# Global textile and apparel industry development challenges

> Developing situation record from CLSTR: https://clstr.news/situations/global-textile-and-apparel-industry-development-challenges
> Updated: 2026-11-06T19:21:34.000Z. Sources: 6. Developments: 2.

The textile and apparel sectors in the United States, Indonesia, and Ghana are facing various structural and economic hurdles. 

In the United States, a Government Accountability Office report indicates that a circular economy for textiles is hindered by limited funding and a lack of domestic infrastructure for collection and recycling. Proposed solutions include tax credits and extended producer responsibility programs.

Indonesia is focusing on industry expansion through midstream integration. President Prabowo Subianto has directed the establishment of a new state-owned enterprise and collaboration with the Danantara sovereign wealth fund to connect fabric production, yarn manufacturing, and finishing processes.

In Ghana, the fashion industry struggles with a high dependency on imports, with approximately 70 per cent of locally consumed textiles and garments being imported. Industry leaders have identified systemic barriers to local growth, including high borrowing costs, inadequate manufacturing capacity, and limited access to affordable finance.

## Timeline

### 2026-11-06: Ghanaian fashion industry faces high import dependency and funding gaps

Hillary Sarah Andoh reports that 70 per cent of Ghana's textile imports represent a major market opportunity for local producers if manufacturing capacity and access to private capital are improved.

6 sources. https://clstr.news/cluster/ghanaian-fashion-industry-faces-high-import-dependency-and-funding-gaps

### 2026-10-27: Textile and apparel industries face infrastructure and expansion challenges

The GAO identifies funding and infrastructure gaps in textile recycling, while Indonesia seeks to expand its apparel industry through state investment and midstream integration.

2 sources. https://clstr.news/cluster/textile-and-apparel-industries-face-infrastructure-and-expansion-challenges

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Cite as: Global textile and apparel industry development challenges. CLSTR, https://clstr.news/situations/global-textile-and-apparel-industry-development-challenges
