Ghana remains a top business destination in Africa. But knowing the best city to site your business is key. YEN.com.gh sifts through data and gets the input of entrepreneurs to present this list of 5 best cities in Ghana to start a business in 2024.
In today's competitive business landscape, one of the key determinants of business success is the location of your enterprise.
This article delves into the strategic considerations of choosing the right business location in Ghana in 2024. With contributions from young entrepreneurs and a business journalist, it briefly explores the best business that may be ideal for each of the five top cities to start a business.
Location is not just a logistical concern; it's a strategic decision that can define your success. This is because by aligning your business with the right location, you set the stage for growth and prosperity.
When considering the best cities in Ghana to start a business in 2024, it's important to consider several factors that can contribute to a conducive entrepreneurial environment. These factors include economic stability, infrastructure, access to markets, and the ease of doing business.
Below are the top five cities in Ghana that offer excellent opportunities for starting and growing a business in 2024.
Accra is the capital city of Ghana. It remains a prime destination for business ventures because it boasts a robust economy, access to major markets, and diverse business sectors. The ease of doing business in Accra has improved in recent years, making it an attractive choice for entrepreneurs. Its well-developed infrastructure, including the Kotoka International Airport and stable internet connectivity, enhances accessibility for both domestic and international trade.
As a business reporter described the city, "Accra is Ghana and Ghana is Accra”. So, even if you decide to set up outside the capital city, it is best to maintain a presence there.
For Sandra Sackey, a young fashion designer and owner of CindyNeedles, Accra is the most suitable place for her kind of business.
"The only challenge I have is the traffic. Sometimes, my customers are not able to come for 'fittings' before I complete their outfits. Sometimes, my clients complain that coming to my shop is difficult because of the traffic situation," said Sackey.
Despite the traffic challenge, Accra is best suited as the headquarters of any export business — whether raw material or processed goods.
It would also be best suited for business process outsourcing (BPO) and allied enterprises due to its concentration of highly qualified graduates looking for jobs.
Kumasi, located in the Ashanti Region, is a significant commercial hub in Ghana. It has a rapidly growing economy. Kumasi's strategic location, in the middle of the country, makes it an ideal place for entrepreneurs looking to tap into the Ghanaian market.
The Kumasi Central Market is a bustling trading centre, providing ample opportunities for various business types.
Charles Appiah-Danquah, a young serial entrepreneur, told YEN.com.gh that his experience with Kumasi has been generally bittersweet.
"The place is not crowded like the capital city, transportation cost is lower and traffic is okay, but it is difficult to get very good service providers. Most of the great service providers are in Accra. For instance, I have been unable to find a printing company to print my billboard flexibly with the kind of quality I get from my guys in Accra," he said.
Appiah-Danquah also says he finds that the cost of doing business in Kumasi is relatively low, compared to other parts of the country.
Distribution services and manufacture of agricultural products and inputs, like fertilizer, are well-suited for this location since the city’s economy is supported by industries like agriculture, manufacturing, and trade.
Situated on the Atlantic coast, Tema is a key player in Ghana's trade and commerce. It is home to the largest seaport in the country, the Tema Port, which facilitates international trade.
Tema's industrial area houses various manufacturing and industrial companies, offering substantial business prospects. The city's proximity to Accra ensures access to a broad consumer base.
Tema is just a few minutes drive from the central business district in Accra and hence shares most of the infrastructure advantage that the capital has over other parts of the country.
Sandra Sackey is convinced that the fast, affordable and reliable internet infrastructure in Tema makes it a great destination for any kind of business.
"Most of us use the online media to reach out to most of our customers so...social media marketing — which is supported by a good internet infrastructure — gives way for a customer to connect and do business," she added.
Tema would be an ideal location for overseas haulage and logistics business. The industrial hub in the city makes it ideal for manufacturing and other heavy industries.
Takoradi is the capital town of the Western Region. It has experienced considerable growth due to the presence of the oil and gas industry. The city's port, Takoradi Harbour, plays a pivotal role in trade activities.
Bernard Ashiadey, who has been a business reporter for over a decade, feels the high expatriate population in the "Oil City," due to the petroleum exploration activities in the region, has hiked up real estate in a way that is unhealthy.
"From renting a hotel to renting an apartment, the cost has gone up astronomically and it will stay that way well into 2024 and beyond. So far as there is a demand for houses and apartments, the price will keep going up," Ashiadey shared his experience about Takoradi.
Entrepreneurs looking to venture into energy, logistics, or related sectors should consider Takoradi as an ideal location.
Located in the Northern Region, Tamale is an emerging business destination with a focus on agriculture and agribusiness.
Tamale's proximity to neighbouring Burkina Faso presents an advantage for cross-border trade.
Tamale, with its vast lands and cheap labour, also offers a unique opportunity for entrepreneurs interested in the agricultural value chain. The city is particularly popular for its large livestock population, making it suitable for the meat and dairy service.
These five cities in Ghana — Accra, Kumasi, Tema, Takoradi, and Tamale — each offer distinct advantages for aspiring business owners. The choice of the best city to start a business in 2024 depends on your specific industry, target market, and business objectives. Conducting thorough market research and feasibility studies is a great way to make an informed decision based on your business's unique needs and goals.
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