Mixed reactions as local bread bakers fear infiltration of foreign competition

A huge and imposing edifice on the Tema motorway, said to be the hub of a new bread factory, has sparked a lot of concerns for Ghana’s local baking industry.

Local industry players in the baking space say if care is not taken and measures are not put in place to protect them from unfair foreign invasion, existing bread brands that largely operate on a small scale will be muscled out of business in the country.

The new factory on the Tema Motorway called Amigo Bread is reportedly owned by some Chinese investors. A mere look at the edifice shows that bread production will be on a large scale.

Parts of the concerns that have been raised have been in the light of the fate of small-scale bakers who supply bread to their individual communities and also make a living out of it.

GhanaWeb Business checks have also revealed that the new bread is relatively cheaper than the already-known local brands.

Amigo bread sells at 10 cedis for a loaf whiles other brands sell for 13cedis and 15 cedis.

Sharing his opinion on Twitter, Economist, Theophilus Acheampong, noted that everything in a country must not solely be about foreign direct investments.

He stated that as a country, “We must be DELIBERATE about protecting certain industries. Even America, China, the EU, and others do the same!!!! We've over liberalised the Ghanaian economy. Too much neoliberalism! FDI is not everything!”

Other Twitter users also shared varied opinions on the subject.

Mista Darko said: “I think govt needs to consider taking steps to build the capacity of local entrepreneurs to scale their business so there will be no need for some of these FDIs.”

Nick wrote “Spot on bro! You can’t enter China today and start a bakery.”

Thinker said: “The govt should protect local industries for once. We can’t open our economy to everybody just like that.”

Kiko also said: "The impact of these kinda of investments are grossly overstated. The amount of jobs it creates vs the mom&pop outfits that are going to go out of business, doesn’t offset. That being said, will connoisseurs of real Ghana made bread patronize a commercially made bread? I won’t!”

SSD/NOQ

UNPOPULAR OPINION

Since this post I made on another platform is being discussed on #CitiCBS let me curate it back here on X.

UNPOPULAR OPINION

So for anyone using the motorway to Tema on the abbatoir exit when you raise your head you would see this huge edifice built.

Over… pic.twitter.com/P63xEQvWR5

— HelicopterMan (@LaryeaDerek) August 16, 2023

We must be DELIBERATE about protecting certain industries. Even America, China, the EU and others do same!!!! We've overliberalised the Ghanaian economy. Too much neoliberalism! FDI is not everything! #IndustrialPolicy @Citi973 #Citi @benkoku

— Theo Acheampong, PhD (@mytheoz) August 16, 2023

A lot of the smalls shops around the corner and the minimarts will abandon their old customers for such brands because they have big branded vans for delivery. Another thing is that such big brands tend to add banned substances to their bread to make their loaves heavier.

— Okyere (@oksberg) August 16, 2023

The impact of these kinda of investments are grossly overstated. The amount of jobs it creates vs the mom&pop outfits that are going to go out of business, doesn’t offset. That being said, will connoisseurs of real ghana made bread patronize a commercially made bread? I won’t!

— kiKo???????????????????? (@muba_199X) August 16, 2023

You’re right.

FDIs should not be robbing the common folk off their daily bread by competing for the same opportunities.

It’s easier for them to make incursions because local businesses do not look out for each other’s welfare through cooperative regulation.

— CultureBangr.com (@culturebangr) August 16, 2023

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