Business News of Friday, 15 September 2006

Source: GNA

Committee to address aliens' influx into textiles, garments retail

Ho, Sept. 15, GNA - Cabinet has set up a committee to address the influx of aliens into the retail of textiles and garments. Mr Kwadzo Affram Asiedu, Deputy Minister of Trade, Industry, Private Sector Development (PSD) and President's Special Initiatives (PSIs) gave the hint at the launch of the National Friday Wear in Ho on Friday.

He said the multi-sectoral committee, which includes representatives of the ministries of Finance, the Interior and Trade was considering among other measures, recommendations for a hike of the ceiling on investments levels for foreigners.

Mr Asiedu said local collaborators fronting for foreigners who clandestinely enter business in Ghana would be flushed out. The Friday wear policy, under which formal sector workers are encouraged to put on clothes made with African or Ghanaian prints, was mooted by government in 2004 to re-vitalise the local textiles industry and increase national identity.

He said government was doing everything to re-vitalise the textiles industry, which used to be a prime employer in the past but which now employs only 4,000 people.

The minister hinted that the Juapong Textiles Company, which was closed down when VLISCO, the major investor withdrew, was being re-assessed for re-opening soon.

He said the Friday wear policy was a challenge to designers and dressmakers to be innovative meet orders on time and produce to meet tastes and directions of clients.

Mr Asiedu also hinted that government was carrying out what he called "technological audits" of distressed but potentially viable industries throughout the country for revitalization. Mr Kwabena Adu-Parkoh, Regional Representative of the Akosombo Textiles Limited (ATL), complained about the threat posed to the local industry by manufacturers from the Far East.

He called them "Asian Copiers", who produce cheap fabric with local designs and smuggle them to their agents in the country to under-cut prices.

Mr Mawutor Goh, Ho Municipal Chief Executive in a welcoming address announced that the Assembly had acquired land in Ho to establish a garment factory.

He said a training process for dressmakers and designers was on-going to prepare them to produce clothing for export to the United States of America under the African Growth and Opportunities Act (AGOA). Mr Kofi Dzamesi, Volta Regional Minister, who presided, announced that an office for the management of micro-credits would be operational in Ho by the close of the year.

He urged business people, with verifiable documents and viable business plans to take advantage of the scheme.