promotion of economic growth and youth...
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PROMOTION OF ECONOMIC GROWTH AND YOUTH EMPLOYMENT
IN THE ASOKORE MAMPONG MUNICIPAL ASSEMBLY
By: Prince Aboagye Anokye and Korsi Ashong
Kumasi, January 2018
SOS Children’s Villages,
Kumasi location Asokore Mampong
Ghana
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Report for SOS Village Ghana
#C522/3 Mango Avenue, Asylum Down
P.O. Box 16557
Accra-Ghana
Authors:
Prince Aboagye Anokye
Senior Lecturer in Planning and Planning and Development Consultant at KNUST
PG Dip. LMISR (Land Management and Informal Settlement Regularization)
MPhil. in Planning, Growth and Regeneration
BSc. Planning
and
Korsi Ashong
Independent Development / Management Consultant
MSc. Development Policy and Planning
PG/Dip Industrial Management
Bsc. Agric Engineering;
2018
All rights reserved by SOS Children’s Villages Ghana in Accra
This report was made possible through funding by the Delegation of the European Union to Ghana
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I. DISCLAIMER
The content of this report does not reflect the official opinion of the European Union. Responsibility for the
information and views expressed in the report lies entirely with the authors and not SOS Children’s Villages
Ghana (SOS CV/Ghana), SOS Children’s Villages Netherlands (SOS CV/NL), and Asokore Mampong
Municipal Assembly (AMMA). Use of part of the report contents is authorized only with prior permission of
SOS Children’s Villages Ghana.
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II. ACKNOWLEDGEMENTS
The authors would like to acknowledge the immense contributions the following executives, project staff and
stakeholders made to the successful conduct of the field work and the subsequent compilation of the report.
Although many hands and minds supported the process, the following few have been mentioned as:
1. Alhaji Alidu Seidu, the Metropolitan Chief Executive, Asokore Mampong 2. Mrs. Stella Owusu-Aduomi, Metropolitan Coordinating Director 3. Mr. Collins Ohene Djan, Metropolitan Planning Officer 4. Mr. Charles Baayeh, Budget Analyst 5. Mr. Aikins Agyapong, Business Advisory Center 6. Nana Boakye-Ansah Debrah, Nana Asokore Mamponghene 7. Chief Nasiru Alhassan Baraw, Head of Busanga Community 8. Nana Akosua Abrafi, Queen mother of Sepe Timpon 9. Alhaji Mohammed Lawal Chirowa, Head of Baribari Community 10. Mr. Daniel Arthur, Credit Officer, Head Office 11. Mr. Mohamed Bun Bida, Muslim Family Counseling Services 12. Mr. Alexander Mar Kekula, National Director, SOS Children’s Villages, Ghana 13. Mr. Bernard Amoako, Programme Director, SOS Children’s Villages Ghana, Kumasi Location 14. Mr. Hamza Adams, Alpha Radio 15. Mr. Mamuda Osman, MOTI Regional Officer
The commitment of the entire study team and their active participation in the data collection and analysis as
well as the plan preparation process has been impressive and commendable. The Chief of Asokore Mampong,
Nana Boakye Ansah Debrah, found time to participate in the Stakeholders' Workshop as well as the group
discussions and encouraged his subjects to diligently participate in the entire process. We also acknowledge the
inputs of other officers of AMMA, who also supported in various ways in the collation, compilation and the
compilation of this report.
Finally, we also appreciate the contribution of the honorable assembly persons as well as the various groups,
including the Aboabo No.2 and Asawase Youth groups, and representatives of the Private Sector, which
contributed information – laden experiences to the report.
Finally we also thank the European Union. Without their financial support, the study would not have been
possible.
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III. TABLE OF CONTENTS
I. DISCLAIMER .......................................................................................................................................................... iii
II. ACKNOWLEDGEMENTS .................................................................................................................................. iv
III. TABLE OF CONTENTS ................................................................................................................................... v
IV. LIST OF TABLES ............................................................................................................................................ viii
V. LIST OF FIGURES ................................................................................................................................................. ix
VI. LIST OF PLATES ................................................................................................................................................ x
VII. LIST OF ACRONYMS ...................................................................................................................................... xi
VIII. EXECUTIVE SUMMARY .............................................................................................................................. xiii
a. Background ......................................................................................................................................................... xiii
b. Goal and Objectives .......................................................................................................................................... xiii
c. Methodology and Approach............................................................................................................................. xiii
d. Key Findings ....................................................................................................................................................... xiv
e. Proposed concrete and innovative projects interventions.......................................................................... xvii
f. Recommendations............................................................................................................................................ xviii
g. Conclusion ........................................................................................................................................................... xxi
h. Next steps ............................................................................................................................................................ xxi
1 GENERAL INTRODUCTION .......................................................................................................................... 23
1.1 Background ...................................................................................................................................................... 23
1.2 Goal .................................................................................................................................................................. 23
1.3 Objectives ........................................................................................................................................................ 23
1.4 Scope of the Assignment ............................................................................................................................... 24
2 APPROACH AND METHODOLOGY TO THE ASSIGNMENT ........................................................... 25
2.1 Study Approach .............................................................................................................................................. 25
2.2 Preliminary Meetings and Consultations with Gate Keepers .................................................................. 25
2.3 Desktop review/review of relevant documents ........................................................................................ 26
2.4 Design the participatory study ...................................................................................................................... 26
2.5 Collect Data ..................................................................................................................................................... 26
2.6 Organization of debriefing sessions for stakeholders ............................................................................... 28
3 THE NEXUS BETWEEN LOCAL ECONOMIC DEVELOPMENT PROMOTION AND
EMPLOYABILITY ......................................................................................................................................................... 30
3.1 Global and Historical Perspectives on LED Promotion ......................................................................... 30
3.2 LED promotion, identification of growth sectors and the financing challenge .................................. 31
3.3 Reasons for the increasing prominence of LED in the developing world ............................................ 33
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3.4 Socio-economic attributes of Asokore Mampong and Perspectives on LED a snapshot of Asokore
Mampong Municipality................................................................................................................................................ 34
4 PROMOTION OF LOCAL ECONOMIC DEVELOPMENT (LED) AND YOUTH
EMPLOYABILITY IN THE ASOKORE MAMPONG MUNICIPALITY (AMM), IN KUMASI, GHANA
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4.1 SECTION 1: Youth Employment and Economic Growth of Asokore Mampong Municipal ........ 40
4.1.1 Internal and external factors influencing the economic development of AMMA .......................... 40
4.1.2 Promoters of youth access to the labor market .................................................................................... 48
4.1.3 Employment and Income Matrix ............................................................................................................ 50
4.1.4 Accessibility to the Job Market ................................................................................................................ 52
4.1.5 Trade Certification and Employability Skills ......................................................................................... 53
4.1.6 Revenue performance of AMMA............................................................................................................ 55
4.2 SECTION 2: Growth Sectors of AMMA and the Role of Private Sector in Job Creation ............... 62
4.2.1 Job creation potential of AMMA’s public sector .................................................................................. 62
4.2.2 Attributes of the private sector in AMMA ............................................................................................ 63
4.2.3 Analysis of level of saturation from the point of view of organizational processes and production
value chain of enterprises ....................................................................................................................................... 66
4.2.4 Analysis of level of saturation based on the concentration and specialization of businesses in
AMMA....................................................................................................................................................................... 68
4.2.5 Skill requirement by businesses and the relevance of trade certification to employment .............. 71
4.2.6 Principal Growth Sectors for Absorbing Unemployed Youth ........................................................... 74
4.2.7 Ten concrete project proposals for social business promotion and PPP ......................................... 77
4.3 SECTION 3: NBU Project Baseline, Monitoring and Evaluation......................................................... 88
5 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS .................................... 91
5.1 Summary of findings ...................................................................................................................................... 91
5.2 Conclusion ....................................................................................................................................................... 97
5.3 Recommendations .......................................................................................................................................... 98
REFERENCES............................................................................................................................................................... 103
APPENDIXES ............................................................................................................................................................... 107
Appendix I: Sources of Data .................................................................................................................................... 107
Appendix II: Meetings with Stakeholders .............................................................................................................. 109
Appendix II. a: Meeting with CSOs and NGOs .............................................................................................. 109
Appendix II. b: Meeting with Honorable Assembly Persons ......................................................................... 112
Appendix II. c: Meeting with the Revenue Department ................................................................................. 114
Appendix II. d: Meeting with BAC ..................................................................................................................... 116
Appendix II. e: Meeting with Potential MSMEs and Private Sector Owners .............................................. 119
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Appendix II. f: Participation at the Stakeholders Workshop ......................................................................... 122
Appendix III: TOR for the Assignment ................................................................................................................. 125
Appendix IV: Case study with Tri-cycle Driver .................................................................................................... 129
Appendix V: Action Plan for rolling out the 10 Concrete Project Activities ................................................... 131
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IV. LIST OF TABLES
Table 1: Scope of the Assignment .................................................................................................................................. 24 Table 2: Housing Characteristics of Asokore Mampong and Neighboring Districts ............................................ 37 Table 3: Employment and livelihood activities households engage in AMMA ...................................................... 37 Table 4: Gender dimension to the various employment and livelihood activities ................................................. 38 Table 5: Cross-tabulation of gender and level of education attainment .................................................................. 49 Table 6: Cross-tabulation of gender and unemployment ........................................................................................... 50 Table 7: Type of employment and Income share ........................................................................................................ 51 Table 8: Cross-tabulation of level of education and challenges to accessing the job market ............................... 52 Table 9: Cross-tabulation of gender and challenges to accessing the job market .................................................. 53 Table 10: Cross-tabulation of trade certification and skill acquisition ..................................................................... 53 Table 11: Cross-tabulation of trade certification and challenges to accessing the job market ............................. 54 Table 12: Tendency to venture into other trade(s) ...................................................................................................... 54 Table 13: Estimation of revenue from property taxes ................................................................................................ 56 Table 14: Stability analysis of the Internally Generated Funds and Inter-governmental transfers ...................... 56 Table 15: Trend analysis on the performance of the revenue heads ........................................................................ 58 Table 16: Potential contribution of rates, lands, royalties and concessions to total revenue ............................... 58 Table 17: Potential contribution of fees, fines, penalties and forfeitures ................................................................ 59 Table 18: Potential contribution of licenses ................................................................................................................. 59 Table 19: Top nine most significant sources of revenue ............................................................................................ 60 Table 20: Revenue collection methods used by AMMA ............................................................................................ 61 Table 21: Cross tabulation of jobs created per fiscal years ........................................................................................ 62 Table 22: Trend analysis of public expenditure per sector ......................................................................................... 63 Table 23: Material inputs and outputs, and product/service delivery processes/ linkages .................................. 66 Table 24: Employment share of various sectors and location quotients of KMA and AMMA .......................... 68 Table 25: Populations of KMA and AMMA ................................................................................................................ 70 Table 26: Basic skill set(s) required by employers........................................................................................................ 71 Table 27: Cross-tabulation of industry of operation and skill acquisition ............................................................... 71 Table 28: Cross-tabulation of organizational form and length of certification ....................................................... 72 Table 29: Cross-tabulation of potential employment and industry of operation ................................................... 73 Table 30: Basic skill set(s) the youth lack ...................................................................................................................... 73 Table 31: Potential growth sectors, their sub-sectors and performance score ....................................................... 76 Table 32: Area of Focus, Indicators and Baseline Data ............................................................................................. 88 Table 33: Sample size selection methodology for the youth .................................................................................... 107 Table 34: Sample size selection methodology for entrepreneurs ............................................................................ 107 Table 35: Samples drawn by industry types ................................................................................................................ 107 Table 36: List of government officials enumerated ................................................................................................... 108
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V. LIST OF FIGURES
Figure 1: Broad Land Use Map of Asokore Mampong Municipal Assembly ......................................................... 35 Figure 2: Inter-District assessment of population structure ...................................................................................... 36 Figure 3: Population pyramid of respondents .............................................................................................................. 49 Figure 4: Level of Educational attainment of the Youth in AMMA ........................................................................ 49 Figure 5: Lorenz curve and Gini co-efficient index .................................................................................................... 51 Figure 6: Reasons for Job Denial of the Youth in AMMA ........................................................................................ 55 Figure 7: Ages of businesses in AMMA ........................................................................................................................ 64 Figure 8: Distribution of industries of operation in AMMA ..................................................................................... 64 Figure 9: Organizational form type of ownership ....................................................................................................... 65 Figure 10: Number of persons employed by businesses in percentage(s) ............................................................... 65 Figure 11: Distance between the centers of the KMA and AMMA ......................................................................... 69 Figure 12: Radius of indifference to trade .................................................................................................................... 70 Figure 13: Importance of trade certification for employers ....................................................................................... 72 Figure 14: Reasons for which employers have denied people jobs in AMMA ....................................................... 74
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VI. LIST OF PLATES
Plates 1: With the MCE after an interaction................................................................................................................. 25 Plates 2:Meeting with CSOs ............................................................................................................................................ 25 Plates 3: With MCE after meeting with gate keepers .................................................................................................. 25 Plates 4: Interview with a tailor....................................................................................................................................... 27 Plates 5: Interview with a shoemaker ............................................................................................................................ 27 Plates 6: Two different interviews with a plumber and a wholesaler ....................................................................... 27 Plates 7: Images from the first stakeholder meeting and group discussions to validate the research findings . 28 Plates 8: Images of the second stakeholder meeting held with a view to getting the buy in of stakeholders of
the recommendations ....................................................................................................................................................... 29
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VII. LIST OF ACRONYMS
ADRA Adventist Development and Relief Agency AEA Agricultural Extension Agents AMM Asokore Mampong Municipality AMMA Asokore Mampong Municipal Assembly ASA Accumulated Savings and Loans Association ASHANGO Ashanti Regional Network of NGOs CBO Community Based Organization CSO Civil Society Organization D/ MPCU District and Municipal Planning Coordination Unit DFID Department For International Development ECOWAS Economic Community of West African States FBO Faith Based Organizations FGDs Focus Group Discussions GoG Government of Ghana GPS Geographical Positioning System GSGDA Ghana Shared Growth and Growth Development Agenda GSS Ghana Statistical Service ILO International Labor Organization IRR Internal Rate of Return KMA Kumasi Metropolitan Assembly KNUST Kwame Nkrumah University of Science and Technology, Kumasi KPI Key Performance Indicator LED Local Economic Development MCD Metropolitan Coordinating Director MCE Metropolitan Chief Executive MCI Millennium Challenge Initiative MFCS Muslim Family Counseling Services MMDA Metropolitan, Municipal and District Assembly MPO Metropolitan Planning Officer MSMEs Micro, Small and Medium Enterprises MTDP Medium Term Development Plan MLGRD Ministry of Local Development and Rural Development NCCE National Council for Civic Education NGO Non - Governmental Organization NPV Net Present Value PDO Programme Development Objective PESTLE Political, Economic, Social, Technical, Legal, Environmental PFJ Planting for Food and Jobs PHC Population and Housing Census POCC Potentials, Opportunities, Constraints, and Challenges PPP Public Private Partnership RAVI Rights And Voices Initiative SME Small and Medium Enterprises SOS CV/Ghana SOS Children’s Villages Ghana SOS CV/NL SOS Children’s Villages Netherlands SWOT Strengths, Weaknesses, Opportunities, Threats T&T Travel and Transport TOR Terms of Reference
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TZ Tuo Zaafi UCLGA United Cities and Local Governments of Africa UNICEF United Nations Children Fund
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VIII. EXECUTIVE SUMMARY
a. Background
Local Economic Development (LED) has become a widely accepted concept within the context of increased
democratic reforms and greater decentralization sought by local governments in Africa as an approach for
implementing home grown strategies for mitigating the effects of recent global economic downturns. As has
been the case elsewhere in Africa, attempts made to apply the LED concept in Ghana by Metropolitan,
Municipal and District Assemblies (MMDAs) have been constrained by challenges including capacity gaps,
especially for fledgling municipalities like the Asokore Mampong Municipal Assembly (AMMA).
The final report on the socio-economic study of Asokore Mampong Municipality (AMM), which was conducted
between October 2, 2017 and December 18, 2017, was prepared to inform a ‘No- Business as Usual (NBU)’
Project, which is taking place in AMM. The NBU is being implemented by SOS Children’s Villages Ghana
(SOS CV/Ghana) and SOS Children’s Villages Netherlands (SOS CV/NL) and AMMA, under the auspices of
the European Commission, to promote Local Economic Development (LED) and Youth Employability in the
Municipality.
b. Goal and Objectives
The goal of the study was “to provide the No Business as Usual project team with practical well researched information on
which it can base planning and implementation of activities to stimulate local economic growth and employability for disadvantaged
youth”.
The study objectives were as follows (see attached TOR, Appendix iii):
i. To identify the internal and external factors that promotes or militates against the economic
development of the Asokore Mampong Municipality.
ii. To identify 4 growth sectors of the local economy and their growth drivers.
iii. To establish the current status for a number of SMART baseline indicators included in the NBU project
document (Log Frame).
