Required Report - public distribution

**Date:** 10/22/2008

**GAIN Report Number:** GH8007

GH8007

**Ghana**

**Exporter Guide**

**Exporter Guide Annual**

**2008**

**Approved by:**

![](media/image1.wmf)Ali A. Abdi, Agricultural Attache

U.S. Consulate, Lagos

**Prepared by:**

Elmasoeur Ashitey

**Report Highlights:**

The Ghanaian market continues to offer many opportunities for U.S.
exporters of consumer-ready food products and remains a key access point
for entry into the West Africa region market. Demand for these products
is expanding rapidly in Ghana, while the U.S. share has remained low at
only 5 percent. Ghana\'s total food and agricultural imports in 2007
climbed to \$1 billion. This report presents background information and
tips for exporters interested in entering this market.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Lagos \[NI1\]

\[GH\]

# TABLE OF CONTENTS {#table-of-contents .TOC-Heading}

[SECTION I MARKET OVERVIEW 3](#section-i-market-overview)

[Advantages and Challenges 4](#advantages-and-challenges)

[SECTION II: EXPORTER BUSINESS TIPS
5](#section-ii-exporter-business-tips)

[General and Agricultural Trade Situation
5](#general-and-agricultural-trade-situation)

[US Agricultural Exports to Ghana 5](#us-agricultural-exports-to-ghana)

[US Agricultural Export to Ghana CY 2007
6](#us-agricultural-export-to-ghana-cy-2007)

[Buyers' Preferences and Regulations
6](#buyers-preferences-and-regulations)

[Product Registration and Regulations:
6](#product-registration-and-regulations)

[Import Duties and Collections 6](#import-duties-and-collections)

[Port Concessions and Destination Inspection Scheme
7](#port-concessions-and-destination-inspection-scheme)

[SECTION III: MARKET SECTOR STRUCTURE AND TRENDS
10](#section-iii-market-sector-structure-and-trends)

[Retail Food Sector 10](#retail-food-sector)

[Food Processing (FP) 11](#food-processing-fp)

[Food Service (HRI) 12](#food-service-hri)

[Seafood/Frozen Fish 12](#seafoodfrozen-fish)

[Aquaculture 13](#aquaculture)

[Dairy Sector 13](#dairy-sector)

[SECTION IV: MARKET ENTRY STRATEGY
14](#section-iv-market-entry-strategy)

[SECTION IV BEST PROSPECTS 15](#section-iv-best-prospects)

[Product Types Offering the Most Sales Potential
15](#product-types-offering-the-most-sales-potential)

[SECTION V: POST CONTACT AND FURTHER INFORMATION
15](#section-v-post-contact-and-further-information)

[Appendix I: Ghana's economic Structure (Annual Indicators)
17](#appendix-i-ghanas-economic-structure-annual-indicators)

#  

# SECTION I MARKET OVERVIEW

Ghana is an important U.S. agricultural export market and offers
expanding market opportunities due to its remarkable record of economic
growth as well as its liberal import policies. Ghana's estimated
population of 22 million is growing at approximately 3 percent annually.
Also, the Government of Ghana (GOG) is positioning Ghana as the gateway
to the larger West African market (250 million people).

Ghana's agricultural sector is largely subsistence-based, and employs
over 60 percent of the population and contributes about 37 percent of
GDP. The agricultural sector growth was 4.3 percent against a target of
6.1 percent for 2007 and this shortfall can be attributed to the erratic
rainfall pattern which swept the northern part of the country in 2007.
Ghana's agriculture consists of 80 percent crop production, 10 percent
livestock, poultry and fishery production, and 10 percent forestry.
Domestically produced food products that are traditionally consumed in
Ghana include cereals, (corn, rice, sorghum), tubers (cassava), and
other local fruits and vegetables. Despite some growth in the
agriculture sector, Ghana remains a major importer of agricultural food
products, including bulk commodities (rice and wheat) and consumer-ready
food products such as poultry. There is a high demand for imported food
products, especially consumer ready products, due to limited selection
of products provided by the underdeveloped domestic agricultural and
food processing sector in Ghana. The leading suppliers of intermediate
and processed products to Ghana are EU, Asia and South Africa. U.S.
exporters are advised to explore entering the expanding Ghanaian market
and U.S. agribusiness firms interested in doing business in Ghana can
seek assistance of the USDA/FAS office in Accra to develop business
relationships with local companies, importers, and agents.

