Showbiz in Ghana: The Investment Opportunities

Showbiz in Ghana has developed from just providing entertainment into a multi billion industry. The sudden growth in the showbiz industry could be attributed to many factors but one most important factor is the government’s liberation policy. This resulted in the state divesting its holdings in some major state institutions and thus paving the way for more private participation.

The private companies brought in more innovation and are more profit oriented. Some of the areas of the showbiz industry which have seen tremendous growth are the music and film industry. Talking about the showbiz industry in Ghana apart from the music and film industry, there are the reality shows, dance ensembles etc. The music industry for instance has churned out some talented artistes like Kodjo Antwi, Daddy Lumba, Mizbel etc who have gained so much international recognition. The same could be said of the film industry as well as the production companies and record label owners.

Investment in the industry

It has been argued that unlike small and medium scale businesses, most banks in Ghana are often reluctant to provide credit facilities to entrepreneurs in showbiz. This situation makes it very difficult for these entrepreneurs to obtain long term finance for their expansion drives. The truth is the music industry in particular has very good potential for growth and has all it takes to become a viable industry. For instance, the industry has produced some very talented musicians over the years. These musicians have all it takes to become world stars like the Beyonces, the Michael Jacksons, the R Kellys etc. In fact, music could be considered as one of the biggest businesses in Ghana at present.

The interesting thing is that the market for the music industry transcends beyond the boundaries of Ghana to other countries in the West African sub region. This could therefore make the industry a lucrative and profitable one. The market even extends to Europe as well as the USA. The question is: why is the industry not flourishing as expected? Stake holders in the industry are of the view that the industry is not receiving the necessary support from the government though it contributes immensely to Gross Domestic Product (GDP). The support they are asking for is the government making it possible for them to obtain long-term financing just like any other small or medium scale businesses.

The market for the film industry is no different. The market has expanded within a short time after its introduction. In fact the clamour for Ghanaian films has become so strong thus boosting the prospects of the film industry. In the past most viewers would have preferred to watch Western and Hindi movies but this trend has changed with the passage of time. Viewers have started patronising local films at the expense of foreign films. Through the ingenuity of our artistes and producers, Ghanaian actors and actresses have joined their counterparts in Nigeria to come out with some wonderful films. This has really expand the market share of the industry.

Growth in Radio & TV programmes

Radio and Television stations serve as engines of growth for showbiz in most countries. They really play a very important role in the success of any booming showbiz industry. Radio and TV stations in Ghana have contributed tremendously to the development of the industry. This sector of the industry was once monopolised by Ghana Broadcasting Corporation (GBC). The liberalisation of the airwaves saw the springing up of numerous FM and a couple of TV stations. GBC now faces stiff competition from private TV stations like TV3, Metro and some other TV stations in the regions.

In a bid a to keep abreast with current innovations, GBC recently joined the list of more than 60 channels on Dstv to give Ghanaian subscribers access to Ghana Television (GTV) with Dstv's digital quality pictures. According to GBC, the listings on Dstv will not only offer viewers a range of options but viewers will also access the channel with a digital quality signal resulting in a much clearer picture,(gna).

TV3 which is a competitor to GBC has also contributed enormously to the development of the showbiz industry. The station has been at the forefront of bringing captivating entertainment programmes to the public. The station produces very good local programmes for instance talk shows, drama and films. TV3 has revolutionized local content production to a very high level in the broadcasting industry. The station’s quality local production has caught the attention and loyalty of Ghanaians. The station has a strong market position and reinforces its brand awareness amongst its viewers through various on air and ground events, (TV3 website).

Reality shows and Children’s TV programmes

Reality TV has been described by experts as a genre of television programmers which presents unscripted dramatic, humorous situations, actual events and features ordinary people instead of professional actors. It covers a wide range of formats from quiz shows, elimination shows and dating competitions.

This genre of TV programme is picking up fast in the showbiz industry in Ghana. One such successful reality programme is the Mentor series of TV3. This is a music reality show competition that has produced music stars some of whom have even become household names. Winners of the show are given cash prices as well as recording deals. A talented winner of the Mentor show is reported to have eight nominations with her debut album, Osabarima, in the MTN-Ghana Music Awards 2008.

