Stakeholders welcome plans by gov’t to revamp Volta Star Textiles

Some stakeholders in the fabrics and garments industry have welcomed government’s planned bid for new strategic partners in revamping the Volta Star Textiles Limited.

According to them, revamping the company will be a huge relieve for the industry in its bid to support government’s industrialization agenda.

This follows some revelations that the company is facing dire financial crises for some time now.

Minister of Trade and Industry, Alan Kyerematen announced the decision to open the bid for new potential investors.

Mr. Kyerematen cited the inability of the initial investors, Bullion Investment Consortium to inject the expected capital of $13 million into the company’s operations for a 70 percent stake.  

According to him, the company is also to be considered for government’s stimulus package.

The United States Agency of International Development, USAID-Ghana said it will also be considering support for the initiative.

The Chief Executive of Sleek Garment and Exports Limited, Nora Bannerman Abbot told JoyBusiness, the decision could not have come at a better time.

She said, “What we need is to generate businesses. We need more orders coming in, as the orders grow, investors in the textile industry will also choose to make here a destination to establish their businesses.

Nora Bannerman said, “We are importing most of our fabrics from China whether on the open market or directly for our business where we could actually produce these here and generate jobs to our people.”

“So we need to take a look at all of this. But it is a challenge for us and looking at my sector for instance, out of we could generate businesses,” she said.

An evaluation by PriceWater House Coopers showed a minimum of GH₵20 million may be required to make Volta Star Textiles that viable given its total debt of 13.4million Ghana cedis as at May, 2017. 

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