
At a recent workshop which brought together diverse group of stakeholders, including representatives from financial institutions, the Ministry of Trade, Agribusiness & Industry, Motai- Ghana, Development partners active in the apparel sector, the Association of Ghana Apparel Manufacturers and CEOs of garment manufacturing firms, the multi-stakeholder engagement provided a platform for dialogue, knowledge sharing, and discussion of proposed schemes.
Key scheme highlights are as follows:
A guarantee fund for growth-stage enterprises and scaling industrial manufacturers to finance raw materials and machinery acquisition.
A concessional sidecar matching facility targeted at scaling industrial manufacturers for financing long term capital expenditure.
Both financing strategies are to be accompanied with strong technical support from German Development Cooperation and other partners, such as the International Labour Organization and the Jobs for Economic Transformation in Ghana (JET).
The workshop reinforced the importance of collaboration among stakeholders in driving sustainable growth, addressing sector challenges, and creating meaningful employment opportunities.
This workshop was supported by the Sector Network for Economic Development in Africa (NEDA), a GIZ internal transactional network for mutual learning and knowledge exchange, and carried out as part of #InvestforJobs, an initiative of Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ) and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.
