Amanex Company Limited, a leading SME in Ghana’s manufacturing sector in household and cosmetic product, has achieved remarkable growth through resilience and innovation. Founded in 2017 by Reverend Eric Amanquanor, the company has evolved from humble beginnings to become a force in the industry.
Initially operating as Amanex Ventures, the company started with a modest production setup and a single employee. Through persistence and strategic improvements in product packaging and marketing, Amanex has expanded exponentially, now employing over 250 staff members.
Reverend Eric Amanquanor, the Chief Executive Officer (CEO) of Amanex Company Ltd, thus highlighted the growth trajectory of the company, the SME sector and the company’s future vision in an interaction that centered on the role of SMEs in Ghana’s industrialization agenda.
Currently, Amanex exports to eight countries in West and East Africa and has received numerous awards. Reverend Amanquanor attributes this success to becoming a free zone enterprise in 2020, enabling the company to tap into international markets. The company’s export base now extends beyond Africa to the Western market, with orders from Turkey.
“… In 2017, we incorporated as Amanex Company limited as a limited liability company. Based on that, we worked so hard and were able to employ staff… We also applied for Ghana free zone to be accredited as one of the free zone enterprises. So, in 2020, they gave us the license to operate as a free zone enterprise, and as free zone enterprise, it has benefitted us so much because we have the opportunity to export the products. And that also came as a catalyst to speed our marketing strategies, to find more customers out there, and it has really helped us.”
By 2030, Amanex aims to increase employment to over 1,000 driven by strategic growth and innovation.
Overview of Amanex’s Diverse Product Lines
Starting with air fresheners, Amanex has introduced 15 diverse products, with plans for further expansion. Highlighting the wide range of products manufactured at Amanex Company Ltd., the CEO started with Breeze Air Freshener, which comprises the liquid and the spray type. He disclosed that the company also produces the gel air freshener. “In fact, the air freshener, we have about five different types.”
Amanex Company Ltd. also produces hand sanitizers, shower gel, insecticides, glass cleaners, body splash, fabric softeners, body perfume, tooth pick, ear bud and liquid soap. “We are now coming to produce brooms using bamboos.”
Milestones Chalked by Amanex Company Ltd in its Seven Years of Operation
Rev Amanquanor reflected on the significant journey of Amanex Company Ltd. over the past seven years, marking numerous milestones that highlight the company’s growth and transformation. Starting from humble beginnings, Amanex began its operations in a single room as a cottage industry, where the foundation for future success was laid.
As the business gained traction and demand for its products increased, Amanex steadily progressed to a larger space, moving into a whole flat. The shift to a dedicated facility allowed Amanex to streamline its processes, meet growing customer needs, and increase output.
The CEO noted that today, Amanex has proudly transitioned to a full-fledged factory, a testament to its commitment to growth and development.
“So, we started with one personnel then. Now, we have about 250 personnel. We’ve also won many awards …from free zones authority, and this year, we have [been nominated] in the gold awards. Also, with GIPC, [we’ve won] the awards twice: in 2022 as number 7 position and 2023 as number 3. Talking about AGI, we’ve also won many awards and this year too, they have forwarded to us the nominations and all that.”
Amanex Company Ltd. Outstanding Competitive Strategies
The CEO of Amanex Company Limited highlighted how the company handles competition, particularly in the cosmetic industry, despite the influx of foreign products. According to him, the company conducts extensive market research before it launches a new product. This research involves studying competitors’ products, not only in Ghana but also in markets where the company trades.
He noted that the company carefully evaluates factors such as packaging, pricing strategies, and consumer preferences to ensure its products meet market demands. By taking these considerations into account, the company positions itself to effectively compete with existing products on the market.
Rev. Amanquanor emphasized that once the company launches a product, it performs well due to the thorough preparation and understanding of market trends.
However, he acknowledged external challenges, such as exchange rate fluctuations and the economic imbalances affect the balance of trade and payments. He suggested that if products like air fresheners, for example, could be produced locally in larger quantities, it would reduce importation.
He further emphasized the importance of stakeholder engagement, urging the government to collaborate with industry players to understand their concerns and capacities. This cooperation, according to him, would enable local companies like Amanex to expand production and compete more effectively in both local and international markets.
“So things that we produce in Ghana, there should be a quota, where the import duties and other things must be high [on imported goods produced locally], so that we can protect the market. Not only protecting the market, we are protecting also our foreign exchange that is going out. It’s very important, because if everybody is buying [locally made] air fresheners, then it means that we are not importing air fresheners, and so the dollar that has to go [into imports will] still remain here. It means that only raw materials [that] we bring (import) and add value, [this] adds more strength to the local currency. So, there must be a quota [on imported goods]; there must be some limit; there must be some import restrictions that will protect our products.”
Challenges Confronting the SME Manufacturing Sector
The CEO of Amanex Company Ltd. highlighted various challenges facing the SME Manufacturing sector. First, he disclosed that frequent electricity fluctuations cause significant damages to companies’ equipment, leading to high maintenance costs and, in some cases, the need to purchase new equipment due to irreparable damages.