Ghana operates a relatively free market, and most tariffs are low. Ghana
has stated its commitment to the ECOWAS Common External Tariff (CET)
which it adopted in 2005 but has not started implementing yet. In July
2005, Ghana aligned its tariff rates of 0%, 5%, 10%, and 20% with those
of the ECOWAS, but requested for type B exemptions for some items, until
the end of the transitional period, 2006-2007. However, full
implementation has still not commenced yet. Although Ghana has been slow
to take full advantage of the enhanced market access offered under the
African Growth and Opportunity Act (AGOA), it is increasing efforts in
this area. Ghana was the second country (after Cote d'Ivoire), to sign a
bilateral EPA-light with the EU. The implementation of this agreement
would eliminate tariffs on virtually all of the Ghana's exports to
Europe and on 80 percent of imports from the EU over the next 15 years.

## Advantages and Challenges

  ----------------------------------- -----------------------------------
  Advantages                          Disadvantages

  Ghana's population of 22 million is The average per capita income in
  growing at an annual rate of nearly Ghana is low at an estimated \$300.
  3 percent per annum.                The monthly minimum wage in Ghana
                                      is \$45.

  Increasing rural to urban migration Some U.S. exporters are not as
  is raising demand for consumer      responsive to importer requests
  ready foods. Ghanaian consumers     regarding price quotations,
  perceive U.S. consumer ready foods  packaging and documentation as
  as being of high-quality and demand their EU and Asian competitors.
  for these is growing.               

  Ghana has an active and             U.S. consumer ready foods are not
  entrepreneurial middle class and a  readily available in Ghana, while
  fast growing private sector.        products from EU, South Africa, and
                                      Asia are in greater supply.

  The HRI sector is expanding and is  Some U.S. firms view Ghana as too
  requiring more consumer ready       small a market for entry.
  products and ingredients.           

  Ghanaian consumption patterns have  U.S. consumer ready foods typically
  changed towards Western foods as    have shorter shelf life labeling
  result of urbanization, women       and longer transit times, thereby
  working outside the home and shift  reducing shelf life of U.S.
  in lifestyles of the large youth    products in Ghana.
  population.                         

  Middle-class incomes are rising and Infrastructure in Ghana is poor and
  there is higher demand for healthy  energy and production costs are
  foods. The retail sector is         increasing. The infrastructure for
  shifting to more western style      processing, storage and
  shops and convenience stores and    distribution of consumer ready
  away from traditional open air      foods and other perishable products
  markets.                            is limited in Ghana.

  U.S. grocery items entering Ghana   The tropical climate is not
  can be re-exported to neighboring   conducive to displaying many
  West African countries (a market of imported food products in the
  250 million people).                traditional open markets which
                                      still remain prevalent in Ghana.

  Ghana will continue to import HVP   Most retail food outlets lack the
  items as most are not produced      expertise and capital needed to
  domestically. Ghana's domestic food modernize and expand to meet the
  processing capacity is still        demands of the increasing retail
  under-developed.                    market in Ghana.

  The Government of Ghana (GOG), in   Some freight consolidators in the
  line with its WTO obligations, has  United States are unwilling to meet
  liberalized trade.                  ordering and shipping requirements
                                      of Ghanaian importers.
  ----------------------------------- -----------------------------------

# SECTION II: EXPORTER BUSINESS TIPS

## General and Agricultural Trade Situation

Ghana operates in a relatively free market environment and aims to make
Ghana the gateway to the larger West African market. Ghana is a
significant exporter and importer of goods, with total exports estimated
at \$3.9 billion in 2007 and imports estimated at \$6.8 billion in 2007.

Ghana is a net importer of agricultural products, and in 2007 these
imports equated to \$1 billion. Ghana is an important U.S. agricultural
export market of bulk/intermediate commodities and is a major purchaser
of U.S. rice (the largest in West Africa), poultry, wheat and high-value
food products (processed fruits and vegetables). Major export
competitors for the Ghanaian market are Asia, South Africa and the EU.
Ghana continues to maintain strong trade relations with the EU
especially the UK and the Netherlands. Trading with Asia, especially
China, has increased dramatically for the past few years.

In 2007, Ghana's agricultural exports were approximately \$420 million,
primarily timber and cocoa (which accounts for two-thirds of total
agricultural exports). Major export destinations were the EU and the
United States. In fact, Ghana is actually a net exporter of
agricultural, fish and forestry products to the U.S. and exports in 2007
reached \$104 million (as opposed to imports of \$77.6). These exports
were primarily cocoa beans, paste and butter and hardwood lumber and
panel products.

