Preparing to export

Hollard is Ghana’s Favourite Insurer

The Ghanaian insurance industry is evolving.

The market was overhauled with the 2006 Insurance Act, which introduced comprehensive legisla�on designed to effec�vely administer and supervise the industry and provide be�er policyholder protec�on. Eleven years down the line, Ghana’s insurance regulator, the Na�onal Insurance Commission unveiled its four primary policy goals: increasing the role of insurers in the broader financial sector, with greater investment of funds in the bond market; improving claims payment systems; boos�ng penetra�on in the informal sector; and passing new legisla�on in 2018 to improve the commission’s enforcement and oversight. This �es in with the country’s overarching goals to extend the role and strength of the na�on’s financial and capital markets sector. Central to this process is the passage of a new Insurance Bill. With both the regulator and the government pushing towards an ambi�ous target of 10 percent penetra�on, the coming years should see the insurance market become a larger and more central part of the Ghanaian economy. (Gold Street Business, 2019)

Hollard Ghana is the standout; combining deep local knowledge with international expertise

Things are compe琀琀ve in the burgeoning industry. Out of 22 life insurance companies, 29 non-life insurance companies, and 3 reinsurance companies, one challenger stands out. Hollard Ghana, with its Life and Non-life business posi琀ons its deep local knowledge of the market with the world-class exper琀se of an interna琀onal insurance brand. The group is part of Hollard Interna琀onal, headquartered in South Africa and which manages the interna琀onal por琀olio of the Hollard Group currently opera琀ng in 18 countries in Africa and Asia. Hollard Ghana has feet firmly planted on Ghanaian soil having operated successfully as Metropolitan Insurance Company (MET) for 25 years before becoming Hollard Insurance Ghana in 2015; adding on Hollard Life Assurance Ghana in 2018.

An unconventional insurance company at the forefront of the competitive evolution.

Hollard Ghana is purpose driven. The group seeks to enable more people to create and secure a be琀er future by delivering with excellence for its customers and partners. It is an outstanding brand because Hollard Ghana does well by doing good. It’s the Hollard Way.

With its triple-win strategy, Hollard Ghana desires the best interests of everyday Ghanaians and corporates, providing them with innova琀ve insurance solu琀ons customised to the unique risks they face. The group proudly treats everyone with care and dignity. An act reflected in its fast claims process which endears it to its customers and has built its credibility over the years. For its partners, Hollard Ghana collaborates to put the customer at the heart of everything they do while achieving excep琀onal, sustainable and inclusive growth for its businesses.

Indeed, the group’s purpose underscores its inten琀on to become the country’s favourite insurer. Last year, the impressive progress Hollard Ghana made was rewarded by its general insurance business moving up to number three posi琀on in the industry. The group an琀cipates that the next decade will be driven by a customer-first and digital-only mindset and it is are gearing up for it.

As current trends show, by 2030 Ghanaians will have transi琀oned fully to expect everything on-demand, and via digital. Today, they face challenges looking for tradi琀onal offices to process their insurance needs. Some, who are uninsured, may never sign-up for policies because it’s inconvenient. Hollard Ghana is ac琀vely changing that by pushing the boundaries and making innova琀on the standard. By inves琀ng in innova琀ve products and diversified distribu琀on channels such as its Hollard-on-the-go booths at Shell sta琀ons, the group is exploring organic growth opportuni琀es to bring insurance closer to Ghanaians. Making accessibility a standard of service delivery will become the yards琀ck of innova琀on led by Hollard Ghana.

A digitally-inclined company, Hollard Ghana believes its ability to process policies and pay claims promptly requires efficiency in opera琀ons. The strength of its service offering is matched by its commensurate use of cung-edge technology such as enterprise so昀ware. The group makes frequent automa琀on, updates and enhances to its systems and distribu琀on networks because it believes this makes a posi琀ve difference.