Second is the instability of the exchange rate that affects companies’ profitability. With constant fluctuations in the cedi-dollar exchange rate, production costs’ increases, leading to losses. This situation wipes out companies’ profits, making it difficult to sustain growth.
“Moreover, sometimes, if you are a manufacturer, there are other things like documentations that you have to obtain from some of these government agencies… In fact, there are some agencies, that don’t make things easier– the frustrations over there is too much. Whether you lose or not, that is not their business; the employment that you want to create, that is not their business; the economy that you want to boost, that is not their business. Sometimes, some of them [think about only] their interests, how you will satisfy their interests… So, things like this makes doing business very difficult.”
As such, to support SME growth, Reverend Amanquanor urged government agencies to streamline processes, reduce frustrations and prioritize economic development.
Hurdles Confronting the SME Sector in General
The CEO of Amanex Company Ltd. pointed out several challenges SMEs in general are confronted with, starting with land acquisition. He disclosed that securing land for operations is a complex task, as frequent disputes arise, even after purchasing the land, often leading to legal battles and potential loss of the property and investment. This instability, coupled with the high cost of land, makes it difficult for SMEs to establish stable premises for production.
Another significant challenge he reckoned with is access to finance for SMEs. He revealed that high interest rates and inflexible repayment terms hinder the growth of the sector. Rev. Amanquanor, furthermore, mentioned poor road network as a challenge confronting the growth of the sector. According to him, poor road networks increase transportation costs and affect profitability, as vehicles face constant damage due to bad roads.
Finally, the issue of workforce performance resulting in low productivity, absenteeism, and theft have forced some companies to rely on expatriates, as local employees often lack commitment and reliability, further complicating the smooth running of operations. “All these things don’t encourage SMEs to grow very well. So, if there will be a way to sustain our SMEs, it’s very important because in Ghana, SME is almost 70-80% of the companies within. Hence, if the SME can be strengthened, then they can perform very well, and SME can unlock most of the employment.”
Government’s Interventions To Addressing Hurdles
Rev. Amanquanor acknowledged government’s efforts in supporting SMEs, particularly through initiatives like the Ghana Enterprises Agency and the Development Bank of Ghana. However, he emphasized that while these interventions are helpful, there is room for improvement.
He emphasized the need for more of government’s interventions and advocacies from bodies like the Association of Ghana Industries (AGI) to address these issues, ensuring that SMEs can thrive without the constant risk of losing their investments.
With high interest rates and inflexible repayment terms making it difficult for SMEs to grow their businesses, Rev. Amanquanor suggested that more flexible loan conditions, including longer grace periods, could help businesses grow.
As a result of the high interest rates bedeviling the cost of credit to SMEs, he beckoned the government to intervene and provide flexible credit facilities to SMEs, in other to boost operations of SMEs to expand.
The CEO also suggested that the government should identify and support SMEs that are performing well, enabling them to move from micro to small, to medium and finally to large enterprises. He further noted that businesses often hire more staff due to the lack of machinery, and as such, government’s support in acquiring these machines could enhance their productivities.
Furthermore, he highlighted the importance of capacity-building initiatives, such as training programs and international business excursions for SMEs. These initiatives, according to him, help businesses learn from best practices across the globe. However, he pointed out that the selection process for these opportunities should be carefully reviewed to ensure fairness. As such, he called for a more thoughtful approach in the disbursement of financial facilities and grants, emphasizing that critical evaluation is needed to ensure that the right businesses receive the necessary support to grow and succeed.
“I know they [the government] are doing very well, but I think this ‘family and friends’ business is also trying to [destroy] their efforts… There are areas some [SME Players] need to go, but it seems like those who are not even doing business, are going there; they are benefiting. [Also, SMEs] which have not reached any level, are benefiting at the end of the day. They attend [government sponsored exhibitions and excursions abroad] and come back [without any positive impact]”.
He lamented how these exhibitions and business excursions do not yield any tangible returns to the country as those who represent have no capacity to utilize the knowledge acquired from such platforms. He revealed that the selection process, which is based on ‘family and friends’ breeds biasness and results in SMEs making no headways or making no impact in the country. He noted that those who make impact, however, pay for all their expenses and every other thing involved.
As a result, “growth becomes very difficult [to attain]. And if the SMEs also… are not doing very well, it affects the economy”.
Government’s Required Support To Transition SMEs to Large Industries
Rev. Amanquanor highlighted an essential aspect of SME growth: transitioning from small to medium and from medium to becoming larger industries. He, therefore, acknowledged the presence of various government bodies, such as the Ministry of Trade and Industry and newer agencies like the Business Development Ministry, as responsible for supporting businesses.
However, he raised a critical question about the effectiveness of these agencies in fulfilling their roles. According to him, while the government has implemented several interventions, many of these efforts do not reach their intended targets.
One significant suggestion Rev Amanquanor raised is the need for Targeted support for SMEs on the edge of expanding into larger enterprises. He stressed that the government should actively assess SMEs that have shown potential in their financial and operational performance and develop targeted strategies to aid their growth. For instance, the CEO noted that interventions such as credit facility from the Development Bank Ghana, should come with lower interest rates, ideally around 5%, to ease the burden on SMEs seeking to expand.
