Development Bank Ghana (DBG) has announced plans to invest at least GH¢ 100 million annually in the domestic textiles and garments industry over the next three years.

DBG’s Chief Executive Officer, Kwamina Duker announced the plans during the signing ceremony of a memorandum of understanding (MoU) with the Association of Ghana Industries (AGI) in Accra.

The funding will be channeled through Partner Financial Institutions (PFIs) and Development Partners (DPs) via long-term financing.

“DBG’s support for the textiles and garments industry aligns with our strategic focus on manufacturing as a priority sector for development,” the CEO said.

“This collaboration with AGI provides an opportunity to support the sector’s growth, leveraging global trade opportunities such as AfCFTA and AGOA. Our combined efforts will help local businesses overcome barriers, increase production capacity, and tap into new markets, ultimately strengthening Ghana’s economy,” he added.

DBG will commit an initial GH¢ 566,200 to AGI to execute various activities under the programme.

These include identifying at least three investable projects within the textile and apparel value chain, providing technical assistance, facilitating market development, organizing capacity-building sessions, and conducting regular monitoring and evaluation to assess the program’s impact.

As part of the MoU, DBG and AGI will implement a three-year initiative to provide technical support, financial resources, and market development assistance to selected textile, garment, and fintech companies.

The programme aims to address critical challenges such as high production costs, limited skilled labour, and restricted access to long-term financing.

This collaboration focuses on strengthening the textiles and garments industry by supporting local businesses to scale production, enhance competitiveness, and create jobs.

Additionally, DBG’s Guarantee subsidiary, DBG Guarantee (DBGG), will provide partial credit guarantees to unlock further financing for businesses in the sector, enabling them to invest in growth and expand operations.

At the signing ceremony, Dr. Humphrey Kwesi Ayim Darke, President of AGI, highlighted the significance of the partnership.

“By facilitating access to funding and critical technical resources, DBG is addressing the unique challenges faced by local textile and garment companies. This partnership will empower businesses to improve their operational efficiency, create jobs, and gain access to both local and international markets,” he said.

Prof. Eric Osei-Assibey, Chief Economist Designate at DBG, emphasized the potential of the textiles and garments sector to drive economic growth.

“Through this partnership with AGI, DBG is committed to bridging the financial and technical gaps that have hindered the sector’s growth. Additionally, we aim to integrate sustainable practices, such as recycling textile waste and adopting eco-friendly production methods, to ensure the industry grows responsibly while preserving the environment,” he noted.

The programme is expected to enhance beneficiary companies’ competitiveness and operational efficiency, create jobs, and expand market linkages to boost Ghana’s export potential.