FOOD PROCESSING & MANUFACTURING SECTOR IN GHANA AND WEST AFRICA

• Manufacturing GDP of Ghana is highest in the region touching GHS28bn ($6.1bn) in 2017, up from GHS23.9bn ($5.2bn), roughly 12% in 2017.
• The One District One Factory initiative by government brings exciting prospects for the industrialization of the economy. This policy, among others would establish a factory in each of the 216 districts in Ghana and would build strong value chains around key industries such as automobiles and other high value products for exports.
• Most of the establishments were located in the Greater Accra and Ashanti regions; Greater Accra had 25.7% of establishments and 27.9% of employees while Ashanti had 24.7% of establishments and 24.3% of employees.
• Food Processing industry is one of the major manufacturing industriesin Ghana and West Africa is expected to grow by around 20% annually between 2020-2025 with domestic food processing and packaging in cocoa based and fruit-based industry expected to increase production and processing capacity
• Ghanaian’s spend about 41% of their income on food and beverages. In 2013, total sales of packaged foods were US$ 1,276 million.
• The Food Packaging Market is expected to grow at a CAGR of 4% during the forecast period 2017-2023.Consumer packaged goods are expected to boost their market value in the coming years by CAGRs of between 13% and 16%
• SMEs (Small to Medium Scale enterprises) form the major chunk of food processing industry in Ghana and West Africa: 85% of employment and contribute 70% to Ghana’s Gross Domestic Product (GDP). Majority of the food industries are located in Accra and Tema.
• Other than food processing sector; pharmaceuticals, metal chemical wood textiles and construction materials are other manufacturing industries which are gaining prominence in Ghana and West Africa region to meet the substantial domestic demand.

FACTORS OF GROWTH

• Rapid urbanization and an evolving middle class have triggered food consumption patterns and demand for convenient and quality foods/ pack food
• With urban lifestyle and standard of living getting better, the demand for FMCG and processed food through formal markets and super markets, is increasing exponentially
• With government attention for expanding the food processing capacity and growth of domestic sector for self-sufficiency, food security, employment creation and exports, the private players and MNCs are also focusing tapping the market, particularly in the resource-based food processing sector.