Entrepreneurship is the de facto modus operandi for most people in Ghana, as there really isn’t much of a job market here to speak of. Most foreigners who come over also tend to start their own businesses rather than seeking out conventional employment.
Such individuals, especially those from the West or other parts of the world where their domestic currency values noticeably higher than the Ghana Cedi, are at an advantage, as they can import those funds, which may then translate into the type of money that grants them business opportunities that may not be available or affordable in their homeland.
There’s an old adage that goes ‘it takes money to make money’. And based on what I’ve observed, that wisdom is true in Ghana when it comes to expeditiously experiencing notable returns from a legit business venture. So it isn’t uncommon for foreigners who come over with enough funds to fully get into big businesses, such as agriculture or real estate.
Commercial agriculture involves monocropping and most often, as far as internationally-minded businesspeople are concerned, exporting the produce. The first major expense involved in farming is usually acquisition of or access to land, and the general rule is that the more you can harvest, the higher the profit. Or put otherwise, the more land (suitable for the crops you intend to grow) the better.
Then there’s the labor costs, chemicals, machinery, etc. Usually, the client pays for the exportation, but the entrepreneur may have to absorb the costs of getting the produce to the port to begin with.
Doing so can also often be expensive, as for instance bigger farms are often in remote areas which may have infrastructural issues, besides the general costs of transportation. But businesses such as farming and similarly mining have endured in Ghana largely because they have remained profitable on the international market.
Real estate may involve buying land or for better funded entrepreneurs perhaps buildings that have already been constructed. There are a number of ways to generate money from real estate besides simply buying and selling.
For instance, if you were to acquire a building or house in a coveted area, you would be able to rent out individual units as stores or apartments for regular profit or passive income, as some people call it. If however you do decide to follow the buying-and-selling route, that may take a bit more time to bear fruit.
That is to say that, based on my observations, the price of land and homes almost always appreciates in Ghana. But, unless you’re really shrewd in the game, you’d have to give a few years for it to do so, i.e. become noticeably more expensive than the price you originally paid for it.
There’s nothing sexy about getting into agriculture or real estate. Those types of traditional ventures – the ones based on natural resources if you will – may be bland from a television standpoint but are more surefire from a business perspective.
But again not everyone, even foreign investors, may have the type of money to get into those fields and promptly see returns. Others may not be interested in these types of old school businesses. Instead, they may want to get more into the service or technological field.
One of the good things about Ghana is that it has a relatively-friendly environment when it comes to starting a business. Licenses, to my knowledge, aren’t that expensive. There usually isn’t a lot of bureaucratic hurdles to go through, and whereas it is wise to pay your taxes as stipulated, the taxman isn’t as aggressive as he may be in other parts of the world, especially when you’re just starting off.
But, let’s say that Ghanaians are likely more practical-minded than the people in your homeland. So you may notice, as I have, that there’s a lack of diversity when it comes to the types of businesses Ghanaians start.
When someone ventures into the realm of entrepreneurship in Ghana, it usually isn’t with a ‘I hope it makes money’ type of mentality. It’s more along the lines of ‘this has to make money’, and therefore, the ventures tend to be types that people will undoubtedly patronize, such as food, drinks, pharmaceuticals, auto mechanics, carpentry, beauty, etc.
As such, those are also viable ventures for foreigners to get into, and some do. For instance, whereas internationally-based Ghanaians may not technically be foreigners, it seems that most pharmacies out here, or at least the bigger ones are owned by such individuals.
It also isn’t uncommon to hear of an outsider who decides to come to Ghana and open a restaurant. Restaurants can be really profitable, based on their location. And if you get a group of investors together, you may even think along the lines of franchising.
For instance, there is a Chinese-owned department store chain in Ghana called Melcom which in recent years has become more or less ubiquitous. There are also what are known as “China Malls’ scattered around the country.
The Chinese, sometimes as legal entities and sometimes not, also like engaging in gold mining. But going back to the malls and department stores, they’ve established a system where you can buy many goods for less than they would cost from a local Ghanaian merchant. Also, they have better warranties on electronics.
It’s hard to imagine something like that occurring so blatantly in the US, as there would likely be a local pushback, tariffs, etc. But in Ghana, the system is more open, inviting, and let’s say in need.
So if you’re able to provide a better or unique service (the Chinese also tend to sell products you may not be able to readily find elsewhere), with proper funding business success is arguably inevitable.
As far as non-traditional businesses, such as tech startups, generating a profit may not be as easy. Tech-oriented entrepreneurs in Ghana have experienced increases in funding in recent years, but it isn’t as pronounced as with some other African countries, such as Nigeria.
Ghana could definitely use someone like a local Bill Gates or Mark Zuckerberg. But for now, the overwhelming majority of technological products and services utilized by Ghanaians are based elsewhere. So founding a tech business in Ghana, clerically speaking, will not be problematic. But you may not garner enough public support and encouragement, from the government or otherwise, to continue pressing on. So the likes of tech entrepreneurs really have to be strong and dedicated to their mission.
In some instances, a tech-based business may be the least-expensive to start, since it may not require a centralized location. But all things considered, generating money locally via the internet in Ghana is one of more challenging business paths to take, the type of which you’ll probably be compelled to do if you don’t have enough money to get into a more traditional venture, like real estate or agriculture.
