Industry & Retail
From The Report: Ghana 2020
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Ghana’s industrial sector has emerged as a significant driver of growth in recent years as the country leverages its abundant natural resources to diversify the economy and attract investment. Industrial development and import substitution underscore major projects and initiatives throughout the sector, and the government has simultaneously implemented business reforms and fiscal measures in order to tackle structural challenges and improve investor confidence. Rising living standards, falling unemployment rates and lower inflation point to a turnaround in consumer demand in Ghana in the years ahead. After a slowdown in the uptake of retail space, renewed consumer confidence and increasing purchasing power could provide renewed impetus for the growth of the retail sector. This chapter also contains interviews with Kojo Aduhene, CEO, LMI Holdings; and Ramesh Sadhwani, Joint Managing Director, Melcom Group.
Articles from this Chapter
Raising capacity: Industrial development remains a priority for the government, with several recent initiatives to boost local manufacturing
Local potential: A government-run initiative is helping to partner small-scale manufacturers with private sector investorsOBGplus
The One District, One Factory (1D1F) initiative was launched in 2017 as part of the government’s 10-Point Industrial Transformation Agenda released in the same year. Aimed at developing local industry through small and medium-sized enterprises (SMEs), the strategy hopes to establish a factory in 110 of Ghana’s 275 districts. By developing local capacity and facilitating private sector growth, the 1D1F initiative has the potential to create new employment opportunities, reduce reliance…
Untapped opportunities: Kojo Aduhene, CEO, LMI Holdings, on industrial parks, smart cities and the industrial supply chainOBGplus
Interview:Kojo Aduhene What role can industrial parks play in developing Ghana’s industrial capacity? KOJO ADUHENE: Industrial development should be left to the domestic private sector, as local companies are best able to assess the risks of operating in Ghana and are more open to accepting those risks. For starters, the complications of navigating land acquisition are overwhelming for an outside player, considering the lack of clear-cut rules and land ownership documentation in the country.…
Outsized impact: Support for small and medium-sized enterprises is increasingly recognised as key to sustainable growthOBGplus
Small and medium-sized enterprises (SMEs) are the engines of global economic growth and employment, accounting for an average of 33% of GDP and 45% of the workforce in high-income countries, and over 60% of GDP and 70% of employment in developing economies. In the case of the latter, the rise in the number of has been crucial to economic diversification and resilience, particularly in countries vulnerable to commodity price fluctuations. By creating employment opportunities for traditionally economically marginalised groups, such as women, migrants, youths and minorities, SMEs have also been credited with democratising the labour market…
Outsized impact: Support for small and medium-sized enterprises is increasingly recognised as key to sustainable growthOBGplus
Small and medium-sized enterprises (SMEs) are the engines of global economic growth and employment, accounting for an average of 33% of GDP and 45% of the workforce in high-income countries, and over 60% of GDP and 70% of employment in developing economies. In the case of the latter, the rise in the number of has been crucial to economic diversification and resilience, particularly in countries vulnerable to commodity price fluctuations. By creating employment opportunities for traditionally economically marginalised groups, such as women, migrants, youths and minorities, SMEs have also been credited with democratising the labour market…
Spending power: Growing consumer confidence and the rise of e-commerce presents opportunities for retailers to expandOBGplus
Rising living standards, falling unemployment rates and lower inflation point to a turnaround in consumer demand in Ghana in the years ahead. After a slowdown in the uptake of retail space, renewed consumer confidence and increasing purchasing power could provide renewed impetus for the sector’s growth. Macro Indicators Per capita GDP has increased each year since 2015, reaching $4738 in 2018, up from $4457 in 2017 and $4135 in 2016. In comparison, the regional average for sub-Saharan…
E-commerce evolution: Online shopping is set to expand in emerging markets around the world despite logistical and payment challengesOBGplus
While e-commerce has become well established in more developed markets, the segment has been slower to take off in emerging economies. Online purchasing has been held down in these markets by financing, purchasing and logistics challenges. Nevertheless, online sales are growing rapidly in many developing countries in spite of these obstacles. Some governments are changing frameworks to boost segment activity and several notable regional players are emerging, in some cases backed by large international e-commerce firms that recognise the potential of growth markets. Rising Popularity In advanced economies e-commerce has quickly become…
E-commerce evolution: Online shopping is set to expand in emerging markets around the world despite logistical and payment challengesOBGplus
While e-commerce has become well established in more developed markets, the segment has been slower to take off in emerging economies. Online purchasing has been held down in these markets by financing, purchasing and logistics challenges. Nevertheless, online sales are growing rapidly in many developing countries in spite of these obstacles. Some governments are changing frameworks to boost segment activity and several notable regional players are emerging, in some cases backed by large international e-commerce firms that recognise the potential of growth markets. Rising Popularity In advanced economies e-commerce has quickly become…
The next step: Ramesh Sadhwani, Joint Managing Director, Melcom Group, on tapping opportunities for trade, e-commerce and local sourcingOBGplus
Interview:Ramesh Sadhwani What opportunities do Ghanaian retail companies have for expansion in the region? RAMESH SADHWANI: There is room for retail expansion both at home and across West Africa. Nigeria, Ghana and Côte d’Ivoire are the leaders in modern retail, but other markets in the region still have some way to go. Companies that established themselves in larger markets therefore have the opportunity to grow outside their borders. The African Continental Free Trade Agreement (AfCFTA)…
