Industry & Retail
From The Report: Ghana 2019
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Building on years of robust growth in the sector, Ghana has launched a multifaceted programme to increase its industrial capacity and output. This wave of new initiatives is designed to strengthen the investment environment and boost the value-added component of the country’s manufactured exports. In 2017 manufacturing contributed $6.1bn to GDP, some 12% of the total. Moreover, the combination of a buoyant economy and demographic shifts such as rapid population growth and rising urbanisation levels are driving new trends in the Ghanaian retail sector. International brands and mall developers are becoming increasingly present, and the scope for the expansion of modern retail is considerable, following a decade where GDP grew by between 2% and 14% in any given year.

This chapter contains an interview with Michael Okyere Baafi, Executive Secretary, Ghana Free Zones Authority.

Articles from this Chapter

Overview

Capacity building: Financial stability and openness to international investment support a burgeoning manufacturing sector
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Building on several years of robust growth in the sector, Ghana has launched a multifaceted programme aimed at increasing its industrial capacity and output. This wave of new initiatives is designed to strengthen the investment environment for manufacturing and boost the value-added component of the country’s manufactured exports. While challenges remain – notably in terms of taxation and insolvency regulation – these efforts could be set to increase the contribution of the non-oil…

Analysis

Rich fabric: Increased specialisation by manufacturers coupled with government incentives support a revitalised garment segment
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Long famed for its vibrant traditional prints, the Ghanaian apparel industry has experienced volatility in recent years, with exports falling to a historic low in 2016. Nevertheless, as a result of government efforts to support the revitalisation of the segment and the take-off of a number of key firms, the segment appears to be on the road to recovery. Moreover, the authorities are now seeking to further expand the industry, unveiling a series of tax exemptions and undertaking efforts to…

Analysis

Factory force: Government incentives encourage the private sector to build value-added processing facilities
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One of the most ambitious elements of the government’s industrial development strategy is the One District, One Factory (1D1F) scheme that was launched in 2017. As its name suggests, the programme seeks to establish a factory in each of Ghana’s 254 districts. The initiative emphasises job creation, as well as leveraging the country’s existing natural resources and competitive advantages. The authorities are hoping to generate between 1.5m and 3.2m new jobs nationwide by the end of 2021…

Interview

Taking the reins: Michael Okyere Baafi, Executive Secretary, Ghana Free Zones Authority, on incentivising investment and building a dynamic business environment
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Interview:Michael Okyere Baafi What factors have led to Ghana’s improved ranking in the World Bank’s ease of doing business index? MICHAEL OKYERE BAAFI: We are changing the way we do business in Ghana, and – due to ongoing reforms – we are confident that the country will continue to rise in the index. These successes have been underscored by a revolution in the business mindset. For years businesses in Ghana have followed the same path and progress has been static, largely due to…

Overview

Into high gear: Economies around the world are preparing for the opportunities and challenges brought about by the next industrial revolution – Ghana
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The global economy is entering the Fourth Industrial Revolution (4IR), or Industry 4.0, based on the application of new digital and automated technologies in production processes and service delivery. These changes are presenting emerging markets with opportunities such as improved productivity, as well as risks, namely reshoring and the displacement of human labour by automation. Wealthier emerging markets, such as the Gulf states, that have the resources to invest in new technologies. Meanwhile, other regions have shown signs of so-called premature deindustrialisation. In particular, Latin America and Africa seem more vulnerable to threats…

Overview

Selling points: Malls, e-commerce firms and new brands are set to find fertile ground in Ghana in line with positive macroeconomic trends
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The combination of a buoyant economy and demographic shifts such as rapid population growth and rising urbanisation levels are driving new trends in the Ghanaian retail sector. International brands and mall developers are becoming increasingly present, and the scope for the expansion of modern retail is considerable, following a decade where GDP grew by between 2% and 14% in any given year. Macro Upside The retail market tends to be closely linked to a country’s overall macroeconomic…