“But, if we are not supported and we have to strive to get a facility at 36% or 42% …in fact, it does not make business conducive.”
However, he acknowledged that “all those interventions are already there, but those interventions are not getting to the right players. So if these interventions can get to the right players, then I believe that those SMEs doing very well, it becomes easy for the government to push them to become large scale industries.”
Rev. Amanquanor also recommended a Stakeholder engagement is very critical. This, he suggested will create a collaboration between government and industry players to address concerns and expand production. By addressing these challenges, according to him, SMEs like Amanex can thrive, driving economic growth and employment opportunities.
To effectively support SMEs in Ghana, the government should focus on targeted interventions that address the specific needs of businesses on the cusp of expansion. As such, Reverend Amanquanor, CEO of Amanex Company Ltd., suggested that government agencies like the Ministry of Trade and Industry and the Business Development Ministry should actively assess SMEs financial and operational performances to identify those with growth potential and support them.
Rev. Amanquanor further advocated for partnerships, whereby government promotes collaborations between successful businesses, particularly foreign companies with local ones. He also called on the government to offer subsidized training for employees to increase productivity and ease the investment required by SMEs after hiring new personnel.
By implementing these measures, the government can effectively support SMEs, leading to job creation, increased exports and long term growth. It is crucial to shift the focus from just profit to reinvesting in the business for sustainable development, he emphasized.
Reverend Amanquanor, CEO of Amanex Company Ltd., highlighted the importance of government support for Small and Medium-sized Enterprises (SMEs) in Ghana. To effectively promote growth and development, he suggested that the government should establish a specialized agency that focuses on SMEs, strengthening existing institutions like the Ghana Enterprises Agency.
Amanex Company Limited’s Visionary Plans
Rev. Eric Amanquanor, CEO of Amanex, outlined the company’s ambitious goals aimed at establishing it as a leading force in the household and cosmetic industry. In the short term, Amanex seeks to become Africa’s top household products manufacturer, with a commitment to creating job opportunities for at least 5,000 people over the company’s 25-year journey. By reinvesting its profits into local operations, the company aims to foster job creation and contribute to the growth of Ghana’s economy.
To achieve these objectives, Amanex strategic focus centres on local production, leveraging Ghanaian resources like bamboo and cotton to reduce the reliance on imports. This approach not only enhances the company’s cost efficiency but also strengthens the local supply chain, benefiting both suppliers and manufacturers. Furthermore, by prioritizing locally sourced materials, Amanex aims to reduce its environmental footprint and promote sustainable practices within the manufacturing sector.
Amanex is also integrating cutting-edge technologies, such as artificial intelligence (AI), to optimize its manufacturing processes. This technological adoption, alongside continuous workforce development, ensures that technical personnel receive the necessary training to operate advanced equipment. Through these efforts, Amanex is positioning itself for long-term success, while building a skilled workforce and laying the foundation for future innovation in Ghana’s manufacturing industry.
Amanex’s commitment to innovation, local empowerment, and job creation position the company for long-term success, contributing to Ghana’s economic growth and development.
Amanex Embracing Technology for Enhanced Manufacturing Operations
Amanex Company Ltd. recognizes the pivotal role technology plays in modern manufacturing. Initially, the company relied on manual processes, but has since transitioned to more advanced methods by acquiring equipment that significantly enhances production efficiency.
To ensure that the workforce is equipped to handle new technologies, Amanex places a strong emphasis on training. The company invests in ongoing development for its technical personnel, exposing them to various aspects of machine operations and maintenance.
In recent years, Amanex has implemented new technologies to streamline its manufacturing processes. Among these advancements is the exploration of artificial intelligence (AI). The company is actively learning about AI applications that could revolutionize its operations, aiming for a future where operators can control manufacturing processes from a computer room.
Advice To The Government
Rev. Amanquanor, CEO of Amanex Company Ltd. in his concluding remarks charged the government to concentrate more on the SMEs and have a special agency that will be responsible for the sector.
“I know Ghana Enterprises Agency… is there but the government also should strengthen them. I know they need a lot of ‘mobilities’ to equip the SMEs, but if it’s not there, they’ll find it very difficult. Also, those that have been put in charge to take care of the SMEs, they should work with a sincere heart… Yes, government needs to empower them, and the people need to also work with a sincere heart.”
Rev Amanquanor further urged the government to streamline its procurement processes to make it easier for SMEs to participate in government contracts. He emphasized the importance of ensuring that government agencies actively engage in business with SMEs, offering them fair and manageable financial requirements. Additionally, he stressed the need for timely payments, which would alleviate cash flow challenges and enable SMEs to grow sustainably. By addressing these concerns, the government can empower SMEs to take on larger projects, contributing to economic growth.
Moreover, the CEO highlighted the need for market exposure and export support to help SMEs expand their reach. He suggested organizing and subsidizing networking events, conferences, and trade shows where SMEs can attract new customers and partners. For businesses with export potential, he recommended providing opportunities for international exposure to help them access new markets. These initiatives, if implemented, would create a more conducive environment for SMEs like Amanex to thrive, leading to job creation, increased exports, and long-term economic development.