## US Agricultural Exports to Ghana

Total U.S. agricultural exports to Ghana in 2007 were approximately
\$77.6 million, up 33 percent from \$58 million in 2006. The increase is
mainly due to larger poultry and rice imports. Exports of U.S poultry
exports to Ghana doubled to a record \$14 million. The chart below shows
a breakdown of US food and agricultural product exports to Ghana in
2007:

US Agricultural Export to Ghana CY 2007

**\$ Million**

![](media/image2.png){width="5.020138888888889in"
height="2.488888888888889in"}

## US Agricultural Export to Ghana CY 2007

**\$ Million**

![](media/image3.png){width="2.946527777777778in"
height="2.520138888888889in"}![](media/image4.png){width="3.09375in"
height="2.520138888888889in"}

**Source : FAS BICO Report**

## Buyers' Preferences and Regulations

Ghanaian importers prefer consumer-ready products with the following
characteristics:

-   Relatively small-sized products prepared and packaged for one-time
    use.

-   Bulk, intermediate products and ingredients that can easily be
    re-packaged in Ghana without large additional production costs.

-   Perishable food products processed and packaged for long shelf-life,
    and not requiring much refrigeration (such as milk powder, instant
    beverage drinks, etc).

-   Mixed containers of high-value products and brands.

-   Food products packaged with long 'Best Before' dates

Visit: <http://www.fas.usda.gov/gainfiles/200808/146295515.pdf> for
details.

## Product Registration and Regulations:

All processed food products must be registered with the Food and Drugs
Board (FDB), Ghana, prior to being exported to Ghana. The importer
typically pays for the cost of the product registration unless the
exporter agrees to paying this cost. U.S. exporters are advised to
contact the FAS/Accra office in Ghana when importers make such requests
from them. The FDB is the GOG regulatory body for food product
manufacturing, importation, advertisement and distribution in Ghana.

Visit: <http://www.fas.usda.gov/gainfiles/200808/146295515.pdf> for
details.

## Import Duties and Collections

The Ghana Customs Excise and Preventive Service (CEPS) is the GOG
institution responsible for the collection of import duty. In 2001 the
Ghana TradeNet was established to provide a fully integrated customs
management software connected over a network to various operators who
interact with Customs in the processing of import and export
transactions to and from Ghana. Some of these operators include the
banks, shipping companies, certification and licensing agencies as well
as users of trade information.

The Ghana TradeNet is made up of two main components:

1.  **The Ghana Customs Management System (GCMS),** which provides the
    CEPS with a fully integrated computerized system for the processing
    and management of Customs Declarations and related activities. This
    system is designed to work in an Electronic Data Interchange (EDI)
    environment, where Manifests and Single Administrative Documents
    (SAD) are electronically received and automatically processed. In
    2003 Ghana moved away from the use of ASYCUDA in processing Customs
    Declarations. Instead Ghana adopted and modified a Direct Trader
    Input system (DTI) that provides for online submission of custom
    documents and duty payments.

> 2\. **Ghana Community Network (GCNet)** is a platform enabling GCMS to
> share data and other relevant information with all the parties
> involved in the processing of trade documents and customs clearances.
> The GCNet operates a seamless electronic system that links all trade
> operators, revenue agencies, and regulatory bodies through a \"Single
> Window" system. The current set up contrasts sharply with the
> pre-GCNet situation when trade operators had to shuttle from one
> agency to the other while processing their trade and Customs
> transactions causing delays.

Utilizing GCNet/GCSM, consignments are being cleared within 1-2 days as
opposed to an average of 2-3 weeks clearance time in the past.

Along with other ECOWAS countries, Ghana adopted a common external
tariff (CET) in November 2005. In July 2005, Ghana aligned its tariff
rates of 0%, 5%, 10%, 20% with those of the ECOWAS, but requested for
type B exemptions for some items, until the end of the transitional
period, 2006-2007. Currently, Ghana still maintains 190 exceptions to
the CET. While tariff rates for the items covered under these exceptions
are within the 0 percent to 20 percent range, they still require some
increase or decrease to align with the CET. Ghana is currently in a
transition period and is negotiating these exceptions with ECOWAS. The
deadline for agreement on a comprehensive ECOWAS CET was January 1,
2008, but this has not yet been concluded.

## Port Concessions and Destination Inspection Scheme

In March 2002, Ghana adopted a port concession by transferring port
operations to private sector operators with the aim to significantly
increase Ghana\'s cargo reception, storage, bonded warehousing and
clearance capabilities, as well as providing consumers with a broader
commercial choice. As such Ghana has become a cargo hub and transit
route to land-locked Africa, attracting more external business through
Ghanaian ports and borders.

