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An Enterprise Map of Ghana

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An Enterprise Map An Enterprise Map of Ghana’s economy has grown rapidly over the past decade, and the goal of becoming a middle-income country in the fairly near future now seems attainable. The likely contribution of the oil sector makes the goal look all the more achievable. Yet this goal is unlikely to be attained without a substantial advance in Ghana’s Ghana industrial capability. This is therefore a good moment to ask some questions. Ghana of • What are the current capabilities of Ghanaian firms? • Where did those capabilities come from? • Can the development of the oil sector lead to a parallel advance in related local industries? Sutton/Kpentey This volume presents the first general overview of Ghana’s industrial sector. Each industry is profiled in detail, and the history and capabilities of leading firms are explored at length. This is the second volume in John Sutton’s ‘Enterprise Map’ series, which profiles the industrial capabilities of selected countries in sub-Saharan Africa. The first volume was on Ethiopia and the forthcoming third volume will be on Tanzania. Further volumes in this series will appear in due course. John Sutton and Bennet Kpentey i i “ghana” — 2012/1/31 — 13:31 — pagei—#1 i i AN ENTERPRISE MAP OF GHANA i i i i i i “ghana” — 2012/1/31 — 13:31 — page ii — #2 i i i i i i i i “ghana” — 2012/1/31 — 13:31 — page iii — #3 i i AN ENTERPRISE MAP OF GHANA John Sutton and Bennet Kpentey i i i i i i “ghana” — 2012/1/31 — 13:31 — page iv — #4 i i Copyright © 2012 International Growth Centre Published by the International Growth Centre Published in association with the London Publishing Partnership www.londonpublishingpartnership.co.uk All Rights Reserved ISBN 978-1-907994-03-6 (pbk.) A catalogue record for this book is available from the British Library This book has been composed in Utopia using TEX Copy-edited and typeset by T&T Productions Ltd, London Cover design: LSE Design Unit Cover photographs courtesy of PZ Cussons i i i i i i “ghana” — 2012/1/31 — 13:31 — pagev—#5 i i CONTENTS About the Authors ix Acknowledgements xi Acronyms and Abbreviations xiii 1 Introduction 1 2 Cocoa Processing 11 2.1 Sector Profile 11 2.2 Profiles of Major Firms 17 Real Products Limited, Plot Enterprise Ghana Limited, Cadbury–Kraft Foods Ghana Limited, Cargill Ghana Limited, ADM Cocoa (Ghana) Limited 3 Salt Production 25 3.1 Sector Profile 25 3.2 Profile of Major Firm 29 Panbros Salt Industries Limited 4 Oil Palm Industry 33 4.1 Sector Profile 33 4.2 Profiles of Major Firms 37 Ghana Oil Palm Development Company, Benso Oil Palm Plantation 5 Agribusiness and Food Processing 41 5.1 Sector Profile 41 5.2 Profiles of Major Firms 54 Irani Brothers & Others Limited, Takoradi Flour Mills Limited, Parlays Ghana Limited, MV Brands (Pioneer Food Cannery Limited), Unilever Ghana Limited 6 Non-alcoholic Beverages 65 6.1 Sector Profile 65 6.2 Profiles of Major Firms 69 Nestlé Ghana Limited, Aquafresh Limited, SBC Beverages Ghana Limited (Pepsi Cola) i i i i i i “ghana” — 2012/1/31 — 13:31 — page vi — #6 i i vi CONTENTS 7 Alcoholic Beverages 77 7.1 Sector Profile 77 7.2 Profiles of Major Firms 80 Kasapreko Company Limited, GIHOC Distilleries, Guinness Ghana Breweries Limited 8 Textiles and Garments 87 8.1 Sector Profile 87 8.2 Profiles of Major Firms 91 Tex Styles Ghana Limited, Akosombo Textiles Limited, Printex 9 Wood and Wood Products 99 9.1 Sector Profile 99 9.2 Profiles of Major Firms 106 John Bitar & Co. Ltd 10 Building and Construction 109 10.1 Sector Profile 109 10.2 Profiles of Major Firms 114 African Concrete Products Limited, PW Ghana Limited, De Simone Limited, Micheletti & Co. Limited, Metalex Ghana Limited 11 Cement and Quarrying 123 11.1 Sector Profile 123 11.2 Profiles of Major Firms 126 GHACEM Limited, Eastern Quarries Limited, Prime Stone Quarries 12 Metals, Engineering and Assembly 133 12.1 Sector Profile 133 12.2 Profiles of Major Firms 137 Volta Aluminum Company, Aluworks Limited, Tema Steel Company Limited, Ghana Metal Fabrication Limited, Wire Weaving Industries (Ghana) Limited, Nexans Kabelmetal (Ghana) Limited 13 Pharmaceuticals 153 13.1 Sector Profile 153 13.2 Profiles of Major Firms 156 Kama Health Services Limited, Phyto-Riker (GIHOC) Pharmaceuticals Limited, Dannex Ghana Limited, Capital O2 Limited i i i i i i “ghana” — 2012/1/31 — 13:31 — page vii — #7 i i CONTENTS vii 14 Chemicals 165 14.1 Sector Profile 165 14.2 Profiles of Major Firms 168 Azar Chemical Industries Limited, Bamson Company Limited, PZ Cussons Ghana Limited, BBC Industrial Company (Ghana) Ltd, Bas van Buuren Ghana Limited 15 Plastics and Rubber 179 15.1 Sector Profile 179 15.2 Profiles