Find the full details of the objectives for the assignment in Chapter One, the General Introduction of the
Report.
c. Methodology and Approach
Under the methodology and approach to the study, the following were discussed among others: (i) the sources
of data; (ii) the sample size determination and sampling methods used; (iii) the data collection tools and
approaches used; and (iv) the debriefing sessions with stakeholders. Secondary data was obtained mainly from
published sources such as the Municipal Medium Term Development Plan (MTDP), the District Analytical
Report of the 2010 Population and Housing Census, Trial Balances of the Municipality, Regional Spatial
Distribution of Businesses, and the Rural Enterprise Project (REP). Other sources of secondary information
are Business Opportunity Identification Survey, and reports on the MFS II – Family Strengthening Programme.
Primary data was gathered from a mix of stakeholders: representatives of the formal and informal private sector,
CSOs, disadvantaged groups, and government officials, among others. Sight was never lost of the gender and
vulnerability oriented nature of the study.
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Data was collected using structured and semi-structured interview guides and other tools such as case studies,
and Focus Group Discussions (FGDs). Selected participatory rapid appraisal (PRA) tools such as simple
ranking and scoring were used on a few occasions to facilitate learning and action during the study process.
Validation workshops were also held meant to share the information gathered with stakeholders, and to refine
or collect additional information. Although the initial idea was a quota sampling of 40: 60 for young men and
women respectively, with a total sample size of 160, the pre-field interactions called for an adjustment to be
made. The total sample was thus increased to 250 with a response rate of 85%. The 120 target for employers
was remained so. To meet the timelines for the study, selected NGOs, research assistants and graduate youth
were engaged and trained to help with some of the face to face interviews and data collection under supervision.
Quality assurance measures during data collection included daily debriefing sessions to ensure consistency,
accuracy and completeness of data collected, unannounced visits to, as well as the recording of GPS coordinates
of interview locations.
d. Key Findings
1. Key findings from Desk Study
The review of Local Economic Development (LED) literature revealed that in Africa, LED was largely
triggered by the global economic crises, which compelled many African countries to look for home grown
solutions to local issues and to require mobilization of resources from the local level. In spite of the wide
acclamation of LED, the local capacity to facilitate the participatory processes needed to secure effective
participation of all stakeholders, which is a critical ingredient for success, is lacking. As in other parts of Africa,
attempts to implement LED in Ghana, and specifically Asokore Mampong Municipality in the ,Ashanti Region,
which was created barely five years ago, were also challenged with capacity deficiencies.
2. Key findings on internal factors that promote or militate against the ability of the youth of Asokore
Mampong Municipality to access the job market.
The unemployment rate in the Municipality of 15% was relatively lower than the regional and national averages.
The reasons for the low unemployment rate are the high concentration of informal economic opportunities
such as petty trading, driving and cleaning that require low employability skills, as well as the readiness of the
people to engage in activities which others consider as demeaning. Many (65%) of young persons in AMMA
have learnt one form of trade or the other. This signifies a general readiness to learn trades. Trades learnt
include barbering, baking, beads making, bread making, beautician, carpentry, dress making, decoration,
electrician, masonry, bus conductor, shoe and slippers making, mechanic, plumbing, and welding. However, a
little over 6 out of every 10 youth who learnt a trade did not graduate for reasons including: “financial
difficulties; long durations for learning these trades; changes in career or job ambitions, loss of interest in the
trade; problems with employers (master craftsmen); and less financial rewards”. Up to 88% of the youth who
successfully graduated from a trade never got certified.
The difference between the educational attainment of male and female youth at various levels is quite small and
tilted in favor of women respondents. This slightly correlates with unemployment rates, with more young men
(53%) unemployed compared to young women (47%).
The percentage of industrial establishments in the Municipality has been growing considerably (by 17.4% per
annum from 1978 – 2017), with over 50% of the establishments formed within the span of the last 7 years.
Even though certification was not a requirement for most of the jobs that employ the youth, it was evident that
most of the youth who were certified had relatively little challenges accessing the job market. Moreover, over
it was also revealed that 60% of the youth aspire to acquire new or additional trade skills, and get certified. One
of the major findings of the study was that the youth in AMMA had a relatively high annual income of
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GH₵4,098 (the equivalence of US$910) compared to the benchmark upper poverty line income of GH₵1314
(US$292). Furthermore, the Gini coefficient1 of 23.78% in AMMA depicts a rather low level of income
inequality amongst the youth. Potentially, this means that with the necessary financial literacy, the youth in
AMMA can save, invest and work their way out of the vicious cycle of poverty, which plagues many rural
communities.
3. Key findings on the revenue performance of AMMA
The revenue performance of AMMA is influenced by factors, including: (i) inadequate stakeholder involvement in the revenue policy formulation, which is making it difficult to get the people to participate actively in its implementation; (ii) existence of a plethora of social and economic opportunities especially in the informal economy, which present a huge potential for revenue generation, however, most of the business enterprises are not registered and hence operate underground thus evade taxation; and (iii) revenue inflows are difficult to predict. Apart from 2014 and 2016 when the gap between the budgeted and actual revenue projections fell between 11% and 14% respectively, the stability of revenue sources varies widely. The unpredictable nature of internally generated funds can partly be blamed either on the arbitrariness of revenue estimation or poor revenue collection methods. Short-falls in revenue targets at the national level and the delay in the release of inter-governmental transfers also explain the fluctuations in the revenue source. As the figures reveal, the gaps between estimated and actual intergovernmental transfers have been larger than 40% between 2013 and 2016. The unpredictable nature of inflows make planning and implementation of development interventions difficult.
4. Key findings on growth sectors and drivers of the local economy
The selection of growth sectors which are not saturated, which could grow rapidly and absorb well trained
disadvantaged youth, and which have the potential to drive the local economy, was selected guided by the
following four criteria: (i) availability of human capital, market opportunities and other economic determinants
along the value chain; (ii) existence of backward linkages (which is the reliance on inputs from the local economy
to create jobs), and an increase in local participation through sustainable business management; (iii) existence
of forward linkages (which concerns the addition of value to inputs before exporting them which might require
the establishment of input supply and distribution centers; and (iv) availability of lateral linkages through the
provision of transportation, communications, and financial services.
The study arrived at the following key growth sectors:
Growth Sector Details
Event planning and organization.
Event Planning and Organization consists of makeup artistry, catering services, event planning (weddings, funerals), fashion and decoration, and chairs and canopy rentals. The sector has many forward, backward and lateral linkages not to mention the high local and external demand for products and services offered by its subsectors. Many weddings and funerals are held each weekend in AMM and KMA. A wedding requires the services of a fashion designer, tailor and a seamstress, who purchase the fabric and all the other accessories for the wedding clothes from a textile dealers, and 2kente weavers or traders. The services of an event planner are engaged to put together all the arrangements in connection with the marriage event and subsequently the reception. The food and drinks for the reception are procured from a caterer who demands inputs from other traders such as the wholesaler or retailer of the drinks and water, meat and fish vendors, flour seller, the poultry farmer producing eggs, milk, margarine, rice etc., highlighting the interconnectedness existing within the growth sector.
1 Gini coefficient - a measure of statistical dispersion representing the income or wealth distribution of residents of a settlement, which is commonly used measure of inequality 2 Kente is a high value tradition cloth which is used for traditional marriages or weddings.
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Growth Sector Details
Graphic design and printing sector
The growth sector, which covers billboard design, product packaging and branding, posters, banners and printing cards, fashion design and decoration, and general printing and secretarial services, hinges on the growing demand for business and product branding services which create a web of forward, backward and lateral linkages. The 1D1F is to stimulate local industrial production to achieve self-sufficiency and ultimately to export the surpluses. Many of these industrial outputs will require packaging, marketing and distribution. Packaging will require graphic design and printing; marketing will require advertising using medium such as billboards design and creation of webpages for online sales; distribution will sometimes need branded vehicles
E-sales, telemarketing and on-line business support services sector
The sector includes the creation of an e-marketing hub3, picking and sorting of orders, packaging and shipping of orders, and online business support services. The increasing use of mobile phones and the internet connectivity in AMMA not to mention the forward, backward and lateral linkages makes the e-sales, telemarketing and on-line business support services a potential growth sector in AMM. The growth opportunities offered by this growth sector stems from the many avenues that exist for small businesses that are into the production of clothes and leather products to sell their outputs online. There are also many households in AMM and KMA that periodically need the services of skilled artisans such as plumbers, auto mechanics, just to cite a few. The online business support services for instance provide an avenue for a driver whose car breaks down on the road to call a dedicated line to request for the services of an auto mechanic. The mechanic is dispatched to the location to attend to the caller who in turn pays for the services. Through the e-sale and online marketing platforms, orders that are received are sorting and obtained from the market, the order are re-grouped based on locations and destination. They are then packaged and delivered to the clients.
Transportation, haulage and urban mobility services sector
The sector includes the tricycle operation, haulage of goods, sale and repairs of vehicles such as auto electricians, auto mechanics and body works as well as spraying. The sector is not yet saturated due to the high demand for haulage and urban mobility services in AMM and its vicinities. This growth sector is the fulcrum around which all the other growth sectors revolve. The 1D1F and the planting for food and for jobs initiatives of government give this sector the impetus to further grow. In order to move the industrial products of the factories to the shops and the produce from the farms to the market centres, the demand for haulage services becomes important. Within the markets, bulk breakers need the services of tricycle operators to carry heavy loads from one point to another. The servicing of the haulage trucks and tricycles, by way of oil and tire changes, falls on the services operators and the vulcanizing businesses. Fuel or gas stations increase sales just those who sell lubricants, car batteries and other accessories.
5. Key findings on specific demands for (skilled) labor and training needs
From the view point of LED promotion, hard and soft skills required were identified as follows: (i) Hard skills:
event scheduling, decoration, make up artistry, fashion design, basic computer applications skills, designing
with computer applications, screen printing, operating photocopiers and scanners, conceptualization of design
and thoughts, telephone manners, map reading and interpretation, internet browsing, record keeping, time
management skills, planning and scheduling of activities and events, internet security protocols, software
application in vehicle diagnosis and road and traffic regulation. Soft skills: communication and interpersonal,
problem solving, initiative and motivation, working under pressure to meet deadlines. Further skills needed
3 Marketing of products via internet
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include organizational skills, team work, learning and adapting, numeracy, value for diversity and difference,
integrity and negotiation skills.
6. Key findings on characteristics of disadvantaged youth in AMM
Head porters, persons with disability, and unemployed youth tend to be among the most vulnerable groups in
AMMA. Those whose education halted at Junior High School level find it difficult to get employment and are
likely to become part of the vulnerable groups. Apart from receiving the lowest income, female head porters
(often belonging to the Kayaye minority) fall victim to sexual exploitation in the evenings and sometimes their
hard earned money gets stolen in the process, not to mention the risk they face contracting sexually transmitted
diseases. Sometimes the young (Kayaye) women get pregnant and giving birth to children on the streets, who
end up facing an even worse situation than their parents while growing up on the streets. Other street workers,
such as truck pushers, and bagged water sellers (panin de panin) have been vulnerable to innovative technology
(they risk losing their businesses to the tricycle and sachet water distributors respectively).
e. Proposed concrete and innovative projects interventions
The proposed concrete and innovative projects/ interventions from which the ten were selected for consideration by AMMA and stakeholders, include the following: (i) establish an enterprise for collection, sorting, and recycling of solid waste, to take advantage of the huge volumes of waste generated in AMMA; (ii) collaborate with the private sector to establish a plant for processing fruits in the municipality, to take advantage of the local fruit juice industry which is flourishing as a result of increased demand of Ghanaians for healthy food products, as well as provide market for identified fruit farmers in Sekeyre Afram Plains and Brong Ahafo Region; (iii) take advantage of the already existing skills of the people in livestock rearing to make the Municipality a major supplier of livestock to the Kumasi Abattoir and support farmers to learn from the intensive Cattle Project of KNUST; (iv) facilitate the establishment of a smaller enclave similar to the Suame Magazine, with a centralized smelter, well fitted with gadgets where all waste could be burnt and where fumes are managed for a fee, to minimize indiscriminate burning especially of e-waste; and (v) AMMA to invest in the continuous appraisal of value chains and identification of gaps that young entrepreneurs could be trained to fill. Other proposed concrete and innovative interventions that may be pursued are as follows: (i) invest in the liquid waste management chain to create jobs for evacuators, masons, carpenters, biogas engineers, biogas facility attendants, and maintenance engineers and numerous other operators; (ii) support tailors and seamstresses to scale up dress making to serve Muslims with traditional costumes such as Jarabia; (iii) AMMA to facilitate the establishment of a robust ICT center where people could go and resolve their problems to take care of all kinds of ICT needs of individuals and institutions of AMMA and surrounding areas; (iv) explore nontraditional land uses for business such as devoting land for games, funerals, arts competition, and other festivities; and (v) team up with the CBOs/NGOs in the municipality and the private pharmaceutical companies, to roll out social marketing services through traditional and faith institutions to eliminate inimical myths, misconceptions and stigma around behavioral and attitudinal nature of the health issues (which are associated with communities in transit and that provide grounds for diseases to incubate and escalate into surrounding communities). Furthermore, the following additional projects may be considered: (i) explore revenue mobilization points around tricycles, just as it is done for taxis and trotros, such as: the creation of stations for tricycles, passing a resolution for all the tricycles to operate from the stations and tolling the users; the provision of identification tags to all tricycle dealers at a fee; the licensing of all tricycle drivers at a fee and fining those caught without licenses; and (ii) promote cleaning companies, which would mobilize the youth in Asokore Mampong Municipality, provide them with professional cleaning training as well as attitudinal training with which they
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can begin to provide cleaning services to companies and households; and (iii) establishing a facility for leather works, where the youth could be trained and helped to establish their own leather works enterprises.
f. Recommendations
Based on the study findings, the consultant proffers the following recommendations for consideration by the
stakeholders:
i. That, stakeholders should explore internal and external factors that militate against economic
development of AMMA by:
a. Departing from the ‘business as usual’ way of operation, and rather adopt a decentralized,
socially oriented, and integrated development approach. It should deliver development
targeted at meeting the social needs of the population, protecting the vulnerable, providing
resilient employment, as well as sustainable livelihoods, and delivering livable communities. At
the same time, it should create incentives to attract private sector investments in the
development process; and
b. Shift the paradigm of revenue mobilization, allocation and utilization approaches from current
top-down practice to a bottom-up, participatory approach, with an increased role for the
citizenry and Civil Society Organizations. This new role will require that they make greater
contributions to (AMMA) revenue policy formulation and they will demand for transparency
and accountability in the revenue allocation and utilization through social accountability
systems. Furthermore, AMMA should provide enhanced fiscal controls through effective
leadership and the revival of non-functional feedback systems through frequent public hearing
and validation workshops (where they exist) and instituting new ones where they do not exist
like citizens score cards whereby citizens are allowed to assess the performance of duty bearers
using indicators selected in a participatory manner.
ii. In order to achieve economic development in AMMA through the LED approach, stakeholders should
pursue the following:
a. Put in place safety nets such as the expansion of the Livelihood and Economic Empowerment
Programme against Poverty (LEAP) to protect the poor, marginalized and disadvantaged
groups against potential neglect and exploitation in a market-led process by guaranteeing some
basic essentials, like food and water.. Empowering disadvantaged groups to have a say in things
that affect them, and promoting the participation of excluded groups in local meetings to
discuss planning, budgeting and development projects. For this to be possible, civil society
would have to take on an increased role as the third force that keep in check government
inactions and over reaction of the market forces.
b. Rather than just delivering training, adopt a holistic approach to human resource development
in the following two ways: (i) enhancing aptitudes of trainees with tailor-made skills that
respond to the needs of the trainee as well as the needs of the job market; and (ii) transforming
attitudes of the trainee to suit the profession and match competitors. Some skills that the youth
need are bookkeeping, color combination, marketing, interpersonal, communication, problem
solving, motivation, teambuilding, numeracy, negotiation and organizational skills.
xix
iii. That, AMMA should specifically adopt the following posture for growth promotion:
a. Explore proximity to KMA by taking advantage of its large market, given that for most goods,
KMA residents are indifferent to shopping at any distance up to 15 kilometers radius from the
center of AMMA. Again AMM, by its location quotient, has the competitive advantage in
small and micro scale industrial activities such as food processing, production of some local
apparel among others.
b. Join forces with KMA to undertake projects (Section 32 of the Local Governance Act (2016)
that require a vast capital investment, but yield commensurately high social, economic and
environmental returns. Waste management can be cited as an example where AMMA spent
GH¢1,839,600 to collect waste and another GH¢1,716,960 on the treatment and disposal of
waste in 2017 alone.
c. Liaise with Nananom (Traditional Authority) to secure lands for private sector businesses. Such
lands offered by Nanamon could be put into projects as an equity, thus guaranteeing
continuous income streams to the stools. The stool lands revenue that might accrue later, can
augment AMMA’s internally generated revenue.
d. Rebrand AMM to reduce and or eliminate the stereotypes AMM has with some communities
in the municipality, by taking on a new image that is collectively carved with the citizenry,
adopted and owned by all.
