The Volta Star Textiles Limited, a textile processing company located in Juapong, Ghana, has captured the attention of the Ghanaian government as a potential candidate for revitalization. The company, once a vibrant contributor to the local textile industry, has been dormant since July 2023, crippled by a substantial power debt and operational inefficiencies stemming from outdated technology. Recognizing the importance of domestic production and job creation, the government, led by the Minister of Trade, Agribusiness and Industry, is undertaking a viability assessment to determine the best course of action for injecting capital and stimulating the company’s revival. This initiative aligns with the government’s broader vision of fostering import substitution, boosting local industries, and strengthening the national economy.
The rationale behind the government’s interest in Volta Star Textiles is multifaceted. As a producer of grey baft, the raw material for various textile products, the company plays a crucial role in supplying local textile industries. Reviving its operations would reduce the nation’s reliance on imported grey baft, thereby conserving foreign exchange and stabilizing the Ghanaian cedi. Furthermore, a revitalized Volta Star Textiles would generate much-needed employment opportunities, contributing to the government’s objective of creating jobs for the youth. The company’s strategic importance is underscored by the potential for leveraging efficient technology and alternative power sources to improve its operational sustainability and reduce its dependence on the national grid.
While the government acknowledges its role in providing leadership and facilitating the revival process, there is a strong emphasis on private sector involvement. The prevailing view is that a public-private partnership (PPP) offers the most viable and sustainable model for Volta Star Textiles’ resurgence. This approach would combine government support with private sector expertise and investment, creating a synergistic framework for long-term success. The Ghana Eximbank has expressed interest in assessing the company’s competitiveness and the broader dynamics of the grey baft industry within the African sub-region, signalling a potential avenue for financial support.
The potential benefits of reviving Volta Star Textiles extend beyond the textile industry itself. The company’s managing director highlighted the demand for its products from diverse sectors, including schools, hospitals, mines, and flour mills. Schools require fabric for practical work, hospitals for bedding, mines for gold dust bags, and flour mills for packaging. The revival of Volta Star Textiles would, therefore, have a ripple effect, supporting other industries and contributing to the overall economic growth. The revitalization effort also holds the promise of rejuvenating the local community, which has suffered from the company’s decline, evidenced by the drastic reduction in staff from 2,400 to a mere 505.
The historical context of Volta Star Textiles further emphasizes its significance. Established in 1968, the company was envisioned as a leading producer of grey baft, catering not only to local textile industries but also to neighboring countries. Its past success underscores its potential to regain its former glory and contribute meaningfully to the Ghanaian economy. The current initiative to revive the company represents not just an economic endeavor but also an effort to reclaim a piece of Ghana’s industrial heritage.
The government’s commitment to supporting the textile industry is further exemplified by its visit to Akosombo Textiles Limited, another prominent textile company in Ghana. The Minister of Trade, Agribusiness and Industry, along with her delegation, interacted with staff and inspected operations, hinting at government support to enhance production. This visit underscores the government’s comprehensive approach to strengthening the textile sector as a whole, recognizing its potential for economic growth and job creation. The combined efforts to revive Volta Star Textiles and support other textile companies like Akosombo Textiles demonstrate a proactive strategy for revitalizing a key industry and contributing to Ghana’s broader economic development goals.
