China-Ghana Trade Relations on the Ghanaian Textile Industry: A Case Study of Ghana Textile Printing Company Limited and Akosombo Textiles Limited

Abstract

The Ghanaian textile industry was one of the most vibrant sub-sectors in the 1970s. However, the sub-sector is struggling to survive the numerous challenges it is facing. Cheap Chinese textile imports because of trade liberalization have resulted in unhealthy competition in the Ghanaian textile market. This study therefore investigates the impact of China-Ghana trade relations on the Ghanaian textile industry and makes recommendations towards revamping the Ghanaian textile industry. The study used a qualitative approach whereby respondents were selected using purposive, convenient, and snowballing sampling techniques. The study also employed the case study approach whereby the effects of Chinese textile imports were examined through ATL and GTP. Data was summarised and analysed under thematic areas with relevant tables and pictorial evidences for clarity and better understanding. The study revealed that, China-Ghana economic relations has had a negative effect on the Ghanaian textile industry in relation to market share and employment. Chinese textile companies pirate some designs of the local textile companies but due to weak control mechanism, these cheap pirated textiles get access to the Ghanaian market. Moreover, the study revealed that; cost, cultural identity, designs, and patterns influence the behaviour of Ghanaian consumers. Therefore, it will be important for the Ghanaian textile companies to increase their ability to compete effectively with Chinese textile products. The study concludes that, government, textile companies, textile consumers, textile importers, fabric sellers among other stakeholders in the Ghanaian textile industry must work together to revamp the Ghanaian textile industry.