Cer琀fied a top employer in Ghana and Africa, Hollard Ghana is recognised as a progressive employer, and are keen to con琀nue a琀rac琀ng and retaining the best talent while driving a high-performance culture. It’s a goal tailored by strategic workforce planning, talent strategy, on-boarding, learning & development, performance management, leadership development, career & succession management, compensa琀on & benefits, and culture.

Hollard Ghana believes insurance is a social good and an enabler of progress. Providing insurance itself is an effort to support people in their 琀me of need. It’s not just about profits for the group, it’s about crea琀ng real, meaningful progress for more people. Its corporate social responsibility is inten琀onal. It’s founded on social investment and shared value hence its focus on financial inclusivity through its flagship programme, Hollard Streetwise Finance. Inadequate financial literacy is a snare in the poverty trap – with its Streetwise Finance ini琀a琀ve, Hollard Ghana regularly organises workshops with ter琀ary students, and the informal sector to teach basic financial management and entrepreneurial skills. This empowers them to make be琀er financial decisions; consequently, providing them with a be琀er future.

Hollard Ghana’s ambi琀ons are buoyed by a physical brand that stands out from the typically dull and corporate insurance compatriots. The group’s unconven琀onal brand is playful, aptly portraying its approachable and quirky nature. Its predominant purple, and secondary colours orange, aqua and gold provide a vibrant canvas through which it relates using Ghanaian-inspired illustra琀ons, photography and iconography. In a world of worry and concern the group communicates to make people smile but ul琀mately being serious when it ma琀ers most. Hollard Ghana insures people, everyone and everything they love so they can go about their lives stress-free knowing their companies have them covered.

2020 is Hollard Ghana’s year of accelera琀on and the insurance group is on the move! It’s achieving excep琀onal, sustainable and inclusive growth by partnering to deliver the triple win for its customers, its partners and itself.

References

Hollard Ghana Holdings Ltd Hollard Life Assurance Ltd Hollard Insurance Ghana Gold Street Business, Changing shape of Ghana’s Insurance Industry Na�onal Insurance Commission www.nicgh.org

Preparing to export

Consultation and bespoke research

A range of information for exporters can be found online, including advice and guidance on how to research overseas markets thoroughly. For more information visit: https://www.great.gov.uk/.

Researching the Ghanaian market Make regular visits to Ghana, and make contact with others in your industry/sector that are already in Ghana. This will keep you updated on all advice and information, and can give you a new understanding of the country. At the very least, this can help you form the foundation for further research.

For more information and guidance on how to develop your marketing strategy, competitor and SWOT analyses and customer/market segmentation, visit: https://www.great.gov.uk. The IOE&IT can also help with this: https://www.export.org.uk/.

You need to make sure that there is a market for your product/service, if your pricing is competitive, whether you will need to change your product in terms of its packaging or marketing, and whether you need to adapt your business model.

The questions listed here should help to focus your thoughts. Your answers to them will highlight areas for further research and also suggest a way forward that is right for your company. You may then want to use this as a basis for developing a formal strategy, although this may not be necessary or appropriate for all companies: Your aims: • Do you wish to buy from Ghana, sell to

Ghana or both?

• Do you wish to establish your own company presence in Ghana, or consider for example direct sales, licensing or franchising?

• Do you need to be involved in Ghana at all?

• Do you see Ghana as part of a wider plan including e.g. other African markets, now or in the future?

Your company: • Can you carry out a detailed SWOT analysis of your company?

• Are your competitors already in Ghana?

If so, what are they doing?

• Can you carry out a detailed SWOT analysis of your competitors?

• What are the Unique Selling Points (USPs) of your product or service?

• Do you know if there is a market for your product or service in Ghana?

• Do you know if you can be competitive in Ghana?

• Do you have the time and resources to handle e.g. the demands of communication, travel, product delivery and after-sales service?

Your knowledge: • Do you know how to secure payment for your products or service?

• Do you know how to locate and screen potential partners, agents or distributors?

