SHORTLY after the country’s independence, industrialisation and agriculture were identified as the two-pronged strategy by the first President of the Republic, Dr Kwame Nkrumah, to facilitate the economic development of the country.
The prosecution of such an economic agenda gave birth to the construction of the Akosombo Dam and the establishment of many local industries. With special focus on import-substitution approach, the first President set up the Juapong Textiles Limited (JTL) primarily to produce and supply gray baft to feed other textile industries in the country.
Inadequate liquidity, high production cost and influx of cheap imported textile materials from the Far East were among some of the difficulties which led to the collapse of the Juapong Textiles Limited in June 2005.
Fortunately, the company was given a new lease of life in 2007 under the name Volta Star Textiles. Sadly, the cost of producing the gray baft was expensive compared to the cost of imported finished products from China, and that has created an unhealthy competition for the company.
The ailing company has been dealt yet another blow. The Electricity Company of Ghana (ECG) has decided to cut power supply to Volta Star because of its indebtedness to the ECG. The decision will not only worsen the company’s fortunes but has the potential to create job losses, since workers will be laid off.
The DAILY GRAPHIC is not happy with this development. And we think every effort should be made by the stakeholders, particularly the government, to salvage Volta Star, which was once described as the ‘The Pride of Volta’, from eventual collapse.
Reviving the company and, by extension, the textile industry will lead to the creation of jobs and incomes for cotton farmers. Much as the government might intervene to save the situation, we believe that the survival of the textile industry will also depend on the patronage of local wax prints.
In an attempt to go round the problem, the state at a certain stage introduced the Friday wear. The action in this regard is not enough to turn around the textile industry. In a way, the state is saying that we should use imported clothing for four days and devote Fridays for local wear.
The reverse is the case in our neighbouring countries of Cote d’Ivoire, Togo and Nigeria where they proudly showcase their national identity by wearing dresses made from local fabrics.
It is time to roll out national programmes to protect our own. For even in the advanced democracies and liberal economies, there is conscious effort at protectionism.
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