These are some businesses you can start with rise of cedi

The Ghanaian cedi has recovered considerably in recent months, climbing by more than 25 per cent against the US dollar since January, with a seven per cent increase in May alone. 

This development is a major turnaround from 2022, when the cedi was one of the world's worst-performing currencies.

This era of appreciation offers entrepreneurs and business-minded individuals a rare opportunity to create businesses that benefit from improved local currency performance. 

An appreciating cedi reduces import costs, stabilises inflation, enhances investor confidence and offers a more predictable economic environment, all of which are ideal for launching a business. 

In this economic climate, companies that rely on imports, target expanding consumer spending, or profit from improved investor confidence are well-positioned to thrive. 

The following are six viable business concepts to consider beginning during a moment of cedi appreciation.

Import-based retail business

When the local currency strengthens, importing goods becomes more affordable, making now an ideal time to start an import-based retail business.

Electronics, fashion, mobile phones, kitchen appliances and home décor are all in high demand, and cutting import costs can help increase profit margins. Importers can use advantageous exchange rates to negotiate better deals, cut prices and reach a bigger clientele. 

Furthermore, with lower import charges (due to a stronger currency), initial capital can stretch further. Open an online or physical electronics retail store that imports low-cost, high-quality products from Asia, focusing on headphones, smart watches and mobile accessories.

Tourism and hospitality 

The growing cedi stimulates growth in the tourism and hospitality businesses. Ghanaians have greater purchasing power locally; thus, they are more inclined to spend money on domestic tourism activities. 

A stronger currency may help attract international tourists, who consider Ghana to be usually stable and appealing. 

Travel companies, tour guide services, local guesthouses, and experience-based tourism (e.g., cultural tours, eco-tourism) can all start at a low cost and attract both domestic and international visitors. 

Create a local travel agency in Ghana that specialises in weekend getaways, cultural festivals and historical tours. Create bundled packages by collaborating with hotels and transportation providers. Use Instagram and TikTok to attract younger, travel-hungry customers.

Digital and tech-based start-ups

An appreciating currency benefits technology businesses, particularly those that require software licences, hosting services, or technical hardware from outside parties. 

Start-ups may be able to spend more money on marketing, product development and hiring if the cost of critical digital infrastructure falls.

In Ghana's increasingly digitalised economy, tech firms such as e-commerce platforms, banking solutions, digital marketing agencies, and health-tech solutions can establish themselves at a lower cost and grow quickly. Create a SaaS (Software as a Service) platform tailored to small businesses, such as an inventory management or point-of-sale system.

Educational and professional training services

An appreciating cedi allows entrepreneurs to obtain high-quality training resources, certification programmes and educational materials from international partners at a reduced rate.

With increasing job competition and a growing youth population, professional development services are in high demand. 

Ghanaians are increasingly engaging in their own personal and professional development. This is an opportunity to develop a training institution or online platform that offers internationally accepted certificates or entrepreneurship assistance programmes.

Set up a digital academy that offers short courses in coding, graphic design, data analysis and project management.

Health and wellness products distribution

Entrepreneurs may now import and distribute health and wellness products including vitamins, skincare products, organic teas and medical gadgets throughout Ghana, thanks to a stronger cedi and improved access to global suppliers.

Ghanaians who value their health are increasingly turning to international brands and wellness solutions. 

A stronger currency enables you to import high-quality things at a lower cost and sell them for a bigger profit margin. Start a wellness distribution firm that specialises in herbal supplements and skincare products from renowned US and European sources. 

Automotive parts and services business

The cedi's appreciation has brought down the cost of importing car parts, tyres, lubricants and other equipment. Because of the growing number of cars on Ghanaian roads, there is still a strong demand for high-quality auto parts and services.

The lower cost of inventory acquisition allows you to join the market more competitively. 

You may even consider repairing newer vehicle models and providing diagnostic services using imported tools and equipment. Open a car parts store with a service department that offers routine maintenance, diagnostics and tyre installation.

Conclusion

The growing cedi presents a unique and exciting potential for Ghanaian entrepreneurs. It allows companies to start with less cash, more predictability and increased customer confidence by cutting import costs and improving economic stability.

Entrepreneurs who seize this opportunity can build strong businesses, especially in retail, tourism, technology, education, wellness and automotive services.

The writer is a Lecturer/SME Industry Coach, Coordinator (MBA Impact Entrepreneurship and Innovation), University of Professional Studies Accra

ayiku.andrews@upsamail.edu.gh
IG: andy_ayiku
@AndrewsAyiku
F: Andyayiku