Exporting Goods to Ghana

There are three main ways a foreign company can export goods to Ghana;

1. Distribute the goods in Ghana directly
2. Form a joint venture with a Ghanaian company and have them do the distribution in Ghana
3. Locate a qualified Ghanaian distributor/agent to undertake distribution in Ghana

Assuming you have your correct market data showing the need for your goods in Ghana, you must undertake two important steps before your first consignment of goods hit the shores of Ghana. First you must conduct due diligence to find out the broad outlines of the legal regime pertaining to export of goods into Ghana. Second, you must conduct due diligence to help select a vendor that will assist with turning your goods into cash.

If the company decides to distribute the goods directly within the Ghanaian market then the due diligence on legal regime affecting exports must be very thorough. The company must know government regulations pertaining to the goods, intellectual property rights and other licensing processes within Ghana.

Direct distribution can be very cumbersome and time consuming, especially for small and medium size companies. To be effective at direct distribution you will have to spend lots of resources learning the ropes of the local business practices. For the small or medium size company this can be a bottomless pit with the potential to cut very deep into your profit margin. A better option will be to locate a peer rated local distributor/agent with a wide distribution network throughout the country. Distributors are already well versed in the local business practices and they can assist with adopting a winnable distribution strategy to introduce the goods into the Ghanaian market.

A joint venture (JV) can also be very effective in getting your goods into the Ghanaian market. Like distributors, a JV partner is more knowledgeable about the ropes of doing business in Ghana –licensing issues, export restrictions, intellectual property rights regimes, government regulations, etc. Depending on the type of JV, the local partner may share some of the risks of distributing the goods in the Ghanaian market. One main difference between the JV and distributors is that unlike distributors who are normally paid a set fee for their services, JV partners share in the overall profits of the venture, so JV partners are more incentivize to work for the success of the venture. It should be noted however that JV’s might not be ideal for some small companies because of the relatively large capital requirement the Ghana government stipulates to register a JV. There are also requirements and restrictions about transferring profits outside the country.
In spite of whatever option you choose to distribute your goods, you must first take all necessary steps to know the market you will be operating in. Are the business and political climate conducive for your type of business? Then a sound marketing strategy that among other things accesses the strength and weaknesses of your product will be good to ensure deep penetration of the Ghanaian market.