One other area which has a very good potential for growth is children’s programmes that has Ghanaian or African touch. Children’s TV programmes are gold mines across the globe and producers of children programmes like Bratz, Barbie Girl, Tom and Jerry etc can attest to this fact. Children constitute 40% of the country’s population and with the emergence of a class of parents, who are so much concerned about their children’s welfare, such children programmes will sell so well. Such a group of young families who are ready to invest in the future of their children will thus patronise very educative and soul searching children’s programmes.

In the past, a few children’s TV programmes which centred on the legendary Kwaku Ananse (folk tale hero) were popular among children. One such programme was ‘By the fire side’ series on GTV. The popular cartoonist Zingaro also came out with very creative children’s cartoons.

Phone – in Services

Any investor considering investing in showbiz in Ghana should consider setting up a firm that will run phone in programmes for reality shows as well as other TV shows. This is because the country has quite a sizeable number of phone users particularly mobiles and thus provide a ready market for such business. For instance, Scancom Ghana Ltd, a leading Ghanaian mobile telecommunication services provider is estimated to have about 2,300,000 subscribers on their MTN network. This figure will definitely increase when one add mobile users on other service providers like One Touch, Kasapa etc.

Apart from the mobile phones users, there are also the landline users. The problem with this is that Ghana Telecom which in the past had monopoly in providing landline could not live up to expectation. Though the demand for landline was high the company could not meet this demand. This resulted in a lot of customers being denied access to this service. The acquisition of Ghana Telecom by Vodafone will likely change this situation. Vodafone would like to increase its market share in this area and also provide a better and a quality services.

Phone-ins have become a big business in all reality shows across the globe. In the UK for instance realty shows like X-factor, Strictly Come Dancing, Am a Celebrity Get Me out of Here, Big Brother etc raise millions of pounds for TV stations as well as telecom companies. A typical example of a successful reality programme in Ghana which attracted a lot of callers as well as SMS text votes is the TV3 Mentor series, the Apietus Idolz just to mention a few.

Record labels

The music industry in Ghana has produced some wonderful record labels in the past and in the present. The industry once saw talented label holders like Zapp Mallet, Jay Q, Apietus etc, which were household names in the country. These producers came out with wonderful music and have kept the industry alive till this day with their limited resources. The sad thing is these labels do not stay on the music scene for long. What the industry requires is a permanent record label that will stay on the music scene over a long period of time and create a mark on the international arena like Sony BMG, Universal or EMI. Currently, what is happening is a label comes on the scene for a while and then vanishes into oblivion. This situation does not auger well for the industry.

The way forward is for the musicians to take a cue from our Kuapa Kokoo farmers and form a cooperative. This will help them to pool their resources together to form a single music producing company. This will be easier for them to obtain a long term credit facility from the banks as a group than as individuals. They could also get other groups of investors investing in the industry depending on the success of the cooperative. Currently, the music industry is too fragmented with most of the musicians trying to create their own labels. This is quite encouraging, but considering the fact that it takes an average cost of about 30,000 Ghana cedis to produce and promote an album, this can be daunting for the musicians. The industry is capital intensive and therefore requires massive capital injection. Fragmentation of the industry will not help the course of the musicians. It is also a disincentive to would be investors.

Comedians, Dance and Musical Ensembles

Comedians have provided entertainment to Ghanaians since time immemorial. They started as a small group who acted as curtain raisers during band performances in the villages and urban centres and then became the concert party concept. Concert party became big phenomena and a big business in showbiz. It has created some wonderful and talented comedians who were delightful to watch. These comedians who featured on several TV programmes and competitions became household names. The concert parties produced fine comedians like Bob Okalla, Agya Koo, etc.

