President John Dramani Mahama has officially inaugurated the Northshore Apparel Hub in Savelugu, describing the multi-million-dollar garment factory as the “first seed” that will restore northern Ghana to its former industrial glory and curb the chronic north-south migration of the youth.
Speaking at the commissioning ceremony on Friday, President Mahama highlighted the facility as the anchor tenant of a future industrial hub that, at full capacity, could employ at least 30,000 young people. He noted that the region was once a thriving industrial center in the 1970s, famously referred to as the “Granary of Ghana,” with integrated textile and agricultural value chains ranging from cotton farming to processing plants for shea butter.
“The glorious past of northern industry declined. Today I have a pleasant feeling in my heart because I believe that we’ve planted the first seed that will restore the north to its glorious industrial past,” President Mahama stated.
A Strategic Investment to Address Historical Decline
The President attributed the collapse of past northern industries to a combination of factors, including inadequate power supply, weak value chains, and poor transport infrastructure. However, he emphasized that these challenges are now being systematically addressed through improved electricity, road networks, and the region’s potential for solar power.
The hub, valued at €10.2 million, has already created significant immediate employment. Ghana Export-Import Bank (GEXIM) CEO Sylvester Adinam Mensah disclosed that Phase One has generated 3,000 immediate jobs, with projections to reach 10,000 direct jobs at full operational capacity. This exceeds earlier estimates of 1,600 jobs, signaling the project’s scale.
“The factory represents a vision of a Ghana that produces, exports, and creates opportunities for its people. This is what transformative industrial investment looks like,” Mensah said.
Modern Facilities and Social Impact
The facility features state-of-the-art infrastructure, including 50 sewing lines, a 4,000-square-metre cutting and design centre, and an 8,000-square-metre warehouse. The factory has been designed with sustainability in mind, incorporating a 500-kilowatt peak solar power system and zero-waste production practices.
Goosie Tanoh, Presidential Advisor on the 24-Hour Economy Initiative, highlighted the project’s inclusive employment strategy, noting that it will integrate persons with disabilities and includes social amenities such as an on-site clinic and crèche for workers.
“We will move from a two-shift to a three-shift production system, providing a practical demonstration of the government’s 24-Hour Economy agenda,” Tanoh added.
Countering Migration and Promoting Balanced Development
Addressing the socio-economic implications, President Mahama noted that about 80 percent of Northshore’s current workforce comprises young women. He explained that the industrial hub is vital for creating opportunities and reducing the pressure that forces young people to migrate south for menial work.
“We believe that at full strength this hub will be able to provide employment to at least 30,000 young people. This is important because it will reduce the north-south migration,” he stated, referencing concerns raised in Ghana’s African Peer Review Mechanism about regional population imbalances.
Financing and Future Outlook
The project was funded through a blended finance model involving GEXIM, which provided approximately $12 million, the Investing for Employment facility of Germany’s KfW Development Bank, and equity from the project promoters.
President Mahama emphasized that ongoing infrastructure projects, including the completion of the Eastern Corridor road and the expansion of the Tamale water system, would further enhance the region’s attractiveness to investors. He also mentioned plans for a net metering bill to support industrial solar power generation, reinforcing the government’s commitment to “investment, not aid”.
