Research shows that only 18% of goods sold in top supermarkets are Made in Ghana

A research conducted by a Konfidants, an international business advisory firm has indicated that very few locally manufactured goods make it to the shelves of leading supermarkets in Ghana’s capital city, Accra.

Products in the mall

The research, which surveyed eight of the leading supermarkets in Accra on the availability of 23 made in Ghana products showed that only 18% of all the goods sold by these supermarket chains were locally manufactured.

The survey was conducted between April and May 2019 at Shoprite, Game both at Accra Mall, Palace Supermarket (Palace Mall), Koala (Osu), Maxmart (37), Citydia (La), Melcom (North Kaneshie) and Marina Mall Supermarket (Airport).

During the survey, a total number of 7,462 brands were counted across all the eight supermarkets. Out of this number, 6,108 representing 82% were foreign brands, with only 1,354, that is, 18% is made in Ghana brands.

The research also indicated that only 6% of the rice sold in these supermarkets were produced in Ghana. The cosmetics/beauty products manufactured locally were also poorly represented (6 percent) on the shelves.

Commenting on some of the key findings of the research, Konfidants stated:

“We found several instances where products bearing indigenous Ghanaian brand names (and therefore having “Ghanaian identity”) are actually imported goods produced by foreign manufacturers for local distributors (examples being cooking oils and tomato pastes). One could easily mistake these for Made in Ghana.”

Conversely, there were also products that – although bearing Made-in-Ghana tag – are at best described as “imported and assembled/packaged” in Ghana.

A major example was the sugar and salt sold in the supermarkets. Even though they have very little local value addition, these products are nonetheless legitimately counted as MIG.

On the issue of pricing, the research found that goods manufactured here were generally cheaper than their imported counterparts.

Managing Partner of Konfidants, Michael Kottoh, said the government must promote made in Ghana products in supermarkets since they are emerging as the preferred retail channel for the growing middle class.

“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,” he said.

He said a quota must be apportioned for Made in Ghana goods in supermarkets in Ghana. However, he conceded that this may not happen since there is a larger global supply chain forces at work that can sometimes make it difficult for supermarkets to commit more shelf space for local produce.

“Ultimately, local producers will need targeted support from government, regulators like the Ghana Standards Authority and the Food and Drugs Authority; as well as help from the supermarkets (and banks) to support local producers to continuously improve their competitiveness (in quality, standards, pricing and packaging) as well as capacity to bulk supply with consistency and meet steep supplier credit and wholesale pricing expectations of the supermarkets,” Mr. Kottoh said.

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