• Have you carried out any Ghana-specific customer segmentation, and do you know how to best reach potential customers in-market?

It is unlikely that you will have the answers to all these questions at the outset and these ‘knowledge gaps’ could form the basis for further research and investigation. Some of these questions will require quantitative research in your sector, while others involve more contextual and cultural considerations.

Talking to other people in your industry and regularly visiting Ghana will give you access to the most current advice and such experience can often lead to new insights and form the basis for further research.

Export plan You will need to create an export plan after you have carried out your initial research, which will identify your best route into the Ghanaian market. Guidance on developing an export plan, including marketing strategy, customer segmentation, competitor and SWOT analyses, etc. is available on the https://www.great.gov.uk/advice/create-anexport-plan/how-to-create-an-export-plan/ site, and also on the Institute of Export’s Open to Export site at: https://opentoexport.com/ info/export-action-plan/.

Trade shows held in Ghana each year are a way for you to test whether your product/ service would be viable in the Ghanaian market. The UK’s Department for International Trade (DIT) provides funding in the form of grants via the Tradeshow Access Programme that allows eligible businesses to attend overseas trade shows.

This funding helps businesses to gain the most out of overseas trade shows, including market knowledge, experience and advice from trade experts. Visit: https://www.gov.uk/ guidance/tradeshow-access-programme for more information.

For information on future events and trade missions in Ghana, visit the DIT events portal at: https://www.events.great.gov.uk/ ehome/index.php?eventid=200183029&.

For company launches and events held at British High Commission locations, contact the Department for International Trade (DIT) in Ghana at: https://www.gov.uk/world/ organisations/department-for-internationaltrade-ghana#contact-us.

[Source – DIT, gov.uk]

Start-up considerations

There are a number of ways in which you can enter the Ghanaian market. These include:

• direct exports

• a joint venture

• appointing a local distributor

• registering as a foreign company

If you are a UK company wanting to invest in Ghana, you must register with the Registrar General’s Department: https://rgd.gov.gh/. The Registrar General’s Department is a department of the Ministry for Justice and Attorney General, established to provide efficient and effective registration and administration services including the registration of businesses, industrial property and marriages; administration of estates, and public trustees, as well as to provide accurate data for national planning. Following a company’s registration, a certificate of incorporation and a certificate to commence business are issued. Companies that are partly or fully owned by foreigners must register with the Ghana Investment Promotion Centre (GIPC) after they have received their certificate of incorporation. The GIPC works to encourage and promote investment into Ghana in all sectors of the economic market, with the exception of mining and petroleum. Registering your company is only completed once you have met all of the minimum equity requirements.

For more information on this, visit the Ghana Investment Promotion Centre (GIPC) website at: https://gipc.gov.gh/.

Any investor producing goods/services that will have at least 70% of its total output exported is able to take advantage of Ghana’s Free Zones Act. They can also locate their business within the free zone enclaves at Tema or Sekondi.

These free zones have several privileges for registered free zone enterprises, such as exemptions from:

• tax on imports into the free zone

• duty

• other taxes on exports to foreign countries

Before you enter into any agreement, contact the Department for International Trade (DIT) team in Ghana at: https://www.gov.uk/ world/organisations/department-forinternational-trade-ghana#contact-us. DIT will be able to help you find a tax and legal advisor who can give you more information and guidance on setting up a business in Ghana.

[Source – DIT: Doing business in Ghana: Ghana trade and export guide, Registrar General’s Department, Ghana Investment Promotion Centre (GIPC)]

Distributorship agreement Rather than export directly, it may be easier to work with a Ghanaian partner/representative or advisor.

They will be more familiar with the business environment in Ghana and should be able to help with:

• keeping in contact with customers

• seeking new business

• getting information on the latest market trends

Before choosing an agent or distributor, research several potential associates, visit the market numerous times and make sure you are positive you have made the best choice for your company. Make sure you check their reputation, marketing ability and resources. Be aware of those who promote similar or the same products/services as you.

