The challenges and opportunities of the past year, including the growth of e-commerce, have accelerated Africa’s infrastructure expansion and boosted need for the efficiency of its logistics. In Ghana, companies rely on access to modern supply chain infrastructure to expand into new markets in West Africa.
This article explores the question of value of square-meter warehouse space in Ghana, highlighting the costs, features, availability, and economic benefits. It also suggests how businesses can find a square-meter storage solution to suit their needs.
Agility Logistics Parks is contributing to Africa’s ongoing infrastructure expansion in developing countries through its first-rate, modernized logistics commercial real estate. It offers sustainably designed warehouses with high storage capacity, available office space, continuous power and water supply, and robust security, as well as waste management.
Agility’s facilities help businesses of all sizes, including multinationals and small- and medium-sized enterprises (SMEs), access emerging markets and develop their supply chain operations with ease.
Average cost of warehouse space in Ghana by the square meter
In Ghana, most warehouse providers price storage capacity by the square meter, providing a useful starting point to determine the most suitable space for your business. However, it’s important to consider your unique business and inventory needs and to bear in mind additional costs and responsibilities when choosing a commercial property.
Renting a warehouse in Ghana
Before looking for storage property to rent, consider what you need it for and how much inventory you need to store. Will you need to manage fulfillment in addition to storage? Will you need amenities such as office space, information technology connectivity, a water supply, or special services such as cold-chain or bonded facilities? Remember that your warehouse costs will change as your business grows and in response to changing industry and market trends.
Secondly, understand that your total warehouse cost may include costs beyond the rental area per square metre. A rental property often calculates the operating cost per floor area and rental period. Additionally, don’t forget to factor in the costs of water and electricity, cleaning and sanitation, maintenance of building systems, and property security. Finally, businesses usually have to pay more to rent Accra, Ghana, warehouse space or space in other areas with high population density.
Agility’s logistics park in the Tema Port Free Trade Zone Enclave in Accra, Ghana, features a forty-five-acre property that offers built-to-suit and ready-built warehousing options. The secure, reliable, and sustainably built facility can offer a company adequate inventory storage and access to large markets without substantial capital investments.
Agility customers don’t have to worry about the construction cost or building cost—a huge benefit considering high real estate prices. In addition to warehouse space in Ghana, Agility offers land for secure yard storage.
Estimating average cost of commercial space in Ghana
In June 2021, warehouse rental prices in Ghana started at approximately GH₵ 22 (USD $4) per square meter per month (though some cheaper properties were available). Warehouse rents on the higher end came in at around GH₵ 38 (USD $6.50) per square meter per month—with some higher-cost properties available.
According to Ghana Property Center, the average price of a warehouse rental in Spintex, Accra, was GH₵ 35 (USD $6) per square meter per month. In East Legon, expect to find warehouse space for rent priced at GH₵ 48 (USD $8) per sq metre per month.
Process for calculating warehouse space in Ghana
When choosing your warehouse layout—whether you opt for ready-built or custom storage space—remember that warehouse design impacts efficiency. And when you’re paying by the square meter for storage capacity, efficiency helps deliver value.
Warehouse design is also a chance to maximize business potential with respect to your distribution strategy. And in the African agricultural market, temperature-controlled storage gives sellers a choice over when they sell their product, which reduces waste and increases profitability.
Designing and leveraging warehouse space for efficiency
To increase warehouse efficiency, it’s important to choose a property with the layout and supporting infrastructure you need to aid your warehousing operations. Not every warehouse will suit your needs. You may want to review your company’s historical data and invest in data warehouse technology to better understand your inventory and order patterns.
Consider a warehouse design with workflows that not only maximize picking and packing efficiency and accuracy but also ensure smooth warehouse operation. For example, you might use cycle counting as an inventory management and auditing strategy.
Cycle counting involves counting inventory items in planned cycles, rather than all at once. And it can increase warehouse efficiency by reducing the operational shutdowns caused by frequent full-storage counts.
Another key factor for warehouse designers to consider is the product type and storage needs. Do you need warehouse racks? How will pickers access your products? And how will you meet applicable compliance requirements and prevent damage to objects during storage?
If your warehouse space will serve functions beyond storage (such as fulfillment, reverse logistics, and value-added activities), what additional areas and facilities will you require? Each warehouse area should have a clear and specific purpose to avoid confusion and unnecessary errors. You’ll also need to provide signage and design pathways that optimize flow and avoid wasted movements—and ensure sufficient space to maneuver equipment and large items.
Warehouse automation can also help your business optimize available square footage and cope with the complexities of inventory storage and fulfillment as e-commerce demand grows. Material Handling & Logistics estimates that 80 percent of fulfillment centers have not automated any processes. To begin developing these approaches, reliable power, flexible facilities, and information technology connectivity will be key in your Ghana warehouse property strategy.
Deciding on and calculating warehouse space
To determine the required amount of warehouse space, consider your inventory in relation to your planned growth and future expectations. Review the current space needs of your inventory and anticipate how your stock-keeping units might change over time. Ensure a sound inventory management plan to minimize excess or dead inventory and consider your vertical as well as square foot storage space needs.
