Prolonged investor delays intensify crisis at Akosombo Textiles - Workers

Workers of Akosombo Industrial Company Limited (AICL), formerly Akosombo Textiles Limited (ATL), have expressed growing frustration over what they describe as prolonged delays by the government in facilitating the takeover of the struggling textile manufacturer by a prospective investor.

According to the company's union leadership, efforts to secure a deal with a Hong Kong-based investor have stalled despite repeated appeals to the Ministry of Trade, Agribusiness and Industry to fast-track negotiations and conclude discussions on a proposed memorandum of understanding (MoU).

Talks with the investor began in December 2025 and were expected to be concluded by February this year. However, several months later, no agreement has been reached and negotiations appear to have made little progress.

The Union argues that approval of the MoU could provide the capital injection needed to revive operations, safeguard jobs, and ease the financial burden on hundreds of current and retired workers who are owed salaries and benefits.

Established in 1967 as ATL, AICL was once one of Ghana's leading textile producers, employing more than 3,500 workers at its peak. Today, its workforce has dwindled to just over 400 employees, according to union officials.

“The company is barely able to meet local demand, and our export markets have significantly declined. It is evident that VLISCO continues to benefit from the prolonged absence of ABC Wax products from African markets,” he said.

Meanwhile, the Union leaders also alleged that the spinning and weaving equipment has been sold as scraps, with all the workers in these two departments asked to go home. They noted that with these departments gone, the new investor would have to import grey cloth for production

The Local Union Executive Secretary, Joseph Kudjoe Botwe, also said workers are owed about ten months' salaries, while bonuses have not been paid for nearly four years.

Botwe said the prolonged financial difficulties have left many workers struggling to meet basic household expenses, support their families and pay for healthcare.

The situation, he revealed, has resulted in the death of about 50 workers so far, with some still hospitalised along with other family members.

Union leaders blame years of poor management and inadequate investment for the company's decline, saying these challenges have steadily eroded production capacity and competitiveness.

“The liabilities of the company should be the sole responsibility of current management. The new investor will not bear all the current liabilities before taking over,” they cautioned.

They are urging the Ministry of Trade, Agribusiness and Industry to conclude negotiations and pave the way for recapitalisation and operational restructuring.

However, workers say little progress has been made while their economic circumstances continue to deteriorate.

AICL remains the only textile manufacturer in Ghana producing Real Wax fabric, a premium textile product long associated with the company's brand.

SA