And speaking of the government, certain branches offer advice to foreigners (with substantial money) concerning ideal investment opportunities.
Or you may also be compelled to invest in the business of an individual Ghanaian, which can be a good idea if you come across a sound opportunity of the sort, since, on a street level, they tend to understand the economy better than anyone. But unfortunately, Ghana has also developed the reputation of being a country rife with corrupt individuals.
That belief has reached the level of becoming a stereotype, so of course any intelligent person would know that it can’t be true across the board. But generally speaking, in the world of business it’s better to be safe than sorry.
Ghana remains, compared to Western countries, a Third World nation. What that means in practical terms is that most citizens have dreams and aspirations, needs and wants that they are unable to pursue simply because there isn’t enough money in the system.
One comparison I always like to cite to get that point across is that, in dollar terms, a part-time worker in the US earns more money than most fulltime employees or workers in Ghana, even some professionals.
Combine that reality with the general, stereotypical belief on the part of natives that Western foreigners have access to virtually-unlimited amounts of disposable income, and what you get is a situation where otherwise-legit businesspeople may be tempted or even encouraged to take advantage of trusting outsiders.
It’s sorta like, say, if you were doing business with Elon Musk, in an area he may be naïve in, while he also has limited legal protection. For most of us, a thought may cross our minds like, ‘hey, he’s rich, and I can get away with it.
So what’s the big deal if I cheat him?’ That’s how a lot of people in Ghana think – for lack of better way of putting it. The way they may see it is that they have a need that foreigners don’t, and we have access to cash that they can never realize unless they too were in the West.
Pointing out that fact is not to discourage anyone from doing business in Ghana. Most people here are friendly and humane, especially when compared to some Westerners, which is one of the main reasons visitors tend to fall in love with this country.
But my point is that if there’s a certain protocol to follow in establishing a business, it’s usually best to do so to the letter. And if it’s a situation where you decide to invest in someone else’s venture, then unless you’re doing so as an act of charity or it’s someone you really trust, it’s best to have your legal protections in place beforehand.
And that may entail, in some more serious instances, befriending yourself to the local or regional police department as part of your overall investment.
That said, information technology is a growing sector, i.e. one that is relatively untapped on a domestic level. I don’t want to give away too many of my own personal ideas when it comes to potential IT-based business plans.
But what I will say is that first of all, what works in other countries, such as the US, may not in Ghana. So it isn’t so much about the quality of the idea per se as opposed to how many people can practically benefit from its existence, unless you’re targeting a very specific group.
Another sector I personally feel has a lot of potential is processed food. Relatively speaking, food grows everywhere in Ghana. And it’s not uncommon, if you’re living in a rural area, to hear stories of crops, sometimes by the tonnage, going bad in remote villages because the farmers did not have any way to expeditiously get them to the market.
Or maybe, there was just a straight-up surplus. But of course when you process produce, its shelf life becomes exponentially longer.
I have a couple of homeys who started doing that with mangoes and pineapples, processing them into chips and juices. The issue tends to be that, in doing so and including the packaging, marketing and distribution, the finished product may end up being more expensive than most consumers’ liking.
But if someone were to do something like that on a massive scale or in a way whereas the product remains moderately affordable and trendy, that’s something that can catch on in Ghana, i.e. engaging a traditional industry in a non-traditional way.
Another sector I can see potentially growing is domestic air travel. The infrastructure is already here, as in daily domestic flights between major Ghanaian cities that are moderately affordable. But you rarely hear of someone you personally know partaking of these opportunities, even though traveling by road over such long distances can be very uncomfortable.
Part of it would have to do with the fact that road travel is a lot less expensive. But I think it also has a lot to do with marketing and services associated with domestic flights not appearing overly attractive or user-friendly to locals.
For instance, even as I’m doing this research, I’m on a couple sites which popped out on the first page of an “air travel in Ghana” Google search whereas customers are supposed to be able to book local flights. But neither of them seem to be particularly informative or functioning as they’re supposed to.
I rather have to go to international websites – like Trip.com, which is based in China or Kayak.com, which is located in the US – to rightfully book a domestic flight in Ghana. However, those sites aren’t user friendly towards the local population, because the accepted payment methods, i.e. the likes of Visa and PayPal, aren’t readily accessible to most Ghanaians.
That also tends to be a major problem in Ghana for internationally-minded customers, i.e. being unable to make purchases over the internet. A few years back, it was announced that PayPal was going to establish a presence in Ghana.
However, that has yet, if ever, to come to pass. So that’s another potential sector of growth, albeit an ambitious one, which is affording average Ghanaians more access to the international, internet-based economy. There are some individuals who may do so, but nothing like a widely-recognized businessperson or company engaged in such activities to my knowledge.
CONCLUSION
Ghana is a business-friendly country. So long as you have the necessary resources, follow official protocol and practice common sense, you shouldn’t have any trouble establishing the business of your dreams in the Gateway to Africa.
All things considered, this part of the world tends to be friendlier towards more traditional, natural resource based businesses. But the good thing about that reality is that non-traditional, more-modern sectors are, relatively speaking, wide open to the ideas and innovations of entrepreneurs who are ready, willing and able to endure.
