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wholesale retail food industry ghana

The Wholesale and Retail of Food Industry in Ghana 2021

Chere Monaisa | Ghana | 21 September 2021

The Wholesale and Retail of Food Industry in Ghana 2017

Nina Shand | Ghana | 27 June 2017

The Wholesale and Retail of Food Industry in Ghana 2015

Nina Shand | Ghana | 15 December 2015

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Report Coverage

This report focuses on the wholesale and retail of food in Ghana and includes information on the state of the sector, major players, corporate actions and developments. There are profiles of 10 companies including South African companies Shoprite and Massmart, international players such as Unilever, distributors such as Gold Coast Matcom and local companies such as PZ Cussons Ghana and Melcom.

Introduction

This report focuses on the wholesale and retail of food in the Republic of Ghana, a country that experienced rapid economic growth from 2010 when it began extracting oil from large offshore reserves. However, this growth has been tempered recently by the energy crisis, depressed commodity prices, long term macroeconomic imbalances and coronavirus. Many international retailers view Ghana as a gateway to a larger West African market of more than 260 million people. Although most food is still purchased at traditional markets, there is increasing demand from a relatively large and largely untapped market for the convenience and variety offered by formal retail and supermarkets. The wholesale and retail industry in Ghana is dominated by businesses that are owned by companies from India, Lebanon, and several European countries, while South African companies have been increasing their market share due to their country’s bilateral trade promotion with Ghana.

Strengths

• Economic growth to average 4% between 2021-2023.
• Ghana is viewed as a gateway to West Africa’s consumer market.
• Ghana’s economic performance in recent years places it among Africa’s 10 fastest-growing economies.
• Government support and incentives policy to attract foreign direct investment.

Weaknesses

• Dominance of informal market means economy is mainly cash driven.
• Electricity cuts.
• Perception that modern retailers’ products are expensive
• Production costs of food are high. Many inputs must be imported which drives costs higher.
• Weak and unstable currency.
• Weak purchasing power.
• Working capital and long-term financing are difficult to procure and interest rates are high.

Opportunities

• Coronavirus may lead more people to modern retailers rather than traditional markets for hygiene purposes.
• Increasing use of online and mobile platforms for shopping and payments.
• Middle class incomes are rising and there is higher demand for premium products.
• Older customers are seeing the benefits of easy to make store-bought staples compared to those traditional staples that take longer to prepare.
• Unmet demand for quality products and formal retail space have not been exploited outside the saturated major cities.
• Younger demographic appetite for pre-packaged snacks and quick/easy to make meals.

Threats

•  Ongoing threat of new waves and variants of coronavirus.
• Increase in poverty levels in 2021.
• Many businesses have supply chains oriented towards more entrenched trading partners such as European, South African, and Asian exporters.

Outlook

Ghana’s economic growth is expected to average 4% between 2021 and 2023 and the retail and food markets remain highly unsaturated outside the major cities. Despite its recent economic woes and the impact of coronavirus, Ghana is still viewed by many analysts as a preferred destination for international trade and investment in the West African sub-region. Urbanisation continues to be a major driver for modern retailing while the growing middle class has stimulated the demand for popular fast-food brands, and the convenience of some easy-to-make staples such as maize and cereals is attracting more traditional shoppers to modern retailers. \r\n\r\nThe pandemic has resulted in Ghanaians changing their shopping habits and embracing the concept of online food delivery and the buying of groceries online. The pandemic also pushed entrepreneurs and informal sellers to use mobile money payment methods rather than cash. This means that to thrive and remain competitive in the Ghanaian wholesale and retail food value chain, formal and informal retailers will need to embrace ecommerce and online shopping. \r\n

Read More..
The Wholesale and Retail of Food Industry in Ghana
The Wholesale and Retail of Food Industry in Ghana 2021

Full Report

R 6 500.00(ZAR) estimated $359.85 (USD)*

Industry Landscape

R 4 550.00(ZAR) estimated $ 251.89 (USD)*

Historical Reports

The Wholesale and Retail of Food Industry in Ghana 2017-06-27

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

The Wholesale and Retail of Food Industry in Ghana 2015-12-15

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY PROFILE 1
2.1. Geographic Position 3
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 6
4. SIZE OF THE INDUSTRY 7
5. STATE OF THE INDUSTRY 10
5.1. Local 10
5.1.1. Trade 14
5.1.2. Corporate Actions 14
5.1.3. Regulations 15
5.2. Continental 17
5.3. International 19
6. INFLUENCING FACTORS 21
6.1. Coronavirus 21
6.2. Economic Environment 22
6.3. Rising Input Costs 22
6.4. Technology, Research and Development (R&D) and Innovation 23
6.5. Government Incentives and Support 23
6.6. Environmental Concerns 24
6.7. Labour 25
7. COMPETITION 26
7.1. Barriers to Entry 26
8. SWOT ANALYSIS 27
9. OUTLOOK 28
10. INDUSTRY ASSOCIATIONS 28
11. REFERENCES 29
11.1. Publications 29
11.2. Websites 30
APPENDIX 1 32
Summary of Notable Players 32
COMPANY PROFILES 33
ECODI LTD 33
GOLD COAST MATCOM (GCM) LTD 34
MASSMART HOLDINGS LTD 36
MAXMART LTD 42
MELCOM LTD 44
PBC LTD 46
PZ CUSSONS GHANA LTD 49
SAMBA FOODS LTD 51
SHOPRITE HOLDINGS LTD 53
UNILEVER GHANA PLC 58

