The Development Bank Ghana (DBG) is poised to approve and disburse credit for at least two textile projects before the end of 2026, marking a significant step in its efforts to revitalise Ghana’s ailing textile and garment industry.
The projects are among five that have emerged from a dedicated textile sector “deal room” created by DBG in collaboration with its development partners. The Chief Executive Officer of DBG, Prof Randolph Nsor-Ambala, said the five projects have already been presented to participating financial institutions (PFIs) for consideration and are currently at various stages of approval.
“As we speak, we have currently road-showed five of those projects that came out of that deal room across various participating financial institutions, and they’re at the various levels of approval,” Prof Nsor-Ambala stated. “My sense of it is that before the end of the year, at least about two of them would have received credit approval and then disbursement.”
A Strategic Priority
Textiles constitute one of DBG’s key priority areas within its manufacturing mandate, alongside pharmaceuticals and the energy transition. The bank’s interventions in the sector extend beyond mere credit provision to encompass market development, capacity building, technical assistance, and policy advocacy.
DBG signed a three-year Memorandum of Understanding with the Association of Ghana Industries (AGI) specifically focused on the textile sector. The agreement encompasses financing for textile businesses, market development, and technical assistance to help businesses develop investor-ready projects.
Policy Wins and Sector Revival
Prof Nsor-Ambala noted that the bank’s interventions have yielded tangible policy outcomes. Concerns raised during a textile sector roundtable organised by DBG included delays in the textiles and garment policy. “Based on policy advocacy initiatives that we participated in, that policy has now been signed and approved by Parliament,” he said.
This policy development is particularly significant given the sector’s long-standing challenges. Ghana’s textile and garment industry, once a pillar of national employment, has seen its workforce decimated from over 25,000 direct jobs in the late 1970s to just 6,000 by 2020, undone by liberalisation and unchecked imports.
Building Capacity and Investment Readiness
DBG has partnered with international development organisations including GIZ, Palladium, and the UK-backed Ghana Jobs and Economic Transformation (JET) programme to strengthen capacity in the sector. The bank recently supported training involving international experts and subsequently established a deal room with GIZ and Palladium to identify projects that can attract financing.
A nationwide feasibility study into the textile sector, conducted with support from the German development bank KfW, has identified challenges facing the industry and bankable projects held back by specific constraints.
“As we speak, we are working with those businesses with a timeline of up to the end of November to make them investor-ready and then help them through our participating financial institutions to receive adequate funding,” Prof Nsor-Ambala explained.
Beyond Greater Accra
The CEO underscored DBG’s broader strategy of providing value-chain solutions rather than simply lines of credit. The bank prioritises youth-led and women-owned businesses and seeks to extend investments beyond Greater Accra.
“Currently, about 40% of our investments, or a little bit above 40% of our investments, are into hard-to-reach areas that are outside Greater Accra or what you call the Golden Triangle,” he said.
The Role of Development Partners
Prof Nsor-Ambala emphasised that development partners remain critical to DBG’s financing model. “They have predominantly put their cash on the table. They have put their technical agility and technical expertise on the table. They’ve put their man-hours on the table,” he said, noting that their support has been instrumental in addressing market failures and binding constraints within DBG’s mandate areas.
