Ghana and Its Alchohol Policies

Alcohol in Ghana and South Africa

The impact of the economic revival of Africa as a continent and some of the emerging economies, in particular, has created disposable income in the hands of a large section of people. This has enhanced the market and sale of alcohol products in a manner similar to other lifestyle or FMCG products. Despite a number of problems that include counterfeiting and smuggling, the alcoholic market beverages market in African is believed to be on track to clock the faster growth in the segment globally till 2017 (Evans, 2015).

In recent decades, Ghana has developed as an economy and its impact is evident in the industries in the country. One of the major industries that have developed with the advent of foreign brands slowing infiltrating the market tin Ghana is the burgeoning alcohol segment. Ghana has recently emerged as an economic power in the continent and the new found middle class has contributed to the development of a trend of consumption of foreign alcoholic beverages in a market that is still dominated by local alcoholic varieties (Welbeck J, 2015).

Helped by a stable socio-political environment, economic progress has been possible in Ghana. With more and more Ghanaians moving up to the middle-income bracket, the disposable income is increasing in the country. Hence the growth in the alcoholic beverage industry has been spurred by modernization and a newly created crave for alcoholic beverages for the average Ghanaian. This has led to the setting up of large and small companies as well as many international companies starting operations in the country (Evans, 2015).

Apart from disposable income at the hands of consumers, one of the factors that have helped in the development of the market is the non-government monopoly of the industry in terms of production and sale of alcohol. Moreover, the country has no set rules or regulations for advertisement and promotions of alcohol but is only self-regulated by the industry and the media. Even the proposed National Alcohol Policy of the country heavily relies on self-regulation by the industry. As such unlike in many other countries of the continent, alcohol sellers and manufacturers can openly and aggressively advertise to woo more consumers.

On the other hand, South Africa is a relatively advanced economy with an established consumer base. In recent decades the economic benefits in the country have even percolated down the society and the middle class has grown. It is hence the largest alcohol consumer in Africa with an estimated volume of 30.9m hectolitres consumed in 2014 which is 30% of the total African market. The alcohol market in the country was worth R96.5 billion in 2015 compared to just R46.9 billion in 2006. Hence the South African alcoholic drinks market is considered a mature market.

One of the sub-segments of this market that have developed is the wine market which has increased by 7.7% in 2015. This has been possible with the influx of more foreigners into the country for economic and business purposes and who are used to consuming wine ("South Africa's boozing habits revealed," 2016).

However, the industry has suffered somewhat due to the strengthening of advertisement regulations for the market and the increased taxation levels in most product areas. Despite this, it is expected that consumption and spending on alcohol would increase due to stronger economic performance in the near future (Toesland, 2016).