Ghana abolished Pre-shipment Inspection effective, April, 1, 2000, and
replaced it with the Destination Inspection Scheme \[DIS\] backed by
computerized risk management, X-ray scanning and physical inspection.
Now all exports to Ghana are subject to Destination Inspection unless
specifically exempted by the Ministry of Trade and Industry. There are
no threshold exemptions hence all imports are subject to inspection,
regardless of their value. Inspection charges are currently pegged at 1%
CIF value. The GOG has appointed two companies to provide destination
inspection in Ghana: Gateway Services Limited (GSL) is responsible for
sea freight and Ghana Standards Board and Bureau Veritas (GSBV) is
responsible for shipments arriving by air and land. In addition,
depending on the imported goods, clearances may require the approval of
FDB, Ghana Standards Board, National Drug and Nacortics Board and other
agencies at the ports of Ghana.

**Documentations, Export and Customs Clearing**

**Procedural Steps:**

**Method of payment**

Letters of Credit (LC) are generally accepted as the method used in the
payment of imported goods. The LC can be irrevocable or confirmed. Due
to delays most importers utilize inter-bank wire transfers for the
payment of their imported goods. The exporter simply ships the items to
importer upon receipt of his bank transfer payments. This method has
been helpful in speeding up the process. To establish an LC a Bank may
require a signed proforma invoice (attested), IDF, pre-shipment
notification from the Ghana Shippers Council, Marine insurance (normally
covered in Ghana but not a precondition). This is a long process and
could take more than two weeks. Upon receipt of the bank transfer the
cargo is then shipped to Ghana. The shipment time by sea from the U.S.
to Ghana, on the average takes three weeks. Air transport is about a
day. It is advised that confirmed, irrevocable letters of credit opened
by Ghanaian banks with correspondent banks in the United States be used
to guarantee payment.

There are various stages in the customs clearance processes of cargo
from the ports of Ghana. The clearance process starts with the valuation
of the cargo, declaration of cargo data on to the GCNET, payment of duty
and other relevant cargos, verification at the Compliance Section of
CEPS, release by the Shipping Agent, delivery by Ghana Ports and Harbors
Authority (GPHA) and CEPS physical examination or scanning of cargo
before cargo is allowed to exit the port. Importers must appoint a
licensed Customs House Agent/clearing agent (Legislative Instrument 1178
1978) with a credible reputation for the clearance of cargo at any
freight station in Ghana. The Clearing agent will do the following on
your behalf:

**Valuation Stage:**

All consignments imported into the country must be valued for tax and
other purposes.

-   Submit the final invoice, Import Declaration Form (IDF) from the
    Ministry of Trade & Industry, a copy of the Bill of Lading and
    Packing list (itemizing the value of the packages) two weeks before
    arrival of vessel to the designated Destination Inspection Company
    \[DIC\] for preparation of the Final Classification and Valuation
    Report (FCVR). The FCVR contains an assessment of the Dutiable
    Value, Import duty and VAT of the consignment.

-   Pick up the Final Classification and Valuation Report \[FCVR\] from
    the DIC. Containerized cargo selected for scanning through the Risk
    Management System procedure of the Destination Inspection Companies
    is also indicated in the FCVR.

**Tax Identification Number (TIN)**

-   0btain a Tax Identification Number \[TIN\] form from the Internal
    Revenue Service

> \[IRS\], if you are a first time importer. Importers require Tax
> Identification Number (TIN) for Customs clearance of commercial goods.
> The TIN is a unique identification number generated by the Internal
> Revenue Service for every tax payer. This number has to be quoted in
> the entry that the importer or his representative would send the GCNET
> copy.  Without a TIN, customs clearance of cargo from the port is not
> allowed.

**Entry of Cargo Data onto GCNET**

-   Submit a declaration on the cargo electronically to Customs to the
    GCNet which is routed to the GCMS. The declaration includes;

    i.  Declaration regime (commercial or for domestic use)

    ii. Consignee Name of vessel

    iii. Date of arrival of vessel 

    iv. Number of packages  Delivery terms (e,g. CIF, FOB,EX WORKS)

    v.   Total Invoice Value (TIV) as determined by CEPS or Destination
        Inspection Company (Breakdown of the TIV into FOB, freight and
        Insurance)

    vi. Break-down of Items per consignment  Commodity code of the items
        (10 digits) 

    vii. Customs Procedure Code (CPC) of commodity (this indicates
         whether Consignment is dutiable, free Exempt etc.)

-   When the entry is validated, the GCMS generates and sends a
    response, commonly referred to as a Declaration to the front end
    declarant. The Declaration indicates all the taxes and tariffs that
    have to be paid on the consignment and the name of* *the CEPS
    officer to verify the declaration.

