Forewin Group: One of Ghana’s Biggest Conglomerates by Ghassan Antoine Yared

Interview with Ghassan Antoine Yared, Founder and CEO of Forewin Group and Honorary Consul of Peru to Ghana

Give us an overview of your company.

It all started in 1993. We already had some years of experience in West Africa. Then, we decided to come to Ghana because we heard that Ghana was opening up to investors in the market and was really going to start showing some changes. We started with creating a distribution and marketing company because that was our main experience and business before we came here. We succeeded in a short period of time in creating an infrastructure that covers the entire nation and then grew a portfolio that gave us economy of scale and helped us to expand our business beyond distribution. We also realized that it is very easy to establish a business here but it is very difficult and challenging to grow a business and maintain a momentum. Especially when we reach a certain level of weight on the market, it is difficult to maintain that position. So, we realized that we needed to diversify our business. We were among the first companies to establish a free zone operation and invested in the free zone enclave in Tema. Knowing that industry is the future, we decided to invest in building an industrial complex in Tema where we currently are operating a very successful operation. We have five lines of biscuits and we are growing into other product portfolios to service not only the local market but also beyond the borders of Ghana. Currently, over 70% of our production is exported into the ECOWAS (Economic Community of West African States). From there, we also continued diversification and we were able to sign a partnership with a company that has been dealing in heavy machinery for over forty years. We successfully created a partnership starting in Ghana and then we partnered globally with them. It is a unique model, a portfolio of premium brands servicing different areas of the industry. We have “BOMAG” for road construction, “DOOSAN” for medium and small-scale mining, Bobcat, Carmix, Jag, Putsmeister, Polaris, and others. The uniqueness of this offering is that we service different industries. We always have stocks on hand and we have built a state of the art after sales service providing support, and availability of spare parts. This makes us successful despite all the challenges that we face in this environment. For example, there is continuous devaluation of the local currency. There are frequent changes in government and policies. Access to cash is an issue and the banking sector charges extremely high interest rates. Access to external funds is very limited to only those who can satisfy the external conditions. So, we really needed to rely on our growth, our internal cash flow, and the trust we have built with suppliers and shareholders. Along with that, we have invested in real estate. Real estate is a long term winner. It is a question of time and readability; wait for the right time to enter and to exit. We initiated a big project that became a reality called “The Exchange”. It is the biggest multipurpose project in Ghana. We started the project in 2011 through a partnership with Actis, the British real estate fund. “The Exchange” is a multi-purpose unique project. A hotel, shopping mall, residential and office space built at the airport prime area. This is what we have achieved so far and we continuously are looking for new opportunities. We believe the future of Ghana is bright despite all the challenges and changes in government policies. When you want to clean your house you need to start from the basement. That is exactly what our current government is doing. It will take some time. We have to bet, we have to believe, and we have to stick to the long-term vision and we are here to stay. Ghana was born in us and we are not going anywhere.

Your company is quite multifaceted. Which of your projects matter the most for you now? Which do you want to really push strongly?

Our group has a long-term vision, in every industry we want to be number one or a strong number two. We are open to partners that can add value to our existing businesses, and are open for mergers and acquisitions.

We have a diversified business which means that we have a lot capabilities. If you put capabilities together, you have a better chance to succeed. Currently, we are enlarging our industrial complex. We are looking at new potential partnerships; and are open to discuss partnership possibilities with local or foreigner investors. The government is creating a lot of attractive incentives through “One District, One Factory.” Everybody should take advantage of this now, but they need to be ready to be here for the long term. The ones that stick around are the big ones that have invested heavily and are here for the long-term. So, what I recommend to whoever wants to come to this country is to believe in the future of this country and be here for the long run.

What are the main challenges that the businessman faces here? What does he have to be careful of?

You need to deal with some very important challenges like the continuous devaluation of the local currency, the Ghana cedi. Businesses cannot grow without giving credit facilities. Access to funds is difficult and extremely expensive. If you are able to maneuver through these conditions, you have a better chance to succeed. Be ready to adjust to new government policies. The cost of doing business is high, you need to create an economy of scale to cover your cost. You need to have lots of flexibility, adjust your infrastructure and capabilities very quickly. You need to be present, aware, and take swift decisions to survive. A continuous balance review between fix and variable cost is key.

Do you consider yourself a family business?

Not really. I landed in Ghana back in 1993 and founded the Forewin group of companies. I am a first-generation Lebanese family here but I am sure that my children will be here for a long time. I always say that Lebanon is the place where I was born and where I have memories. Ghana is where I built my life and my kid’s future. My kids have grown in Ghana and call Ghana home.

On the business side, are you looking for some technological improvements, R&D, or development? Is this something that you are eager to go after?

Agriculture and industry are going to contribute a lot to the growth of this economy. The government started an initiative of “One District, One Factory.” But, to enable you to succeed in an industry you need raw material. To have raw material you need to support farmers to develop their farms and then create the product. Then, you need transport to distribution centers keeping them fresh to enable the industry have regular access to raw materials year round. The government did not stop at creating “One District, One Factory.” Beyond that, the government recently started an initiative where all farmers can start delivering their raw material into specific stock warehouses. So, things are changing and with what the government is doing now, it is going to support and create this chain of capabilities that will deliver at the end growth to the economy. Agriculture and industry definitely are areas that I would be happy to look at for new opportunities.

Looking at the medium term, two to three years’ time, what will your company be, or even further, in five years’ time? What is your vision for the company?

Our group has a long-term vision, in every industry we want to be number one or a strong number two. We are open to partners that can add value to our existing businesses, and are open for mergers and acquisitions. Industry is another area that we want to grow, the objective is to develop into an industrial complex to service over 300 million in population. If need be, we will happily invest in agriculture to insure a complete supply chain and a cost effective operation. We are financially capable and we have the knowledge on the ground. We are very optimistic and we believe in the future of this region and the strategical location of our dear country Ghana.

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