Cotton industry attracts attention

Government is focusing on attracting appropriate investment aimed at revamping the country’s cotton industry, the Minister of Trade and Industry Ms. Hanna Tetteh has stated.

“The policy direction for the cotton industry includes research, private sector investment, seed and textile production, marketing, and transfer of knowledge and skills which would ensure the revival of the cotton industry in the country.

“Experiences and best practices of countries that have been in cotton production will be tapped to ensure that the cotton industry survives the test of time Ms. Tetteh made known, when Ms. Mona Omar, Assistant Foreign Minister of Egypt, called on her in Accra.

“Ghana has great potential in cotton production and would like to collaborate with some Egyptian technical agencies to help the local farmers to market the produce,” she said.

The country’s cotton production has never reached 40,000 tonnes, an amount that is less than one percent of the West and Central African production - although the country has excellent conditions for its development.

The comparison between other West and Central African countries reveals that Ghana lies far behind all cotton producing countries. Even much smaller countries like Togo, where the conditions are far less favourable than in Ghana, are ahead.

While Ghana only managed to produce 36,000 metric tonnes of seed cotton in 2006/7, Burkina Faso produced approximately 700,000 metric tonnes.

Due to the low production of cotton in the country, some textile companies in Ghana import cotton from Burkina Faso though the country has the capacity to produce enough to meet its demand.

Ms. Tetteh explained that Ghana has the opportunity to make some real changes to the economy in terms of exporting some of its commodities to other countries.

“Egypt has been producing long-yarn cotton for the past 200 years and therefore something must be learnt from them. As part of this collaboration, experts from the two countries will establish about 1,000 acres of farm on a pilot basis.”

She indicated that there are options for Ghana and Egypt to have joint ventures in the industrial sector to enhance trade and investment relations.

“The two countries could discuss double taxation issues to promote investment and trade in both countries.”

Ms. Omar revealed that the volumes of trade between the two countries are low, and that there is need for the two countries to look at ways to increase trade.

She mentioned that the two countries have started a process that aims at deepening trade and investment relations, emphasising that “Egypt will partner with Ghana in the fields of research, private sector investment, seed and textile production,
marketing, and transfer of knowledge and skills towards the revival of the country’s cotton industry.”