**Payment of Duty**

-   Print out a hard copy of the response from GCMS and submit the
    signed Customs Declaration and attach all supporting documents such
    as the Bill of Lading, the Invoice, the IDF, the FCVR, the Packing
    List, an IRS Certificate as well as other relevant permits and
    documents at either of the GCNet participating banks (i.e. ECOBANK,
    Ghana Commercial Bank) in order to make payment. Special Bank
    Receipts are given to importers or their representatives to
    acknowledge payment.

**Verification**

-   A hard copy of the Declaration, the Bank receipt, and Bill of Lading
    and all other relevant attaching documents are submitted to the
    designated Officer at CEPS Compliance Section for Verification of
    the documents and receipts.

-   When no discrepancy is found, the cargo is ruled for First Release
    \[i.e. \'prior to physical examination\] or Final Release \[i.e.
    without physical examination\].

-   Submit a hard copy of the Customs Declaration, the Bank receipt, and
    Bill of Lading and all other relevant documentation as well as the
    Delivery Order (earlier purchased from the Shipping Agent) to the
    Shipping Agents. This is to facilitate preparation of the cargo for
    physical examination pending release or immediate release as
    recommended by the CEPS Compliance Office

-   The Delivery Order, (DO) which is in triplicate (green, pink and
    white or yellow) copies, must contain information such as the name
    of the consignee, name of vessel, date of arrival, port of loading
    and the particulars of cargo as indicated in the bill of lading.
    Other information that must be provided on the delivery order
    include the Customs House Agent handling the cargo, the bill of
    lading number; the container number; the seal number and the
    rotation number of the vessel**.**

-   The Shipping Agent, on receipt of the documents, then prepares the
    bill for the consignment. After payment of the bill the cargo is
    authorized for release at the
    Port.**                                    **

-   Effect payment of the relevant GPHA charges at the port.

-   Deposit the green copy of the DO with the GPHA Operations for the
    container to

be dropped within 24 hours at the designated bay for physical
examination by

CEPS, if necessary.

-   Present Declaration and accompanying documents to CEPS at the port
    gate to

confirm clearance on the GCMS. GPHA security also checks the waybill
covering

the goods before the goods leave the port.

**SCAN OPTION**

-   If your container is to be scanned, then deposit the declaration, DO
    and the

Interchange \[evidence of dropping container on the truck\] at the CEPS
office at the

Scanning Area.

-   Pick up your Scan number \[appointment sheet\] from the Scan
    operations office and

-   Present the Appointment sheet to the Check-In Agent at the entrance
    of the scanner.

-   Confirm final clearance of container after the scan at the CEPS
    office at the scanning

# 

# SECTION III: MARKET SECTOR STRUCTURE AND TRENDS

# 

## Retail Food Sector

Ghana's retail food sector consists of supermarkets (accounting for 1
percent of total retail sales), convenience stores/small grocery stores
(30 percent) and traditional open air markets (69 percent). According to
trade sources, retail food sales have grown about 10 percent annually
since the enacting of trade liberalization policies by the GOG in 1991.
The relative stability of Ghana is encouraging the growth of the
expatriate population and Ghana is considered the gateway to other West
African countries.

![](media/image5.png){width="5.075in" height="2.5527777777777776in"}

In 2007, consumer-oriented food imports were estimated at \$500 million
and industry sources forecast imports could climb to as high as \$800
million by the end of 2008. Some of these products are re-exported to
other African countries. The standard rate of duty for most food
products is 20% (for example, rice) while raw materials are levied a
duty of 10% (for example, wheat). A general exemption from payment on
the import duty can be granted on items such as ingredients for the
manufacture of poultry feeds if certified as such by the Ministry of
Agriculture. The major players for distributing imported consumer
oriented foods in Ghana are importers/distributors, wholesalers and
retailers.

In 2007, U.S. exports of consumer-oriented products accounted for only 5
percent of total imports of these products, compared to 45 percent for
the EU and 40 percent for Asian suppliers. The low U.S. market share is
mostly due to:

-   Higher freight charges for shipments from the United States to
    Ghana. There are few direct sea routes from the United States and
    most U.S. goods are transshipped through Europe, adding to shipping
    costs.

-   Lack of expiry dates/best before labels on some U.S. products
    creating difficulty for the Ghanaian importer during clearing
    process and in marketing products.

-   Some U.S. exporters are unwilling to meet Ghanaian importer demands
    especially on product specification and documentation.

-   Insufficient contact between U.S. exporters of consumer oriented
    products and Ghanaian importers.

