17.05.2021 Feature Article

Will Ibrahim Mahama be the next Komenda Sugar factory?

Will Ibrahim Mahama be the next Komenda Sugar factory?
LISTEN MAY 17, 2021

Every initiative to bring jobs regardless of the person's past needs to be recommended while at the same time the question must be raised of "how long will it last?"

People decide on products and services based on few main factors: their needs, availability (in general and local), quality and price, image and in certain cases how best to sell products after use (shelflife e.g. cars, computers, mobile phones etc.).

"Made in Ghana" is on the public stage promoted by many voices but only the money in the pockets of the manufacturer and traders count. Ghana has a track record of looking for cheap products and ignore national pride as money is not in their hands for patriotism.

Unlike other economies like China Ghana does constantly allow foreign products to hit its shores making it hard or even impossible for local businesses to blossom.

Cement in Ghana is not a rare product and manufacturing and supply by exciting companies like Dangote or Ghacem can easily be increased to meet the demands of now and foreseeable future.

In a poor country like Ghana, the individual and corporate buyers look out more for the lowest prices before quality consideration comes in. The quality of the already existing cement has not been doubted so far by buyers.

What can make a new player successful in such a situation? The price...and price only. When the new cement factory will beat the current market prices the existing manufacturer will come down with their prices and can do this only by increasing their capacity. As long as the new manufacturer has not had the chance to establish a good logistical network of traders and sellers to fight on the front of the price this will lead to a slow and steady downfall.

Let us all wish the new manufacturer well and constantly have an open eye for the real unfolding market conditions on the ground.

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