Industry & Retail
From The Report: Ghana 2022
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Industry has been a significant source of economic growth for Ghana in recent years, a trend that continued despite the Covid-19 pandemic. While in the past industrial development has been tied to resource endowments such as cocoa, mining and crude oil, diversification of the industrial sector has been a priority of the government since 2017, with a series of fiscal measures aimed at tackling structural challenges. Similarly, Ghana’s retail sector has expanded in recent years, bolstered by rising living standards and lower levels of unemployment. This trend continued into 2021, despite a modest slowdown in response to the pandemic when social-distancing measures resulted in falling foot traffic in shopping venues. Overall, the continued expansion of e-commerce has the potential to support the country’s long-term economic recovery.

This chapter contains interviews with Hayssam Fakhry, Managing Director, Interplast; and Ramesh Sadhwani, Co-CEO, Melcom.

Articles from this Chapter

Overview

Value-added future: The government’s drive to further develop the industrial base creates opportunities for investment
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Industry has been a significant source of economic growth for Ghana in recent years, a trend that continued in 2020 and 2021 despite widespread disruptions associated with the Covid-19 pandemic. The sector accounts for a large portion of both employment and exports, underscoring its importance as the government seeks to bolster value-added activities’ contribution to the economy and attract investment into emerging segments. The manufacturing base is supported by government efforts to leverage…

Analysis

Continental drive: Tariff reduction and other trade-facilitation measures are expected to bolster local manufacturing capacity
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The African Continental Free Trade Area (AfCFTA) was established in 2018 after an agreement between 44 member states of the African Union (AU) and was officially launched in January 2021. The pact aims to significantly reduce or eliminate tariff and non-tariff barriers on the continent, facilitate a single continental market for goods and services, and enable the free movement of people and investment. Ghana’s capital, Accra, hosts the Secretariat of the AfCFTA, which was formally handed over to…

Interview

Targeted improvements: Hayssam Fakhry, Managing Director, Interplast, on bolstering the competitiveness of local manufacturing Hayssam Fakhry, Managing Director, Interplast
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Interview:Hayssam Fakhry What are your expectations for the industrial sector during Ghana’s post-pandemic recovery phase? HAYSSAM FAKHRY: While the Covid-19 pandemic has certainly been negative in terms of human health, there were some positive outcomes from the business perspective. The onset of the crisis was a wake-up call for Ghana, as it highlighted the lack of local product variety. The country had been relying too heavily on imports, whether from neighbouring nations or further…

Overview

Spending power: Urbanisation, a growing middle class and improved consumer confidence fuel post-pandemic economic growth
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Ghana’s retail sector has expanded in recent years, bolstered by rising living standards, and lower levels of unemployment and inflation. Taken together, these factors improved consumer confidence and supported customers’ purchasing power. This trend continued into 2021, despite a modest slowdown in response to the Covid-19 pandemic when social-distancing measures resulted in falling foot traffic in shopping venues around the world. The continued expansion of e-commerce, consumer spending and…

Analysis

The new normal: The Covid-19 pandemic spurs a long-term shift to e-commerce and digital payments in the local market
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E-commerce and digital transactions have expanded rapidly in Ghana, a trend that accelerated during the Covid-19 pandemic as health-related restrictions limited foot traffic in malls, prompting greater levels of online retail activity. A corresponding increase in mobile money payments and transfers was supported by quick interventions by the Bank of Ghana (BoG), the country’s central bank. Efforts to enhance financial inclusion and provide new payment options could support the long-term expansion…

Interview

Learning to adapt: Ramesh Sadhwani, Co-CEO, Melcom, on the effects of supply chain disruptions and expanding e-commerce channels
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Interview:Ramesh Sadhwani To what extent has the global supply chain disruption impacted retailers in Ghana, and how is the industry adapting to this? RAMESH SADHWANI: Like everywhere else in the world, supply chain disruptions have been challenging. We have all been affected by them, although some more than others. Thanks to planning ahead over several months, Melcom has been affected to a lesser extent. For example, we booked space with shipping companies in advance and committed to moving…