Business in Ghana

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Posts Tagged ‘Trade Barriers. Price Differences’

Adopting A Common External Tariff, Ecowas States Move Closer To Customs Union

Posted by Business in Ghana on May 4, 2013

By Joe Lamport

Once a month or so, an employee of Mamma Mia’s pizzeria in Accra, Ghana, drives three hours to Lomé in neighboring Togo to stock up on supplies for the popular restaurant. The reason is simple, and one that almost every business owner (and most consumers) understands: lower prices.

“The prices are usually much lower in Lomé than Accra,” the employee said, “so we go there to stock up on cheese and other ingredients.”

Stories of wide price variations across the region are common, according to Lori Brock, an international trade expert who has studied the region’s economy.

“I was amazed that you could buy batteries in, say, Nigeria or Senegal for about 50 cents and the same batteries in Accra would cost two or three dollars,” she said. Likewise bicycle tires in Ghana cost about 4 GHS ($2), while in Senegal they cost about 7,000 CFA ($14) and in Nigeria cost about 5,000 Naira ($31). Read the rest of this entry »

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