Converter benefits from growth in tissue consumption in Ghana

In 1982, Marc Skaf founded the Delta Paper Mill company in Ivory Coast. At the time, he had been a businessman with an interest in the consumer goods sector for a few years, and the opportunity was obvious to him. “We realized the availability of the product was inadequate. Most tissue paper was imported at a very high cost”, explains the executive.

However, due to political conditions and expansion strategy, the company was relocated to Ghana and continued to invest in the growth of tissue paper production. “In Ghana, the consumption of tissue paper is only 700g per year per citizen. If you compare this to Europe, where it is about 14kg per year, or the US at around 20kg, the potential is there,” says Skaf.

He reveals that Delta Paper Mill works hard to raise consumer awareness of the hygiene benefits of its products. “We have to educate people and would visit schools and show them the product and how to use it,” says Marc.

Gradually, the company saw consumption increase, with a definite boost during the Covid-19 pandemic. Ghanaians began to prefer the disposable tissues, which is more hygienic than the traditional cloth handkerchief. “People realized the cost of using a tissue paper hand towel is not necessarily more expensive than using a cloth, because with the latter, you have to wash it regularly,” he reports. Added to the convenience, this increased hygiene awareness has helped to increase consumption.

Naturally, this growth was accompanied by extra competition. “When we started, there were only two producers in the area; now there are more than 15”, reveals Skaf.

The company imports jumbo rolls of paper and coverts them, however, there are plans to produce this raw material locally. This means that Delta Paper Mill intends to source the pulp from international suppliers and, with the help of additional equipment, will process the pulp on jumbo rolls. “Our capacity will be substantial once we commission production. We will only use half, but companies in both Ivory Coast and Ghana are ready to buy the excess”, highlights the businessman.

“The needs of consumers can change quickly. We must have all the raw materials on hand to adapt production quickly along with fluctuating demand. When it comes to FMCG, you need a lot of stock, a big storage space and significant cash flow,” he adds.

Skaf believes that the company can start the project of local production of jumbo rolls in the next two months. “We would still need about two years before we can commission production, though,” says the executive, adding that he is optimistic about the sharp increase in tissue consumption in the country and in other markets. “Most of our tissue paper products are showing continuous growth, and we will persist with our awareness drives, specifically around the use of hand towels.”