Mahama announces revival of Volta Star Textiles with strategic investor

President John Dramani Mahama has announced a major breakthrough in government’s efforts to revive the defunct Volta Star Textiles Limited (VSTL), revealing that a strategic investor has been selected to partner the state in modernising and reopening the factory.

Speaking during the sod-cutting ceremony for the 24-Hour Economy Model Market in Juapong in the Volta Region, President Mahama said the revival of the once-thriving textile factory formed part of government’s broader strategy to restore industrial activity, create jobs and strengthen Ghana’s manufacturing sector.

He said government had completed a competitive process to identify a private sector partner after appointing a transaction adviser to oversee the revival programme.

“We appointed a transaction adviser, advertised for strategic investors, received bids and have selected one strategic investor to partner us to revitalise the factory,” the President announced.

He disclosed that the selected investor would soon visit the factory with the transaction adviser to begin designing the modernisation programme ahead of the project’s implementation.

President Mahama assured workers and residents of Juapong that the revitalisation of Volta Star Textiles would restore the factory’s legacy as a major source of employment and economic growth in the area.

He noted that the project would create sustainable jobs, strengthen Ghana’s textile value chain and reposition Juapong as an important industrial hub under the government’s 24-Hour Economy initiative.

Addressing concerns over the supply of raw materials, President Mahama said government was finalising arrangements to sign a Memorandum of Understanding with the Government of Benin to supply cotton for processing at the factory.

He explained that the partnership would ensure a reliable supply of cotton to support continuous production once the factory resumes operations.

Volta Star Textiles, which for decades provided employment for thousands of people and contributed significantly to Ghana’s textile industry, ceased operations after years of financial and operational challenges.

The President said reviving the factory would complement other development initiatives in the Volta Region, including the proposed Volta Economic Corridor and the construction of 24-Hour Economy Model Markets, aimed at stimulating industrialisation, trade and inclusive economic growth.