In the face of economic challenges, Ghanaian Small and Medium-Scale Enterprises (SMEs) are leveraging digital technology to create new avenues for expansion. The current economic climate, marked by high inflation, is prompting business owners to innovate.
Mr. Rocky Berima, who owns a pharmacy in Alajo, a suburb of Accra, has been in the industry for about ten years. His primary concern is the rapid price increases of pharmaceutical products, which he describes as his biggest obstacle. “Every week prices do change ” Mr. Berima told The High Street Journal. “We do have misunderstanding with customers because we also do change our prices any time there is price change at the wholesale”.
This is understandable, given that the health sector recorded an inflation rate of 22.6% in June, ranking as the fifth highest division. While Mr. Berima has little control over the high rate of price increases, he has found an innovative way to cut costs.
He opted to buy his supplies online, which has helped him save on transportation costs and avoid frequent trips to the city centre. “Digital transformation has helped in many ways,” he said. “I no longer need to leave my pharmacy. When I place orders, the items are delivered right to my door.”
Mr. Berima is also leveraging technology to reach more customers by selling online, in addition to serving those who visit his pharmacy in person. He uses WhatsApp to receive prescriptions and dispatches the medications through delivery services, making the process simpler and quicker for his customers. He is also on e-Pharmacy, a national electronic pharmacy platform used for managing purchase requests and delivering pharmaceutical products. Potential customers can upload their prescriptions, allowing any pharmacy in the area to check and fulfill them. Additionally, he uses delivery services such as Bolt or Yango to deliver medicines to his clients, ensuring convenience and security.
Mr. Berima’s adoption of digital tools has not only streamlined his operations but also boosted his sales revenue. “Sales are aided by these platforms. Even if a caller is not your client, your contact information is there on the platform. When a client calls you out of the blue, you need to respond to him, which boosts sales revenue,” he explained.
Leveraging technology to cut costs provides great relief, especially in the face of rising fuel and transportation costs. However, the relatively high cost of data and network reliability remain challenges that Mr. Berima and other SMEs must contend with. As online services gain traction, regulatory attention to the quality and cost of data becomes crucial, as these smaller businesses find ways to navigate economic uncertainties, improve customer service, and enhance business growth.
