Germany, ADB support creation of 1,600 jobs


…through set up of Northshore Apparel GH Limited

Construction of a large-scale apparel manufacturing facility has commenced in Savelugu in the Northern Region to create over 1,600 jobs for women and youth in Northern Ghana. Students from the Savelugu School for the Deaf will be among the vulnerable to benefit from jobs to be created by the company.

The project is spearheaded by Northshore Apparel Ghana Ltd in collaboration with the German government through its donor agency called Facility Investment for Employment (IFE), and a financing Bank in Ghana, the Agricultural Development Bank (ADB) PLC.

This marks a pivotal stride towards enhancing the socio-economic landscape of Northern Ghana, which is historically lagging behind the southern part of the country.

The Managing Director of IFE, Steffen Kuhl, disclosed the project details, emphasizing its strategic focus on inclusivity and development.

“A total of 1,600 jobs will be created by the Northshore Apparel Ghana project through an agreement signed with the Savelugu School for the deaf, with 1,120 and 560 positions earmarked for women and youth respectively, including those with disabilities,” Kuhl stated.

This initiative not only prioritizes graduates for employment opportunities at the new facility but also significantly contributes to minimizing internal migration by providing much-needed jobs in the underdeveloped Northern Region.

The apparel manufacturing facility, a Special-Purpose Vehicle (SPV) initiative by Northshore Apparel Ghana Ltd, is aimed at establishing a vertically integrated apparel value chain.

With a total project volume of 10.1 million EUR, supported by an IFE grant of 2.5 millino EUR and a grantee’s own contribution of 7.5 million EUR, the project is primarily export-oriented, promising to enhance the region’s competitiveness and job creation potential, particularly for the youth.

The IFE, created by the KfW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), underlines the German government’s commitment to fostering job creation and improving working conditions in Ghana.

As an integral part of the Special Initiative dubbed ‘Decent Work for a Just Transition,’ IFE aims to create up to 100,000 jobs in its eight partner countries, including Ghana.

IFE’s successful engagement in Ghana is evidenced by the receipt of 607 investment proposals since its inception in 2021, with a record 79 applications received in the last Call for Proposals launched in June 2023 alone.

With Germany supporting eight projects in Ghana with a total volume of approximately 55 million EUR, including an overall grant contribution of approximately 19 million EUR, the collaboration spans various sectors, from energy and agribusiness to textile and electrical engineering.

Kuhl expressed satisfaction with the initiative’s reception in the market, stating, “We are glad to see that this KfW instrument is received very well in the market. Very successful cooperation, Ghana is performing as one of the most successful countries under IFE.”

In his remarks at the ceremonial groundbreaking event at the project site, the Managing Director of ADB PLC, Alhaji Yakubu-Tali noted that the establishment of the manufacturing facility is hailed as a bold initiative that will not only contribute to the growth of the manufacturing sector but also stimulate ancillary businesses along the value chain.

“The establishment of this manufacturing facility in the region not only signifies a key step towards industrialization in Northern Ghana, but also represents a substantial source of employment opportunities for the youth, and wealth creation,” he said.

Alhaji Alhassan Yakubu-Tali commended the Federal Republic of Germany and its Agency KFW for the unwavering commitment to providing financial and technical support for the construction of this facility. “As a German-trained investment Banker myself, I appreciate your commitment to alleviating poverty and gendering development through donor-funded projects such as this,” he stated.

Northshore Apparel Ghana

The founder of Northshore Apparel Ghana Ltd, Mr. Mohammed Nurideen, in his remarks, stated that the facility which spans over 5,000 square meters of sewing production, 4,000 square meters of cutting and design building, and 4,000 square meters of raw materials warehouse equipped with a sophisticated racking system, is poised to redefine the textile industry landscape in Ghana.

In describing the various phases of the construction of the facility, Mr. Nurideen stated that phase I (one) of the three phases when completed will provide a minimum of 1,600 jobs of which 80% will be jobs reserved for women.

“This phase one out of the three phases shall build capacity to create a minimum of 1,600 jobs, of which 80% of the jobs created shall be reserved for women,” he stated.

Mr. Nurideen expressed gratitude to the Federal Republic of Germany and its Agency KFW for their unwavering commitment to providing financial and technical support towards the construction of the facility, stating that their commitment to alleviating poverty and gendering development through donor-funded projects such as this was commendable.

He also extended his appreciation to ADB PLC for the support and was optimistic that the partnership would not only create employment opportunities in Northern Ghana but also contribute to the economic revitalization of Ghana as a whole.

Present at the event included the representative of Alhaji Shani Alhassan Saibu, the Northern Regional Minister, N’yab Yoo Naa, Naa Abdulai Yakubu Andani, ADB Management, representatives from KFW, IFE, Ministry of Trade and Industry, Free Zones Board and host of others.

The Northshore Apparel Ghana project not only signifies a leap towards reducing the developmental divide within Ghana but also showcases the impactful collaboration between international development initiatives and local communities in driving sustainable economic growth and social progress.

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