Industry & Retail
From The Report: Ghana 2024
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Since 2015 industrial subsectors have consistently attracted some of Ghana’s largest inflows of foreign direct investment (FDI), with the country among the top-three in West Africa in terms of FDI since 2006. A proactive industrial policy has helped overcome obstacles such as trade barriers and the availability of industrial land, and the country offers significant development potential to consolidate its position as a centre for industrialisation in the region. In addition, thanks to its emerging middle class and high population growth, Ghana is symbolic of the continent’s ascendancy as an up-and-coming retail destination. This, in turn, should help accelerate fiscal consolidation and digitalisation, both of which are expected to be crucial to Ghana realising its retail potential.

This chapter contains interviews with K T Hammond, Minister of Trade and Industry; George Owusu-Ansah, Managing Director, Unilever Ghana; and Ramesh Sadhwani, Joint Group Managing Director, Melcom Group.

Articles from this Chapter

Overview

Consistent development: New ease-of-doing business measures, infrastructure expansion and a focus on manufacturing are boosting industrial capacity
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Ghana’s industrial strategy has been a reference point in the acceleration of Africa’s industrialisation drive in recent years. Since 2015 industrial subsectors such as manufacturing, and oil and gas have consistently attracted some of Ghana’s largest inflows of foreign direct investment (FDI). Indeed, the country has remained in the top-three FDI destinations in West Africa since 2006. The relative success of Ghana’s industrial landscape has been built on a proactive government implementing…

Analysis

High-value strategy: Special economic zones and value-added manufacturing form the core of Ghana’s industrial transformation agenda
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An export-focused growth strategy has long informed Ghana’s industrialisation agenda. The country’s economic infrastructure is key to this growth strategy, which comprises special economic zones (SEZs), export processing zones (EPZs) and industrial parks. This landscape facilitates the maximisation of limited capital outlay, the provision of a dedicated institutional framework, lower production costs and an enabling business ecosystem due to shared services and infrastructure within a designated…

Analysis

The right direction: Industries not eligible for the green bond market have a new option to fund their shift towards more sustainable activity
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As companies look to shift towards more environmentally sustainable operations, those in fossil fuel or heavy-polluting sectors are increasingly turning to transition bonds – a relatively new class of debt instrument used to fund a company’s s efforts to reduce its environmental impact or lower carbon emissions. They are often issued in large carbon-emitting industries that would not normally qualify for green bonds, such as oil and gas, iron and steel, chemicals, aviation and shipping. In the…

Overview

Accommodating landscape: Upsides for investors amid improving macroeconomic conditions, rising disposable incomes and growing adoption of e-commerce
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Ghana’s retail sector is navigating various challenges to reach its considerable potential. The ongoing war in Ukraine, volatile commodity prices, a fiscal deficit, rising unemployment and stubborn inflation are among the global and domestic macroeconomic headwinds constraining Ghana’s real GDP growth, limiting household income and spending to basic necessities. Compounding the picture was the more than 55% depreciation of the cedi against the US dollar in the first nine months of 2022. Despite…

Analysis

Informal connections: Customer trust built upon strong community ties and proximity contribute to a dominant informal sector
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The informal sector plays a pivotal role in sub-Saharan Africa’s economy, and is a significant contributor to both GDP and jobs. It is also the main source of employment for key demographics such as women, who outnumber men in the labour force: a report from the International Labour Organisation found that the informal employment rate in the non-agriculture sector was 63.6% for women in 2019. As such, it is the backbone of future growth and development. The informal sector is particularly important…

Interview

Selling up: Ramesh Sadhwani, Joint Group Managing Director, Melcom Group, on future growth and expansion in retail
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Interview:Ramesh Sadhwani What are the majors drivers of growth in the retail sector, and what key challenges does it faces? RAMESH SADHWANI: The main factors influencing growth in the country’s retail market include rapid urbanisation, rising household incomes, and changes in lifestyles and habits across the country. The growing middle class has contributed to an increased appetite for essential goods, including high-value products and brands. However, one of the main obstacles facing…

Analysis

Long-term appeal: “Buy now, pay later” providers are facing increased competition but have made major strides in penetrating emerging markets
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Building on the momentum seen in the e-commerce space during the Covid-19 pandemic, the “buy now, pay later” (BNPL) model is one of the fastest-growing segments in consumer finance, particularly in emerging markets. BNPL providers offer point-of-sale loans that consumers can repay in instalments over the course of weeks or even months. Charging little to no interest, these microcredit providers make profit via transaction fees paid by the retailer, offering increased sales and customer conversion…