of Major Firms 183 Interplast Limited, Qualiplast Limited, Ghana Rubber Estates Limited, Latex Foam Rubber Products Limited i i i i i i “ghana” — 2012/1/31 — 13:31 — page viii — #8 i i i i i i i i “ghana” — 2012/1/31 — 13:31 — page ix — #9 i i ABOUT THE AUTHORS John Sutton is the Sir John Hicks Professor of Economics at the London School of Economics. Bennet Kpentey is the Chief Executive of Sync Consult Limited, a man- agement and financial consulting firm in Accra, Ghana. He is also a part- time lecturer in Strategic Management at the University of Ghana Business School on the Executive MBA Programme. The International Growth Centre (www.theigc.org) promotes sustainable growth in developing countries by providing demand-led policy advice based on frontier research. The IGC is directed and organized from hubs at the London School of Economics and the University of Oxford and comprises country offices across the developing world. The IGC was initiated and is funded by the Department for International Development (DFID). John Sutton’s Enterprise Map Project aims to provide a standardized descriptive account of the industrial capabilities of selected countries in sub-Saharan Africa. This is the second volume to appear. i i i i i i “ghana” — 2012/1/31 — 13:31 — pagex—#10 i i i i i i i i “ghana” — 2012/1/31 — 13:31 — page xi — #11 i i ACKNOWLEDGEMENTS The authors express their appreciation to all the organizations, firms and individuals who supported this work in diverse ways. Special appreciation is accorded to the representatives who devoted time to meeting the research team to make the participation of their firms in this Enterprise Map possible. The authors also thank Hanna Tetteh, Minister of Trade and Industry, Nii Ansah-Adjaye, Chief Director at the Ministry of Trade and Industry, Seth Twum-Akwaboah, the Executive Director of the Association of Ghana Industries (AGI), and Dr Sam Mensah, the Country Director of IGC Ghana, for the immense support they provided in facilitating the research process and engagement with the firms. We also thank Ghana Statistical Service, the Ghana Export Promotion Council, the Ghana Investment Promotion Centre and various data sources in Ghana for providing the necessary information and data. Finally, the Sync Consult Research team – senior consultants Angela Allotey and Walter Kpentey and the analysts – played a key role in working with the firms we profiled. i i i i i i “ghana” — 2012/1/31 — 13:31 — page xii — #12 i i i i i i i i “ghana” — 2012/1/31 — 13:31 — page xiii — #13 i i ACRONYMS AND ABBREVIATIONS ACP African Concrete Products Limited ADM Archer Daniels Midland Company AGOA African Growth and Opportunity Act AOMIL Ayiem Oil Mills Limited ATL Akosombo Textiles Limited BOPP Benso Oil Palm Plantation BVB Bas van Buuren CEPS Customs, Excise and Preventive Service CMC Cocoa Marketing Company ECOWAS Economic Community of West African States EU European Union FDI Foreign Direct Investment FFBs Fresh fruit bunches GCMC Ghana Cylinder Manufacturing Company Limited GDP Gross Domestic Product GFTN Global Forest and Trade Network GHACEM Ghana Cement Works Limited GIHOC Ghana Industrial Holding Corporation GNPA Ghana National Procurement Agency GOPDC Ghana Oil Palm Development Company GREL Ghana Rubber Estates Limited GSA Ghana Standards Authority GTP Ghana Textile Printing Company Limited HDPE High-density polyethylene ISO International Organization for Standardization KACC Kaiser Aluminium & Chemical Corporation mt Metric tonne NORPALM Norwegian Palm Ghana Limited PSI Presidential Special Initiative PVC Polyvinyl chloride SMEs Small and medium-sized enterprises SSNIT Social Security and National Insurance Trust TOPP Twifo Oil Palm Plantation i i i i i i “ghana” — 2012/1/31 — 13:31 — page xiv — #14 i i xiv ACRONYMS AND ABBREVIATIONS UAC United Africa Company of Gold Coast UAE United Arab Emirates UK United Kingdom UNIDO United Nations Industrial Development Organization uPVC Unplasticized polyvinyl chloride US United States VALCO Volta Aluminum Company WAM West African Mills WAMCO West African Mills Company i i i i i i “ghana” — 2012/1/31 — 13:31 — page xv — #15 i i AN ENTERPRISE MAP OF GHANA i i i i i i “ghana” — 2012/1/31 — 13:31 — page xvi — #16 i i i i i i i i “ghana” — 2012/1/31 — 13:31 — page1—#17 i i Chapter 1 INTRODUCTION Ghana has been one of Africa’s fastest growing economies over the past decade. Between 2000 and 2009, gross domestic product (GDP) per capita rose by 63%.1 If the growth rates of the past decade are projected forward, the much-discussed aim of Ghana becoming a middle-income country in the fairly near future looks plausible. The recent discoveries of oil make this goal seem even more achievable.
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