e. Provide preferential treatment to the vulnerable and excluded groups through the institution
of job quota systems for them in the public sector and encouraging private sector to do same
through moral suasion or as part of corporate social responsibility.
f. Analyze further several social services that AMM is delivering in a non-efficient way. Consider
to deliver those services through partnerships with Civil Society Organizations or private
sector through Social Businesses of PPP arrangements, respectively.
g. Collaborate with land economists and valuers being trained at KNUST to re-value properties
and update the tax roll or fiscal cadaster. This will improve the revenue estimation and
projections and reduce the problem of obsolete tax roll or fiscal cadaster, and it will allow
AMMA to maximize its revenue potential.
h. Explore increased mobile (smart) phone, laptop computer and tablet as well as internet
connectivity, to introduce digitized revenue mobilization and monitoring systems. For
instance, people can be encouraged to pay their tax and non-tax revenue through the mobile
money and other mobile and online banking systems. This will require the setting aside a
dedicate line for revenue receipts.
iv. That stakeholders should be able to eliminate impediments in the way of the youth to accessing the
job market if they:
xx
a. Adopt a multi-faceted approach to addressing impediments facing the youth such as low
educational attainment; lack of employable skills; unavailability of training packages that
improve psychomotor and re-orient attitudes; and for those with high cognitive function, lack
of demand driven short training programmes, soft skills, job certification, and re-grooming to
meet the demands of the changing job market.
b. Leverage on the existing political will for LED promotion to attract resources from
government initiatives such as the One District One Factory (1D1F) and the Planting for
Food and Jobs (PFJ) as well as international development community initiatives in support of
youth employment programmes.
c. Civil Society Organizations (CSOs) could open their doors for youth who lack experience, to
volunteer on projects, undertake community services and take internships to expose them to
the job environment.
d. Support collectivization and group collateralization by forming groups, providing skills
training in bookkeeping, financial management, and production efficiency improvement
systems as well as marketing, to reduce lending risk and improve access to loans.
e. Work with NCCE to increase tax education by sensitizing communities on the rights and
obligation of citizens. As part of the education, it will be useful to explain what the taxes are
used for to enhance confidence and promote voluntary compliance.
f. Collaborate with leadership of trade associations as an avenue for fee fixing and revenue
mobilization by providing leadership with some amount of training. Trade associations already
have systems that are well organized to collect dues and other payments. The frequency with
which meetings are held by these associations implies that members are in constant touch with
leadership.
g. Encourage communities to allow them to use their property taxes directly to address specific
development needs (in lieu of directly paying it to AMMA) by developing effective frameworks
to guide such initiatives.
v. That, to meet the skills and training needs of the private sector and job market, and fuel growth of the
identified growth sectors, the following actions should be taken:
a. To help youth realize their future aspirations, master craftsmen should package apprenticeship
training in the areas of: baking, shoemaking, hair dressing, beautician including make-up
artistry, decoration, graphic designing, bead making, dressmaking and tailoring, driving and
fitting mechanics.
b. AMMA should take advantage of proximity of institutes of higher learning such as the
KNUST, the Kumasi Polytechnic and the Kumasi Technical Institute to help re-train and re-
tool the youth for business and increased employability
c. Stakeholders should promote enterprises involved in primary and secondary food processing,
particularly those run by women
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d. AMMA should explore strategic (public private) partnerships and collaboration with identified
Private Sector, NGOs and CSOs on construction, health, education, social marketing and
revenue mobilization.
e. AMMA should promote the functioning of financial service providers to enhance economic
growth, for example through improved legislation
f. Promote these enterprises by providing them with work spaces, business support services and
collaborate with law enforcement agencies to regulate enterprises.
g. Conclusion
Local economic development (LED) has the potential, if applied well, to stimulate growth in Metropolitan,
Municipal, and District Assemblies (MMDAs) and generate sustainable jobs, especially for the youth, most of
who moved from the rural areas to the towns and cities. Effective application of LED processes, however,
hinges on a number of factors, foremost being the availability of requisite capacity to facilitate the LED
processes.
Interactions with the target groups and stakeholders at Asokore Mampong Municipality shows that the
influence of the city of Kumasi on Asokore Mampong is very clear, and presents more advantages for growth
than disadvantages on several fronts: Firstly, it was realized that income levels of the youth of Asokore
Mampong were higher than the upper poverty line benchmark income of GH¢ 1314. This can be attributed to
the numerous job opportunities in Kumasi and attractions like the Kumasi Central market, Kumasi Abattoir,
and Suame Magazine. Secondly, because the people were humble and would take on to petty activities that the
city dwellers would not want to do such as cleaning and collection of refuse. Thirdly, Kumasi is just one
transport point away and residents of AMM could easily get to Kumasi by jumping into an Adedeta tricycle,
which is able to quickly maneuver their way through the congested city at a very low cost. Fourthly, the market
in Kumasi is so huge that they could sell anything, from leaves to livestock, and make money to ease their
vulnerability. Fifth, the de-congestion effort made to free Kumasi of activities favored suburbs like Aboabo,
Asawase, and Akroem, where many inhabitants have turned their businesses into home based activities, albeit,
difficult to track, and bring into the revenue nominal roll.
On the contrary, the negative influences of Kumasi on AMMA are few. One of such influences is that most
dwellers used the municipality solely for residential purposes and are not motivated in any way to contribute to
the development of the area, apart from acquiring land and building their dormitories.
Given that opportunities, outweigh the negative influences, there is hope that the ten innovative projects
proposed would find market if implemented and yield profitable benefits to the stakeholders.
h. Next steps
The following next steps are recommended for the implementation of the findings of the study for the
implementation of the NBU Project:
1. Mobilize resources, including land and capital resources (especially revenue) for the implementation of the ten (10) concrete innovative projects;
xxii
2. Animate communities on the 10 concrete projects, especially those which have to deal with waste, and ensure private sector buy in and implicate communities in the investments
3. Conduct further appraisal of proposed action business plan and prepare architectural plans and designs
for the 10 concrete projects;
4. Engage contractors to put up structures for the 10 Concrete projects;
5. Roll out the 10 concrete projects
5.1 Project 1: Asokore Mampong Refuse Aggregation, Sorting and Collection Project 5.2 Project 2: Asokore Mampong Centralized Smelting, Burning and e-Waste Plant 5.3 Project 3: Asokore Mampong Fitting Mechanic Settlement Initiative 5.4 Project 4: Asokore Mampong Small Vehicles and Logistics Company 5.5 Project 5: Asokore Mampong Juicing Company 5.6 Project 6: Asokore Mampong Pastes and Spices for Soups 5.7 Project 7: Asokore Mampong Intensive Cattle Fattening Project 5.8 Project 8: Asokore Mampong Shoes and Leather Works 5.9 Project 9: Asokore Mampong Young Tailors and Seamstresses Project 5.10 Project 10: Asokore Mampong ICT and Hardware Company
6. Implement actions, monitor, evaluate and report on project implementation against agreed milestones.
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CHAPTER ONE
1 GENERAL INTRODUCTION
1.1 Background
Local Economic Development (LED) has become a widely accepted concept within the context of increased
democratic reforms and greater decentralization sought by local governments in Africa as an approach for
implementing home grown strategies, for mitigating the effects of recent global economic down turns. Attempts
made to apply the concept in Ghana by Metropolitan, Municipal and District Assemblies (MMDAs) have been
constrained by challenges such as the low capacity of local staff to apply the concept at the local level, especially
for fledgling municipalities like the Asokore Mampong Municipal Assembly (AMMA).
The European Union (EU) is thus supporting SOS Children’s Villages Netherlands (SOS CV/NL), Asokore
Mampong Municipal Assembly (AMMA), and SOS Children’s Villages Ghana (SOS CV/Ghana), to understudy
the phenomenon. To this end, a Consultant was engaged to conduct a ‘No- Business as Usual (NBU)’ study on
the Promotion of Local Economic Development and Youth Employability in the Asokore Mampong
Municipality (AMM) in Kumasi, Ghana.
1.2 Goal
Following from the LED capacity gap mentioned above, the goal of the study is “to provide the No Business as
Usual project team with practical well researched information on which it can base planning and implementation of activities to
stimulate growth and employability for disadvantaged youth”.
1.3 Objectives
The study objectives according are as follows:
i. To identify the internal and external factors that promotes or militates against the economic
development of the Asokore Mampong Municipality. It is to identify the factors that facilitate
youth in accessing the labor market, particularly in relation to skills and training needs of the private
sector. Furthermore, it is to assess the revenue performance of the Municipality. Finally, the study is
to identify innovative initiatives for the allocation of revenue collected, to 10 concrete pilot projects
contained in an ACTION PLAN (for 4 years) in which AMMA, NGOs/CBOs and the private sector
collaborate to stimulate economic growth. The study is to focus on inclusive development of (young)
disadvantaged women especially, such as marginalized females, poor women and the Kayaye minority.
ii. To identify 4 growth sectors of the local economy and their growth drivers. Which sectors are
not saturated, grow rapidly, and could absorb well trained disadvantaged youth? The study should
sketch the specific demands for (skilled) labor and training needs, following extensive consultations
with the private sector. An analysis of the characteristics of disadvantaged youth has to be made, as
they face particular problems: they often have low self-esteem and lack role models, social networks,
and skills related to work attitude, pitching, business plan making, among others.
24
iii. To establish the current status for a number of SMART baseline indicators included in the
NBU project document (Log Frame). The baseline data obtained, will facilitate the monitoring and
evaluation of the project, and allow for adaptation of activities.
1.4 Scope of the Assignment
Table 1 provides the scope of the assignment, which was distilled from the terms of reference (TOR). See
Appendix iii.
Table 1: Scope of the Assignment
Scope Focus of Study
Thematic area Economic growth, Youth employment, Revenue generation, Growth sectors and baseline data obtained for the ‘No Business as Usual’ project.
Target groups Disadvantaged youth groups, particularly women and the Kayaye4 minority.
Geography Asokore Mampong Municipality, especially its disadvantaged neighborhoods. May consider other geographical areas such as adjourning MMDAs as well as any relevant mobility/ migration related areas of targeted disadvantaged groups
Stakeholders AMMA, private sector businesses, CSOs/NGOs, various other stakeholders, and disadvantaged youth groups
Timeframe The Assignment is to cover a period of 8 weeks maximally. Although it was anticipated that the work could be done in 4 weeks, preliminary consultations have shown that it could be difficult to obtain interviews from some key actors and so 8 weeks appear more realistic. The Action Plans that are to be prepared would span a 4-year period.
4 Head porters who ply their trades usually in Ghanaian cities
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CHAPTER TWO
2 APPROACH AND METHODOLOGY TO THE ASSIGNMENT
2.1 Study Approach
The participatory study, which involved important stakeholders like government and CSO/NGO staff, as well
as disadvantaged youth, was approached through the following sequential activities:
1. Preliminary discussions with client
2. Hold preliminary consultations with gatekeepers to inform the study design
3. Review relevant documents
4. Design the participatory study
5. Submit inception report
6. Collect field data
7. Prepare reports on findings
8. Organize debriefing sessions for stakeholders
Following are further details on each of the stages of the approach for sub-sections 2.2 -2.8:
2.2 Preliminary Meetings and Consultations with Gate Keepers
i. Preliminary Meetings
The key objective of this discussion was to clarify ambiguities concerning the terms of engagement, agree on
the deliverables and timelines, and conclude on the budget and signing of the contract. At the end of the
meeting both parties had a clear and common understanding of the key objectives, deliverables and timelines
and the contract was duly signed as planned on October 2, 2017.
ii. Hold preliminary consultations with gate keepers to inform the study design
This was part of the entry and rapport development process. The Municipal Chief Executive (MCE) of AMMA
was the first point of call, then the Coordinating Director, Planning, Budgeting and Revenue Officers and all
others key actors were consulted, together with representatives of key NGOs and CSOs in AMMA. Through
this activity, effort was made to map out the development history of the Municipality, catalogue past projects
of relevance to the project and to identify those with institutional memory. The consultations provided a hazy
outline of what the issues were likely to be. Plates 1 to 3 depict a few of such events.
Plates 1: With the MCE after an interaction
Plates 2:Meeting with CSOs
Plates 3: With MCE after meeting with gate keepers
26
2.3 Desktop review/review of relevant documents
Given that the study was an action research, the literature review component of the work sought to embed the
study in a good theoretical framework by providing insight into the concepts that inform the study and to seek
and collate already existing information on the variables under consideration from secondary sources. This
preliminary profiling of the study area was intended to help in sketching out the baselines prior to the gathering
of primary data from the field. The review process went through a number of stages including the identification
and selection of literature that were used in the desktop review. Literature was gathered first from
internationally recognised academic, institutional and professional repositories using keyword searches. The
literature obtained were re-grouped, based on whether it was “ideas based” (theoretical) or whether it presented
either collected or observed data (empirical).
The selection of materials for review was informed by principles such as relevance of the material to the baseline
study, appropriateness of same, and usefulness of the material to the overall research. The selection criteria for
publications that were used in the desktop review process, involved the level of contribution a publication had
made to the development of the subject matter in question. How authoritative the source was, guaged by the
credibility of the source of the publication, which included the extent to which the material was peer-reviewed
and how much knowledge the author profess in the field. These formed the bases for the selection of literature
for review.
As part of the actual review process conscious effort was made to identify, describe, summarize, analyzed, critic,
synthesis and evaluate the thoughts. A combination of thematic and chronological presentation were used in
the thought organisation process. Whereas the thematic nature of the desktop review required the use of the
thematic presentation style, discussion on evolution of concept followed the chronological order. The citation
of works was a mixture of information and author based styles. In the former emphasis was place on the
information whereas in the latter emphasis was on the author. There were also cases where both were stressed.
The referencing style was the American Psychological Association (APA) style.
2.4 Design the participatory study
Based on the preliminary findings made from the consultations and review of literature, a study matrix was
developed to link the study objectives to the following: (i) key issues to consider, (ii) the sources of information
needed, (iii) tools to be used for the data collection, (iv) methods for gathering data, (v) responsibility for data
collection, as well as (vi) resource requirements. Based on the study matrix and findings from the desk study,
the study instruments were designed.
2.5 Collect Data
i. Data sources
The data used for the work were sourced from both primary and secondary sources. Secondary data was
obtained mainly from published sources. Among others, the following essential documents on Asokore
Mampong Municipality were reviewed: the District Medium Term Development Plan (MTDP), the District
Analytical Report of the 2010 Population and Housing Census, the Trial Balances of the Municipality, the
Regional Spatial Distribution of Businesses, and Rural Enterprise Project: Business Opportunity Identification
Survey report, and various reports on the MFS II – Family Strengthening Programme. Primary data was
gathered through extensive and direct interactions with representatives of the formal and informal private
sector, CSOs, disadvantaged youth, government officials and other stakeholders. Effort was made to give
attention to the gender and the vulnerability dimensions of work by placing emphasis on male and female
27
entrepreneurs and youth groups, and particularly disadvantaged ones. As usually with bottom-up LED best
practices, the study collected data from households, youth groups, civil society organizations, trade
associations, private sector interest groups, community leaders, and technocrats from the municipal assembly
among others.
ii. Data collection tools and approaches
To facilitate the data the collection process, the following tools were employed: (i) structured and semi-
structured interview guides and checklists; (ii)case studies; (iii) Focus Group Discussions (FGDs); (iv) simple
PRA tools (including Ranking and Scoring); and (v) community entry and validation workshops. The
workshops helped to inform stakeholders about the study and also to share information gathered with them,
inviting them to confirm, refine and make recommendations for further information needs and the fine-tuning
of the final report.
To speed up the data collection process, selected CBOs/NGOs and graduate youth were engaged and trained
to help with face to face interviews. They went through a pretest session prior to the commencement of the
field data collection to evaluate their level of appreciation of the issues and their familiarity with the interview
guide. For quality assurance purposes, the consultants sometimes made unannounced visits to the locations
where scheduled data collection was to take place. It was also a requirement that the GPS coordinates of the
locations where the interviews took place, were recorded on the questionnaire. Whenever the enumerator was
permitted, photographs were to be taken during enumeration. The daily post field editing was meant to ensure
consistency, accuracy and completeness in the data gathered. Plates 4 to 6 are samples of the interview sessions
captured by some of the enumerators.
Plates 4: Interview with a tailor
Plates 5: Interview with a shoemaker
Plates 6: Two different interviews with a plumber and a wholesaler
iii. Sample size determination and sampling methods used
The study adopted both probability and non-probability sampling methods. To ensure that the sampling is not
lopsided geographically, effort has been made to stratify the municipality into three zonal councils. Samples are
drawn from each of the communities within the three zones in the municipality using the level of population
concentration through a proportionate sampling method. Although the initial idea was to do a 40:60 quotas for
male and female youth respectively with a sample size of 160 youth, the pre-field interactions called for an
adjustment to be made. The total sample was thus increased from 160 to 250 youth with a response rate of
85%. In all of this, effort was made to ensure that the quota sample of 50:50 was used in the identification of
regular and disadvantaged youth (for details refer to Appendix I).
