Opinions of Friday, 30 May 2025

Columnist: Dr Mrs. Juliana Akushika Andoh.

Why Ghanaian brands must go green or get left behind

The worldwide corporate landscape is shifting dramatically towards sustainability, and Ghana is no exception. In 2025, sustainability has progressed from a corporate social responsibility effort to a strategic business imperative with direct implications for profitability, brand reputation, and market competitiveness.

Ghanaian customers are becoming more environmentally concerned, with 72% favouring firms with sustainable practices, according to the 2024 Ghana Consumer Insights Report.

Meanwhile, foreign investors and trade partners prioritise Environmental, Social, and Governance (ESG) compliance, making sustainability a must-have for enterprises seeking growth and worldwide market access.

Here are six reasons why Ghanaian brands should embrace sustainability not just as a corporate social duty, but as a core business strategy for competitiveness.

Evolving Consumer Expectations

Ghanaian consumers are becoming more aware of environmental and social issues. Millennials and Generation Z, a sizable and increasing portion of the market, are especially drawn to businesses that match their beliefs. These customers are asking hard questions about how products are obtained, manufactured, and packaged.

Ghanaian brands who do not meet these requirements risk losing market share to both domestic and foreign competitors who prioritise sustainability. Some local fashion firms are already embracing slow fashion concepts, such as recycled materials or organic cotton, and encouraging ethical labour methods. These brands are gaining traction, particularly online, where sustainability-focused branding appeals to younger customers.

Access to International Markets and Trade Opportunities

Ghanaian export-oriented enterprises must comply with stringent environmental, health, and safety standards in global markets, particularly the EU, the United States, and portions of Asia. Sustainability norms are frequently part of trade agreements and buyer requirements.

Ghanaian brands who fail to achieve these requirements would have limited access to lucrative worldwide markets, whilst those that do can safely develop and form partnerships with international customers. Cocoa producers who are Rainforest Alliance or Fair Trade certified are more likely to land long-term contracts with European chocolate makers. Similarly, foreign buyers and donors reward agribusinesses that use climate-smart techniques.

Attraction of Green Financing and Investment

The increase of Environmental, Social, and Governance (ESG) investing implies that more investors are looking to support companies that include sustainable practices into their models. Businesses with a strong commitment to sustainability can now take advantage of green finance possibilities such as impact funds, climate-focused grants, and ESG bonds.

Ghanaian entrepreneurs and SMEs with measurable environmental and social impact have a better chance of receiving finance from both local and international investors. Several Ghanaian agritech businesses have received money from climate and impact investment funds to assist farmers in adopting sustainable practices, reducing post-harvest losses, and strengthening resistance to climate change.


Regulatory Preparedness and Risk Mitigation

Government rules in Ghana are gradually catching up with global environmental trends. New laws for plastic waste, emissions, and environmental protection are being implemented. Businesses that postpone moving to greener operations risk incurring hefty penalties, restrictions, or even liquidation. Going green now puts firms ahead of regulations, eliminates environmental hazards, and ensures compliance when demands tighten.

Operational Efficiency and Cost Reduction

Sustainability typically results in operational efficiencies. Using less energy, conserving water, reducing waste, and recycling materials can all result in significant cost savings in the long run. Green businesses are also more innovative, using new technology to increase efficiency. Going green can help Ghanaian brands overcome high utility bills and operational inefficiencies. Some Ghanaian hospitality businesses have installed solar panels and water recycling systems. Over time, these improvements save electricity and water expenditures while increasing eco-tourism appeal.

Strengthened Brand Loyalty and Long-Term Reputation

A sustainable brand is one that people can trust. In competitive markets, a good reputation is one of the most precious assets that a company may have. Customers are more likely to remain loyal to firms that share their values and make beneficial contributions to society and the environment. By investing in sustainability, Ghanaian firms enhance brand equity, public goodwill, and the loyalty of socially conscious customers. Food and beverage firms that purchase locally, pay fair rates to farmers, and use responsible packaging are frequently praised in the media and on social media. This earned trust leads to strong client loyalty and greater sales.

Conclusion

Sustainability is no more a discretionary, feel-good endeavour; it is a strategic imperative for Ghanaian brands striving to survive and grow in an ever-changing world. Going green provides genuine and long-term competitive advantages, whether it's earning customer trust, attracting investment, expanding into international markets, or lowering expenses.

Ghana's future resides on firms that recognise that people, planet, and profit are not competing goals, but rather complimentary ones. Brands that embrace sustainability today will be the industry leaders of the future. Those who don't will struggle to remain competitive in a greener, more responsible global economy.