German ADB supports establishment of garment factory at Savelugu
A SOD has been cut for the construction of a large-scale apparel manufacturing factory at Savelugu in the Northern Region.
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The project is being spearheaded by the Northshore Apparel Ghana Ltd, a private company, in collaboration with the German government through its donor agency, the Facility Investment for Employment (IFE) and the Agricultural Development Bank (ADB) PLC.
The about 20.1 million EUR export-oriented project is expected to create some 1,600 jobs for the youth, including graduates of the Savelugu School for the Deaf, and other vulnerable groups.
The event was witnessed by the Paramount Chief of the Savelugu Traditional Area, Yoo Naa Abdulai Yakubu Andani; the Pishigu Lana and a former Managing Director of the Stanbic Bank, Alhassan Andani and the Member of Parliament for Tamale South, Haruna Iddrisu.
Also present were representatives of the Savelugu Municipal Chief Executive, ADB management team, the KFW, the IFE, the Ministry of Trade and Industry and other stakeholders.
Inclusiveness
The Managing Director of the IFE, Steffen Kuhl, said his outfit's strategic focus was on inclusiveness and development.
"A total of 1,600 jobs will be created by the Northshore Apparel Ghana project.
In line with that, an agreement has been signed with the Savelugu School for the Deaf, while 1,120 and 560 positions have been earmarked for women and the youth, including those who are challenged.
"This initiative will not only prioritise graduates for employment opportunities but also significantly contribute to minimising internal migration by providing the much-needed jobs in this part of the country," Mr Kuhl said and added that the project was also aimed at enhancing the region's competitiveness and job creation potential.
The IFE, created by the KFW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), underlines the German government's commitment to fostering job creation and improving working conditions in Ghana.
As an integral part of a Special Initiative dubbed, “Decent Work for a Just Transition,” the IFE aims to create up to 100,000 jobs in its eight partner countries, including Ghana.
Significance
The Managing Director of the ADB PLC, Alhaji Yakubu-Tali, described the decision to establish the manufacturing facility as a bold initiative that would not only contribute to the growth of the garment sector but also stimulate ancillary businesses along the value chain.
“The establishment of this manufacturing facility in the region not only signifies a key step towards industrialisation of northern Ghana but also represents a substantial source of employment opportunities and wealth creation for the youth,” he said.
Alhaji Yakubu-Tali commended the Federal Republic of Germany and its Agency, the KFW, for their unwavering commitment to providing financial and technical support for the construction of the facility.
“As a German-trained investment banker, I appreciate your commitment to alleviating poverty and engendering development through donor-funded projects such as this,” he added.
The founder of the Northshore Apparel Ghana Ltd, Mohammed Nurideen, said the facility consisted of over 5,000 square metres of sewing production, 4,000 square meters of cutting and design building, and 4,000 square metres of raw materials warehouse equipped with a sophisticated racking system.
Chief Alhassan Andani expressed appreciation for the collaborative role of all stakeholders in kick-starting the project.
Yoo Naa Abdulai Andani pledged the support and commitment of the chiefs and people of the area towards the successful execution of the project.
For his part, Mr Haruna Iddrisu also thanked the funding partners for the decision to establish the facility.