Considering the popularity of the concert party concept, it is imperative this form of entertainment could become a market hitter in the showbiz industry in Ghana. What it requires is the support and some injection of capital to create the necessary structures that will accelerate its take off. Dancers and dancing groups have also played significant roles when it comes to showbiz development in Ghana. Dancing forms an integral part of our culture and is usually performed at festivals and other social occasions. Through the ingenuity of some talented dancers and scholars our traditional dances could be choreographed into graceful dances. The choreographing adds a modern touch to these dances and makes them more appealing on the international scene. Some of the dancing groups that keep the flame of dancing burning for all to see are Kusum Gboo Dance Ensemble. This group which is based in Accra performs traditional African music and dances alongside some creative and choreographed dance pieces. There is also the Ghana Dance Ensemble based on the University of Ghana campus. This group has been at the forefront of the dance development in the country. The group in the past has performed several choreographed dance pieces that are accompanied by authentic African drum rhythms in their diverse repertoire. It is quite entertaining to see them perform dances like anlo kete, adowa, dambaya, kpanlogo etc. These dances could stand against dances like Tango, Paso doble, Jive, American Smooth and other ballroom dances performed on the Strictly Come Dancing series on BBC, UK. If the BBC dancing series could rake millions of pounds then there is the possibility that our dances could do like wise.

Problems of the industry

One of the problems facing the showbiz industry is piracy. It is estimated that piracy of musical works of Ghanaian s cost the industry over ¢20 billion GH¢2million) between 2000 and 2006. According to Beatwaves’ investigations most of the pirated musical works were allegedly manufactured in China and Hong Kong and smuggled into the country. The musicians and other s are also not paid royalties due them. It is believe the enforcement of the new Copyright Act 690 will likely help curb this situation.

Lack of experts in the industry

Arguments put forward by some of the artistes are that the industry lacks professionals and the people with the technical know how that can keep the wheels of the showbiz industry running. They argue that the industry needs businessmen, talent managers, journalists (publicists), entertainment lawyers, promoters and music publishers and other relevant professionals who will manage musicians, actors and other players in the arts on strict business lines. The claim is that currently managers, promoters, publicists etc who ran the industry know practically nothing about how to create and run businesses in the arts.

Apart from the above it has also been argued that many promising musicians and actors in the country who had a good start in their career could not make a break through because they were not surrounded by the likes of Max Clifford, a renowned publicist in the UK who handled Jade Goody’s affairs in the final days of her life (may her soul rest in perfect peace). This argument could be said to be true to some extent but on the other hand it is an open truth that these experts are abundant in Ghana. It is up to the artistes to identify these experts and tap into their expertise. There are a lot of businesses and individuals who will like to invest in the showbiz industry provided they will earn some returns on their investment. This could be possible only if the stakeholders come together as one unit.

Long term finance

This is very necessary for businesses because it gives them long time servicing period. Since this difficult to come by what the showbiz industry needs is business angels i.e. financiers who are willing to invest in the industry. The truth is business angels are also very difficult to come by these days. However, considering the fact that the industry is a very lucrative area, it could be very attractive to foreign investors or countries, perhaps China.

More Chinese enterprises are investing in Africa and in recent times, Chinese enterprises’ direct investment in Africa alone was 305 million dollars from January to June in 2008. The annual growth rate of China-Africa bilateral trade volume is reported to be over 30 percent since 2000. Mutual trade volume was 73.3 billion dollars in 2007 and 53.1 billion dollars in the first half of this year. The total trade volume between Ghana and China was 542.8 million U.S. dollars in 2006, representing an increase of almost 40 percent. According to Ghana Investment Promotion Centre reports, China, for a period 13 years has undertaken 336 projects in Ghana. Some of these projects are either wholly Chinese-owned or are in joint venture collaboration with Ghanaian or other nationals in all sectors of the economy. (http://english.cri.cn)

Conclusion

Showbiz is a lucrative business in most parts of the world and it could be so in Ghana too. The most important thing is that it has gained international recognition to a level that sees world acclaimed stars and performers like Akon and others visiting Ghana. The showbiz industry in the country is very attractive to film and music producers within Africa itself. This has resulted in Ghanaian producers and artistes working in collaboration with others from within Africa to produce films as well as music. What is required is for stakeholders of the industry to put the necessary structures in place to make the sector very attractive to both local and foreign investors. The industry is too fragmented, all the stake holders need to come together to work out a strategy that will make the sector attractive to experts in the field.

Francis Kwaku Egu (Finance & Investment Analyst), UK

Research Associate- Licensed International Financial Analyst (LIFA) –USA

[email protected]