-   Strong competition from traditional suppliers such as Asia, South
    Africa, and the EU.

#### 

![](media/image6.png){width="5.020138888888889in"
height="2.4381944444444446in"}

The USDA's BICO report indicates that the value of U.S. consumer
oriented food exports to Ghana increased by 40 percent in 2007 from \$15
million in 2006 to \$25 million in 2007. In addition, these exports have
continued to climb in 2008 and are currently up 80 percent year to date.
Poultry meat, breakfast cereals, dairy products, processed fruits and
vegetables, fruit and vegetable juices and wines and beer make up most
of these imports.

## Food Processing (FP)

Although food processing is underdeveloped in Ghana, the sector accounts
for nearly 30 percent of Ghana's manufacturing sector, and according to
official sources manufacturing industry has an estimated 25 percent
share of Ghana GDP. Manufacturers are focusing on packaging and selling
products in affordable small units for one-time use in order to boost
sales and increase market share. A growing concern among Ghanaian
consumers with regard to food safety and healthy diets are also
increasing demand for higher quality products. As a result, domestic
processors are developing and improving food products in order to meet
the needs of this niche market.

There has been increased interest shown by suppliers from the EU, Asia,
and South Africa in the Ghanaian intermediate/food ingredient sector and
these suppliers have been quick to adapt to the requirements of this
growing sector. Ghanaian food processors perceive U.S. food ingredient
suppliers as reliable in terms of volume, standards, and quality but
U.S. exporters are constrained by:

-   Limited knowledge of the Ghanaian food ingredient market.

-   Strong competition from South Africa, the EU and Asian suppliers.

-   Local infrastructure and operational capital are limited and local
    production costs are high.

-   Ghanaian importers lack knowledge of food ingredients available from
    the US.

-   Limited contact between Ghanaian businesses and U.S. exporters.

**Major Exports to Food Processing Sector**

+----------------------+---------------------+-------------------------+
| **Bulk**             | **Intermediate**    | **Processed**           |
+----------------------+---------------------+-------------------------+
| Edible and inedible  | Corn Starch         | Baking mixes,           |
| Fat                  |                     |                         |
|                      | Dairy Products      | Yeast & Baking Powder   |
| Raw Sugar            |                     |                         |
|                      | Ethanol             | Jam & Jellies           |
| Refined Sugar        |                     |                         |
|                      | Fruit Juice         | Mayonnaise              |
| Malt                 | Concentrate Fruit   |                         |
|                      | pre-mixes & syrup   | Salad Dressing          |
| Wheat                |                     |                         |
|                      | Ice Cream Pre-mixes | Sauces, Spices          |
| Rice                 |                     |                         |
|                      | Other Beverage      | Tomato Ketchup          |
|                      | Bases               |                         |
|                      |                     | Seasonings, etc         |
|                      | Flavors,            |                         |
|                      | Sweeteners,         |                         |
|                      |                     |                         |
|                      | Micro nutrients,    |                         |
|                      | other ingredients   |                         |
|                      | for food and        |                         |
|                      | feedstuff           |                         |
|                      | processing, etc.    |                         |
+----------------------+---------------------+-------------------------+

## Food Service (HRI)

Ghana's food service sector consists of hotels, restaurants and
institutional contracts (HRI).

The HRI sector is valued at \$500 million and has been expanding rapidly
over the past five years. This sector represents a growing market for
imported food ingredients. Growth in the HRI sector is driven by
economic growth, changing consumption patterns, an expanding tourism
sector. Increasing urbanization, more women working outside the home and
changing lifestyle of the large youth population have led to greater
consumption of western style convenience foods. The largest and fastest
growing segment of HRI is the quick service restaurants (QSR) and this
segment is expected to continue to experience strong growth as
convenience QSRs become more and more important in the Ghanaian way of
life. In the hotel segment, major international hotels are being built
or renovated in Ghana including the Holiday Inn (operational), Marriot,
Sheraton, Hilton, and others.

Because of this growth there is increased demand from the HRI sector for
high-quality food ingredients. U.S. products with best market prospects
include potato chips, sauces, seasonings, pastry mixes, canned food,
wine, beer, ice cream, and fruit juices. Except for wines the import
duties on these products is 20 percent. In addition, major food service
operators are looking for franchises to represent major U.S. companies
in Ghana, especially in the quick restaurant sector.

## Seafood/Frozen Fish

The fishing industry in Ghana is estimated to contribute 3 percent of
the total GDP. Fish is a cheaper and preferred source of animal protein
contributing about 60 percent of animal protein intake in Ghana. While
the national average fish requirement is approximately 800,000 metric
tons annually, the domestic fish catch (production) only provides about
half of this requirement. Ghana is thus a large net importer of seafood
and in 2007 Ghana imported fish worth \$260 million, up from \$209
million in 2006.

