AICL Workers demand urgent government action over delayed investor takeover

Workers of Akosombo Industrial Company Limited (AICL), formerly known as Akosombo Textiles Limited (ATL), have expressed growing concern over delays in securing a takeover agreement with a prospective investor, warning that the prolonged process is worsening the company’s financial difficulties and threatening livelihoods.

According to the company’s union leadership, negotiations with a Hong Kong-based investor have stalled despite repeated appeals to the Ministry of Trade, Agribusiness and Industry to expedite discussions and finalize a proposed memorandum of understanding (MoU).

The talks, which began in December 2025, were initially expected to be concluded by February 2026. However, several months later, no agreement has been reached, leaving workers increasingly frustrated about the future of the company.

Union leaders believe approval of the MoU would pave the way for a much-needed capital injection to revive production, protect jobs, and address outstanding financial obligations owed to both current and retired employees.

Established in 1967 as Akosombo Textiles Limited, AICL was once one of Ghana’s largest textile manufacturers, employing more than 3,500 workers at its peak. Today, according to union officials, the workforce has declined to just over 400 employees.

The union noted that the company’s production capacity has fallen significantly, making it difficult to meet local demand while export markets continue to shrink.

Officials also argued that the prolonged absence of ABC Wax products from key African markets has benefited international competitors, particularly Dutch textile giant VLISCO.

Union leaders further alleged that the company’s spinning and weaving machinery has been sold as scrap, resulting in the closure of those departments and the layoff of workers who were employed there.

They explained that the loss of the spinning and weaving units means any future investor would need to import grey cloth for production, increasing operational costs and reducing local value addition.

The Local Union Executive Secretary, Joseph Kudjoe Botwe, disclosed that workers are currently owed approximately ten months’ salaries, while bonuses have not been paid for nearly four years.

According to him, the prolonged financial challenges have left many employees struggling to meet basic household expenses, provide for their families, and access healthcare services.

Botwe further revealed that the hardship has had severe consequences, claiming that about 50 workers have died during the crisis, while others and some of their family members remain hospitalized.

The union attributed the company’s decline to years of inadequate investment and poor management decisions, which they say have gradually weakened its competitiveness and production capacity.

They stressed that the company’s existing liabilities should remain the responsibility of current management and cautioned against transferring all financial obligations to any new investor.

“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,” union leaders stated.

The workers are therefore calling on the Ministry of Trade, Agribusiness and Industry to conclude negotiations with the prospective investor and facilitate the recapitalisation and restructuring of the company.

Despite repeated appeals, they say little progress has been made, while the economic conditions of workers continue to deteriorate.

AICL remains Ghana’s only textile manufacturer producing Real Wax fabric, a premium textile product that has long been associated with the company’s brand and legacy within the textile industry.

Prince Antwi

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