President John Dramani Mahama has expressed delight at moves by the Savanna Accelerated Development Authority (SADA) to partner with the China National Textiles and Apparel Council (CNTAC) to establish a textile factory in the Northern Savanna Ecological Zone (NSEZ) of the country.

He has, therefore, pledged government's support for the project, explaining that it would help exploit the huge potential that the country has in the textile business.

The president threw his support behind the project in Kumasi, when a 10-member delegation from CNTAC, accompanied by the incoming Economic and Commercial Counsellor of the Embassy of the People’s Republic of China in Ghana, Chai Zhijing, paid a courtesy call on him at the residence of the Ashanti Regional Minister.

The delegation visited the president after the signing of two Memoranda of Understanding (MoU) between SADA and CNTAC at Flagstaff House in Accra. The MoU was to establish a framework for the establishment of a cotton and textiles project in the NSEZ, which SADA has working to exploit its economic potential.

Using Ghana's vast potential in cotton production as basis, President Mahama said the SADA-CNTAC cotton and textiles project would be the beginning of bigger things to happen in that industry.

He noted that Ghana had all the conditions necessary to be a leader in cotton and textiles on the continent and was, therefore hopeful that the agreement would help to unlock that potential.

He assured the delegation of government’s full support for the project, emphasising that the decision to partner with SADA was the right decision, given that the authority has been mandated by law to lead the comprehensive development of the savannah zone of the country, and to represent government in joint ventures.

Gateway to ECOWAS

Briefing the president, the leader of the delegation and the Vice President of CNTAC and Executive Vice Chairman of the Sub-Council of the Textiles Industry (CCPIT), Mr Xu Yingxin, assured the the country of the commitment of CNTAC and the Government of China to developing the textile industry in the SADA Zone.

He said his outfit was hopeful of using the project as a gateway to ECOWAS, adding that it will create win-win results for the people of the two countries.

Introducing himself to President Mahama, the in-coming Economic and Commercial Counsellor, expressed the Chinese government’s commitment to seeing the friendly bilateral relations between the two countries grow from strength to strength.

About the project

When completed, the cotton and textiles project is expected to cover up to 500,000 hectares of land in the the NSEZ.

Of the two MoUs signed, the second, which signed with China CAMC Engineering Company Ltd and Elmwood Investment Partners, set out the parameters of an initial US$300 million contract to develop stage one of the project up to 50,000 hectares of land.

SADA is expected to identify suitable locations and lands in the Savannah Zone and work with chiefs and people for orderly acquisition of those lands. It will also ensure that affected communities get maximum benefit through employment creation and investment in young people in the area.