Mahama announces plan to modernise Volta Star Textiles factory

President John Dramani Mahama has announced plans to revive and modernise the defunct Volta Star Textiles Limited factory at Juapong, revealing that government is finalising arrangements with a transaction adviser to bring on board a strategic investor to restore the once-thriving manufacturing company.

The President made the announcement on Thursday, July 16, during the sod-cutting ceremony for the 24-Hour Market Project at Juapong in the North Tongu Constituency, describing the textile factory's revival as a key component of the government's industrialisation and job creation agenda.

President Mahama said the revitalisation of Volta Star Textiles would generate sustainable employment, strengthen Ghana's textile industry and help reposition Juapong as an important manufacturing centre.

According to him, the project aligns with the government's broader strategy to stimulate local production, promote value addition and accelerate economic transformation through industrial development.

“The revitalisation of this factory will create sustainable jobs in the Juapong area, it will strengthen Ghana’s textile value chain and it will reposition Juapong as a vibrant industrial hub, complementing our broader investment in agricultural commerce and infrastructure,” the President stated.

The factory, once regarded as one of Ghana's leading textile manufacturers, employed thousands of workers and produced a wide range of fabrics for both domestic and export markets.

However, operations gradually declined over the years, leading to its closure and the loss of more than 2,000 jobs, with the facility remaining largely inactive.

President Mahama disclosed that government has engaged a transaction adviser who is currently working to secure a strategic investor capable of redesigning and modernising the factory.

He assured traditional authorities and former employees that the process was progressing steadily and that the investor would soon inspect the facility to begin planning the rehabilitation works.

“I wish to inform Togbui and the workers of Volta Star Textiles Limited that very soon the transaction adviser is bringing the strategic investor to visit the factory and start the design for modernising the factory,” he said.

The planned modernisation is expected to introduce new technology, improve production efficiency and restore the factory's competitiveness within Ghana's textile and garment industry.

To guarantee a reliable supply of raw materials for the revived factory, President Mahama announced that Ghana is engaging the Government of Benin on a long-term partnership to supply cotton.

He revealed that both countries are preparing to sign a Memorandum of Understanding (MoU) that will ensure adequate cotton is available to sustain textile production once the factory resumes operations.

“Arrangements are being made to sign a Memorandum of Understanding with the Government of Benin to supply us with cotton from Benin to feed the factory in Ghana,” the President announced.

The proposed partnership is expected to strengthen the textile value chain while ensuring a stable supply of raw materials to support continuous production.

The revival of Volta Star Textiles complements the government's wider industrialisation strategy, which includes the rollout of the 24-Hour Economy and the establishment of 24-hour markets aimed at boosting production, expanding commerce and creating sustainable employment opportunities.

Government believes restoring key state-owned industries, alongside investments in agriculture, manufacturing and infrastructure, will stimulate economic growth, reduce unemployment and improve livelihoods across the country.

The successful revival of Volta Star Textiles is also expected to contribute to Ghana's efforts to reduce textile imports, increase local manufacturing capacity and create new opportunities for businesses operating along the textile and garment value chain.