Regarding the employers, the 120 target was maintained with data collected from 100 entrepreneurs through
the field enumerators with response rate of 91% whereas the other 20 were engaged by the consultants
themselves. The data collection covered the large, medium, small and micro enterprises and further spread
along the lines of industry type. According to the 2010 census report the following constitutes the breakdown
28
of businesses by their types in absolute figures and percentages (This categorization is based on the number of
people employed): Large firms employ over 100 workers; medium firms employ 31-100 people; small firms
employ between 6-30 people; and those firms that employ 1-5 people are micro (refer to Appendix I). The
selection of the industry type is based on ratios derived from the analytical reports of the 2010 Population and
Housing Census (Appendix I). Government officials were also purposively selected, based on their roles and
relevance to the study (Appendix I). The limited numbers and the self-selected nature of the other groups such
as the CSOs/CBOs, and the knowledge institutions were covered as much as possible..
2.6 Organization of debriefing sessions for stakeholders
Two stakeholders’ workshop sessions were held during the exercise. The first workshop was intended to share
the preliminary findings of the baseline study with stakeholders, educate and inform them about the NBU
project, collect additional information from them and get their buy-in and support for the project
implementation. This initial workshop was attended by over 60 participants broadly drawn from the public and
private sectors, academic and non-academic institutions and the CSO sector. The second workshop had the
dual objectives of refining the final research output, and to get duty bearers to assimilate the change messages
of the research. The ultimate objective was to reduce the research policy interface by getting policy
implementers to adopt the recommendations of the research that are meant to be used by the No Business as
Usual project. The selection of participants was based on the above objective and by the mandate of the actors,
especially those who bring about policy, social, and economic changes. The second workshop was attended by
over 20 duty bearers and opinion leaders. Plates 7 and 8 area a depiction of the two stakeholder workshops
held.
Plates 7: Images from the first stakeholder meeting and group discussions to validate the research findings
29
Plates 8: Images of the second stakeholder meeting held with a view to getting the buy in of stakeholders of the recommendations
30
CHAPTER THREE
3 THE NEXUS BETWEEN LOCAL ECONOMIC DEVELOPMENT PROMOTION
AND EMPLOYABILITY
3.1 Global and Historical Perspectives on LED Promotion
Development partners have defined Local Economic Development (LED) variously. Helmsing (2001 p.64)
defines it as a process in which partnerships between local governments, community-based groups and the
private sector are established to manage existing resources to create jobs and stimulate the economy of a well-
defined territory. Mensah et al (2013 p.1) define LED as ‘involving the identification and usage of primarily
local resources, ideas and skills to stimulate economic growth and development, with the aim of creating
employment opportunities, reducing poverty, and redistributing resources and opportunities to the benefit of
local residents’. It can be inferred from the view of Rogerson (2014) that LED is the mobilization of potentials
in the local economy by innovation to all of the growth dimensions, which ranges from infrastructure, to local
Small and Medium Enterprises (SMEs) and their expertise to enticing foreign direct investment, nurturing
territorial competitiveness, reinforcing local institutions, improved management of the development process
and internalizing local resources. Meyers (2014) sees LED as the sum of all economic activities by all significant
stakeholders within a precise defined geographical region, operating together in partnership to create economic
development and eventually improvement of quality of life for all citizens in the area.
From the above definitions it is evident that whiles some authors think of LED more as being a process
(Helmsing 2001, p.64; World Bank, 2004), others think of it more in terms of disciplines, approaches, strategies
and tools. Most authors appear to be concerned about decent work, human rights, vulnerable groups and
inclusivity. Rodriguez- Pose and Tijmstra (2009), after studying a number of LED definitions, observed that
although there is no standard definition for LED, the definitions are informed by territorial attributes (local/
regional communities), participatory in nature (involving public, private and civil society), global in outlook (in
the sense of being internationally defined but locally implemented), with the aim of using local opportunities
and capital assets (UN Habitat, 2005 p.iii, p.70-72) to trigger sustainable economic development. Since some
of the problems to be solved by LED are triggered by the failure of external factors, it only makes sense that
local actors take charge, using the potentials of human, institutional (social) and physical resources (ibid), as
well as natural and financial capital. Some describe this as “home grown policies”. Thus LED has come to sit
well within the context of increased democratic reforms and the greater need for decentralization (globally as
well as in Africa), where massive transformations are taking place with rising demand for trade liberalization,
privatization, the emergence of the cyberspace economy, and citizens’ engagement and the need to form
partnerships for development.
Historically, LED as a concept has evolved over the years. As far back as the 1960s to the early 1980s, the focus
of LED promotion was on the attraction of manufacturing industries. The strategy for achieving this was by
incentivizing investors through the provision of suitable lands and cost minimization approaches such as tax
incentives. The decision to support businesses through an increased investment in the provision of hard and
soft infrastructure and other forms of technical business support (around the 1980s to the mid-1990s) marked
the second epoch (Oduro-Ofori, 2011; World Bank, 2004). The emphasis at the time was on facilitating the
growth and expansion as well as the extension of businesses. This growth was measured in terms of the number
of firms and their contribution to local government revenues (Akudugu, 2013). The third era, which dates back
to the late 1990s, focuses on the creation of the requisite business environment for economic development
(Akudugu, 2013) and adopts a rather holistic approach to LED (Patterson, 2008).
31
The evidence from works of authors such as Blakely (2009) and Rodriguez-Pose and Tijmastra (2005) reveal
that LED as a concept is not alien to the developed world. For many developing countries, however, it is now
gaining currency. The latter has been corroborated by authors such as Oduro-Ofori (2011) and Binns and
Etienne (1999), who describe LED as an alternative or complementary development strategy in Sub-Saharan
Africa. For instance, among the top six areas that were prioritized for action between 2006 to 2015, the United
Cities and Local Governments of Africa (UCLGA), which represents local governments, individuals and
entities with the intent of ‘building African unity and driving development through the grassroots as part of its
mission, mentioned the need for LED promotion’ (Swinburn, et al 2007). This only goes to confirm the
increasing popularity LED is gaining over the years especially in Africa.
3.2 LED promotion, identification of growth sectors and the financing challenge
According to Barquero (1999) cited by Oduro-Ofori, (2011), LED rests on three essential pillars, namely
hardware, software and orgware. The software involves training and capacity building of CSOs, FBOs and local
LED actors. Orgware relates to consciously creating and strengthening institutions to be capable of regulating
business operation. The hardware requires the creation of the requisite working environment for businesses to
thrive through the provision of infrastructure. Helmsing (2001) also highlights three main approaches to LED
promotion, namely (i) Community Based Economic Development, (ii) Business or Enterprise Development,
and (iii) Locality Development. Other authors such as Morton (2004) and Schragger (2010) posit that the most
effective approaches to developing the economic base of a community thrives on indirect facilitation of export
expansion. This can be done by improving the efficiency of local public infrastructure; creating systems that
improves industrial recruitment and cyber job opportunities and services; and by facilitating the expansion of
export industries already part of the basic sector.
The focus of community based economic development is to create employment opportunities and encourage
investment within the locality. The main approaches to achieving this are the development of the community
machinery through Community Development Corporation, local enterprise development agencies and
community cooperatives. The benefits are that it facilitates empowerment of local people, helps in generating
businesses, and contributes to improved living and working conditions and the creation of community and
public services (Helmsing 2001).
Unlike community based economic development, business enterprise development seeks to maintain a balance
between the communities as a social entity, and employs businesses as tools for the promotion of growth and
wealth creation (Oduro-Ofori, 2011). The focus is to ensure that the requisite local resources are marshaled to
create and sustain LED activities. The known approaches to business enterprise development are stimulating
new business start ups, creating opportunities to attract new businesses in the territory and encouraging already
existing businesses to grow and expand. At the heart of this approach is the intent to build the economic base
of the locality and to introduce simultaneously, an increment in innovation and entrepreneurship.
In order to create the competitive environment needed for LED promotion, locality development becomes an
essential strategy. It involves, firstly, increased investment in the physical assets in the locality to realize an
improved physical infrastructure. Secondly, it concerns an expansion in the social and economic base of the
locality in a manner that maximizes positive externalities, such as agglomeration economies. Furthermore, it is
to ensure reaching an equilibrium in all land uses, by minimizing or eliminating land use related conflict such
as pollution and congestion (Helmsing 2001).
32
This provides basis for understanding the position of Ramafamba and Mears (2012), who are of the opinion
that the complexity of LED as a theoretical construct, requires a multidisciplinary approach to its promotion.
Urban financing is one area that is gaining traction in the development discourse. Provision of the software,
orgware and hardware require substantial investments, which justify the need for a discussion on LED
financing, as well as approaches to revenue mobilization, allocation, and utilization and to fiscal controls to
mitigate wastage. Authors such as Harvey (2003), Walker and Buck (2007) and McKinsey (2013) have all
confirmed the potential, which urban finance can have in unlocking the potentials urban areas have to promote
their own growth and development. Apart from the huge financial burden, urbanization also imposes the
additional burden of catering for the growing population in the urban centers on local authorities and city
managers (McKinsey, 2013).
Revenue mobilization by MMDAs, involves the attraction of assets to GoG, and in the process, reducing
liability or expenditure. Revenue sources include taxes, licenses, fees, and permits. Revenue mobilization is the
act of ordering, assembling, and organizing financial contributions from all incomes, amassing from identifiable
sources in the local economy. Olowu & Wunsch (2003) explain that a comprehensive revenue system for local
governments is a vital pre-condition for the success of fiscal decentralization. Oates (1998) reiterates that local
revenue mobilization has the potential to ensure political and administrative accountability when communities
are empowered to participate in the process and demand accountability from the duty bearers. A broadly
identified characteristic of local government revenue systems in Africa is, that there are numerous revenue
instruments employed by local authorities (Bahiigwa et al, 2004), yet only a few are high yielding and stable in
terms of revenue flow.
One of the major tussles that countries face in their developmental labors, is the issue of revenue generation to
fund developmental projects which are critical to enhancing the living standards of their citizens (Stren, 1998).
The concept of internally generated revenue, therefore, predates the concept of local governance itself. The
need for rigorous internal revenue mobilization by sub-national institutions has become very crucial in view of
the fact that local authorities have the duty to provide services to their respective areas of jurisdiction. Korkor
(2003) infers that funding local government development programmes in Ghana by the MMDAs, has become
increasingly challenging as a result of the incapacity of the district assemblies to mobilize “significant” revenue
from their areas of jurisdiction. Implicatively, the possible reason for this phenomenon is, that MMDAs do not
utilize a larger chunk of the funds generated from taxation due to the fact that the larger part of those funds
are remitted to the central government. In spite of the host of resources available to the various MMDAs,
optimization of revenue mobilization has suffered many shortfalls, thereby making the Assemblies more reliant
on the central government and on external funds for their development programmes.
This is in order to make the needed gains from the decentralization process, it is essential that conscious effort
is made to mobilize local revenues and strategically invest them in identified growth sectors to stimulate growth.
This evidently requires that the fiscal decentralization policy framework that gives MMDAs the right to mobilize
resources and utilize the same, is revised. This revision must make it possible for MMDAs to retain a higher
chunk of the ceded revenues. Several approaches have been used in the identification of growth sectors of an
economy. Some of these include a) the input-output matrix (Meller and Marfan, 1981), b) the input-product
matrix (García, Morillas and Ramos, 2005); and c) chains and multipliers of the input-output matrix (Hernandez,
2012 and Stanchev et al. 2013). Hernandez, Stanchev et al, have used a combination of approaches such as the
high value added, substantial inflow of FDI, rising number of employees and a growing share in the economy
in the identification of the growth sectors. Mukandila (2016) used both Input-Output Table and Social Account
Matrix. Other known methods that require relatively little data are the location quotient analysis; share shift
analysis; tress index and Herfindahl-Hirschman Index (HHI).
33
The principle underpinning the input-output analysis is, that for any given line of economic activity there is a
measurable relationship to every other industry in the economy and that these relationships can be set forth in
a series of equations. The precondition is, that for each industry or economic activity types in a locale, it is
necessary to know the value of its purchase input (such as labour, raw materials, transport) from all other
industries, or economic activity types and sectors in the economy (both inside and outside the area) and their
outputs. The input-output analysis constructs a model of the local economy, to show linkage effects between
sectors, including how spending in one sector ripples through the local economy, and hence expands its
production base and whiles creating jobs. The success with the usage of these methods hinges largely on
availability and quality of longitudinal or panel data. Location quotient, however, measures the economic or
sectorial concentration and specialization in the local economy, whereas the Herfindahl-Hirschman Index
(HHI) measures market concentration. Share shift analysis, on the other hand, measures the performance,
including employment growth of sectors in the local economy, relative to a larger reference economy, typically
the national economy.
3.3 Reasons for the increasing prominence of LED in the developing world
As presented above, approaches to LED in the context of the developing world revolve around the problems
it seeks to address. Rodríguez-Pose and Tijmstra (2005), mention the pervasive economic challenges and
poverty on the continent and the subsequent failure of central government to intervene adequately at the local
levels, as the rationale for the emergence of LED in Africa. Other authors such as Wekwete (2014) and
Akkoyunlu (2013), have listed factors including the need to: (i) ensure growth of local economies, (ii) increase
local employment and reduce unemployment, (iii) attract both local and international investment, (iv) maintain
and expand existing industries, and (v) connect to global value chains. The approach is, however, constrained
by rapid urbanization, over dependence on the informal sector, and low productivity and lack of technological
transformation. Due to inequality5, poverty and unemployment, per capita income ceased to be accepted as an
adequate measure in development terms for human development. It has been argued that the quality of human
capital (Brooks and Davila, 2002 p.156; Adato and Meizendick, 2002 p.3) sometimes referred to as “human
ware” (PORSPI 1993 p.1), is as important as techno ware (technology), info ware (information) and orgware
(organizations), when assessing the readiness of a state for any project. This evidently means, that initiators of
projects should pay as much attention to human capital or human resource development as it would do with
the adoption of new technology, information systems as well as organizational arrangements. The rationale is
that humans are at the heart of all these. An untrained and incapable human resource would not be able to
effectively deploy the technology, information system and run the project organization effectively.
From the governance perspective, the need to transfer power from government to the governed, has been
justified on the basis that through the collective efforts of local public authorities and local residents’,
programmes and projects can be initiated with the intent of addressing unemployment and poverty. This is
especially the case in African countries such as Ghana, where urban economies thrive on the operations of the
informal economy (GoG 2014). As a dominant attribute, these informal Small and Micro Enterprises employ
the majority of the youth and women, who are mostly poor and lack social protection and work in and under
poor conditions. Reversing this phenomenon, requires fashioning out strategies that target these informal Small
and Micro Enterprises. The Commonwealth Local Government Forum (2014), for instance, highlighted five
essential approaches to doing this, namely: (a) developing micro, small and medium enterprises, (b) improving
access to markets, (c) creating systems that includes the poor, marginalized and disadvantaged groups, (d)
5 It is true though, that inequality resulting from competitive private sector and markets promote growth
34
creating an enabling business environment and (e) building capacity of local actors. The benefits associated with
this approach are that it enhances the software and orgware for LED promotion.
By creating systems that provide the poor, marginalized and disadvantaged groups a say on matters that affect
them, such groups are empowered to effectively participate in governance process, and have their concerns
addressed. The process involves empowering the poor, to hold duty bearers accountable by promoting
representation of the excluded, either in local governance or promoting the participation of excluded groups in
local meetings to discuss planning, budgeting and development projects. The other dimension is, empowering
them to effectively participate in the economy through the creation of opportunities for sustained livelihoods
and economic survival. This gives meaning to the LED promotion strategy that stresses the need for vocational
training and education, job placement, client oriented job creation and job maintenance (Blakely, 1994; Oduro-
Ofori, 2011:45). This is essential, in that the skills and capabilities of a person determine the person’s level of
employability (Appeah and Ashong 2011). The basis of such training is also to impart employability skills (both
hard and soft). STEMNET (null datum) defined employability skills as “the transferable skills needed by an
individual to make them ‘employable’ “. In an attempt to identify what characteristics and skills employers look
for in engaging an employee, STEMNET came out with the following list:
1) Communication and interpersonal 2) Problem solving 3) Initiative and motivation 4) Working under pressure and meeting
deadlines 5) Organizational skills
6) Team working 7) Learning and adapting 8) Numeracy skills 9) Value for diversity and difference 10) Negotiation skills
Although the national approach to LED promotion in the past, took the form of local authorities offering
support for local agricultural development and promoting the activities of small and medium scale enterprises
(Akudugu and Laube 2013), the approach has changed very fast, and taken a national development orientation,
with emphasis shifted from rural to urban development. Under the new approach, the dominance of micro,
small and medium enterprises (MSMEs) has meant placing premium on the growth and development of the
private sector, as a vehicle to improving the overall performance of the economy, employment generation and
poverty reduction (GoG, 2014). This has been re-enforced with the formulation of the National Local
Economic Development Policy and subsequently the development of the Operational Manual on LED for
MMDAs. Both documents emphasize training and capacity building among others.
