Ghana's retail sector has experienced remarkable growth, driven by increased foreign investment and the rise of e-commerce. Recent research shows that between 2020 and 2022, the retail sector soared from to an impressive USD 28.3 billion. This dynamic growth signals significant opportunities for companies looking to expand into new West African markets.
Navigating the Unique Landscape of Ghana's Retail IndustryDespite its rapid rise, Ghana's retail industry retains distinctive characteristics. The informal sector dominates, with major shopping hubs concentrated in cities such as Accra, Kumasi, and Takoradi. Notably, Ghanaians prioritise spending on essentials, allocating 44.2% of their income to food and beverages, 9.8% to household care, and 7.2% to clothing.
E-Commerce on the Rise: The Driving ForcesAs Ghana's retail landscape evolves, e-commerce has experienced an unprecedented surge, particularly benefiting from the recent global pandemic. Four key elements fueling the sector's expansion include:
- Growing internet connectivity and customer awareness
- Improving logistics infrastructure Ghana's commitment to seamless delivery services is evident through initiatives like the position tracking system and ongoing efforts to enhance logistics and transportation infrastructure. Expansion and improvement of roads and highways, coupled with the Rural Telephony and Digital Inclusion project's launch, ensure broader market access outside urban areas.
- Improving cybersecurity At the forefront of cybersecurity, Ghana is adopting the Cybersecurity Services Licensing Regulation under the Ghanaian Cyber Security Authority's leadership. These measures, complemented by the Financial Industry Command Security Operations Centre (FISOC), safeguard data and protect against cyber threats, bolstering the integrity of digital transactions.
- Digital Business Registration To combat fraud, the Ghanaian government initiated the registration of digital firms, including e-commerce players and logistics partners, in late 2022. This proactive step not only builds customer trust but also establishes a secure foundation for long-term growth in the e-commerce sector.
With over to have gained internet access by the end of 2022, a significant increase from 2 million in 2012, consumer interests are aligning with global market trends. The quest for convenience is driving online shopping, further fueled by internet services provided by numerous telecom service providers.