Garment Factories a Game-Changer for Employment & GDP Growth – Economic Analyst

Story by: Rebecca Okine

Economic Analyst Ebenezer Otu Okley has described the government’s decision to partner with the private sector in establishing three garment factories as a significant step towards tackling youth unemployment and stimulating Ghana’s economic growth.

The garment factory initiative which falls under the broader 24-hour economy policy was announced by the Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare at the second edition of the Kwahu Business Forum at Mpraeso in the Eastern Region of Ghana. The initiative is expected to create a total of 27,000 jobs across the country.

Speaking on the Business Breakfast on Zed 101.9 FM on Thursday April 24, 2025, Mr. Okley highlighted the potential of the initiative to transform lives, particularly among the youth, and set the economy on a path of sustainable growth.

“This is welcoming news to all of us,” he said. “From the economic point of view, we’re looking at creating jobs for Ghanaians, especially the youth.”

Ghana’s youth unemployment rate, currently estimated at over 14%, has been a major source of concern for policymakers and citizens alike. According to Mr. Okley, the proposed garment factories, operating in three shifts, have the capacity to each employ around 3,000 individuals per shift, significantly contributing to reducing the high unemployment rate.

“If this initiative really takes off, we are looking at substantial employment gains,” Mr. Okley said. “More people working means more income flowing through households and people will spend more, and this consumption drives economic growth.”

Beyond immediate employment benefits, Mr. Okley emphasized the potential for long-term transformation through skills development.

“There are a lot of young people out there who are not really engaged in any productive work,” he said. “Once people get involved and acquire the necessary skills, they can even go on to start their own businesses so we’re not just creating jobs, we’re building entrepreneurs.”

In line with efforts to boost skills development, the government recently launched the One Million Coders Programme, a national digital skills initiative aimed at equipping Ghanaians with the tools needed to thrive in the digital economy.

Launched by President John Dramani Mahama on Wednesday, April 16, 2025, the programme seeks to train one million individuals over the next four years in areas such as coding, cybersecurity, data analytics, and other tech-related fields.

At the launch, President Mahama described the programme as a cornerstone of his administration’s Reset Ghana agenda, which is focused on building a digitally literate workforce and positioning Ghana for a more competitive role in the global digital economy.

This initiative complements the garment factory project by addressing a broader need for workforce development across sectors

Mr. Okley also stressed that growth in the garment manufacturing sector would be more inclusive and widely felt across the population, unlike the recent economic growth largely driven by capital-intensive extractive industries.

“We saw GDP growth last year and applauded the government, but that growth came mainly from the extractive sector what some call galamsey,” he said. “That kind of growth is capital-intensive and dominated by foreign players so even though the economy grew, many Ghanaians didn’t feel it.”

Mr. Okley further noted that the initiative could enhance Ghana’s position in regional trade, especially under the African Continental Free Trade Area (AfCFTA).

There have been growing calls for Ghana to more actively utilize the AfCFTA, especially in light of recent global trade challenges, such as the retaliatory tariffs imposed by the Trump administration. In this context, the garment industry could play a pivotal role in strengthening Ghana’s trade ties within Africa and boosting its resilience to external trade shocks. With proper investment, policy support, and skill development programs, Ghana’s garment sector could soon become a cornerstone of both employment and industrial growth.