Development Bank Ghana (DBG) has signed a Memorandum of Understanding (MoU) with the Association of Ghana Industries (AGI) as part of its mandate to accelerate the growth of key sectors of Ghana’s economy.

The collaboration aims to strengthen the textiles and garments industry by supporting local businesses to scale production, improve competitiveness, and create jobs.

As part of the MoU, DBG will partner with AGI to implement a three-year initiative that provides technical support, financial resources, and market development assistance to selected textile, garment, and fintech companies. The initiative will help address key industry challenges, such as high production costs, limited skilled labour and access to 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," said K. Duker, CEO of DBG.

"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 invest an initial GHS 566,200.00 in dedicated financial support to AGI to execute a range of activities during the program. These activities include identifying at least three investable projects within the textile and apparel value chain, technical assistance, market development, capacity-building sessions, and regular monitoring and evaluation to assess the intervention's impact.

The CEO of DBG further announced that DBG, in collaboration with Partner Financial Institutions (PFIs) and Development Partners (DPs) aims to invest at least GHS 100 million annually through long-term financing over the next three years in Ghana’s textile and garments industry.

Additionally, through its Guarantee subsidiary, DBG Guarantee (DBGG), DBG seeks to catalyse and unlock significant financing for the sector by providing partial credit guarantees, enabling businesses to invest in growth and expand their operations.

In his address, Dr. Humphrey Kwesi Ayim Darke, President of AGI, intimated that 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.

At the brief signing ceremony, Prof. Eric Osei-Assibey, Chief Economist Designate at DBG, said, "The textile and garment sector has immense potential to contribute significantly to Ghana’s economic growth."

"Through this partnership with AGI, DBG is committed to bridging the financial and technical gaps that have hindered the sector’s growth. He further pointed out that the industry has opportunities to transition towards sustainable manufacturing and circularity, particularly in recycling textile waste and adopting eco-friendly production practices. Therefore, emphasis will be placed on integrating sustainable practices, ensuring that the sector grows responsibly and contributes to environmental preservation."

The programme is expected to enhance beneficiary companies’ competitiveness and operational efficiency, drive job creation and economic empowerment within the textile and garment sector and expand market linkages, boosting Ghana’s export potential.

The partnership between DBG and AGI is a vital step towards revitalising the textiles and garments industry, paving the way for long-term economic growth and sustainability.