Volta Star Company will see a capital injection of GHC6 million credit facility from the Export Development Agricultural and Industrial Development Fund (EDAIF) to ensure the company stays in operation, the ministry of trade and industry has announced.
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Volta Star Company gets GHC6 million capital injection
To access the facility, EDAIF has requested Volta Star to open an account with UT Bank for the release of 50% (GHC3million), with the remaining amount to be released in six months.
The money will be used to pay a 3 months out of the 13-month salary arrears owed to workers; pay for chemicals to run the factory; pay for capacitor banks’ instalment to save power usage and electricity costs; pay for 2 to 3 months’ worth of cotton from the Ghana Textile Printing Company (GTP); and also pay 50% of indebtedness to the Electricity Company of Ghana.
Restructure
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The EDAIF is also asking for a major restructuring of the company’s operations by tackling its huge wage bill, retiring workers over 60 years and removing ghost names numbering about 50.
Government through the Ministry of Trade and Industry is seeking foreign investors to help revamp and strengthen the company.
PricewaterHouse (PWC), the transaction advisor, has already identified five (5) companies that have expressed interest in Volta Star Company Limited.The essence of engaging foreign investors is to inject capital, modern technology and improved managerial competencies so as to ensure more production and transform Volta Star into a giant enterprise that creates employment and enhances the people’s living conditions.
READ MORE: EDAIF to support Volta Star TextilesThe Ministry of Trade and Industry is however appealing for the workers to cooperate with it to ensure the good plans which have been put in place work in the interests of themselves and the country as a whole.The ministry wishes to thank all workers and the local community for their comportment, and to assure them that every effort will be made to transform Volta Star into a modern textile factory in the sub-region.
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