The Preliminary Exploration and Analysis of Bamboo Industry in the Macro and Micro Environment of Ghana

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The Preliminary Exploration and Analysis of Bamboo Industry in the Macro and Micro Environment of Ghana The Preliminary Exploration and Analysis of Bamboo Industry in the Macro and Micro Environment of Ghana By: Bo Lin Supervisor: Syed Afraz Gillani Supported by: April 2018 Content Acknowledgments ............................................................................................. III List of Tables ...................................................................................................... V List of Figures .................................................................................................... VI List of Abbreviations ......................................................................................... VII 1. Introduction ..................................................................................................... 1 1.1 Background of the Research .................................................................... 1 1.2 Problem Statement ................................................................................... 2 1.3 Research Questions ................................................................................. 3 1.4 Research Objectives ................................................................................ 3 1.5 Significance of the Research .................................................................... 4 1.6 Scope and Structure ................................................................................. 5 2. Literature Review and Preliminary Research ................................................. 5 2.1 Profiles of Bamboo Resources ................................................................. 6 2.2 Basic Introduction to Ghanaian Bamboo Industry .................................... 9 2.3 Important Institutions .............................................................................. 11 3. Theory and Framework ................................................................................ 13 3.1 PESTEL Analysis ................................................................................... 13 3.2 Five Forces Analysis .............................................................................. 14 4. Methodology ................................................................................................. 16 4.1 Method of Data Collection ...................................................................... 16 4.1.1 Collection of Secondary Data ....................................................... 17 4.1.2 Collection of Primary Data and Samplings ................................... 17 4.1.2.1 Interview and Coding ....................................................... 17 4.1.2.2 Survey ............................................................................. 19 4.2 Method of Data Analysis ......................................................................... 20 4.2.1 Qualitative Method ........................................................................ 20 4.2.2 Quantitative Method (SPSS) ........................................................ 21 5. Analysis of the Macro Environment in Ghana............................................... 22 5.1 Political Factors ...................................................................................... 22 5.2 Economic Factors ................................................................................... 24 5.3 Social Factors ......................................................................................... 31 5.4 Technical Factors ................................................................................... 34 I 5.5 Legal Factors .......................................................................................... 37 5.6 Environmental Factors ............................................................................ 39 6. Analysis of the Micro Environment of the Bamboo Industry in Ghana .......... 42 6.1 Bargain Power of Suppliers of Raw Bamboo .......................................... 43 6.2 Rivalry Among Existing Producers ......................................................... 44 6.2.1 Rivalry in Industry of Bamboo Bicycle ........................................... 44 6.2.2 Rivalry in Industry of Bamboo Furniture ........................................ 47 6.3 Threat of New Entrants........................................................................... 50 6.3.1 Threat of New Entrants in Industry of Bamboo Bicycle .................. 50 6.3.2 Threat of New Entrants in Industry of Bamboo Furniture ............... 53 6.4 Threat of Substitutes .............................................................................. 55 6.4.1 Threat of Substitutes in Industry of Bamboo Bicycle ..................... 55 6.4.2 Threat of Substitutes in Industry of Bamboo Furniture .................. 58 6.5 Bargain Power of Buyers ........................................................................ 59 6.5.1 Bargain Power of Buyers in Industry of Bamboo Bicycle ............... 59 6.5.2 Bargain Power of Buyers in Industry of Bamboo Furniture ............ 61 7. Conclusion and Recommendations .............................................................. 63 Reference ......................................................................................................... 65 Appendix I: Questionnaire for interview with bamboo plantations .................... 73 Appendix II: Questionnaire for interview with producers of bamboo composite products ...................................................................... 75 Appendix III: Transcripts of Interviews .............................................................. 78 Appendix IV: Results of the Survey ................................................................ 126 Appendix V: List of bamboo endowed areas in Ghana ................................... 128 Appendix VI: Picture Gallery........................................................................... 131 Authorship Information ................................................................................... 139 II Acknowledgments I wish to express my sincere gratitude to the institutions and persons that provide important supports to the research conducted in Ghana and to my supervisors that provide valuable academic guidance . For the successful researches, I sincerely thank the supports provided by Mr. Michael Kwaku from West Africa Reginal Office (WARO) of International Network for Bamboo and Rattan (INBAR) that makes important contributions to the research. I wish to express my thankfulness to multidimensional supports from the officials Ms. Faustina B. Awuah, Mr. Samuel Sarbah, Ms. Victoria Neizer, etc. from Secretariat of Bamboo and Rattan Development Program of Ghana (BARADEP) that ensure the conducting of research on Ghanaian bamboo industry. I would like to express my thankfulness to Dr. Mark Dadebo from Forestry Commission of Ghana. For the writing of research thesis, I would like to express my special thanks of gratitude to my supervisors Mr. Syed Afraz Gillani from Bonn-Rhein-Sieg University of Applied Sciences who not only provides valuable academic guidance on the writing of the thesis but also plays important role in my academic pathway. I sincerely thank the program German- African- Entrepreneurship, Mr. Alexander Demisse and Mr. Moritz Weigel from company China-Africa-Advisory, University of Cape Coast, and Bonn-Rhein-Sieg University of Applied Sciences that provide me golden opportunity of meaningful research that combines academy and practice in Africa. What’s more, I would like to express my thankfulness to the interviewed managers of various enterprises in Ghana, including Mr. Solomon from the Bamboo Bikes Initiative, Mr. Danso from the Booomers International, Ms. Gloria from the Global Bamboo Product Limited, Mr. Dela from the Seek Yee Cane & Bamboo, Mr. Mensaa from the Pioneer Bamboo Processing Company Limited, Mr. Egger from the Ankobra Farms, Mr. Eldad from the Kwamoka Farms& Processing Limited, Mr. Gabrel from Gabrel Cane & Bamboo Furniture; they cooperate with the surveys with enthusiasm and offer valuable informational supports. III List of Tables Table 1: 7 main species of bamboo in Ghana and corresponding industrial applications ................................................................................................................. 7 Table 2: 14 introduced species of bamboo in Ghana and corresponding applications ................................................................................................................. 8 Table 3: Typical industries of bamboo in Ghana ..................................................... 9 Table 4: The acreage of bamboo plantation since 2014 and the future target 2017-2020 ................................................................................................................. 10 Table 5: Questionnaire for potential consumer ..................................................... 20 Table 6: Comparison of the GDP per capita and the GDP per capita (adjusted by PPP) between Ghanaian and World’s average level ...................................... 28 Table 7: Sectors of FDI ............................................................................................ 32 Table 8: Descriptive statistics of survey results ..................................................... 60 IV List of Figures Figure 1: Geographical distribution of bamboo in Ghana....................................... 7 Figure 2: KFC Index of Ghana in African countries .............................................. 27 Figure 3: Trends and forecast of balance of trade in three-year period 2015-
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