How To Start An Export Business in Ghana
Do you want to start an export business in Ghana? Have you ever thought of starting an export business in Ghana?
If your answer to any of the above questions is YES, then you are really going to find this article very helpful and useful. This is because, in this article, I am going to show you how to start an export business in Ghana.
Ghana is known to be one of the world’s highest exporters of raw materials. But little do people know this is actually one of the highest evolving business opportunities in the world.
Most countries export raw materials as a result of a lack of technology and resources. Ghana for instance exports raw cocoa beans to other foreign countries and in turn, we import processed chocolates from abroad.
When you travel outside Ghana, the export business is one of the lucrative businesses. Persons involved in this business can earn above the average salary in their respective countries.
What Is An Export Business?
Export business is the type of business that sells goods and services to customers in countries outside their country of residence. For example, someone living in Ghana selling shea butter to customers in the United Arab Emirates (U.A.E).
The products you send to your customers outside can be both unprocessed or processed products. The latter is the one that is usually exported in the export business.
According to statistics, in 2014 alone, the United States of America (U.S.A) alone exported $2.335 trillion worth of goods. Even though the statistics for Ghana are not clear, more than a million cedis is generated from exports in Ghana annually.
Types Of Export Businesses
There are several types of export businesses in Ghana and before you start your export business, you need to be aware of each of them. Afterward, you can choose the specific type you want to venture into.
Export Management Company (EMC)
An Export Management Company (EMC) handles the export operations for a domestic company that sell its products overseas but doesn’t know how to get the products to their customers.
An EMC does the hiring of the dealers, invoice the customers, distributors, and the representatives, marketing and also oversees the packaging of the product.
Usually, an EMC specializes by product type, foreign market and are usually paid based on commission or takes a huge sum of money from the company and then handles the rest of the export.
Export Trading Company (ETC)
An Export Trading Company (ETC) handles the other side of the trading coin, unlike an EMC. The work of an ETC is tenser than that of the EMC.
An ETC identifies the foreign buyers and what they are willing to buy and in return, hunt local companies that are willing to export such products.
An ETC sometimes takes title to the goods and is paid based on commission or otherwise stated in their agreement terms.
An export merchant is a kind of free agent entrepreneur. An export merchant purchases goods directly from a local or foreign company and then pack, ship and resell the goods on his/her own to customers abroad.
As such, the export merchant does not have a specific client base, all they do is perform a market analysis and then contact their clients directly.
This type of export business works similarly to a dropshipping business. But, the only difference is that the export merchant sees the product and performs the export him/herself.
Finally, the export merchant takes all the risk and in return enjoys all the profit alone. Unless there is more than one person involved.
How To Start Export Business in Ghana
- Choose your niche (s).
- Perform your market research.
- Look for your start-up capital.
- Create a website and social media page. If your business picks up, you can then go ahead and create a Shopify account.
- Set up your virtual or office space.
- Look for local and international product suppliers.
- Look for local and international partners to work with.
- Set up a shipment and payment method.
- Register your business at the Registrar General’s Department.
- Market your business and start earning some franklins and big sixes.
Items You Need To Start Your Export Business in Ghana
- Computer with an active internet connection.
- A dedicated mobile phone also with an active internet connection.
- Software appropriate to your niche.
- Stationery and office supply.
- Physical or digital business card.
- An active and dedicated email address for your business.
Products You Are Prohibited From Exporting in Ghana
In Ghana, there are specific products you are not permitted to export from Ghana. If you are found violating any of these laws, you may face some serious sanctions.
Such products are as follows:
- Goods prohibited by any law in Ghana.
- Ghanaian currency above GHS 5,000.00.
The export business in Ghana is a little complicated when you look at it from afar but once you get involved in it you will realize that it is not difficult. As with all businesses in the world, it has its own pros and cons.
Aside from the products listed above, there are some other items that you need to acquire a permit from the appropriate authorities before you will be allowed to export outside the country.
Read through this article carefully and you will be able to start your export business in just a short period of time.