Ghanaians perceive U.S. seafood to be of a higher quality than other
supplies, although high freight rates often make imports from the U.S.
uncompetitive. Ghana's seafood imports are mostly from the African
region (Mauritania, Angola, Morocco, Namibia and Senegal). The EU
especially Holland also supplies seafood to Ghana.

  ----------------- ----------------- ----------------- -----------------
                    2006(Tons)        2007(Tons)        2008 (Estimates)

  Total Market size 675               840               860

  Total production  400               440               460

  Total Exports     N/A               N/A               N/A

  Total Imports     375               400               400

  Imports from the  0                 0                 0
  US                                                    
  ----------------- ----------------- ----------------- -----------------

**Note: Figures in tons; Estimates from industry sources.**

## Aquaculture

Aquaculture has only recently been adopted as an assured way of meeting
the deficit in Ghana\'s fish requirements. Tilapia is the major species
farmed and constitutes over 80 percent of aquaculture production, with
catfish accounting for the remaining 20 percent. There are about 1,000
fish farmers and over 2,000 ponds with a total surface area of about 350
ha. However, total average annual production from aquaculture currently
stands at only about 1000 MT. It has been estimated that the production
from ponds and culture-based fisheries is worth about US\$ 1.5 million a
year.

As a result of GOG collaboration with local and external stakeholders
(including local farmers, local companies, World Bank, WHO, FAO, NEPAD,
etc), local production of aquaculture has been increasing. According to
the Minister of Fisheries, Ghana is aggressively pursuing 'the
Aquaculture Development Policy' as a profitable business venture. As
such the GOG is supporting a UN FAO project in the Volta Basin to
develop a fast growing specie, the Genetically Improved Farmed Tilapia
(GIFT) that would make fish farming commercially and economically
attractive, adding that GIFT would take about four to six months to
mature for harvesting. However, growth in the sector is being threatened
by increasing costs of aquaculture feedstuffs which now constitute more
than 70 percent of total cost of production. This opens export market
for U.S. shrimp/aquaculture feedstuffs, feed ingredients and technology.

## Dairy Sector

The milk industry in Ghana is characterized by near total dependence on
bulk milk imports (primarily powdered milk and processed milk products).
Total volumes average about 50,000-100,000 tons of milk equivalent per
year. Domestic milk production in Ghana is low and is conservatively
estimated at 36,000 liters, and only a minute amount of this enters
formal marketing channels. Requirements of dairy and dairy products by
the major dairy processors in Ghana are approximately estimated to be
about 100,000 tons annually. Ghana's dairy processors (including ice
cream, baby foods, chocolate milk, yoghurt, and long-life milk
producers) rely on combining and reconstituting milk powder imported
mostly from the European Union (Netherlands, Denmark). Processed infant
formula, cheese, butter, as well as high-end ice cream, are also
imported.

Dairy imports were valued at more than \$100 million in 2007. U.S. dairy
products exports to Ghana grew from \$0.29 million in 2006 to \$1
million in 2007 and are expected to reach \$2.5 million in 2008. U.S.
market share, though growing, remains small despite the higher quality
perception of U.S. processed dairy products among Ghanaian consumers.
U.S. supplies are disadvantaged due to higher freight costs compared to
products from the European Union.

Growing population, increasing urbanization, and rising per capita
income are expected to stimulate rising demand for dairy based products.
Meanwhile, domestic production remains insufficient due to increasing
production/processing costs, non-competitiveness of the industry, and
the failure to incorporate more advanced technologies. More efficient
dairy processing in the United States should provide U.S. suppliers an
advantage over third-country suppliers in exporting processed dairy
products to this market. Additionally, there is export potential for
livestock genetics, fodders and dairy-based food processing inputs which
will likely increase if local infrastructure is improved and
production/processing costs lowered.

  --------------------------- ---------- ----------- ---------------------
                              2006       2007        2008(estimated)

  Total Market Size           90         95          100

  Total Local Production      0.001      0.001       0.001

  Total Exports               0          0           0

  Total Imports               89.999     94.999      99.999

  Imports from the U.S.       0.29       1.19        2.5
  --------------------------- ---------- ----------- ---------------------

**Note: Figures in millions of dollars and only include formally
marketed products and estimates from industry contacts.**

# SECTION IV: MARKET ENTRY STRATEGY

New-to-market exporters from the United States should consider the
following market entry strategies and tactics:

-   Appoint a local agent/distributor or representative in Ghana to
    register the products with the appropriate GOG regulatory bodies, to
    introduce their products to the market, and to develop consumer
    demand. For assistance contact the FAS Office, U.S. Embassy,
    Accra-Ghana.

