The Government of Ghana (GOG), in line with its WTO obligations, has liberalized trade.
Some freight consolidators in the United States are unwilling or unable to meet ordering and shipping requirements of Ghanaian importers.
Ghana has an active and entrepreneurial middle class and a fast growing private sector.
U.S. consumer ready foods are not readily available in Ghana, while products from EU, South Africa, and Asia are in greater supply.
The HRI sector is expanding and is requiring more consumer ready products and ingredients.
Some U.S. firms view Ghana as too small a market for entry.
Ghanaian consumption patterns have changed towards Western foods as result of urbanization, women working outside the home and shift in lifestyles of the large youth population.
U.S. consumer ready foods typically have shorter shelf life labeling and longer transit times, thereby reducing shelf life of U.S. products in Ghana.
Middle-class incomes are rising and there is higher demand for healthy foods. The retail sector is shifting to more western style shops and convenience stores.
Infrastructure in Ghana is poor, energy and production costs are increasing. The infrastructure for processing, storage and distribution of consumer ready foods and other perishable products is limited in Ghana.
U.S. grocery items entering Ghana can be re-exported to neighboring West African countries (a market of 250 million people).
The tropical climate is not conducive to displaying many imported food products in the traditional open air-markets which still remain prevalent in Ghana.
Ghana will continue to import HVP items as most are not produced domestically. Ghana’s domestic food processing capacity is still under-developed.
Most retail food outlets lack the expertise and capital needed to modernize and expand to meet the demands of the increasing retail market in Ghana.
Increasing rural to urban migration is raising demand for consumer ready foods. Ghanaian consumers perceive U.S. consumer ready foods as being of high- quality and demand for these is growing.
Some U.S. exporters are not as responsive to importer requests regarding price quotations, packaging and documentation as their EU and Asian competitors.
Advantages and Challenges
Ghana’s population of 23.4 million is growing at an annual rate of nearly 2.7 percent per annum.
The average per capita income in Ghana is estimated at $300. The monthly minimum wage in Ghana is $50.