Helping Ghana's private sector bloom
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Helping
Ghana's private sector ripen
 If
you hear someone talking about exports from Ghana, then they're probably talking
about cocoa, timber or gold.
But Ghana is moving more and more into other markets. For example, did you
know that Ghana now exports cut flowers as part of a budding horticultural
export industry?
Medie Horticultural Development Company is Ghana's premier cut flower
business, exporting over $700,000 worth of tropical flowers a year to the UK and
Holland. From here they are delivered to flower shops across Europe.
In a region where unemployment is high, the 90 people who have found work on
the farm can now better feed their families, pay for health care and educate
their children to school thanks to this business.
It's a success story that DFID is helping the Ghanaian government build on.
Creating a climate for growth
 Creating a climate that is more welcoming to foreign investors and the private sector in
general, would help more businesses like Medie Horticultural to flourish,
creating more jobs for local people and lifting their families out of poverty.
Ghana needs to be able to offer a stable economy, reliable electricity
supplies, competitive banking and a streamlined registration process for those
who want to start businesses or own land.
So, DFID has helped the Government of Ghana to launch a Private Sector
Development Strategy and Action Plan for 2004-2008 (see below), setting out clear processes and targets to
improve the environment for business.
The plan incorporates all factors that affect the ease of doing business. For
a flower exporter, that could mean, for example, having a reliable road for transporting goods
to the airport, where cold-storage facilities are available to store goods prior
to export.
The Government of Ghana, with the co-ordinated support of DFID and other
donors, is now putting this plan into action, with the aim of reaching a 'Golden
Age of Business'.
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Medie Horticultural: rooting for success
 Like
many fledgling enterprises, Medie Horticultural has had its share of difficulties. The farm
was initially managed and partly owned by Zimbabwean horticulturalists who were
forced to return home, leaving the farm short of vital finance and management
expertise.
It's still a profitable business - but in the past it employed up to 250
staff and now struggles to take advantage of
new opportunities.
As the acting Chairman and Chief Executive, John Opoku-Acquah
explains:
"What we are trying to do now is restructure the company and bring in new management;
we've talked to some Dutch companies who are coming at the end of this month.
Our turnover can easily grow to at least $1.5m if we secure the foreign
investment and management expertise.
"It's a project that has great potential, especially during the winter months
in Europe where it costs a lot to heat a greenhouse. Here we get the heat for
free. We are only an hour from the airport and 6 hours from Europe by air, so
the flowers arrive fresh in the shops the following day".
It is a common story in Ghana - many businesses here have prospective
partners who show real interest, but for whom progression to the next opportunity is held
back by red tape, or a lack of access to affordable finance and expertise.
If the Private Sector Development Strategy succeeds, it should encourage more
investors like John's to release Ghana's enormous potential.
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