Covid-19 Spurs the Growth of Ghana’s Food and Non-alcoholic Beverage Industry

Diana Owusu-Kyereko, CEO, Jumia Ghana

Accra, Ghana, October 16, 2020//-The devastating coronavirus disease 2019 (Covid-19) which is wrecking human and economic havocs across the globe, has spurred the growth of Ghana’s food and non-alcoholic beverage industry.

A report titled-‘Ghana Food Index 2020’ released by Jumia Food, a subset of Jumia Ghana, a subsidiary of Berlin based Jumia, a leading online marketplace for electronics, fashion, logistics, among others, has revealed.

Launching the report today Friday 16, October 2020 to mark this year’s World Food Day, Diana Owusu-Kyereko, CEO, Jumia Ghana, explained: “Due to the impact of the Covid-19, there has been a growth in food and non-alcoholic beverage orders in 2020, as consumers re-prioritise their spending patterns towards only essentials”.

She added that the food and grocery retail market includes the retail sales of all food products, both packaged and unpackaged, as well as beverages (including retail sales of all alcoholic and non-alcoholic beverages),and household products.

During the three-week of the partial lockdown imposed on Accra, Kasoa, Tema and Greater Kumasi by President Nana Addo Dankwa Akufo-Addo in March this year, majority of Ghanaians relied on Jumia Food and others for their food and non-alcoholic beverage needs, leading to the growth.

Madam Owusu-Kyereko noted: “Post-COVID Online Food delivery is changing habits in unexpected ways as more Ghanaians have shifted to buying food and groceries online to limit risks of contracting the virus, save money and time. Generally Ghanaians have embraced the concept of online food delivery better after the scare of the coronavirus pandemic”.

Agriculture is 23% of continental GDP of Africa. Ghanaians spend 65% of their income on Food. Agriculture and Food and Beverage employed 29.27% of the country’s population in 2019 which was higher than the 2020 figure of 28.46, according to the newly launched report.

The slight decline over the past year can be attributed to the covid-19 pandemic which continues to have adverse socio-economic effects around the globe. However, measures need to be put in place to develop interest and create further opportunities in order to grow sustainably as the online food market increases, it noted.

“Jumia Food is the most used online food delivery service in Ghana operating in three major cities including Accra, Tema and Kumasi. As a leader, Jumia will continue to deploy capabilities across the food value chain to ensure consumers buy Food online safely and at the right price in line with the theme of this year’s World Food Day celebration of Grow, Nourish, Sustain Together”, Madam Owusu-Kyereko, assured.

The Ghanaian food and grocery retail market was valued at $311.7 million in 2018 and it is expected to grow at a Compound annual growth rate (CAGR) of 14.6% to reach over $500 million by 2026.The increasing disposable income of the people in Ghana, will increase the buying power of people for consumer goods. According to the World Bank, in 2017, the household final consumption expenditure has grown by 11.3% in Ghana.

Also, increasing urbanization is one of the factors driving the Ghana retail industry market in 2019.

Ghanaians spend most of their income on food and non-alcoholic beverages that account for 41% of total expenditure. Ghana is the 11th largest grocery retail market in Africa, and the second largest in West Africa only after Nigeria. Hence, online food delivery is gaining momentum through companies such as Jumia Food.

E-Commerce in Africa is still at its infancy by global standards standing at less than 2% verse 20% in China or 12% in the USA. Despite this, e-commerce remains promising with rising GDP contribution indicating a consumption driven region and for Job creation.

New innovations in the food industry, one of the world’s oldest and largest industries, are creating attractive opportunities for women and youth on the African continent. More than five million jobs can be created in 2025 in Africa by Online Marketplace.

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