-   Identify and sell through consolidators based in the United States
    who are already serving the West African region.

-   Exhibit at trade shows in the United States, which are attended by
    Ghanaian importers. This will also make follow-up contacts easier.

-   Offer food product shipments in mixed lot containers and flexible
    shipping volumes.

-   Support activities for in-store, and point-of-sale promotions in
    numerous small-sized outlets.

-   Adopt a pricing strategy which encourages importers to initiate
    buying activities with U.S. suppliers.

-   Send sample products and sales catalogs to Post and to prospective
    local buyers.

# SECTION IV BEST PROSPECTS

## Product Types Offering the Most Sales Potential

The following are the consumer-oriented products with the best prospects
and most sales potential in the Ghanaian market:

1.  Frozen poultry and fish products

2.  Fruit preparations and juices

3.  Canned fruits and vegetables

4.  Tomato puree/ketchup

5.  Bottled vegetable cooking oil

6.  Milk (liquid milk, skimmed and whole powdered milk)

7.  Spices and sauces including soy sauce

8.  Mixed seasoning

9.  Condiments

10. Breakfast cereals

11. Margarine/butter

12. Pasta products

13. Snack foods (biscuits, cakes, etc.)

14. Confectionery products (candies, gums, etc.)

15. Ice cream and yoghurt concentrates

16. Spirits, liqueurs

17. Beers and Wines

18. Non-alcoholic beverages (Tea, coffee, fruit drink)

19. Bakery and other food ingredients (yeast & baking powder)

20. Mayonnaise and salad dressing

21. Baby foods

22. Canned soups/powdered soups

23. Health food products

# SECTION V: POST CONTACT AND FURTHER INFORMATION

**Ali A. Abdi,** Agricultural Attaché

**Levin Flake,** Assistant Agricultural Attaché

Office of Agricultural Affairs

US Consulate General

2 Walter Carrington Crescent

Victoria Island, Lagos, Nigeria

Tel: (234) 1 261-3926, 775-0830

Fax: (234) 1 262-9835

Email: <aglagos@usda.gov>

Website: [www.fas.usda.gov](http://www.fas.usda.gov/)

**Elmasoeur Zipporah Ashitey**

Agricultural Specialist

Office of Agricultural Affairs

Embassy of the United States of America

NO 20, fourth Circular Rd, Cantonments,

P O Box GP194, Accra, Ghana

Telephone: 233-21-679267

Fax: 233-21-231218

Email : <Elmasoeur.Ashitey@usda.gov>

Email : <Agaccra@usda.gov>

Website: [www.fas.usda.gov](http://www.fas.usda.gov/)

# Appendix I: Ghana's economic Structure (Annual Indicators)

  ----------------------- --------- --------- ---------- ----------- ----------
                          2003\*    2004\*    2005\*\*   2006\*\*    2007

  GDP(US\$ bn)            7.6       8.9       10.6       11.9        13.5

  Real GDP growth %       5.2       5.8       5.8        6.0         5.5

  Consumer price          26.7      12.6      15.1       10.9\*      10.6
  inflation (av;%)                                                   

  Population (m)          21.6      22.1      22.5       23.0        23.5

  Exports of goods fob    2,562.4   2,704.5   2,802.2    3,762.8     4,182.8
  (US\$m)                                                            

  Imports of goods fob    3,232.8   4,297.3   5,345.4    6,603.7     7,631.8
  (US\$m)                                                            

  Current Account Balance 302.3     -315.9    -811.6     -985.6      -1,558.1
  (US\$m)                                                            

  Foreign exchange        1,352.8   1,626.7   1,752.9    2,090.3\*   2,173.9
  reserves excluding gold                                            
  (US\$m)                                                            

  Total external debt     7.6       7.1       6.7        3.3\*\*\*   4.8
  (US\$bn)                                                           

  Debt-service ratio paid 11.3      5.1       5.2        2.7         3.0
  (%)                                                                

  Exchange rate           0.9       0.9       0.9        0.9\*       0.9
  (AV)GHC:US\$                                                       
  ----------------------- --------- --------- ---------- ----------- ----------

**Notes: \*Actual. \*\*Economic Intelligence Unit estimates; \*\*\*2006
as part of the multilateral debt relief initiative (MDRI) and the
heavily Indebted poor countries initiative (HIPC), Ghana external debt
was subject to a substantial write-off.**