The Production and Exportation of Garments under the AGOA Initiative: Challenges Facing Garment Producers in Ghana.

Abstract

The study investigated the problems faced by garment producers in the production and exportation of garments under the AGOA initiative. The proportionate random and purposive sampling techniques were used to select 100 non-exporters and 10 exporters respectively from Accra and Tema. Data was collected using a well structured interview questionnaire and observation guide. The Statistical Package for Social Sciences (SPSS) was used to analyze the data and the results presented in frequency and percentage distributions, bar charts and cross-tabulations. The non-exporters lacked finances; market; skilled and reliable workers; information and sensitization; and had difficulty in adhering to the guidelines of the initiative. The problems faced by the exporters were cumbersome export processing procedures; customs officials’ lack of education on AGOA; high cost of production; lack of raw materials to satisfy buyer specifications; and lack of good quality packaging materials. The Chi-square one-variable method indicated a relationship between the type of training and problems encountered in the production of garments under the AGOA initiative. It is suggested that garment producers form clusters and pool their resources together to effectively deliver good quality garments on schedule.

Keywords: Challenges, Garment production, AGOA