Ghana has launched a pilot cotton production project on more than 20 hectares in Savelugu Municipality. In a statement issued on August 27, the Ministry of Trade, Agribusiness and Industry said the initiative is the first step in the government’s effort to revive large-scale cotton production in northern Ghana. Known as the Northern Cotton Revival Initiative, the project is being implemented by several local and international partners. It aims to establish a cotton production belt spanning several districts in the Northern Region.
Trade, Agribusiness and Industry Minister Elizabeth Ofosu-Adjare said increasing domestic cotton production would give textile and garment manufacturers a reliable source of raw materials, reduce production costs and help lower the country’s import bill.
The initiative comes as Ghana is already looking abroad for cotton to supply its textile industry. In July, President John Dramani Mahama said his government was in talks with Benin, Africa’s leading cotton producer, over an agreement to supply cotton fiber to Volta Star Textiles Limited, a former industrial plant being rehabilitated in Juapong in the Volta Region. At its peak, the factory had an estimated production capacity of about 26 million yards, or nearly 24 million meters, of fabric a year. The planned imports from Benin underscore Ghana’s shortage of locally produced cotton for its textile industry. According to FAO data, seed cotton output stagnated at around 28,000 tons between 2020 and 2024, from an area of about 15,000 hectares.
The case for reviving domestic production is also strengthening as Ghana adds textile and apparel manufacturing capacity. On August 28, 2026, the Northshore Apparel Ghana Ltd factory was officially inaugurated in Savelugu. The new manufacturing hub is intended to produce garments for international brands.
The project represents an initial investment of nearly €10 million, or $11.6 million, and is co-financed by the Ghana Export-Import Bank (GEXIM) and German development bank KfW. It currently has 50 sewing lines and employs more than 2,300 people in its first phase. The factory also plans to build closer links with local cotton producers. According to information reported by the Ghana News Agency, the project’s second phase is expected to include a cotton-processing unit, while the third phase calls for the establishment of a local outgrower network to secure a regular supply of raw materials.
That expansion could create a new domestic market for Ghanaian cotton while supporting the government’s broader effort to rebuild an integrated value chain spanning cotton production, ginning, textile processing and garment manufacturing. The main challenge will be scaling production beyond the pilot stage enough to meet the textile industry’s growing demand on a sustained basis.