3.4 Socio-economic attributes of Asokore Mampong and Perspectives on LED a snapshot
of Asokore Mampong Municipality
The Asokore Mampong Municipal Assembly (AMMA), was carved out of the Kumasi Metropolitan Assembly
on June 29th, 2012. The creation of AMMA was part of efforts to deepen the implementation of Ghana’s
Decentralization Programme. The Municipality was established by a designated Legislative Instrument (L.I
2112). The Municipality covers a total land area of 23.91 km2 and it is located to the North-Eastern part of the
Kumasi Metropolis. The assembly shares boundaries with Kumasi Metropolitan Assembly (KMA) to the East,
South and West, Kwabre East Municipal to the North-West and Ejisu-Juabeng Municipal Assembly to the
South-East. Figure 1 depicts the broad land uses in the municipality and its geographical extent. Although an
area has specifically been zoned for commercial activities, the informal nature of businesses in AMMA makes
them rather home-based and pervasive. Thus, the High Density Residential areas on the map in fact contain
numerous businesses.
35
Figure 1: Broad Land Use Map of Asokore Mampong Municipal Assembly
Source: Adopted from Asokore Mampong Physical Planning Department, 2015
i. Population and physical attributes of Asokore Mampong
The small land mass notwithstanding, the 2010 Population and Housing Census Report estimates the
Municipality’s population at 304,815 persons (PHC, 2010) living in 10 electoral areas namely: Aboabo No.1,
Aboabo No.2, Adukrom, Akurem, Asokore Mampong, Sawaba, Asawasi, New Zongo, Sepe-Tinpom and
Akwatialine Electoral Areas. Located within the moist Semi-deciduous Ecological Zone, the municipality lies
within the plateau of the South–West physical region which ranges from 250-300 meters above sea level, with
an undulating topography. The municipality is dominated by people of northern Ghana descent.
ii. Development Goals, Objectives and Strategies of AMMA and its relevance to LED promotion
The vision of the AMMA is “to become one of the most vibrant Assemblies in the country offering businesses
and investment opportunities for private capital, and developing the human resource targeted at poverty
reduction, social harmony and economic prosperity” (AMMA MMTDP, 2015). As required by the just ended
GSGDA II (socio-economic transformation), AMMA was guided by the following thematic areas for the period
2014 - 2017 (MLGRDE, 2014): (i) Improvement of Revenue Generation; (ii) construction of office
accommodations and bungalows for the Central Administration and other decentralized Departments; (iii)
provision and Extension of Electricity Supply; provision of Potable Water and Sanitation Infrastructure; (iv)
provision of adequate Human Resource for the Decentralized Departments; (v) construction and Rehabilitation
of road Infrastructure; (vi) rehabilitation and Construction of Education Infrastructure; (vii) enhancing the
process of Food Security; (viii) improvement of Health Delivery; (ix) creation of Employment Opportunities;
and (x) the provision of ICT for Service Delivery and (x) catering for the Vulnerable and the Socially
Disadvantaged.
The municipal goal is “To enhance the socio-economic conditions of residents without compromising the welfare of the future
generation in meeting their development need, whilst increasing access to critical infrastructure such as road, education and health
etc. in the Municipality.” (AMMA MMTDP, 2015). Particularly of interest are the vulnerable groups in AMMA.
36
The intent of the above goal is to address the vulnerabilities of the groups and make their livelihoods more
resilient. Embedded in this vision and goal are the intent to promote LED, yet these appeared less well
coordinated in the Medium Term Development Plan. The reality is that if revenue is adequately mobilized by
improving the orgware, with investments well channeled into the software and hardware, then the desire jobs
will be created, the vulnerable will be cared for and the unmet infrastructural needs will be met creating further
attraction of investments and thus facilitate LED.
iii. Outlook of Population Structure
At a population growth rate of 8.68%, the population size of the Municipal was 304,815 (Ghana Statistical
Services, 2010). This figure comprised 145,779 males (47.8%) and 159,036 females (52.2%), with 100% of its
residents living in urban localities. The Municipality is therefore female dominated as could be seen in Figure
2. The population rate declines steadily from age 30 to 65+, especially in AMMA. The population density of
the Municipality stands at 12,746 persons per sq. km (304,815/23.9). This is largely due to accelerated
population growth, exerting pressure on the fixed land area. Asokore Mampong had a projected population of
431,355 as of 2014. The Municipality’s population growth rate (8.68%) is rather high compared to the regional
figure (2.7%) (GSS 2010). The age dependency ratio for the Asokore Municipality is 1:0.64, (meaning that for
every 100 people in the working population, there are approximately 64 dependents to support). This is also
relatively high compared to that of KMA (1:0.58), but lowers than that of Kwabre East District (1:0.75) and
Ejisu-Juaben (1:0.81). The population structure of the Municipality is largely workforce dominated (a huge
proportion of the population are within the working age). The benefit is, that the dependency ratio is low,
meaning lower socio-economic burden on the economically active labour force, since workers would have
relatively fewer people to care for. As is shown in figure 2, the wide bases of the population pyramids show
that all the three MMDAs have a youthful population, but AMMA clearly stands out in this respect.
Figure 2: Inter-District assessment of population structure
Source: Adapted from Ghana Statistical Service, 2010
iv. Household and Housing Characteristics
There are 72,478 households in the Asokore municipality, representing 6.44% of the (Ashanti) regional
household share of 1,126,205 households. AMMA has an average household size of 4.2 persons as per the 2010
population and housing census report, which is equivalent to the regional figure (GSS, 2010). On average, there
are four people in a household in Asokore Mampong compared to neighboring KMA and Kwabre District
which have an average of 3.8 and 4.1 persons per household, respectively. According to the Ghana Statistical
37
Service (2010), literacy rate in the District stands at 77.3%. Among the illiterate group, the majority (66.8%) of
the “non-literate proportion” are in the age cohort of 65 years and older. This means that relatively more people
are literate in the active labour age group. Comparing the population structures of the three neighbors, as
presented in Figure 2, reveals that potentially, considerable market opportunities exist within these zones, due
to the broad base of the pyramids. Simultaneously, the highly educated and youthful population favors job
creation. .
Inferring from the report of the Ghana Statistical Service (2010), there are 19,163 houses in the Municipality
and about four households per house (3.8 households per house), which is far higher than the regional (2.0)
and national (1.6) averages. Table 2 shows a comparative analysis of the housing characteristics of Asokore
Mampong Municipality and neighboring Districts. There are several types of occupied dwelling units in the
municipality, including the separate house, the compound house (rooms), as well as huts and yet other types.
Compound houses are the most commonly occupied dwelling unit, and they account for more than half (61.6%)
of the total number of occupied dwelling units in the Municipality (which follows trends at the regional and
national level in terms of housing typology). Moreover, 11.5% of the households live in semi-detached houses
(which are the second highest type of occupied dwelling units in the municipality). One striking feature about
housing in the Municipality is the dual role a house plays as a place of abode and a place of work, as there are
many home-based economic activities in the Municipality (meaning the map being used by AMMA in Figure
1 does not reflect the current land uses patterns. Especially the High Density Residential areas on the map in
fact contain numerous businesses.
Table 2: Housing Characteristics of Asokore Mampong and Neighboring Districts
CATEGORIES ASOKORE MAMPONG
KMA KWABRE EAST
EJISU-JUABEN
Total population 304,815 1,730,249 115,556 143,762 Number of houses 19,163 148,413 13,022 17,994 Number of households 72,478 440,283 27,122 33,078 Average Households/house 3.8 3.0 2.1 1.8 Population/house 15.5 11.7 8.7 7.8 Average Household size 4.1 3.9 4.2 4.3
Source: Ghana Statistical Service, 2010 Population and Housing Census
v. The Dual Urban Economy
An occupation is an activity that serves as one’s
regular source of livelihood. The term ‘Livelihood’ has
been defined as the combination of assets, capabilities
and activities available for making a living (Brooks and
Davila, 2002; Adato and Meizendick, 2002). While an
employment opportunity involves one household
member applying his knowledge, skills and abilities for
income (wage or salary); livelihood involves different
members of households exploiting different assets,
capabilities and activities in different proportions at
different times of the day, season or year to make a
living. People in the Municipality are basically
involved in service and sales industry and managerial
works; craft/related trades, elementary occupation, plant/machine operators, professionals, skilled agricultural
Table 3: Employment and livelihood activities of households in AMMA
Employment/ livelihood Population (%)
Service and commerce workers 36.0
Craft/related trades workers 27.1
Elementary occupations 14.2
Plant/machine operators 7.2
Professionals 5.7
Skilled agricultural/ forestry/fishery workers
1.9
Clerical support workers 1.9
Source: AMMA MMTDP, 2015
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forestry/fishery workers and clerical supports (AMMA MMTDP, 2015). Tables 3 and 4 present the
breakdown of the employment and livelihood activities and its gender dimension.
vi. Segregation of Economic Activities
The Commercial sector employs the highest
proportion of the working population. It consists
of an integrated system of markets, financial
institutions, wholesalers/retailers, airlines and
transportation businesses, and hotels/restaurants,
among others. The manufacturing industry ranks
as the second highest employer, and consists
mainly of pharmaceutical companies. Among
them are Trade Winds Chemist Limited, Kojach
Pharmaceutical Limited and Shalom
Pharmaceutical Limited (MLGRDE, 2014).
Agricultural/forestry and fishing employ the least
of the labour force.
The 2010 Population and Housing Census provides information on the number of people aged 12 years and older, who owned a mobile phone and/or who have access to internet facilities, differentiated by gender. The total percentage of persons aged 12 years and older who owned mobile phones was 68.0 % as of 2010. Out of this figure, more males (73.4%) own mobile phones than females (63.4%). Regardless of the gender disparity in mobile phone ownership, the phenomenon bodes wells for increased financial inclusion. The reasons are not farfetched: unlike the banks (that require costumer’s address and certain personal data before signing on a client to financial services), with mobile banking; one needs just a handset and sim card registration. The improving internet penetration also makes the promotion of online businesses and marketing another promising area.
Agricultural activities in the Municipality are mainly crop farming, backyard farming and livestock/poultry
farming. Cultivation is limited to staples like maize, leafy vegetables, cassava and plantain. To access land,
farmers cordially negotiate with the landowners either verbally or in writing (AMMA MMTDP, 2015). Most of
the lands which were used for agriculture, have been converted for residential, industrial and commercial use.
The land left for agriculture is therefore currently less than 1% of the total land area. Farmers now cultivate on
building plots which have not yet been developed (AMMA MMTDP, 2015). There are also several food
processing groups, involved mainly in groundnut paste and gari, which can be spotted at Akwatialine, Akorem,
Moke and Sawaba (MLGRDE, 2014).
Livestock, including sheep, cattle, goats and pigs, is scattered over the metropolis. Animal rearing is a major
source of income to a section of the AMMA populace. Most farmers concentrate on fattening of cattle for the
Kumasi cattle market and the Kumasi abattoir at Kaase. Sheep and goats are reared as backyard activities by an
estimated 1200 livestock farmers. Poultry production is very low in the municipality but there are few farms in
the municipality, including Alhaji Anarfo Sakpare farms, with a stock population of 15,000 birds and 23 cattle
(located at Sawaba) and Akologo Prosper Tambire farms-31 pigs (located at Kontonpo) (AMMA MMTDP,
2015). The Municipal Agricultural Office has a total staff strength of eight, made up of 2 Agricultural extension
agents (AEAS), 4 Municipal Agricultural officers, a veterinary officer, the Municipal Director of Agriculture
and one Administrative staff (MLGRDE, 2014).
Table 4: Gender dimension to the various employment and livelihood activities
Employment/Livelihood Males (%)
Females (%)
Managers 3.3 3.5
Professionals 7.1 4.3
Technicians and associates 4.1 1.1
Clerical support workers 2.4 1.5
Service and sales workers 20.7 51.5
Skilled agricultural workers 2.3 1.4
Craft and related trades workers 37.1 17.1
Plant/ machine operators 13.9 0.4
Elementary occupations 9.2 19.2
Other occupations 0.0 0.0
Total 100 100
Source: Ghana Statistical Service, 2010 Population and Housing Census
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There are basically four main markets in the District namely: Asawase market, Aboabo Market, the timber
market at Akwatialine and the Yam market near Kontoponiafere. Asawase market is a very busy market and
the hub of kola nut and maize in the Ashanti Region, serving the Municipality as well as other neighboring
Assemblies. The Asawase market is a key source of revenue for Asokore Mampong Municipality. Established
two years ago, it covers about 4 acres of land, and it is one of the biggest yam markets in the Ashanti region
that supplies quality yam to restaurants, hotels as well as individual consumers (AMMA MMTDP, 2015).
vii. Vulnerability in AMMA
The vulnerable groups in AMMA include households or individuals, who, when affected by physical and/or
emotional injury, are liable to succumb to irrecoverable levels. They include trafficked children, child laborers,
prostitutes, street workers, and some physically challenged persons (MLGRDE, 2014). Vulnerability issues in
AMMA include truancy, school dropout, child abuse, child labor, high crime rate, drug abuse, broken homes,
teenage pregnancy, child prostitution, domestic violence, and single parenthood. Factors leading to vulnerability
range from the risk of incarceration to death and the negative outcomes tend to affect the larger society (AMMA
MMTDP, 2015).
About 34.6% of the children are orphaned. AMMA has an orphanage home, which caters for children in such
category (GhanaDistricts.com, 2014), although the capacity of the orphanage falls far short of the number of
children needing the service. Also, child abuse, child labor and child trafficking are issues in the Municipal
because, parent use children in generating income to finance household needs. Children do engage in economic
activities such as sale of water, toffees and other groceries in the Municipality (AMMA MMTDP, 2015),
frequently at the expense of going to school. The Kayaye youth are an example in case.
According to Population and Housing Census (GSS, 2010), up to 3% (2.8% male, 3.1% female) of the
population of AMMA has one form or another disability relating to impairments, which may be physical,
cognitive, mental, sensory, or emotional. The total proportion of disabled persons with sight/visual impairment
is 31%, followed by physical impairment (19%) and Emotional impairment (13%). Hearing and speech disability
accounts for 10 percent of the types of disability in the Municipality, with intellectual disability being the least
(8%) (GSS, 2010).
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CHAPTER FOUR
4 PROMOTION OF LOCAL ECONOMIC DEVELOPMENT (LED) AND YOUTH
EMPLOYABILITY IN THE ASOKORE MAMPONG MUNICIPALITY (AMM), IN
KUMASI, GHANA
This chapter has been organized under three sub sections: Section 1 covers Youth Employment and Economic
Growth of Asokore Mampong Municipal; Section 2 covers the Growth Sectors of AMMA and the role of
private sector in job creation; whiles Section 3 handles the NBU Project Baseline, Monitoring and Evaluation
matters.
4.1 SECTION 1: Youth Employment and Economic Growth of Asokore Mampong
Municipal
This section presents the analysis of the data gathered from the study and the findings made. This chapter has
been organized along the lines of the study objectives.
4.1.1 Internal and external factors influencing the economic development of AMMA In order to identify the internal and external factors that promote or militate against the economic development
of Asokore Mampong Municipality Assembly (AMMA), an environmental assessment was done. The
environmental assessment sought to examine both the external and internal environments of AMM for LED.
It helps to provide useful insights into how some key environmental factors could affect the Local Economic
Development (LED) programme in Askore Mampong Municipal Assembly (AMMA) during the four-year
medium term planning period. Under the general environment, the opportunities and threats associated with
the political, economic, social, technological, physical environmental and legal (PESTLE) factors were assessed
and the strategies either for exploring the opportunities or mitigating the threats proposed.
i. Political Environment
Ghana's participatory democracy and local governance have come of age, having gone through seven successful
elections (in 1992, 1996, 2000, 2004, 2008, 2012 and 2016). The peaceful nature of the 2016 election sets the
stage for the business community to flourish in Ghana, for NGOs to continue their activities, and for LED
activities to thrive over the medium to long term. In the wake of the favorable political environment, is the
global shift in paradigm aimed at departing from the ‘business as usual’ approach to handling national and local
development. The clarion call is for nations to put away their unproductive and inefficient ways of doing things.
The following are the opportunities and threats, as well as some strategies that can help to improve the political
milieu of AMMA for LED promotion:
41
Opportunities Threats Strategy for exploring the
opportunities or mitigating the
threat
i. Ghana has a stable democracy and AMMA (where a LED programme is to be implemented) is peaceful for business to thrive.
i. AMMA is on the conflict map of Ghana and noted for election related conflicts
i. Promote on-going peace-building activities in AMMA to ensure that conflicts are resolved before they get out of hand.
ii. Ghana’s democracy provides for citizen representation at the local level, the poor and vulnerable can thus be represented.
ii. The elected representatives do not provide the needed feedback to their constituents.
ii. Institute public accountability systems that make elected representatives more accountable to their electorates
iii. There is the strong political will to strengthen MMDAs to roll out initiatives for youth employment.
iii. Political polarization in AMMA can compromise objectivity, effect efficiency of work and stifle development.
iii. Decouple politics must be from developmental initiatives and consensus building must be used as an approach to making development decision.
ii. Economic Outlook of Ghana
In five consecutive years, Ghana’s GDP growth rate fell from 14% in 2011 to 3.3% in 2016 (GSS 2017). The
stagnation in the GDP growth rate led to the implementation of tight fiscal and monetary policies within the
context of the International Monetary Fund (IMF) and its Extended Credit Facility (ECF), and other oil
production related issues. Growth was, however, projected to recover to 7.1% and 8.0% in 2017 and 2018
respectively, on the assumption that energy supply and productivity of oil and gas would stabilize. Of course,
the macro economic conditions at the national level ultimately affect the local economy.
