Guide to Starting a Pure Water Business in Ghana

If you’re ready to start a sachet water production business in Ghana, this comprehensive guide will walk you through the essentials, from setup costs to operational strategies. This information is tailored for those who’ve decided to dive in, with a focus on the practical aspects of sourcing water, treatment, packaging, and marketing.

1. Source of Water

Your water source is the cornerstone of your business. Common options include boreholes, municipal water, and water supply from tankers. Each comes with its advantages and challenges:

Borehole

• Cost: ₵9,000–₵15,000 (in Greater Accra)
• Pros:
  • Low operating cost
  • Reliable and unlimited supply
• Cons:
  • High initial cost
  • Possible water quality challenges (e.g., high mineral content increases treatment costs)
  • Risk of pump damage without proper dry-run protection

Municipal Water (Ghana Water Company)

• Cost: ₵20 for the form; ₵900–₵2,000 for installation (depending on distance and pipe size)
• Pros:
  • Pretreated, reducing treatment system costs
  • Lower initial investment
• Cons:
  • Unreliable supply schedules
  • Higher long-term costs (service fees and rates for commercial consumers)

Water Supply from Tankers

• Cost: ₵80–₵250 per 10,000 liters (varies by location)
• Pros:
  • No setup or maintenance costs
  • Flexibility in suppliers
• Cons:
  • Dependent on supplier timing and availability
  • Inconsistent quality from certain suppliers

2. Water Treatment

Meeting FDA standards is non-negotiable. The gold standard for water treatment in Ghana is a Reverse Osmosis (RO) system, capable of removing impurities and ensuring potability.

• Recommended System: 1,000 liters/hour (1-ton) reverse osmosis system
• Cost: ₵16,000–₵27,500
• Considerations:
  • The quality of your source water affects system efficiency and maintenance costs.
  • Poor-quality water increases treatment costs and reduces the amount of usable water.

3. Sachet Filling and Cutting Machine

The sachet packing machine automates filling and sealing, ensuring compliance with FDA standards.

• Common Brand: KOYO (generic name for sachet machines)
• Production Capacity: 1,200–2,800 sachets/hour (most popular: 2,000 sachets/hour)
• Cost: ₵20,000 to 30,000

4. Estimated Setup Costs

Note: Costs may vary based on location, scale, and supplier pricing. This is based on pricings on the 21st of November 2024

5. Business Models

You can choose between two main models: Entity or Franchise.

Entity Model

You create and market your brand independently.

• Pros: Full creative and operational control
• Cons: High marketing costs to compete with established brands

Franchise Model

You produce under an established brand like Voltic, gaining instant market trust.

• Pros: Low marketing costs and assured customer base
• Cons: Limited branding opportunities

6. Operational Success Tips

To thrive in the pure water industry:

• Know Your Market: Identify customer preferences and provide incentives for resellers.
• Stay Visible: Always have products in stock, especially during competitor shortages.
• Diversify Offerings: Offer various sizes and pricing options to attract all customer segments.
• Reward Distributors: Build loyalty by recognizing high-performing distributors.
• Create a Family Culture: Treat employees like family to build trust and loyalty.

Starting a sachet water business in Ghana is a significant investment, but with the right planning and execution, it can be highly rewarding. Always prioritize quality, compliance, and strong customer relationships to succeed in this competitive industry.