The Department for International Trade (DIT) team in Ghana at: https://www.gov.uk/world/ organisations/department-for-internationaltrade-ghana#contact-us can assist you in locating and meeting potential agents and distributors for your products in Ghana.

[Source – DIT: Doing business in Ghana: Ghana trade and export guide]

Direct exports and sales When you directly export, you must take care of the logistics of marketing, selling and sending your products or services overseas, and getting paid. If you plan to sell your goods/services online to potential Ghanaian purchasers, or you are responding to enquiries, this may be the most viable option.

Further information on selling directly overseas can be found at: https://www.great.gov.uk/ advice/define-route-to-market/direct-sales/. Online selling DIT can help to find suitable online marketplaces for your product/service. They can also help to access preferential government deals.

The Department for International Trade (DIT) can help you export your goods to Ghana through the E-Exporting Programme. Find out more at: https://www.gov.uk/guidance/ e-exporting.

DIT has also negotiated listings at betterthan-commercial rates. See online marketplaces in Ghana at: https://www.great. gov.uk/selling-online-overseas/.

Franchising Franchises in Ghana are due to foreign franchisors selling brand licences to franchisees. This means that these franchisees can operate under a franchise’s brand name.

For more information on franchising visit the international section of the British Franchise Association at: http://www.thebfa.org/ international.

[Source – British Franchise Association, DIT: Doing business in Ghana: Ghana trade and export guide]

Consumer protection If you are selling to consumers (rather than businesses), you should ensure that you comply with relevant consumer protection laws which guarantee consumer rights when buying goods and services.

[Source – DIT: Doing business in Ghana: Ghana trade and export guide]

Professional indemnity insurance You may require professional indemnity insurance if you provide a service and need to protect yourself against negligence claims from clients or third parties in Ghana.

See the Association of British Insurers (ABI) website at: https://www.abi.org.uk/productsand-issues/choosing-the-right-insurance/ business-insurance/liability-insurance/ professional-indemnity-insurance/ for further information, or alternatively, contact the DIT team in Ghana at: https://www.gov.uk/world/ organisations/department-for-internationaltrade-ghana#contact-us for further advice, and for contacts of local insurers or specialist brokers if appropriate.

[Source – DIT: Doing business in Ghana: Ghana trade and export guide]

Financial considerations

Getting finance to fulfil an export contract Globally, Ghana ranks 80th out of 190 economies for ease of ‘Getting Credit’, in the World Bank’s Doing Business report 2020. See: https://www.doingbusiness.org/en/ data/exploreeconomies/ghana.

There are schemes available for UK companies that wish to sell their products/services to Ghana. These schemes are to help simplify the growth of your business and can also help you to fulfil an export contract. For up-to-date information regarding current schemes, contact your bank or financial adviser.

Payment risks UKEF can help UK companies to get paid for the products and services they export by insuring against buyer default.

Before exporting, make sure you are confident you will be paid as you may face difficulty when obtaining foreign exchange. Contact one of UKEF’s export finance advisers at: https://www.gov.uk/government/ publications/find-an-export-finance-manager for free and impartial advice on your insurance options, or contact one of UKEF’s approved export insurance brokers at: https://www.gov.uk/government/publications /uk-export-finance-insurance-list-of-approved -brokers/export-insurance-approved-brokers.

Currency risks when exporting to Ghana In order to fix your price, it is essential to fix your exchange rate. When negotiating any contract, it is therefore important to consider whether to agree financial terms in Pounds Sterling (GBP), US Dollars (USD) or Ghanaian Cedi (GHS). It is advisable to seek expert financial advice on exchange rates (FX).

[Source – DIT: Doing business in Ghana: Ghana trade and export guide]

GHANA

Ghana’s business and legal systems are very similar to those carried out in the UK. There are a number of regulatory laws and acts that provide a framework in which businesses can operate. These laws and acts are regulated by different agencies.