Supermarkets in Ghana sell only 18% local goods – Report

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Only 18 percent of consumable goods sold in Ghana’s leading supermarkets originate from the country.

This was captured in a report produced by a diversified international advisory firm known as Konfidants.

The report is the first in a series of Africa-wide surveys aimed at monitoring local content to help adopt a periodic framework to track progress on this agenda.

It also aims to provide evidence-based insights to guide policymaking, dialogue with supermarkets and to support local producers.

Conducted between April and May 2019, it covered eight leading supermarkets in Accra including  Shoprite (Accra Mall), Game (Accra Mall), Palace Supermarket (Palace Mall) and  Koala (Osu).

The rest are Maxmart (37), CityDia (La), Melcom (North Kaneshie) and Marina Mall Supermarket (Airport).

This particular survey focused on 23 main product categories chosen based on a preliminary baseline survey (in October 2018) that identified product areas in supermarkets with Made in Ghana goods on display.

Performance of  various goods

According to the findings, the best performing category of Made in Ghana goods was Eggs (with 91% of all eggs on sale produced in Ghana), followed by bottled water (with 56% MIG).

Worst performing categories, however, were jointly rice and cosmetics and beauty products with 6% each of the products sold in this category produced locally.

Other poor performers were confectioneries and biscuits, beverage powder, tea and sanitary products which recorded less than 10% MIG across the supermarkets.

Comparative cost analysis

Contrary to widely held beliefs about “cheap imports”, the survey established that Made in Ghana goods were generally cheaper than imported goods in the majority of product categories.

While the price differentials were marginal on average as one would expect in a retail context, Made in Ghana goods price advantage was overwhelming across the categories of goods.

In 73% of product categories (selected for price comparison analysis), local goods were cheaper than imported goods.

This made in Ghana price advantage cuts across both basic and processed goods.

Bridging the gap

The survey recommended that for government efforts at promoting Made-In-Ghana goods, it ought to be targeted especially at products where the country has a comparative advantage and local producers have demonstrated capabilities and potential.

“Supermarkets are emerging as the preferred retail channel for the growing middle class, hence their critical role in promoting Made-In-Ghana goods. One way to improve local content is to promote targets for increasing the share of Made-in-Ghana in the supermarkets for selected products. This can be done progressively over time through innovative approaches that must be a win-win for both supermarkets and local producers “, Managing Partner of Konfidants, Michael Kottoh said.

Source:citibusiness

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