Profiles of Organic Food Markets: Ghana

Topics: Organic farming, Organic food, Sustainable agriculture Pages: 5 (1357 words) Published: June 9, 2013
Profiles of organic food markets
Ghana

Macro-economic data
General

Population 2011| 25,000,000|
Gross Domestic Product (current US$, 2011)| 39.20 billion| GDP growth rate (%, 2012)| 2.10%|
GDP per capita (current US$, 2012)| $3,300|
Inflation rate (%, 2013)| 10.40%|
Unemployment rate (%, 2005)| 12.90%|
Distribution of GDP between sectors (%, 2012)| agriculture: 24.6%industry: 27.4%services: 47.9%| Size of middle and upper class| Low (50.7%), middle (30%) and upper class (19.3%). The data refers to the Kumasi Metropolis.| Percentage of income spent on organic food | n.a.|

Main international trade partners| South Africa, Netherlands, India, United Kingdom, Malaysia, Switzerland, United States, France, Nigeria, Burkina, China, Spain, Italy, Turkey, Germany and etc.|

Macro-economic opportunities and risks
The World Bank’s Ease of Doing Business rankings placed Ghana at 63 place among 183 countries in 2012 (1 = best ranking), just behind Poland (62) and ahead of the Czech Republic (64). Ghana’s performance is defined as especially poor in “obtaining construction permits” and “resolving insolvency”. Nevertheless, Ghana is among the top five countries in sub- Saharan Africa. Economic risks in Ghana include a relatively high inflation rate of 10.4% estimated in 2013. Consistently high unemployment over the years is another negative factor keeping the country in poverty. About 28.5% of the total population is living below the poverty line. Other urgent challenges in Ghana are the inadequacies in education and health care that limit social development in the country. It also must address crime. Underdeveloped infrastructure, poor management of natural and human resources, and lack of a fully conducive and cordial business environment in the country also require public sector attention. According to the knowledge portal Global EDGE, Ghana’s strategic goals focus on future economic growth, improving quality of life by boosting employment and decreasing poverty, increased private investment and overall social and rural development. With such plans, international companies can expect incentives for initiating business in Ghana. Low corporate taxes, low equity requirements, custom duty exemptions forplants, machinery, equipment and parts, and relief from double taxation are some of the incentives and guarantees that the government presently offers to encourage future foreign investment. Coca-Cola Co. and Heinz have already been operating successfully in Ghana while companies like Caterpillar, Unilever, IBM, AT&T, to name a few, are undertaking new investments.

Companies are encouraged to establish themselves and operate in the country’s many potentially lucrative markets including hydro-power projects, pharmaceuticals and information technology. Subsequently, as African countries consider fully implementing the African Economic Community (AEC) established in 1991, Ghana's trading access to other African nations could increase significantly in the coming years.

Ghana is a member of the World Trade Organization and has quota-free access to United States and European Union markets. The country has export free zones where goods can be traded without customs duties. The government is putting forth efforts to improve infrastructure to ensure hassle-free movement of goods and produce. While Ghana faces difficulties, all these factors make Ghana a promising market for foreign businesses.

Organic food market data
General

Market size | n.a.|
Market growth rate | n.a.|
Domestic production | n.a.|
Exports (US$, 2006)| $75.64 million|
Imports | n.a.|
Shares/sizes of market segments| Fresh fruits, vegetables, palm oil, cocoa, bananas, cashews, culinary herbs, cereals, cotton, shea butter and etc.| Number of producers, names of big producers, important brands| Benrod Group (producer and...
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