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08.10.2004 Business & Finance

8-billion-cedi garment factory for Kwahu South District

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Mpraeso, Oct. 8, GNA - An eight-billion-cedi garment factory is to be set up in the Kwahu South District under the President Special Initiative (PSI) on Garment to produce various types of garments for the American Market under the African Growth Opportunity Act (AGOA) programme.

The factory, which would be owned by both the public and the private, wil be known as Okwahuman Garment Company Limited. It is expected to offer employment for over 200 youth in the Kwahu South and West Districts.

The Kwahu South District Chief Executive (DCE), Mr Raymond Osafo Djan announced this at a one-day investors forum organized by the district assembly for assembly members, Heads of Department, banks and other strategic investors at Mpraeso on Thursday.

He said the assembly has set aside 250 million cedis as part of its 20 per cent share in the company, while an abandoned fertilizer depot is being rehabilitated at Nkwatia for the take off of the factory within six months.

The Mr Osafo-Djan said, shares would be floated for Kwahu citizens and other residents, organisations and strategic investors to purchase as part of the government's property owning programme.

Addressing the forum, the National Co-ordinator, of PSI on garment, Nana Tweneboa Boateng urged district assemblies to take the initiatives of the PSI on garment to set up garment factories for the production of various types of garments for export to the American markets under the AGOA programme.

He said Americans spent 70 billion dollars annually on dresses and uniforms and they prefer orders from African countries, since they were often cheaper than those from China and the Far East countries, due to proximity.

Mr Lawrence Prempeh, National Co-ordinator of the Rural Enterprise Programme said the PSI projects are privately owned and they were meant to supplement the exportation of the country's primary products, such as cocoa, gold and timber to enhance the country's exports and to offer employment to the people.

He said the government would provide infrastructures, while individuals, private organizations and the banks were expected to provide the needed capital to establish the projects. Mr Prempeh advised Kwahu entrepreneurs to diversify their trading activities and invest in the production sector to enhance the country's development.

The President of the Ghana Union Traders Association (GUTA), Paa Kofi Ansong gave assurance that the association would mobilize the Kwahu entrepreneurs in Accra to invest in the project.

The Chairman of the forum, Nana Adarkwa Boadi Yiadom II, Kwahu Prasohene advised the people to avoid politicising the projects and urged all Kwahu citizens, irrespective of their political affiliations to invest in the projects.