MOBILE PHONE BUSINESS IN GHANA

The mobile phone business is a very large business sector in Ghana with majority of Greater Accra GUTA (Ghana Union of Traders Association) executives from that sector.

The phone business started many years ago with majority of people in the sector getting supplies from the then Telco’s who had those Telco’s chip in the phones already. A few of the traders at the time also travelled to US, Italy and Germany for stocks which used to be the big phones like the “Walking talking” type. In Ghana, Circle-tiptoe lane in the Greater Accra Region is a hub noted for mobile phone business. It houses over 10000 phones businesses. The tiptoe lane is noted for the sale of other electronic appliances such as laptops, televisions, printers etc. This area is noted for repairs of phones and phone accessories.

This business is very profitable since sales is all year round with both low, middle and high level income earners patronizing them. The customers of mobile phone business have different reasons why they patronize them. Some buy these phones just for calls, others for on-line business and others forvluxurious reasons (they prefer trendy handset).In Ghana there are four types of traders when it comes to mobile phones;

1. The importers are the first type of traders who travel to China, Dubai or Nigeria for the goods or have agents in these countries who purchase and send goods to them either through sea or air (cargo).The sea delivery mostly takes a month and two weeks for goods to arrive in the country and the air (cargo) takes maximum of two weeks after purchase for goods to arrive into the country. The importers are also distributors who have customers coming from different parts of the country for wholesale and retail purchase. –
2. The second type of traders are those who buy from the importers and re -sell either on both wholesale and retail basis .These people also sell to other smaller retailers across the country . –
3. The third type of traders are those who sell to individuals. These traders have the opportunity to explain the various qualities and specs to their customer’s .The repairers of phones usually work with the businessmen in this stage. –
4. The fourth type of business men are those who sell along the road side to individual’s .They usually hold the phones in their hands and approach passersby. They also sell to passengers in cars and in offices. The phone fraudsters are mostly found amongst these type of dealers hence patrons are usually advised to be vigilant when buying from these people.

The phone market at circle has no market days meaning anytime any day is a market day. The main risk with this business are usually;

1. Delays in supply from overseas mostly due to shortage of containers for loading of goods to be shipped. Delays could also be as a result of high duty charges at the ports. –
2. Forex exchange is also a risk in this business since phones are purchased outside the country mostly in dollars hence the fluctuation of the currency is a serious problem in this sector . –
3. Transfer of money (funds) to agents overseas for supply is also a risk. Most people in the phone business transfer money through agents for stocks mostly through the Black markets agents popularly known as Alhajis which is quite risky. –
4. One other risk associated with this business which usually occurs to importers who do not travel personally is when goods purchased are of lower standard than requested which may affect sales.

Mobile phone and accessories business is a lucrative venture that startups can venture into since every adult currently owns a handset. However it would be appropriate to identify brands that are in vogue before you commerce since sales depends on the available brands. I also advise on International money transfer as a form of transfer of funds for importers.