Ghana - Political EnvironmentGhana - Political Environment
For background information on the political and economic environment of Ghana, please visit the U.S. Department of State Background Notes on Ghana.
Ghana’s Economic Outlook
The International Monetary Fund’s World Economic Outlook database of October 2014 pegged Ghana’s annual growth rate in 2011 at 15 percent. Ghana’s outlook is predicted to be fairly stable. It was envisaged that growth would be slow in 2016 but be bolstered by robust private consumption and fixed investment along with a steady spending on High-Value Products (HVP) in 2017. Renowned analysts expected the economy to expand by about 5 percent in 2016, reaching almost 7 percent by 2017.
Ghana was ranked 70th out of 189 countries in the 2015 World Bank Doing Business survey. Only three countries in Africa were ranked higher: Mauritius (28th), South Africa (43rd), and Rwanda (46th). The West Hills Mall (27,300 square meters) on the Accra-Cape Coast highway opened its doors for business on 30 October 2014 and boasts two anchor tenants, Shoprite and Palace, as well as 63 line shops. The success of developments such as the West Hills Mall, Accra Mall (22,900 square meters), A&C Square Mall (10,000 square meters) and the Oxford Street Mall (6,230 square meters) has stimulated further investments in this business. Notable additions in recent times include the Achimota Mall (13,000 square meters) and the Kumasi City Mall (27,500 square meters).
Modern retail is mainly restricted to Accra and Kumasi, with a sizable portion of the population preferring to do their weekly shopping at the traditional markets. This trend is fast changing, however, as the size of the middle class keeps increasing. And the comparatively accommodative business environment makes Ghana more attractive as an investment destination in Sub-Saharan Africa. A number of foreign retailers have expressed a desire to expand their presence in Ghana, and to take up space in new developments. These include Shoprite, Game, Pizza Hut, among others.
Admittedly, economic growth has been relatively slow in recent years but analysts forecast prosperous years ahead for the food retail sector owing to the growing middle class. E-commerce is also picking up in Ghana. About 20 percent of the population is currently active internet users.
Like most countries in Sub-Saharan Africa, Ghana presents exciting opportunities to food retail business, buoyed by fast urbanization, rising household incomes, a growing middle class, change in lifestyle and eating habits mainly due to emerging demanding work schedules.