Industry & Retail
From The Report: Ghana 2017
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Ghana’s retail sector has grown significantly in recent years, attracting a swathe of international retail chains and brands. This is thanks to a growing middle class, a largely young and urban population and a relatively underdeveloped formal retail market. With recent changing economic conditions, including high inflation and interest rates, limited and irregular power supplies, currency depreciation and a multiplication of taxes, sector growth may have slowed down, yet there is still room for expansion.

This chapter contains an interview with Seth Twum-Akwaboah, CEO, Association of Ghana Industries.

Articles from this Chapter

Overview

Going local: Despite short-term external pressures, government efforts to expand domestic industry bode well for future growth
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Ghanaian industry continues to display long-term growth potential across several sectors, including agro-processing, automobiles, pharmaceuticals and fast-moving consumer goods (FMCGs), among others. In the short term, while many firms are investing in boosting productivity to take advantage of existing opportunities, significant challenges, such as high utility rates, a weak currency and difficulties accessing credit are undermining business confidence. Sector Performance While Ghana’s…

Analysis

Health kick: Authorities launch a new fund to support the development of domestic pharmaceutical manufacturing
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By announcing a $26m grant to support local pharmaceutical production, the government has reiterated its support to the development of an industry it views as a pillar of economic growth. The timing of this initiative is welcome, as local firms struggle to obtain financial assistance at affordable lending rates. Despite the strictures of the current economic situation, some subsectors are displaying potential for growth and a number of firms are already investing in expansions to serve growing…

Analysis

Mood swings: A period of increased currency stability is expected to give a boost to overall business confidence
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While helping to increase exports, Ghana’s depreciating currency, the cedi, has had a negative impact on a number of local industries relying on imported inputs, like manufacturing. As 2016 reached its close, though, a combination of measures appeared to be contributing to greater currency stability. Notwithstanding this, further improvements are likely to depend on the success of government initiatives to counter the country’s hefty import bill, through the promotion of local production and…

Interview

Community effort: Seth Twum-Akwaboah, CEO, Association of Ghana Industries (AGI), on boosting competitiveness and increasing exports
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Interview:Seth Twum-Akwaboah What do you see as the single biggest obstacle facing manufacturers in Ghana? SETH TWUM-AKWABOAH: The greatest obstacle to making businesses more competitive is the cost of doing business. Reducing costs increases market share as well as our domestic and global competitiveness. Certainly, a lot more companies in Ghana are competitive within ECOWAS than globally, but there is room for growth. One major impediment for all manufacturers and industries in Ghana currently…

Analysis

Testing the waters: Favourable demographics point to future potential in the auto industry, as investors venture into manufacturing
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While the automobile industry is yet to surpass peak sales levels achieved in 2012, the sector is slowly recovering its breath. The market is still largely dominated by second-hand sales, yet as the economic situation in Ghana stabilises over time, the country’s growing middle class and overall young and urban population could spur the development of the car market in the long term, providing room for new actors to begin taking advantage of investment opportunities in-country and around the region. Go…

Analysis

Eye on imports: Authorities take steps to prevent unfair trade practices, as competition in the cement segment heats up
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The Cement Manufacturers Association of Ghana (CMAG) has repeatedly pressured the government over the course of the past couple of years to take action against what it views as unfair trade practices, in particular from Nigeria and China. As a result, the government recently adopted protective measures, including establishing mechanisms to improve government control of imports over time and address the grievances of local producers. In the meantime, cement importers appear to be investing…

Overview

Bright spots: Long-term growth prospects continue to attract investment despite economic slowdown
OBG
plus

Ghana’s retail sector has grown significantly in recent years, attracting a swathe of international retail chains and brands. This is thanks to a growing middle class, a largely young and urban population and a relatively underdeveloped formal retail market. With recent changing economic conditions, including high inflation and interest rates, limited and irregular power supplies, currency depreciation and a multiplication of taxes, sector growth may have slowed down, yet there is still…