The 2017 budget and the projections for 2018 provide for initiatives such as the new Free Senior High School,
the National Industrial Revitalization Programme with a stimulus package for industry, the National
Entrepreneurship and Innovation Plan (NEIP), and the 1D1F initiative, to promote industrialization from the
bottom up and ease pressure on the grassroots. Although these are positive forces for AMMA’s development,
there are also threats that can potentially militate against AMMA in her quest to capitalize on these fortunes.
Below is a presentation of a few.
Opportunities Threats Strategies for exploring the
opportunities or mitigating the
threats
i. Ghana still remains an attractive destination for development partners and actors who are interested in financial inclusion.
i. Crime rate and vigilantism is rising in Ghana that could affect investor confidence and economic activities.
i. Enforce law and order, promote community policing and rebrand the image of AMMA as a safe investment destination are critical.
ii. There is a potentially large market for enterprises in AMMA due to proximity to KMA.
ii. Young entrepreneurs may not be able to produce high quality products to meet the quality
ii. Train young entrepreneurs on high quality standards and standardize the processes used in the development of products.
42
Opportunities Threats Strategies for exploring the
opportunities or mitigating the
threats
standards and taste of urban consumers.
iii. Key enterprises such as the Kumasi Abattoir, the Kumasi Central Market, and the Suame Magazine depend on AMMA for labor force.
iii. There is high graduate unemployment.
iii. Re-train and rebrand unemployed graduates to make them more employable as well as support young graduate to start their own enterprises.
iv. AMMA is surrounded by KNUST, the Kumasi Polytechnic and the Kumasi Technical Institute. These institutes guarantee highly skilled labour and provide an avenue for training.
iv. Some of the institutions have production units which can potentially compete with the graduates they train. For example, KTI has a very good car spraying and body works workshop that serves the general public.
iv. Take advantage of their proximity to these institutes of higher learning to re-train, innovate and re-engineer production processes and re-tool to make them more employable and competitive.
v. There is cheap labor in AMMA. v. There are currently too many low value jobs in AMMA.
v. Adopt the value chain approach to production and marketing of products and innovation can create high value jobs.
vi. AMMA has capacity to handle certain business spillovers from Kumasi due to overcrowding.
vi. Raising the needed capital to set up businesses can be a real challenge
vi. Pursue partnership with Civil Society Organizations to create social businesses and leverage private sector capital through PPP arrangements.
vii. The One District One Factory (1D1F) and the Planting for Food and Jobs (PFJ) initiatives of GoG are all geared towards youth employment and local economic development.
vii. Skills required for the preparation of bankable business projects that might attract funding supported by 1D1F are either low or non-existent. Private sector operatives may not also be ready to pre-finance business plan development.
vii. Encourage private sector operatives to pre-finance business plan development for the 1D1F initiative and mobilize experienced consultants to compile potential business ideas into bankable business plans
iii. Social Environment
Out of the total number of migrants in AMM, about 44,887 migrants (constituting 40.5%) were born elsewhere
in the Ashanti Region while 3,519 migrants (or 3.2% of the total) are people born outside the country. Among
the migrants from other regions into the Municipality, Northern Ghana alone has about 26.2% (combining
16.0% from Northern and 10.2% from Upper East) and 6.7% from the Central region (6.7%). The figure from
Northern Ghana would even be higher when Upper West region is added.
43
Opportunities Threats Strategies for exploring the
opportunities or mitigating the
threats
i. Literacy rate among the youth is high.
i. Some among the literate youth do not have employable skills needed by employers.
i. Provide business skills development training for the relatively higher literate youth who are unemployed and promote on-the-job training for employed youth.
ii. The high influx of people into AMMA provided market opportunity for businesses as well as cultural diversity and social inclusion.
ii. There are evidences that point to a rise in congestion related diseases in the municipality. There is also the risk of the spread of deviant behavior. The recent H1N1 outbreak in an SHS in AMM which killed some students testifies to the congestion related diseases.
ii. Incentivize the housing market to deliver housing to improve living conditions in AMMA as well as embark on social marketing for the adoption of development oriented culture and attitudes.
iii. Women mostly are engaged in petty trading and agro-processing activities which are home based.
iii. Home based enterprises lack physical space to expand, and have negative effects on the quality of residential living conditions.
iii. Provide support services to move enterprises from homes to centralized workplaces for easy tracking and revenue mobilization.
iv. Women are better at forming groups.
iv. Compared to their male counterparts, women have least access to financial capital.
iv. Encourage group formation to increase social collateralization and facilitate women access to microfinance and business development services.
iv. Legal and Regulatory Environment
Ashanti Region in general, is an area where people have confidence in the legal system. In many conflict
situations, the traditional authority had insisted and assisted the security apparatus to maintain peace, law and
order. People would often not take the law into their hands but would rather seek redress at the courts. The
inhabitants of AMMA have learned from them, despite the fact that many originate from other areas, especially
the three northern regions of Ghana, where armed conflicts and tribal wars have been rampant, which totally
contrasts the situation in AMM.
As a body corporate with perpetual succession, AMMA was created under the Government’s Decentralization
Programme in 2012 under Legislative Instrument (L.I) 2112 on June 29, 2012, with Asokore Mampong as its
capital. The municipality has the mandate to exercise political and administrative powers; to promote local
economic development and to exercise legislative, deliberative and executive powers as per the provisions in
the section 12 of the Act 936 (2016).
To facilitate the effective functioning of its political space, AMMA is required among other things to (i) initiate
programmes for the development of basic infrastructure and provide municipal works and services in the
municipality; (ii) see to the development, improvement and management of human settlements and the
environment in the municipality; (iii) formulate and execute plans, programmes and strategies for the effective
mobilization of resources necessary for the overall development of the district; and (iv) remove any obstacles
44
to initiatives and development through the promotion and support of productive activity and social
development in the municipality.
Opportunities Threats Strategies for exploring the
opportunities or mitigating the
threats
i. AMMA is legally mandated to mobilize revenue, license business operations, administer fines and work with the law enforcement agencies to provide a smooth work environment.
i. Most enterprises are micro, informal and not registered.
i. Incentivize businesses to willingly comply with business operation regulations and collaborate with law enforcement agencies to regulate enterprises.
ii. Private enterprises are numerous in AMMA
ii. Enterprises are scattered, home based, and difficult to track and regulate.
ii. Form groups and networks of enterprises such as the hair dressers and beauticians associations, auto-mechanics associations, and spare part dealers associations to facilitate self (peer) regulation of members.
iii. The NBU initiative has high prospects of helping AMMA develop capacity for LED promotion
iii. AMMA has not been effective at promoting businesses and eliminating bottlenecks to business growth and overall development by facilitating the provision of business support services.
iii.Take advantage of the NBU initiatives to create opportunities for business survival and growth through the provision of high quality business support services that enhance business growth, such speedy processing of permits and necessary paperwork, etc.
v. Technological Development
The role of Information and Communication Technology (ICT) in national development cannot be downplayed. Over the years, the access and use of ICT has increased in Ghana and is clearly visible also in AMMA. According to GSS (2014) mobile phone ownership stood at 68% (148,286 persons). It should be noted that this figure does not take into account the number of mobile phones an individual owned. Although internet use was 9.8% (meaning one in ten persons has access to mobile internet), it was also identified that there were as many as 6394 desktops and laptops owned in AMMA. This is exclusive of the many other businesses that make use of ICT equipment such as mobile money merchants; photocopier operators; graphic designers and the betting and gaming centers that operate in AMMA. One area where the adoption of technology is becoming increasingly popular is the garages and automobile sub-sector. Rapid changes taking place in the automobile sector has resulted in the widespread adoption of auto-electronics. This has challenged the youth to acquire skills in the use of auto diagnostic kits.
45
Opportunities Threats Strategies for exploring the
opportunities or mitigating
the threats
i. There is widespread adoption and use of ICT for business purposes in AMMA.
i. Rampant fire outbreaks in homes and work places threaten the full adoption of ICT by businesses due to the risk of losing their investments.
i. Educate households and businesses on fire safety regulations and the application of fire safety knowledge in day to day living.
ii. Households in AMMA are already familiar with the use of ICT for social purposes.
ii. Some households and especially businesses have not fully deployed ICT because they do not have enough money either to acquire ICT equipment or to continuously upgrade due to rapid changes in ICT systems and their applications.
ii. Encourage households and businesses to deploy ICT in their business operations by going for functional yet affordable ICT options.
iii. There is some level of internet connectivity and use in AMMA.
iii.Internet scams are a threat to web based businesses
iii. Sensitize households and businesses on internet scam and training them on internet security and safety.
iv. Mobile phone ownership and access is increasing over the years.
iv. Revenue collection by AMMA
makes little use of ICT and digital
applications.
iv. Take advantage of the internet connectivity and mobile phone use to digitize revenue mobilization.
vi. There is an increase in demand for money transfer services.
vi. Business owners have difficulty
walking into AMM’s offices to pay
fees and businesses charges.
vi. Create a dedicated line for the receipt of fees and businesses charges.
iv. There are numerous skilled artisans, fabricators, industrial machine operators, auto mechanics and auto electrician in AMMA who have acquired skills especially in auto diagnosis.
iv. Graduate apprentices face difficulty finding land on which to set up and practice their trade.
iv. Collaborate with traditional authority to make land available for master apprentices to establish enterprises after graduation.
v. Auto-mechanics easily divert to taxis, trotro buses, and tricycles drivers.
v. Most motorbikes and tricycle drivers are not licensed and do not fully comply with safety protocols.
v. Introduce and enforce standards in the motor and tricycle business to ensure safety of users.
vi. Energy from the national electricity grid has stabilized.
vi. The energy situation could revert back to the previous unstable nature.
vi. Make provision of alternative energy sources to ensure stability in energy supply.
vi. Physical Environment
The physical environment comprises the developed and undeveloped areas. The developed areas consist of the housing areas as well as the work and recreational areas. The undeveloped areas are zoned for use, but are yet
46
to be developed. Housing is the most visible component of the built-up area. According to GSS (2014) the total housing stock is 19,163. There is congestion in communities such as Asawase, Akwatia line, New Zongo, and Aboabo. The environmental conditions are appalling and service levels in these areas are usually stressed and poor in nature. Although the number of houses in the municipality offers prospects for revenue mobilization by way of property taxation, the quality of the structures, service levels and environmental conditions tend to affect their values. Within the residential areas home based activities are a common sight. These take the form of backyard agriculture in the form of animal raising, preparation of food for vending, dressmaking, among others. The area has been opened up such that mobility is highly enhanced. Undeveloped areas are usually put under urban agriculture where crops such as cabbages and carrots (just to cite a few) are cultivated. The inadequacy of waste management infrastructure makes waste a problem for most of the settlements in the Municipality.
Opportunities Threats Strategies for exploring the
opportunities or mitigating
the threats
i. Proximity of AMMA to the Kumasi Abattoir and the high human capital of the residents of AMM in animal rearing make the raising of livestock a business opportunity.
i. Raising livestock in the built up areas can affect livability as it can causes nuisance
i. Promote but regulate livestock fattening and supply to the Kumasi Abattoir.
ii. Sunny and suitable environment in AMM makes sun-drying of produce and primary and secondary processing of food a good business opportunity.
ii. There is the high possibility of contamination with smoke, dust and foreign materials as a result of uncontrolled burning of refuse in AMM
ii. Promote primary and secondary food processing enterprises by setting high hygiene and safety standards for all food processing activities.
iii. Many residents in AMM use their living spaces also as work spaces thus making optimum use of rent paid.
iii. Inadequate land availability especially in the built-up areas has implications for the expansion of businesses.
iii. Prepare and implement a redevelopment plan that promotes but regulates mixed use development and home based activities.
iv. The high demand for rented housing and spaces makes investment in housing and property in general a viable business opportunity in AMM.
iv. Unplanned and unregulated conversion of housing to commercial uses, poor quality of housing structures, low level of maintenance and low urban service levels affect property values.
iv. Promote housing re-development and upgrade rundown areas by providing water and sanitation services and improving the general environmental conditions in the built up areas.
vii. Revenue Environment
To meet the increasing needs of the Municipality, revenue mobilization, allocation and utilization are crucial.
This however hinges on the size of the revenue base. The increasing population, the high rate of business
startups and the housing stock provide potential for revenue mobilization. Unfortunately, the low survival rates
of businesses startups and the low property values tend to affect the volume of revenue realized. This has partly
been blamed on the absence of fiscal cadaster, poor revenue projections and inefficient revenue mobilization
47
system. This is compounded by the low willingness to pay on the part of businesses and households due partly
to poor delivery of public goods. The low revenue performance has also been blamed on low public awareness,
low public involvement in revenue allocation and the inability of the public to hold duty bearers accountable
for their actions. For the amount that is mobilized, there is also evidence of leakages owing partly to the poor
revenue monitoring systems.
Opportunities Threats Strategies for exploring the
opportunities or mitigating the
threats
i. AMMA has a great potential for increased revenue mobilization especially from property taxation.
i. Revenue projections are not based on realistic and accurate information.
i. Update the tax roll and developing a database on all productive revenue items to help with revenue projection.
ii. The stock of housing and commercial properties in AMM are increasing over the years.
ii. Property valuation is not frequently done making it difficult to accurately project revenue especially property tax.
ii. Engage land economists and valuers being trained at KNUST to re-value properties in AMMA.
iii. The legal framework on local governance provides for citizen’s involvement in the determination and fixing of fees and rates.
iii. There is still low participation and involvement of citizen’s in the determination of fees and rates.
iii. Improve the participatory budgeting process and deepen the level of citizen’s involvement in the fee fixing process.
iv. Internally Generated Fund still remains an important revenue source for local level financing
iv. There is low level of awareness on the use of internally generated funds.
iv. Improve social accountability systems and increase transparency in revenue allocation.
v. The growth and expansion of the informal sector offers prospects for widening the tax base.
v. Informal economic activities are not registered and scattered, there is also high revenue leakage due to poor monitoring systems.
v. Register informal businesses and digitize the revenue system to improve mobilization and monitoring to reduce revenue leakage.
vi. There are NGOs and NCCE who can help in sensitizing communities about their civic rights and responsibilities.
vi. NGOs have weak capacity; NCCE is under re-sourced to effectively carry out their mandate.
vi. NCCE and NGOs should be supported to work together to sensitize communities on the use of mobilized revenue.
vii. There is redevelopment and conversion of residential properties in AMMA into mixed use development.
vii. Land uses in peri-urban and rural areas of AMMA are fast being converted into other developments and uses.
vii. Prepare and implement land use plans that guide the use of land and overall spatial development.
viii. There is an increase in the number of business startups in AMMA.
viii. Capital acquisition for start-ups, especially land is very costly and prohibitive
viii. Work with traditional authorities and land owners to make land acquisition easier for young entrepreneurs.
viii. Private Sector, NGOs and CSOs
According to the Regional Spatial Business Report (2014) Asokore Mampong Municipal has over 5100 business
establishments, engaged in industrial, commercial and other activities. Their size ranges from large to micro
enterprises. Unfortunately, private sector has largely failed to effectively carry out corporate social responsibility.
Although the number of NGOs and CSOs number a few 100s, their survival and areas of focus are blurred as
48
many of them try to do too many things for survival. Among these NGOs and CSOs are those that have been
operating in their respective areas for many years hence have gained a lot of experience.
Opportunities Threats Strategies for exploring the
opportunities or mitigating the
threats
i. There are a number of businesses in AMMA such as Trade Winds Chemist Limited, Kojach Pharmaceutical Limited, Shalom Pharmaceutical, SIS engineering, and TELCOs. These can collaborate with AMMA in the creation of job opportunities.
i. Most of the enterprises mostly employ highly qualified youth.
i. Support youth to get employable skills that meet the requirements of the private sector enterprises
ii. The presence of financial institutions such as Asokore Mampong Rural Bank, Assemblies of God Cooperative Credit Union among others provides an avenue for businesses to access credit.
ii. In order to qualify for a credit facility from these institutions, the cooperative credit unions require membership whereas the Rural Banks require the opening of an account with them.
ii. Provide financial literacy to youth groups to enable them to develop a savings culture to qualify for loans from the Credit Union and the Rural banks.
iii. There are strong NGOs experienced in working with both Christian and Muslim g
iii. Ashanti Regional NGOs (ASHANGO) is not as vibrant as it should be making it less
iii. Strengthen capacity of ASHANGO to become a strong partner of AMMA.
iv. Ashanti Regional NGOs (ASHANGO) is hosted in the municipality.
iv. The low level of involvement of NGOs and FBOs in urban governance issues.
iv. Build capacity of NGOs and FBOs in governance issues and explore strategic partnerships and collaboration with identified Private Sector Institutions.
v. The private informal sector is very vibrant and a major employer of the youth of Asokore Mampong.
v. The private informal sector is not strongly organized and lacks the resources to expand participation in public-private- partnerships.
v. Foster collaboration with financial service providers to improve financing of the private sector.
vi. There are strong Christian,
Muslim and Traditional Authority.
vi. Consensus building among Christian, Muslim, and traditional authorities require special skills which CSOs in AMMA may not have
vi. Collaborate with faith based organizations and skilled consultancy firms to provide employable skills to youth groups.
