Mahama secures Benin cotton deal to revive Volta Star Textile and create jobs

Government secures cotton supply deal and prepares to select strategic investor in bid to restore Juapong textile factory and create thousands of jobs

President John Dramani Mahama has unveiled an ambitious plan to breathe new life into Ghana's struggling textile industry by sourcing cotton from neighbouring Benin to restart operations at the long-idle Volta Star

Textile Limited, signalling what could become one of the government's most significant industrial revival projects.

The President disclosed that Ghana is finalising a Memorandum of Understanding (MoU) with the Government of

Benin to ensure a steady supply of cotton, addressing one of the biggest challenges that contributed to the collapse of the once-thriving textile factory.

The initiative forms part of the government's broader industrialisation agenda aimed at restoring manufacturing, creating jobs and positioning the Volta Region as a major industrial hub.

Speaking at the sod-cutting ceremony for the Juapong Model Market on Thursday, President Mahama said the partnership with Benin would provide the raw materials needed to return the factory to full production.

"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.

Factory revival gathers pace

Beyond securing raw materials, President Mahama revealed that the government has made significant progress in finding a strategic investor to rehabilitate and modernise Volta Star Textile Limited.

He said the government had invited bids from interested investors, with the evaluation process now completed.

According to him, authorities are preparing to announce a preferred investor who will spearhead the rehabilitation of the factory and restore production.

The move is expected to inject new capital, modern technology and management expertise into the company after years of inactivity.

A boost for jobs and local businesses

The planned revival of Volta Star Textile Limited is expected to generate employment for hundreds of young people in Juapong and surrounding communities while creating opportunities for transport operators, traders, suppliers and small businesses that depend on industrial activity.

For many residents, the reopening of the factory represents more than the return of a manufacturing plant—it offers hope for renewed economic activity in a town whose fortunes declined after the textile company ceased operations.

The President said restoring the factory would stimulate local economic growth and strengthen Ghana's manufacturing base at a time when the country is seeking to reduce dependence on imported textiles.

Part of the Volta Economic Corridor

President Mahama said the textile project forms a key pillar of the proposed Volta Economic Corridor, an ambitious development initiative designed to transform the Volta Region into a centre for agriculture, manufacturing, logistics and export-oriented industries.

The strategy seeks to connect agricultural production with local manufacturing by ensuring factories have reliable access to raw materials while creating value-added products for both domestic and international markets.

Officials believe the approach could increase industrial output, expand exports and create sustainable employment across the region.

Can Ghana's textile industry compete again?

The revival of Volta Star Textile Limited comes as Ghana's textile industry continues to grapple with stiff competition from imported clothing, smuggled textiles and changing consumer preferences.

Industry analysts say restoring local factories will require more than access to cotton. Success will depend on modern equipment, competitive production costs, reliable electricity, skilled labour and stronger enforcement against counterfeit textile imports.

However, securing a dependable cotton supply and attracting private investment are being viewed as important first steps towards rebuilding domestic manufacturing.

A test of Ghana's industrial agenda

For decades, Volta Star Textile Limited stood as one of the region's major employers before operations declined amid financial difficulties and raw material shortages.

The government's latest intervention now places the factory at the centre of President Mahama's industrial transformation agenda.

If the Benin cotton agreement is concluded and the strategic investor successfully restores production, the project could become a flagship example of Ghana's efforts to revive dormant state-owned industries, create jobs and reduce the country's dependence on imported manufactured goods.

For residents of Juapong, the return of the factory would represent more than an economic investment—it would mark the revival of an industry that once powered livelihoods, supported families and drove the local economy.