The Minister of Trade and Industry, Alan Kwadwo Kyeremanten has said there is a steady recovery of the nation’s textile industry since the government started implementing its stimulus package for ailing textile manufacturers in July 2018.
According to him, the package, as part of a transitional agreement, has initial capital for the operations of Akosombo Textiles Limited (ATL).
He said this during a question and answer session in Parliament on Wednesday.
Hon Alan Kyeremanten disclosed this when Samuel Okudzeto Ablakwa, MP for North Tongu asked a question on behalf of Thomas Nyarko Ampem MP for Asuogyaman.
The Asuogyaman lawmaker sought to find out from the Minister whether the ministry has plans for saving ATL from total collapse.
The Minister in his answer told the House that, ATL is “currently not in a situation that could be described as facing the risk of total collapse” due to specific incentives the company is benefitting which includes a 3-year VAT exemption (0 rated); import duty waiver & concessions on raw materials & machinery import; deferred VAT payment on imports to improve cash flows.
Mr. Kyeremanten further told the House that ATL is aggressively pursuing an international sales drive and has established relations with trading companies in Nigeria, Berlin, Brussels, U.S.A, and the U.K in order to step up export sales; in promoting made-in-Ghana textiles.
He also said the cabinet has approved the following policy measures to protect local textile manufacturers: tax stamps for locally manufactured & imported textiles; Tema Port designated as a single-entry corridor for textiles; implement a textile import management system; establish a textile task force.
On job creation, the sector minister was hopeful about new jobs to be created in the textile sector as a result of new government policy measures which would be put in place.