Barriers
One of the barriers entering Ghana is Australia’s general lack of familiarity with Africa. “Australia still needs to deepen and widen our commercial relationship across Africa,” admits Hull. “Africa is a risky and geographically challenging continent in which to do business. Although stabilising, sovereign risk is never far away. We have few government resources on the ground to help, but can provide a useful commercial perspective, at least before entering such a market.”
Africa has a poor reputation among Australians, agrees Asumadu. “When you think of Africa you think of wars, you think of HIV/AIDS, you think of corruption. But Ghana, in my view, is no different from several of the Asian ‘tigers’ that Australians do business with except that Ghanaian business culture is more similar to the Australian business culture than the Asian countries.”
On a practical level, Ghana’s distance from Australia and a lack of direct flights make it a difficult prospect, especially as the market requires a fairly constant presence. This may mean exporters are forced to employ a local partner or to set up operations there to maintain contact with the market. Time zone is also a consideration in this regard.
“The ability to service the market not easy. For bulk items, transport costs can be a issue,” says Hull. “Best if other markets in Africa are considered at the same time, especially in West Africa, but a base in East Africa or in South Africa is also a good approach.”
As a developing country, Ghana also lacks some of the facilities that may be standard in other markets, Asumadu cautions. “Companies need to be realistic and understand that Ghana is a developing country. There are areas where development may not be to the standard that you’ll find in Australia. Nevertheless, it doesn’t prevent you from getting your business off the ground.”
While the Ghanaian government embraces foreign investments and business dealings, sometimes processing can be slow, he adds. “Systems are not as fully automated as they may be in Australia. It’s a question of critical mass. As demand increases, the government can find the justification to make the investment to automate.”
The future
Because Ghana is more advanced than some of its neighbours, any value Australians can add to Ghanaian resource operations, infrastructure and its business environment can also be carried across the border to other nations. Ghana is also an excellent place to locate headquarters for the West Africa region, particularly as it is one of the few English-speaking countries among a number of French-speaking ones.
As well as being the gateway to West Africa, doing business in Ghana also presents opportunities in Europe and North America through special trading conditions with those regions.
“Don’t go to Ghana expecting to find Australia. Go to Ghana expecting to find opportunities,” advises Asumadu. “Be broad-minded and be prepared to identify risk and manage those risks prudently. Ghana is a developing country and all developing countries have their challenges, but those challenges do not prevent you from taking advantage of huge opportunities.”
And, he adds as a tip, “Ghana is sports mad like Australia—our national sport is soccer. But there is no reason why Australia cannot introduce Australian Rules football into Ghana.”
So who’s game?
Trade Links
Asumadu & Associates: www.aassociates.com.au
Australia Africa Business Council: www.aabc.net.au
Australian High Commission – Ghana: www.ghana.embassy.gov.au
Consulate General of the Republic of Ghana: ghanacg.com.au
Ghana Association of NSW: www.ghanaassociation.org.au
Ghana Association of Victoria: www.ghanav.org.au
Ghana Association of WA: ghanaassocwa.com.au
Ghana Australia Association of Queensland: www.ghanaqld.org.au
Ghana High Commission: www.ghanahighcom.org.au
You’ll find trade links at the bottom of the second page: http://www.dynamicexport.com.au/articles/markets/doing-business-in-ghana/2/
However, I notice you are from the USA and I don’t know anything about exporting from the USA to Ghana, I’m afraid, as we specialise in information for Australian exporters.
Love to open a business relationship with Ghana. Please inform me on the procedures.