Ghana: Market value of retail, wholesale industry to increase to $33bn in two years
Market value of Ghana’s retail and wholesale industry is projected to rise to $33.16bn by 2024 – in the next two years.
The projected figure marks an increase in market value by $7bn from the present $24.4bn market value.
This is according to the “Improving Framework Conditions to Unlock the Potential of AfCFTA for SMEs in Ghana,” report published by CUTS Ghana and German development agency GIZ, on behalf of the Federal Ministry for Economic Cooperation and Development [BMZ].
The report is on the back of a study which undertook a nationwide assessment about the level of competitiveness and growth-readiness of Ghanaian SMEs for enhanced participation in the AfCFTA and to come out with diagnostics report, which would help to develop practical steps in addressing those gaps and challenges and to advocate for improving the business framework conditions for the SMEs.
According to the report, the country’s retail and wholesale industry is very lucrative with a large inelastic market.
Adding that it is most advanced compared to other African countries.
Ghana’s retail and wholesale industry in 2019 was ranked first in Africa and fourth in the world by the 2019 Global Retail Development Index report.
This was due to increased foreign and public investment in the sector.
The sector players include both domestic and international players with international brands and mall developers becoming ever more present.
The industry market is dominated by investors and businesses from India, Lebanon, South Africa and other European countries.
These players include Melcom, Shoprite, Mr. Price, Game, Edgars, Woolworths, Truworths, Palace and Max Mart.
The informal retail sector constitutes about 90 percent of the Ghanaian retail industry making up a large market share compared to the market share of the formal sector.
The retail industry is primarily responsible for the distribution of finished products to consumers, which comprises general retailers, departmental stores, specialty stores and discount stores.
