Ghana is second preferred place in Africa for British retailers – Study

Ghana flagsA study conducted by Barclays Bank UK has revealed that Ghana is the second preferred African country for British retailers wanting to expand their businesses.

Six per cent of the retailers surveyed preferred Ghana for future business expansion, according to the research published by Barclays April 2, 2013.

South Africa remained the number one choice with 18% of the retailers saying they would consider expanding in future and Kenya is third.

“Ghana and Kenya were the second and third choices with 6% and 4% respectively,” the Bank said.

The retailers surveyed explained that “reasons given for this interest was Africa’s burgeoning middle class followed by the take up of mobile technology.”

According to Barclays, Africa remains one of the final frontiers for retail but the recent acquisition of South Africa’s Massmart shows how seriously global retailers are now taking the continent.

It adds, “Nearly a quarter of retailers surveyed stated that Africa will be the new retail growth story within a decade, with first mover advantage (33%) considered to be the most important consideration when expanding.”

The research showed that only 21% of retailers interviewed said they currently generate sales on the continent, adding “of those which do, more than half (53%) say South Africa is their top market.”

It indicated that interestingly, other markets which currently provide revenues for British retailers in Africa include Chad, Congo, Morocco and Nigeria.

Richard Lowe, Head of Retail & Wholesale at Barclays, said “Many of the trends which have driven the economic development of emerging economies in Asia and South America are beginning to take hold in Africa. Its rapidly expanding middle class increasingly need goods and services which cannot be catered for domestically, providing a golden opportunity for internationally-minded retailers. This is a truly ‘ground floor’ moment in many African economies.”

The study also showed that the USA remains the hardest market for British retailers to crack despite growth of online, “Nearly half of British retailers (46%) believe the USA remains the hardest market in which to achieve commercial success despite being the current destination of choice,” said the research.

The survey questioned retailers on their attitudes towards international expansion and how they plan to expand, for example, via online channels, opening stores or joint ventures.

By Ekow Quandzie

3 Comments
  1. HOHPRR says

    GREAT GHANAIAN COMPANIES IN PUBLIC, PRIVATE PARTNERSHIP WITH ANOTHER AFRICAN NATION. THIS CONTINENT NEED TO COLABORATE IN ALL FIELDS TO UPLIFT IT PEOPLE OUT OF POVERTY AS WELL AS OWNING PART OR FULLY THIS EXTRATIVE INDUSTRIES WHICH HAVE BEEN DOMINATED BY FOREIGN OWNERSHIP NOTHING FOR OUR PEOPLE TO SHOW FOR.

  2. JOHAYOU HIGH says

    NONSE NONSE, WITHOUT MANUFACTURING NO NEED FOR RETAIL BUSINESS THE BRITISH ALWAYS WANT TO TAKE YOUR MONEY AND WEALTH BY LEAVING YOU NOTHING SINCE SLAVERY DAYS AND THAT CONTINUES BECAUSE GHANAIANS CONTINUE TO FALL FOR IT. TELL ME WHAT THEY DID IN GHANA APART FROM RAILWAYS HAULING OUR RESOURCES AND COCOA TO SELL OVERSEAS FOR THEIR PERSONAL AND KINGDOM GAINS, THANKS TO DR. NKRUMAH AS WELL AS THOSE WHO HELP HIM TO GET THEM OFF GHANA’S BACK.. ALL GHANAIANS SHOULD THINK ABOUT RE-ENGINEERING AND RETOOLING THIS NATION AS WELL AS WORKING TOGETHER FOR BETTER TOMORROW FOR CURRENT , FUTURE GENERATION. BECAUSE A NATION WITHOUT VISION , LEGACY PERISH.

  3. NKRUMAH says

    HELP LOCAL INDUSTRIES AND MANUFACTURING INDUSTRIES IN GHANA SUCCESSED BY BEING ABLE TO SUPPLY AFRICA AND THE WORLD WITH THEIR PRODUCT NOT SINKING THEM.

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