4.1.2 Promoters of youth access to the labor market
The objective of the survey was to reach a “reasonable” proportion of the disadvantaged youth (using the sample
size) and ascertain from them directly (“at first hand”), factors facilitating their access to the labour market,
particularly in relation to skills and training needs of the private sector. Against this backdrop, sampled
respondents were interviewed through both probability and non-probability sampling methods. In the stance
of the regular youth, random sampling was adopted whereas the other vulnerable groups (marginalized, physically
challenged etc.) were selected using purposive and in some instances snowball sampling technique. A total of 107
49
males and 112 females were interviewed; representing 49% and 51% respectively of the distribution. The figure
3 depicts the age and sex distribution of the respondents.
Figure 3: Population pyramid of respondents
Source: Field Survey, 2017
Some 20% of the respondents were married whereas nearly 30% of the respondents (whether married or not) had
children. The ages of respondents ranged between 18 to 35 years, the average age of respondents being 24 years
(SD=4.1). The survey further revealed that, for every 100 youth in the Municipality, 4 had never been to school
(Variance=0.98). The study also identified that, 60% of the youth segments who had never been to school were
females, whereas the remaining 40% were males as depicted by Table 5.
Table 5: Cross-tabulation of gender and level of education attainment
Gender Total Male Female
What is your level of education? Primary
18 15 33
Junior High School 44 39 83
Senior High School 34 42 76
Tertiary 5 12 17
Never 4 (40%) 6 (60%) 10 (100%)
Total 105 (47%) 114 (53%) 219 (100%)
(Source: Field Survey, 2017)
A correlation coefficient of 0.12 showed that there is weak positive relationship between ones gender and the level of educational attainment. The, young women are slightly less educated than young men. However, a significant proportion of the youth had attained Junior and
Figure 4: Level of Educational attainment of the Youth in AMMA Source: Field Survey, 2017
Primary15%
Junior High School
38%
Senior High School
35%
Tertiary8%
Never4%
50
Senior High School levels with comparative shares of 38% and 35% respectively as shown in Figure 4.
4.1.3 Employment and Income Matrix
The survey revealed that, employment rate among the youth interviewed stood at 85% this puts the
unemployment rate at 15%, with sub-stratification of sales, artisanry and service related employments
constituting the highest employment rate (principal amongst them were sales and commerce, drivers, mechanics, tailoring,
head porting and shoe making). As presented in table 2, a cross-tabulation of gender and unemployment revealed
that male and female unemployment rate stood at 53% and 47%, respectively, amongst the unemployed cohorts
(15%). However, a bivariate regression analysis (R²=7%) shows that gender does not substantially affect
variations in unemployment among the youth in the Municipality (r=0.36).
Table 6: Cross-tabulation of gender and unemployment
Are you unemployed? Total (%)
Yes No
Gender Male 17 90 107 (49%)
Female 15 97 112 (51%)
Total 32 (15%) 187 (85%) 219 (100%)
Source: Field Survey, 2017
It was further revealed, that the average monthly income of youth in the Asokore Mampong Municipality was
GH₵342 per youth (US$78); which translates into an average annual income of GH₵4,098 per youth (US$910).
Indicatively, earnings of GH₵1,800 (as the 25th percentile) and GH₵5,850 (as the 75th percentile) of the
average annual incomes of the youth, clearly shows a fair-mix of income diversity in the Municipality. Although
the survey recorded minimum and maximum average monthly incomes of GH₵30 and GH₵3,000 respectively,
a Gini coefficient of 24%, clearly shows a fair-mix of income diversity in the Municipality. Although the survey
recorded minimum and maximum average monthly incomes of GH₵30 and GH₵3,000 respectively, a Gini
coefficient of 24% shows a rather low level of income inequality amongst the youth in the Municipality as
shown in figure 5.
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Figure 5: Lorenz curve and Gini co-efficient index Source: Constructed and calculated from field data, 2017
The study revealed that, head porters received the least share of incomes (GH₵30 per month) as against
vehicle drivers who receive the highest share of incomes (GH₵3,000/per month). Table 7 shows the
distribution of income amongst the various employment types of youth.
Table 7: Type of employment and Income share Type of Employment Income share (per
month) Type of Employment Income share (per
month) Aluminum Fabricator GH₵ 650 – 1,200 Metal Works GH₵ 200 – 700
Bakery GH₵ 150 - 500 Mobile Money Agent GH₵ 200 – 250
Beautician GH₵ 250 Nursing GH₵ 1,800
Boutique GH₵ 200 Plumbing GH₵ 200 – 250
Carpentry GH₵ 500 – 1,000 Provision Store GH₵ 100 – 300
Conductor GH₵ 300 Repairer GH₵ 150 – 250
*Driver GH₵ 700 – 3,000 Sales Agent GH₵ 50 – 600
Electrician GH₵ 150 - 400 Seamstress GH₵ 100 – 750
Food Vendor GH₵ 100 - 300 Shoe Making GH₵ 100 – 400
Hair dressing GH₵ 300 - 600 Teaching GH₵ 250 – 600
*Head Porter GH₵ 30 - 150 Tricycle Driver GH₵ 150 – 800
Marketing GH₵ 800 Water Distributor GH₵ 200
Masonry GH₵ 300 – 1,000 Welder GH₵ 450
*Representing highest and lowest income segments of employment type
Source: Field Survey, 2017
It was also revealed that, for the unemployed youth in the Municipality; the average duration for which they
remained unemployment was 24 months (skewness=2.85) with the minimum and maximum duration of
unemployment ranging between 2 to 120 months in extreme cases. This is perhaps corroborated by 31% of the
youth in the Municipality; who said they have challenges accessing the job market. These challenges according
to the youth in no particular order include:
i. Inadequate financial capital to start-up business;
52
Vulnerability issues ( those who were amputated or had ambulatory challenges); Discussion on vulnerability
with focus groups revealed that apart from receiving the lowest income, female head porters fell victim to sexual
exploitation and sometimes their hard earned money got stolen in the process. They also faced the risk of
contracting sexually transmitted diseases. At times the young women got pregnant on the streets and gave birth
to children, who grow up in the streets, further compounding their vulnerability. Cattle dealers also have their
own challenges of having to sell their animals on credit to merchants and wait painfully for one or two months
after their animals have been slaughtered and sold, before they get paid. Drivers and tricycle operators
sometimes fall victim to law enforcers and have to use savings made over many days to settle fines. Other street
workers, such as truck pushers, and bagged water sellers (panin de panin) were pushed out of business by
innovative technology- tricycles and sachet water respectively.
ii. Lack of skills and expertise – (hard skills required by private sector and soft skills);
iii. government policy constraints – (ban on public sector employment);
iv. Low level of education – (those who sought formal sector employment but had little education and
formal skills);
v. Seasonality and instability of markets – (mostly artisans such as plumbers and masons etc.);
vi. Non-availability of jobs in the Municipality; and other extrinsic factors.
4.1.4 Accessibility to the Job Market With a Pearson’s bivariate correlation coefficient of 0.13, the survey revealed that there is a positive relationship
between the level of education of an average youth in the Municipality and the potential challenges they face
accessing the job market (Sig=15%). Interpolating a linear regression on these two variables showed that, the
level of education of a youth in AMMA accounted for 46.4% of the variations in the challenges a youth had
accessing the job market. In other words, close to half of the reasons why a young person would not get a job
in AMMA could be explained by not having the requisite educational qualification. A cross-tabulation of the
variables, however, revealed that; a good proportion of the youth who faced challenges accessing the job market
were those whose education halted at Junior High School level as shown in Table 8.
Table 8: Cross-tabulation of level of education and challenges to accessing the job market
Do you have any challenge accessing the job market?
Total
Yes No
What is your level of education? Primary 7 16 23
Junior High School 28 41 69
Senior High School 17 41 58
Tertiary 5 10 15
Never 0 3 3
Total 57 111 168
Source: Field Survey, 2017
Effort was made to probe further, and to establish if there was any relationship between the level of education
of youth and income earning capacity. The analysis revealed that, there is a weak relationship between the level
of education of the youth and the amount of income earned (correlation=0.07). This weak relationship was
confirmed and validated by a bivariate regression analysis; which showed that, a change in the level of education
of the youth does not significantly affect the amount of income (R²=0.5%).
53
In the bid to ascertain gender-based challenges of accessibility to the market, it was realized that out of the 31%
of the entire youth who faced challenges in accessing the market, the gender share was 43% and 57% for the
masculine and feminine respectively. This means that for every 10 persons who faced a challenge accessing the
job market 6 were females. Probing further to identify the particular challenges faced by each gender, it was
identified that the challenges of the women inclined more towards lack of experience, opportunity and level
of education whereas that of the males were mostly related to lack of start-up financial capital and non-
availability of jobs. Table 9 reveals that women were more likely to face challenges accessing the job market
than their male counterparts.
Table 9: Cross-tabulation of gender and challenges to accessing the job market
Do you have any challenge accessing the job market?
Total
Yes No
Gender Male 25 (43%) 57 (51%) 82
Female 32 (57%) 54(49%) 86
Total 57 (100%) 111 (100%) 168
Source: Field Survey, 2017
4.1.5 Trade Certification and Employability Skills The survey revealed that nearly 65% of the youth interviewed have learnt at least one trade (and 22% of this
fraction had learnt more than one trade in their lifetime). The majority of these trades learnt pertained to service
and artisanry works (examples are barbering, baking, beads making, bread making, beautician, carpentry, dress making,
decoration, electrician, masonry, bus conductor, shoe and slippers making, mechanic, plumbing, welding, among others). It was,
moreover, identified from the survey that, the aggregated mean duration for learning these trades was 12
months; with the minimum and maximum durations ranging from between 1 month to 5 years (SD=8.8).
According to indications from the youth, the duration for learning these trades were contingent on the
individual’s determination, creativity, level of understanding, skills, adaptability, financial factors, input
materials, complexity of the trade dynamics and other factors.
A fact worth noting is that, a little over 6 out of every 10 youths who learnt one or more of these trades did
not graduate. The variety of reasons assigned for this phenomenon include: “financial difficulties; long
durations for learning these trades; changes in career or job ambitions, loss of interest in the trade; problems
with employers (master craftsmen); non-lucrative nature of the trade ventured; informal nature of the trade which
did not require graduation; the commuting distance from home to place of learning trade; personal reasons;
among others”. A myriad of issues that mostly caused the youth (62% of respondents) to abandon their trades.
That notwithstanding, 90% of the youth interviewed nonetheless plied the trade they learnt (whether they graduated
from the trade or not). Interestingly though, 1% of youth who did not ply their learnt trade solely attributed it to
“mere reluctance”.
Table 10: Cross-tabulation of trade certification and skill acquisition
Do you want skills in the future? Total
Yes No
Are you certified in any trade? Yes 10 11 21 (12%)
No 100 54 154 (88%)
Total 110 65 175 (100%)
Source: Field Survey, 2017
54
The survey further revealed that, only close to 12% of youth were certified in trade they have learnt (see Table
11). Probing further to ascertain the role cost and length of certification played in this; it was identified that, the
average length of certification was 37 months (over 3 years) whereas the average cost for certification was
GH₵320 (minimum is GH₵50, maximum is GH₵900). Moreover, 65% of the youth who were not certified in
any trade were ready to learn a trade and get certified in future. With Pearson’s Correlation coefficients of -0.24
(Sig=48%) and -0.15(Sig=65%), it was realized that there is a weak inverse relationship between trade
certification and length and cost of certification respectively. In other words, the higher the cost of certification,
the lower the number of people who got certified and the longer the duration for certification, the lower the
number of people who got certified. An example may clarify this point further: Taking the drivers’ license as a
form of certification, many young persons are able to acquire the drivers’ license because it took a relatively
short time and it costs next to nothing to learn to drive.
Modeling a multivariate regression analysis on these three variables (number of persons who get certified, cost
of certification, duration of certification) , the study revealed that; a change in the cost and length of certification
affects variations in the trade certification by 15% and 24% respectively. In other words, as the costs of
certification increases by x%, the number of persons who get certified reduces by 15%, whereas an increase in
the duration of certification by X months, reduces the number of persons who receive certification by 24%.
Table 11: Cross-tabulation of trade certification and challenges to accessing the job market
Do you have any challenge accessing the job market?
Total
Yes No
Are you certified in any trade? Yes 2 (13%) 13 (87%) 15(100%)
No 41(36%) 74(64%) 115(100%)
Total 43(33%) 87(67%) 130(100%)
Source: Field Survey, 2017
Effort was made to establish the relationship that existed between trade certification and access to the job
market. The study revealed that 87% of the youth who were certified had no challenges accessing the job market
(refer to Table 12). A linear regression of the selected variables indicated that, trade certification of the youth
is likely to have a residual effect on their challenges to accessing the job market by 26.4%. The study also
revealed that, over 60% of the youth would want to acquire skills in the future (Skewness=0.57). These skills to
be acquired by the youth in the future included; catering, cosmetology, dress making, driving, electrical fitting,
furthering education, graphic designing, imports, teaching, trading, among others. Table 12 catalogues these
future skills to be acquired and ranks them based on the importance the youth place on them.
Table 12: Tendency to venture into other trade(s)
Type of Employment Percentage (%) Rank Type of Employment Percentage (%) Rank
Seamstress/Tailor 22.7 1st Decoration 2.4 10th Tricycle Driver/Operator 11.5 2nd Food Vendor 2.3 12th
Bakery 8.2 3rd Bead making 1.9 13th
Shoe Making 7.7 4th Petty Trading 1.3 14
Hair dressing 6.5 5th Graphic Designer 1.3 14th
Masonry 5.5 6th Provision Store 0.6 16th
Beautician 5.3 7th Sales Agent 0.6 16th
Marketing 4.5 8th
Electrician/Repairer 2.9 9th Driver 0.6 16th Import Trading 2.4 10th Teaching 0.6 16th
Source: Field Survey, 2017
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It was worth noting that, a large segment of the youth aspired to establish their own businesses and become
“big-time” entrepreneurs. However, indications from the youth suggested that, their major obstacles to realizing
these aspirations ranged from busy schedules, unavailability of time to learn these trade, distance and
accessibility issues, limitations imposed by religion, to lack of financial or start-up capital to pursue these dreams
(which singularly constituted a substantial proportion of 94.4% of responses). Meanwhile, nearly all the respondents
(99.4%) suggested they need support either from family, friends, philanthropist, Non-Governmental
Organizations, government or any form of help that might help them overcome these barriers to acquiring new
skills in the future.
Figure 6: Reasons for Job Denial of the Youth in AMMA
Source: Field Survey, 2017
According the majority of the respondents (78%), they have never been discriminated against on the basis of
their age, ethnic, and level of education or inadequacy of skills in their quest for jobs. For those who felt
discriminated against, it was either as a result of low level of education or and inadequacy of skills. Other factors
were rather insignificant as causes of discrimination. The Figure 6 depicts the responses given by the
respondents.
4.1.6 Revenue performance of AMMA
i. Availability of revenue policy and an approach to assessing revenue potential
The assessment of the revenue performance covered a wide array of issues namely: a) the availability of revenue
policy; b) the role of the communities in the development of this policy, and c) the key revenue potential of
AMMA. The assessment further evaluates aspects such as d) the key sources of revenue of AMMA and their
performance; e) the methods and techniques used in revenue collection; f) propriety of the revenue collection
method; g) how revenue targets are monitored; h) the economy of revenue collection tracking of collection to
reduce leakages; and i) systems used to assess performance of revenue collectors.
A good revenue policy must have clear goals and effectively identify the target population. In order to enhance
voluntary compliance it is most preferred if such policy is mutually developed with stakeholders. The
1%1% 5% 1%4%
78%
10%Age
Ethnicity
Level of Education
Gender
Inadequacy of Skills
None of the above
Other
56
institutional data gathered revealed that AMMA has a revenue policy, yet the formulation of the policy did not
adequately involve the stakeholders.
Determination of revenue potential of an area is contingent on factors such as the volume of social and
economic transactions that take place in the area as well as the number of taxable individuals and properties.
