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Thousands Lose Jobs as Cheaper Foreign Textiles Flood Ghana’s Textile Industry

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Textile industry in Ghana

The textile industry in Ghana is very near to collapse as their business is almost being taken over by pirated goods. Ghana’s textile industry has been flooded with cheap foreign textiles leading to a decrease in the demand for local ones.

A report by city business news shows that thousands of workers have lost their jobs due to the irreparable damage caused in the textile companies by these pirated goods.

Read also: Agribusiness is becoming lucrative to young entrepreneurs

However the local textiles workers association are agitated and has raised concerns about this situation to the trade ministry.

The trade ministry is also taking action and has set up a task force which will be inaugurated this October.

The task-force among others is required to check the importation of pirated Ghanaian textile and reprimand or arrest culprits who engage in the illegal practice.

Read also: Ghana’s Cocobod Makes Plans to Sustain Cocoa Economy

However the major challenge has to do with smuggling and counterfeiting. This misbehavior of Ghanaians illegal trading must be tackled by the government if it is looking to find a permanent solution. Ghana’s textile industry has been flooded with cheap foreign textiles leading to a decrease in the demand for local ones.

The minister for trade and industry Alan Kyeremanteng is hopeful that the issue which threatens the existence of the local textile companies will be solved by the task force. He assures the industry that it will soon rebound as the government has outlined policies which will ensure that things are done the right way.

 

By Rebecca Essilfie

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Only 15% of Africans Earn More Than $5,000 Per Annum

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make money in Africa

The African continent presents unique challenges and opportunities to entrepreneurs. Among the challenges is the obvious low income level of its people. Several factors contribute to this.

Read: Low-cost production is paramount to building successful business in Africa

The share of adults in Africa earning more than $5,000 per annum on average is 15 percent, a McKinsey report shows. The report also shows that there are parts of Africa which tend to exhibit economic characteristics of some developed and developing countries beyond the African continent. For example, over 51% adults in South Africa earn more than $5,000. The country is comparatively advanced in infrastructure, democracy and social and political stability, benefiting from the establishment of many global brands in the country in diverse industries. Egypt also has a matured banking industry and a relatively advanced business environment, despite the socio-political turbulence seen in the 2010-2012 era. Apart from these few countries, the larger part of the African continent exhibit lower levels of economic advancement and independence, including low income levels. This however, is not an insurmountable barrier to building a successful business in Africa.

Read: Obstacles in Africa that force businesses to leave the continent

The low income levels present opportunities in Africa similar to those in advanced countries, Europe and America especially. However, there is minor difference: the same products must be produced at far lower costs and priced accordingly if they are to remain within the demand of the largest section of the African consumers.

In banking, the successful models are those deploying effective retail strategies to reach the mass of consumers. The growth of mobile banking in its different forms across the continent is astronomical and a big manifestation of the acceptance of relevant retail banking solutions by Africans. In Ghana for instance, mobile money transfers continue to grow exponentially, dragging along a strong software development industry, as local developers build and introduce applications each day which provide payment and collection solutions that ride on the fundamental mobile money transfer platforms offered by the telcos.

Read: 11 Business opportunities in Africa that will make more millionaires

Similarly across other industries, entrepreneurs can leverage the large number of low-income consumers to build giant businesses. Offering low and moderately priced products and services which targets a large section of consumers is surely one way to do this.

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Untrue Myths About What Makes A Successful Entrepreneur

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successful entrepreneur

It is without question that at the age 40 most people have already made their own family. And if you want to maintain a peaceful home you at least need to have an income or enough savings that will guarantee your family’s cost of living for the longest time possible. It is not impossible to put measures in place to start up your own business.

It is not your age: There is a philosophy that “a fool at 40 is a fool forever”. Is this true? Maybe, maybe not. A fool at every age can be a fool forever if you refuse to wise up and change. Well, sometimes it makes it easier when you are young and have less responsibilities. One very important quality that will help you as an entrepreneur is high emotional intelligence When you are 40 you are more likely to have enough of it than the young entrepreneur.

Related: 10 Bad habits that successful entrepreneurs avoid

It is not your working experience: When you are 40 you tend to have a lot of experience. That is not the most important factor that will make you successful as an entrepreneur. Your experience will not help if it didn’t wise you up. Take business advice from successful entrepreneur and read more about entrepreneurship. That will broaden your knowledge and lead you on the right path to becoming a successful entrepreneur.

Related:7 Morning habits that make you successful

Investors do not consider age as a factor to invest in your business: no investor would ignore the opportunity to invest in a business because the CEO is too old or too young. You have to be able to convince them that you know what you are about. You have to show them how committed you are to achieving your goal.

It is not money: the success of your business does not depend on the huge amount of money you invested in it. Effective and efficient management is what counts.

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Challenges And Prospects In Running A Small Business In Ghana

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small business in Ghana

Running a small business in Ghana comes with lots of challenges. Aside the fact that Ghana is a developing country, some businessmen and businesswomen perceive it as being characterized by ethnic and political discrimination. There is also the issue of price instability, resulting in comparatively higher inflation rate, which keeps reducing the purchasing power day by day, and increasing cost of operations as production inputs continue to rise steadily. Other challenges include high electricity bills and water bills,  business operating permit , income taxes and even bribery.

Challenges

Our economy is still a developing one. GDP growth rate has been low considering the capacity of growth. There is also low salaries which also leads to low disposable income. This is due to the fact that the government is the biggest employer in our formal sector. The local startup ecosystem still relies heavily on the support of the government and and to an extent, the benefits of urbanization.

Another challenge is registration and regulations. Majority of the workers in these government agencies are laid back in doing their jobs in comparison to workers of private companies. Therefore as a private business man, it is up to you to push very hard to get things done – in some cases offering tips to workers in order to receive basic services in a timely manner. If you are able to go past this stage, then the market is all yours to face. The organization of markets and industries itself present challenges (as well as opportunities) to all participants.

Also other major limitations are, the relatively low internet penetration, intermittent shortage in power generation and high electricity costs, and legislative supports, high level of corruption and limited access to VC and seed money.
However there are some few prospects you can focus on during your start and figure out ways to take advantage of them.

Opportunities in Ghana

Despite the seemingly endless challenges, there are also numerous reasons for anyone to start a small business in the country. Ghana presents a large youth population, gradual economic expansion and development, robust telecommunication infrastructure, abundant human resource, low wages among others. The legal system is one that is fast developing and presents numerous courts for redress. In addition, there is a generally supportive socio-political environment -one conducive for investors and entrepreneurs looking at doing business in Africa for the long-term

Attractive industries you can focus on include but not limited to tourism, media & entertainment, e-jobs, agriculture, manufacturing, financial services.

 

 

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