Report Coverage

The report on the Wholesale and Retail of Food in Ghana examines current conditions, the regulatory environment and factors that influence the success of the sector. Profiles are provided for 11 wholesalers and retailers including the largest supermarket chains, domestic players Maxmart and Melcom, as well as South African role players, Shoprite and Massmart Holdings Ltd. Also profiled are two local companies that form part of the Wolley Group, the Koala Shopping Centre Ltd and wholesaler, Woimex Ltd.

Introduction

This report focuses on the wholesale and retail of food in the Republic of Ghana, a country that experienced rapid economic growth from 2010 when it began extracting oil from large off-shore reserves. However, this growth has been tempered recently by the energy crisis, depressed commodity prices and macroeconomic imbalances. South African retailers have entered the market to expand their footprint beyond their domestic market, and international retailers see Ghana as a gateway to a larger West African market of more than 260 million people. Although the majority of food is still purchased through traditional markets, there is an increasing demand for the convenience and variety offered by formal retail and supermarkets from a relatively large, unsaturated middle class market.

Strengths

• Ghana is viewed as a gateway to West Africa’s consumer market.
• There is increasing foreign investment in food retail and in formal retail space.

Weaknesses

• Efficiencies are hampered by poor infrastructure for processing storage and distribution of food.
• Lack of investment in training the workforce.
• Production costs of food are high. Many inputs have to be imported which drives costs higher.
• Retail outlets are underdeveloped.
• The industry is highly regulated and the cost of compliance is high.
• The population generally still prefers to shop at markets and through informal retail outlets.
• Working capital and long-term financing are difficult to procure and interest rates are high.

Opportunities

• Growing demand for consumer-ready products often stocked by supermarkets.
• Growth in demand for supermarkets with modern facilities from consumers seeking convenience and variety.
• Mobile technology innovation for online shopping.
• More formal retail space available in several new shopping centres in various stages of completion, especially in secondary cities.
• Rising urbanisation, together with the emerging middle class, continues to drive demand across all segments.
• The development of retail and distribution networks.

Threats

• High inflation.
• Increase in costs associated with retail such as increase in the VAT rate, clearing challenges at ports and high cost of shipping goods to Ghana
• Power insecurity poses a threat to productivity.
• The weakening of global markets and the ongoing weakness of the oil price.
• Worsening macroeconomic outlook, including inflationary pressures, the depreciation of the Ghanaian cedi and higher taxes.

Outlook

Despite its recent economic woes, Ghana is still viewed by many analysts as a preferred destination for international trade and investment in the West African sub-region. Analysts forecast that the implementation of tighter monetary policy and other stabilisation measures will result in slower economic growth in Ghana in the short-term, but that economic activity will recover in the medium-term, growing at an average annual rate of around 6.7%. However, the country remains vulnerable to exchange rate volatility which impacts particularly negatively on the retail industry, given its high level of exposure to imported inputs. Rising inflation, interest rates, an overestimation of the shopping preferences of the country’s emerging middle class and the sharp depreciation of the local currency are impacting retailers who have set up in Ghana. The large increase in the amount of formal retail space available through the construction of new malls is likely to stimulate demand going forward, but the more traditional markets are expected to retain a significant role in the wholesale and retail sector.

Read More..
The Wholesale and Retail of Food Industry in Ghana
The Wholesale and Retail of Food Industry in Ghana 2017

Full Report

R 1 900.00(ZAR) estimated $105.19 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.63 (USD)*

