Before diving into the Ghanaian market, Mr. Peterson points out three challenges that might occur:
- Cultural differences: A different kind of culture requires an adapted market entry strategy.
- European perception of Africa: Some companies struggle with unconscious biases.
- Local market conditions: Due to the different and eventually unknown African market structure, challenges might occur.
At the same time, Ghana offers a lot of opportunities:
- Learn about the culture: If a foreign firm knows about the business etiquette in Ghana and works together with local partners, “it’s an easy game”.
- Reflect your perceptions: Firms have to deal with the local conditions as they are and communicating at eye level.
- Adapt your business to the local circumstances: Customers’ needs in a developing country might be different. The customers’ needs for advanced products from Europe exist, but the willingness to pay might not be given.
When we look into products in high demand, our expert suggests distinguishing between customers’ needs and customers’ willingness to pay. The customers’ needs for advanced products from Europe exist, but the willingness to pay might not be given. Therefore, affordability is crucial! In the Medtech sector, the focus is on diagnostic equipment to prevent illnesses.
A crucial consideration for a successful market entry in Ghana is to take small steps in the beginning. Although the local government appreciates big investments in the country, it might be beneficial to test the water first and then grow step by step with a local partner network. Thereby, one mandatory first step when entering the market is to register your firm at the Registrar General’s Department. Although the process for foreign investment is improving, it might still be disorganized and a bit frustrating.
Three quick, last tips from our expert in Ghana:
- Overcome prejudice.
- Find the right local partners.
- Be patient! Although Ghana is a country with a lot of opportunities, it will not come overnight.
If you want to have a deeper look into the opportunities of Ghana, click on the video and get in contact with us!