Addressing the Challenge of Grey Market Impact on Legitimate Businesses in Ghana and Cameroon

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Addressing the Challenge of Grey Market Impact on Legitimate Businesses in Ghana and Cameroon

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Addressing the Challenge of Grey Market Impact on Legitimate Businesses in Ghana and Cameroon

The weakening Naira is posing a significant concern for legitimate businesses operating in Ghana and Cameroon. The influx of grey market (unauthorized or smuggled) products is eroding the market share of established FMCG brands, causing substantial losses for local subsidiaries and entire product categories. Industry conversations reveal a sense of limited solutions to tackle this growing threat.

Here’s a breakdown of the situation:

  • Weaker Naira: The currency depreciation incentivizes grey market activities due to cheaper product acquisition costs.
  • Domination of FMCG categories: Grey products are significantly impacting various FMCG segments, jeopardizing the market share of legitimate brands in neighboring markets, especially Ghana and Cameroon, as per Maverick’s retail audit data.

While external factors like currency fluctuations play a role, addressing internal loopholes and strengthening regulations are crucial to curb the grey market.

Urgent action is required:

  • Collaboration between authorities and industry stakeholders: Implementing stricter border controls, raising consumer awareness about the risks of counterfeit goods, and fostering a culture of ethical business practices.
  • Strengthening enforcement mechanisms: Penalizing individuals and businesses involved in grey market activities can deter such practices.

Source: Ato Micah

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