Historical Reports

The Wholesale and Retail of Food Industry in Ghana 2021-09-21

R 6 500.00(ZAR) estimated $359.85 (USD)*

View Report Add to Cart

The Wholesale and Retail of Food Industry in Ghana 2015-12-15

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Value Chain 4
4. SIZE OF THE INDUSTRY 7
5. STATE OF THE INDUSTRY 8
5.1. Local 8
5.1.1. Corporate Actions 11
5.1.2. Regulations 11
5.1.3. Enterprise Development and Social Economic Development 14
5.2. Continental 14
5.3. International 17
6. INFLUENCING FACTORS 20
6.1. Economic Environment 20
6.2. Rising Operating Costs 21
6.3. Government Support 21
6.4. Urbanisation 23
6.5. Technology, Research and Development (R&D) and Innovation 23
6.6. Labour 24
6.7. Cyclicality 25
6.8. Environmental Concerns 26
6.9. Corruption 27
6.10. Lack of Infrastructure 27
7. COMPETITION 29
7.1. Barriers to Entry 30
8. SWOT ANALYSIS 31
9. OUTLOOK 32
10. INDUSTRY ASSOCIATIONS 33
11. REFERENCES 34
11.1. Publications 34
11.2. Websites 35
COMPANY PROFILES 36
GOLD COAST MATCOM LTD 36
KOALA SHOPPING CENTRE LTD 38
MASSMART HOLDINGS LTD 39
MAXMART LTD 45
MELCOM LTD 47
PBC LTD 48
PZ CUSSONS GHANA LTD 51
SAMBA FOODS LTD 53
SHOPRITE HOLDINGS LTD 56
UNILEVER GHANA LTD 60
WOIMEX LTD 63

Report Coverage

The Wholesale and Retail of Food Ghana describes the current market and recent developments as well as factors influencing the success of the formal sector. The report also profiles 12 domestic and South African companies, including PZ Cussons Ghana Ltd, listed on the Ghana stock exchange (GSE) and involved in the manufacture, purchase and distribution of nutritional products, and Ghanaian retailer, Maxmart Ltd which operates three Max Mart Family Shopping Centres.

Introduction

This report focuses on the wholesale and retail of food in the Republic of Ghana, which has experienced high levels of economic growth since it began extracting oil from large off-shore reserves in 2010. As a gateway to a larger West African market of over 260 million people, Ghana has emerged as an important consumer market offering significant growth potential. The country is an ideal location for investors as it has political stability, lower costs and ease of doing business which means retail investors can plan for the long-term and utilise the country as a growth hub, attracting customers from across the region. Although 70% of food is purchased through traditional markets, there is an increasing demand for the convenience and variety offered by formal retail and supermarkets.

Strengths

• The sector serves a growing middle class.
• There is increasing foreign investment in food retail and in formal retail space.

Weaknesses

• Efficiencies are hampered by poor infrastructure for processing storage and distribution of food.
• Lack of investment in training the workforce.
• Lack of SME access to finance.
• The population generally still prefers to shop at markets and through informal retail outlets.

Opportunities

• A growing middle class in a country with sustained and above average growth.
• Ghana is one of the ten fastest growing economies in the world.
• Growing demand for consumer-ready products often stocked by supermarkets.
• Growth in demand for supermarkets with modern facilities from consumers seeking convenience and variety.
• Mobile technology innovation for online shopping.
• More formal retail space available in several new shopping centres in various stages of completion.

Threats

• Expensive rentals attributable to high cost of building and maintenance of modern retail facilities to international standards
• Further depreciation of the Ghana Cedi
• High inflation.
• Increase in costs associated with retail such as increase in the VAT rate, clearing challenges at ports and high cost of shipping goods to Ghana

Outlook

Informal food retail is set to continue to dominate the retailing of food in Ghana, although there is an increase in the number of consumers who prefer the modern one-stop shopping offered at supermarkets. The large increase in the amount of retail space available through the construction of new malls will also stimulate demand. However, consumers are under pressure with high levels of inflation, a rapidly depreciating currency and higher fuel prices. The economic reform programme implemented as part of the IMF US$1bn loan should help reduce the government’s budget deficit and in turn, reduce inflation. In general, however, stakeholders believe that the long-term growth prospects for the formal food retail sector are promising.

Read More..
The Wholesale and Retail of Food Industry in Ghana
The Wholesale and Retail of Food Industry in Ghana 2015

Full Report

R 1 900.00(ZAR) estimated $105.19 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.63 (USD)*

Historical Reports

The Wholesale and Retail of Food Industry in Ghana 2021-09-21

R 6 500.00(ZAR) estimated $359.85 (USD)*

View Report Add to Cart

The Wholesale and Retail of Food Industry in Ghana 2017-06-27

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 8
4.1.2. Regulations 8
4.2. Continental 10
4.3. International 12
5. INFLUENCING FACTORS 14
5.1. Economic Environment 14
5.2. Rising Input Costs 15
5.3. Labour 15
5.4. Lack of Infrastructure 16
5.5. Technology, Research and Development (R&D) and Innovation 17
5.6. Environmental Concerns 18
5.7. Seasonality 19
6. COMPETITION 20
6.1. Barriers to Entry 21
7. SWOT ANALYSIS 22
8. OUTLOOK 23
9. INDUSTRY ASSOCIATIONS 23
10. REFERENCES 24
10.1. Publications 24
10.2. Websites 25
COMPANY PROFILES 26
Gold Coast Matcom Ltd 26
Massmart Holdings Ltd 28
Maxmart Ltd 33
Melcom Ltd 34
Shoprite Holdings Ltd 44
Unilever Ghana Ltd 50