Using your warehouse layout, determine the exact dimensions of your racks, pallets, aisles, and other processing, fulfillment, and manufacturing areas. And factor in the space needs of your material handling equipment. Make sure you rely on data, rather than guesswork, to quantify your physical operation and needs.
Agility’s logistics infrastructure in Ghana features 165,000 square meters of land, warehouse space with power and water, and laydown yard space. Typical ready-built units in Agility Logistics Parks range in size from five hundred to more than ten thousand square meters while built-to-suit spaces range from five thousand to sixty thousand square meters.
Open yards range in size from five hundred to twenty thousand square meters. A typical listed warehouse for rent in Ghana often ranges from several hundred to several thousand square meters.
Benefits of renting warehouse space in Ghana by the square meter
Within Ghana, businesses and residents have faced significant economic challenges during the COVID-19 pandemic. However, the current and future climate offers new opportunities for businesses looking to enter or expand within the market. And finding the right commercial property and efficient warehouse strategy is a good place to start.
Ghana’s potential as a logistics market
Ghana is a promising logistics market partly because of its robust SMEs. Bizcommunity reports that in Ghana, SMEs make up 90 percent of registered businesses and provide 85 percent of manufacturing sector employment. And as a result, Ghana’s SMEs are major drivers of entrepreneurship, social development, and economic growth.
Also powering Ghana’s logistics sector is e-commerce, which has grown as a result of the COVID-19 pandemic. According to McKinsey & Company, Africa has approximately 400 million internet users, yet its potential for optimal logistics is not fully realized.
Another emerging opportunity—for e-commerce and overall business development—is the new African Continental Free Trade Area (AfCFTA) agreement, which Ghana has ratified. AfCFTA is likely to reach a market of 1.3 billion people and significantly expand intra-African trade. To benefit from trade liberalization, businesses will need to continue investing in supply chain infrastructure that helps them remain efficient and connected to their markets.
As the pandemic recovery progresses, demand for warehouse facilities and other industrial real estate is likely to grow. Bizcommunity reports strong demand for ready-built warehouse parks, which provide fast, flexible land and commercial space while keeping capital costs low. As such, the value of square-meter warehouse space in Ghana depends on logistics providers to deliver standard and specialty international-standard warehouse space in varying sizes.
New construction of office and modern retail space will also boost business development in Accra. Citi Newsroom anticipates industrial real estate growth in Ghana’s rural areas, leading to the development of housing, office space, and retail real estate as well.
Economic benefits of renting warehouse space in Ghana by the square meter
Agility’s commercial property in Ghana delivers the flexible, low-capital real estate that Ghana’s logistics sector requires. In particular, its facilities include strategically located second-party logistics warehousing (including bonded and nonbonded storage). Importantly, Agility Logistics Parks also take care of estate and facilities management, including roads and landscaping.
Vehicle distributor Endela used the Agility logistics park in Ghana for its secure laydown yard with real-time camera monitoring. And Agility’s bonded facility enabled Endela to store imported vehicles prior to sale.
In addition, Agility’s SME program helped a Ghanaian company efficiently move into an international-standard warehouse without needing to raise capital. Instead, the company paid a deposit of three months’ rent.
Available warehouse space for rent by the square meter in Ghana
In June 2021, Ghana Property Center listed thirty-two available warehouse rentals in Accra, Ghana. To learn more about the availability of Agility warehouse facilities in Ghana, interested companies should contact Agility Logistics Parks directly.
How Agility develops and manages warehouse space in Ghana
Agility’s logistics parks across Africa aim to create connections among African countries, helping them connect to the global economy. By improving regional logistics, they help make intra-African trade more feasible and profitable. And they offer a host of ancillary services that include third-party logistics and fourth-party logistics services, specialty warehouse space, training centers, and business amenities.
In addition to supplying commercial property, Agility also works to develop the local logistics workforce through training and leadership programs. At Agility’s African logistics parks, this includes hiring 100 percent of employees locally.
How Agility fulfills warehouse needs in Ghana
Agility’s scalable warehouse solutions in Ghana aim to remove hidden costs, reduce risk, and promote growth within West Africa for SMEs, multinationals, and other businesses. Agility’s facilities are also equipped to support local logistics companies looking for warehouse space.
For example, Ghanaian logistics company Ricks Logistics needed modernized warehousing to support its growth. The company chose Agility Logistics Parks for the international-standard base, reliable power supply and information technology connections, and security of its facilities.
Another attractive feature is Agility’s efforts toward sustainable design and construction, including skylight installation, eco-friendly waste management, and recycling services.
Supply chain support in emerging markets
To understand the value of square-meter warehouse space in Ghana, it’s important to consider Ghana’s business sector and the evolving e-commerce and logistics climate.
To maximize the value of your square-meter facility, plan and design your operations for efficiency and with a thorough understanding of your business needs and costs. Consider a logistics park such as Agility’s with strong infrastructure and maintenance support and the flexibility to choose a warehouse size that works for you.
Agility’s parks support businesses of all sizes and work to provide cost-effective, sustainable logistics solutions. They can also connect your business to emerging markets and support local economic growth and development. As e-commerce operations grow and African markets adapt to the trade opportunities of AfCFTA, square-meter warehouse space in Ghana offers ongoing and emerging economic potential.
Learn more about Agility’s warehouse and industrial solutions in Ghana here.