As per the provisions in the sections 137(2); 139; and 142(2) (b) of the Local Governance Act, 2016 (Act 936)
which are detailed out in Schedules 8; 10; 11 and 12, these social and economic transactions (taxable and non-
taxable) are clearly identified. Given the plethora of social and economic opportunities especially in the informal
economy, AMMA has a huge revenue potential. For instance, the 2014 Regional Spatial Businesses report
identified a total of 5177 businesses in Asokore Mampong (which is exclusive of those which have neither
registered with the Registrar General’s Department, Environmental Protection Agency, AMMA nor the Ghana
Revenue Authority). In 2010, the total housing stock was 19,163 houses (exclusive of commercial, industrial
and mixed use properties). Even at the current revenue impost of 0.003 for residential properties at an average
assessed residential property value at Gh¢30,000, if it is assumed that only 60% of the properties are taxable
and the collection efficiency is 80%, AMMA could potentially collect an annual property taxes of Gh¢827,842
only from residential properties. Based on the above, an assessment of the potential property tax revenue yield
can be estimated using the template labeled Table 13.
Table 13: Estimation of revenue from property taxes
Revenue Head
Revenue Sub-head
Type of property and number
% Ratable
Av. assessed value (Gh¢)
Revenue impost for 2017
Collection Efficiency (%)
Est. Revenue (Gh¢)
Rates, lands, royalties and concessions
Property Rates
Residential 19,163
60 30,000 0.003 80 827, 842
Commercial
60 Xxxx 0.005 80 xxxx
Industrial xxxx
60 Xxxx 0.005 80 xxxx
Mixed use xxxx
60 Xxxx 0.004 80 xxxx
Sub total 60 Xxxx 80 xxxxx
Source: Author’s construct, 2017
iii. Key sources of revenue of AMMA and their performance
The revenue sources of AMMA comprise internally generated funds and inter-governmental transfers. The
inter-governmental transfers are the District Assembly Common Fund, the District Development Facility, the
goods and services transfer, the transfer of assets, and funds for school feeding among others. Although the
District Assembly Common Fund and in recent times the District Development Facilities are the major external
source of revenue for AMMA, it is essential that their stability and predictability are analyzed. In doing this,
effort was made to ascertain the extent to which these revenue sources vary over time. From Table 14 it can
be concluded that it was in 2014 and 2016 only that the gap between the budgeted and actual revenue
projections reached 11-14% respectively. In other years they vary more widely (35% - 79%). This unpredictable
nature of internally generated funds can partly be blamed either on the arbitrariness of revenue estimation or
poor revenue collection methods. Short falls in revenue targets at the national level and the delay in the release
of inter-governmental transfers also explain the fluctuations in this revenue source. As the figures reveal, the
gaps between estimated and actual intergovernmental transfers has been over 40% since 2013 to 2016. The
unpredictable nature of inflows make planning and implementation of development interventions difficult.
Table 14: Stability analysis of the Internally Generated Funds and Inter-governmental transfers Revenue Source 2012 (Gh¢) 2013 (Gh¢) 2014 (Gh¢) 2015 (Gh¢) 2016 (Gh¢)
57
IGF
Estimated 391,000.00 391,000.00 588,200.00 899,700.00 762,830.00
Actual (A) 82,130.80 252,474.04 524,460.96 485,357.87 653,115.09
Difference - 308,869.20
- 138,525.96
- 63,739.04
- 414,342.13
- 109,714.91
% surplus/short fall
- 79 - 35 - 11 - 46 - 14
Inter-governmental transfer
Estimated 451,487.09 4,027,809.9 5,141,471.28 6,536,925.36 9,180,747.07
Actual (B) 441,487.09 2,048,384.4 2,874,867.21 2,966,579.43 5,986,712.50
Difference 10,000.00 1,979,425.50 2,266,604.07 3,570,345.93 3,194,034.57
% surplus/short fall
- 2 - 49 - 44 - 54 - 34
Total (A+B) 523,617.89 2,300,858.44 3,399,327.21 3,451,937.3 6,639,827.59
% Contribution
of Internally Generated Funds
15.7
11.0
15.0
14.0
10.0
% Inter Governmental transfer
84.3
89.0
85.0
86.0
90.0
Source: Analysis based on data obtained from trial balances from 2013-2017
As part of the revenue performance analysis, effort was made to understand the level of contribution internally
generated funds and intergovernmental transfers make to total revenue in AMMA. As shown in Table 14, on
the average, the contribution of internally generated funds to total revenue over the years was seven times lower
than the inter-governmental transfer. It was for instance six times lower in 2012 but nine times lower in 2016.
In view of the fact that the internally generated funds are relatively stable compared to the inter-governmental
funds, an improvement in the performance of internally generated funds can potentially reduce the level of
revenue fluctuations considerably.
In order to reduce the unpredictability of revenue flows, effort was made to examine in detail the revenue heads
and subheads that can potentially help stem the variability of revenue. An analysis on the performance of the
revenue heads (see Table 16) reveals the following ranking: First, licenses; Second, fees, fines, penalties and
forfeitures; Third, lands & royalties. Further scrutiny into this issue (which subhead contributes the most to
the performance of the various heads?) produced varied results.
Table 15: Trend analysis on the performance of the revenue heads
Year 2013 2014 2015 2016 2017 Average
Rank Heads
Rates 61,957.33 82,806 96,259.60 161,943.27 340 80,661.21 4th
Lands & royalties 36,980.00 145,875 65,822.00 32,812.00 375,354.56 131,368.73 3rd
Fees, Fines, penalties and forfeitures 22,810.71 46,360.00 146,765.30 314,316.62 183,476.38 142,745.80 2nd
License 128,640.00 245,059.02 175,009.67 144,043.20 310,160.00 200,582.38 1st
Rent of land, buildings and houses 2,086.00 4,361.00 1,501.30 53,000.00 15,237.08 5th
58
TOTAL 252,474.04 524,460.96 485,357.87 653,115.09 922,330.94
Source: Analysis based on data obtained from trial balances from 2013-2017
Even though property rates, the sale of building permit jacket, development and building permits fees and
stools lands revenue (see Table 17) have been downplayed over the years, these items are major contributors
to the overall performance of revenue heads (such as rates, lands, royalties and concessions and their
contribution to total revenue). The implication of this observation is, that support should be given to the
Physical Planning Department to enable the outfit perform efficiently. The benefits will include increased total
revenue from the issuance of building and development permits. Although land is relatively scarce in AMMA,
improvement in the economic and business climate in AMMA might translate into increased demand for
commercial spaces. This will lead to the shortening of the economic life of properties in AMMA. The domino
effect, would include redevelopment of properties, especially those fronting main arterials.
Table 16: Trend analysis on the performance of the revenue heads
Year 2013 2014 2015 2016 2017 Average
Rank Heads
Rates 61,957.33 82,805.83 96,259.60 161,943.27 340 80,661.21 4th
Lands & royalties 36,980.00 145,875.11 65,822.00 32,812.00 375,354.56 131,368.73 3rd
Fees, Fines, penalties and forfeitures 22,810.71 46,360.00 146,765.30 314,316.62 183,476.38 142,745.80 2nd
License 128,640.00 245,059.02 175,009.67 144,043.20 310,160.00 200,582.38 1st
Rent of land, buildings and houses 2,086.00 4,361.00 1,501.30 53,000.00 15,237.08 5th
TOTAL 252,474.04 524,460.96 485,357.87 653,115.09 922,330.94
Source: Analysis based on data obtained from trial balances from 2013-2017
Preparation of an urban redevelopment plan will thus facilitate the harnessing of revenue from this source.
Inferring from the simulation done on property taxation, this revenue source is clearly underdeveloped and
under harnessed even in this current state. Investing in the updating of the tax roll and re-valuation of
properties, will evidently pay off, even if only 60% of properties are deemed ratable, using the current rate of
impost at a collection efficiency of 80%.
Table 17: Potential contribution of rates, lands, royalties and concessions to total revenue
Prioritized rates, lands, royalties and concessions (GH¢)
Revenue subhead 2013 2014 2015 2016 2017 Average Rank
1. Property Rate 49,004.63 73,011.61 90,617.96 161,943.27
310,954.56
137,106.41
1st
2. Stool land revenue 5,000.00 10,000.00 10,000.00 20,000.00 40,000.00 17,000.00 3rd
3. Communication Mast Permit 11,944.88 3,300.00 3,300.00 11,000.00 7,386.22 5th
4. Sale of building permit jackets 28,770.00 3,575.00 18,179.00 1,215.00 10,000.00 12,347.80 4th
5. Building plans and development permits
3,210.00 65,637.00 7,043.00 8,147.00 2,000.00 17,207.40 2nd
6. Registration of plot 150 1,400.00 775 6th
TOTAL 85,984.63 164,168.49 129,139.96 194,755.27
375,354.56
Source: Analysis based on data obtained from trial balances from 2013-2017
59
For “Fees, fines, penalties and forfeitures” (ranking second after “licenses”, see Table 18, it was observed that
the major subheads that significantly contributed to its rank were: First, sanitarian; Second, advertisements, bill
boards; and Third, dislodging fees. The slum conditions are pervasive in most of the high density residential
areas in AMMA. This partly explains the significant contributions “sanitarian” and “dislodging fees” made to
this revenue head. Whereas an improvement in the general environmental conditions in AMMA has
implications for improved quality of life, and might reduce the amounts realized from the subhead sanitarian,
the high demand for dislodging services might justify a social business case for same. The significant
contribution “advertising and billboards” made to revenue is also worth noting.
Table 18: Potential contribution of fees, fines, penalties and forfeitures
Prioritized fees, fines, penalties and forfeitures (GH¢)
Revenue subhead 2013 2014 2015 2016 2017 Average Rank
1. Markets 3,990.00 9,344.00 3,631.00 45,670.00 59,058.00 24,338.60 4th
2. Sanitarian 54,729.00 50,040.00 52,384.50 1st
3. Advertisements, billboards 14,080.78 9,650.00 27,200.00 116,920.00 36,790.00 40,928.16 2nd
4. Dislodging fees 64,005.60 16,200.00 18,000.00 32,735.20 3rd
5. Car towing/ street parking fines 455 20,968.00 9,032.00 8,260.00 9,678.75 6th
6. Development levy 9,110.00 34,253.62 7,878.38 17,080.67 5th
7. Marriage and divorce registration 450 2,860.00 1,600.00 1,636.67 10th
8. Sub-metro managed toilets 326 18,910.00 10,745.00 4,895.00 1,550.00 7,285.20 7th
9. Vehicle reflective tape 300 300 11
10. Hawkers fees 2,463.00 2,463.00 2,463.00 8th
11. Entertainment fee 58.03 268 163.02 13
12. Poultry fee 266 266 12
13. Registration of contractors 3,900.00 200 2,050.00 9th
TOTAL 22,809.81 38,638.00 138,572.60 287,022.62 183,476.38
Source: Analysis based on data obtained from trial balances from 2013-2017
“Licenses”,as the lead contributor to internal revenue for AMMA, was due partly to the number of items that
fall within its fold including: (i) linkage to the factories and operational fees; and (ii) siting and operation of
financial institutions in AMMA (See Table 18). In addition to market stalls and stores, airlines and shipping
agents operations are other areas with a lot of potential for revenue generation in the future. The creation of a
competitive business environment that attracts and support industrial activities, the building of markets and
shops through joint partnerships and developing businesses around the airline industry and export promotion,
can potentially create jobs and enhance revenue mobilization for AMMA.
Table 19: Potential contribution of licenses
Prioritized licenses (GH¢)
Revenue subhead 2013 2014 2015 2016 2017 Average Rank
1. Factories/ operational fees 18,961.00 78,805.14 66,525.00 95,510.70 305,440.00 113,048.37 1st
2. Corn/ Rice/ Flour mills 2,327.00 1,800.00 2,063.50
3. Letter writer license 1,600.00 1,600.00
60
4. Bakers license 3,555.50 1,020.00 2,287.75
5. Block manufacturers 200 200
6. Liquor license 4,639.00 2,650.20 100 2,463.07
7. Artisans/ self employed 10,698.00 8,613.80 3,512.00 19,106.00 10,482.45 8th
8. Hairdressers and dress makers 10,666.00 10,990.00 10,828.00 7th
9. Bicycle / Motor License 2,927.00 2,029.00 2,478.00
10. Chop bar/ restaurant 5,256.00 2,529.00 1,808.00 3,197.67 9th
11. Taxicab/ commercial Vehicles 4,179.00 2,930.00 1,663.00 2,924.00 10th
12. Sawmills 1,542.00 1,542.00
13. District Weekly Lotto levy 1,377.00 1,377.00
14. Herbalist license 1,360.00 1,360.00
15. Beer bars 2,533.00 1,046.00 1,789.50
16. Financial institutions 42,444.38 31,000.00 36,722.19 2nd
17. Airline/ shipping agents 21,000.00 16,000.00 18,500.00 4th
18. Fuel dealers 11,509.50 12,546.02 12,027.76 6th
19. Kiosk License 18,115.00 15652.2 9,147.20 14,304.80 5th
20. Market/store stalls 18,659.00 24,571.00 21,615.00 3rd
TOTAL 85,731.50 214,126.02 152,093.42 136,431.70 310,160.00 Source: Analysis based on data obtained from trial balances from 2013-2017
The above discussion can be summarized below, by re-ranking the top nine most significant items based on
their average contributions to total revenue. In a decreasing order, the nine are listed in
Table 20: Table 20: Top nine most significant sources of revenue
Item Average annual receipts (GH¢) Rank
1. Property tax 137, 106.41 1
2. Factory and operational licenses 113, 048.37 2
3. Sanitarian 52, 384.50 3
4. Advertising and billboards 40, 928.16 4
5. Financial institutions
36, 722.19 5
6. Dislodging fees 32, 735.20 6
7. Market and Stores 21, 615.00 7
8. Building and development permit 17, 207.40 8
9. Stool lands revenue 17, 000.00 9
Source: Analysis based on data obtained from trial balances from 2013-2017
iv. Revenue collection methods or techniques and their propriety
AMMA currently employs three main revenue collections methods namely: paid staff, commissioned collectors,
and outsourcing. The methods have been further described in Table 21:
61
Table 21: Revenue collection methods used by AMMA
METHOD OF COLLECTION
DETAILS
Paid staff
The paid staff method involves revenue collectors who are hired by the revenue department of AMMA and are on government payroll. There are five paid staff, who are currently working for the revenue office. They are assigned to collect revenue from specific revenue heads. The consultations revealed, that they tend to be given the most difficult to collect revenue sources. The weakness with this approach is, that the individuals may not be incentivized to put in their maximum effort, like those staff who are entitled to commissions (see below).
Commissioned collectors
The commissioned collectors, like the paid staff, are given a set of items to collect, based on which they receive a 20% commission. There are currently 28 commissioned collectors, spread across four revenue zones namely: Adukrom; Aboabo; Asawase and Surtax. Out of this number, 14 operate in Adukrom; 4 in Aboabo; 8 in Asawase whereas the last person is stationed at Surtax. The commissioned collectors have revenue sources, which keep changing year by year. It was discovered from the interviews, that they are sometimes given items that are relatively easy to collect. Although they work on an ‘earn as you collect’ basis, if the commissioned collectors do it as second job, then without strict performance clauses, they may not be committed, especially when they earn more from the second job.
Outsourcing to contractors
Revenue contractors operate according to the principle that the private sector is more efficient and results oriented in revenue collection. For better results, it is best for AMMA to outsource the revenue items in which AMMA itself underperforms. It is also useful that AMMA has a good insight into the total value of revenue to be collected, and that it analyzes the economy of collection vis a vis the percentage the contractor is to earn. Unfortunately, operating with an old tax roll, which has properties that were valued over a decade ago, it is difficult to determine total value. The other assumption is that the contractor should invest in technology and other systems to enhance performance. The contractor currently collects property rates, factories and operational licenses. Given the requited (quid pro quo) nature of factories and operational licenses and the fact that some people voluntarily walk into AMMA to pay their property rates, one wonders if the two are the best items to outsource to a contractor.
v. Economy of revenue collection and systems used to assess performance of revenue collectors
The economy of collection, assesses in monetary terms, the efficiency of the tax collection system on an input
per output basis. It would be good to know how much revenue is collected for every cedi spent on the revenue
administration. This is linked to the targets set. For the paid staff, they are required to collect three times their
salary. The commissioned collectors and the outsourced contractors are to increase their collection rates by
10% each year. The information sourced, indicates that the performance clauses in the contracts are not binding
enough. An analysis of the collection performance of a commissioned collector yields an average of GH¢485
per month. Out of this figure just about GH¢388 at 20% commission or GH¢340 at 30% is turned over to
AMMA. This translates into a monthly total of GH¢10,864 or GH¢9520 for the 28 commissioned collectors.
It is also expected that a paid staff collects at least GH¢2443 per month. Their collection performance per
month is GH¢5384. With challenges such as the revenue administration system fraught with the collection
efficiency of AMMA’s revenue system, this amounts to just about 62.8%. This implies that the actual collection
efficiency will be lower than 50%, as of now. To cure this ill, it is essential that some resources are devoted to
updating the existing data on AMMA’s revenue base. Voluntary compliance can be enhanced by using the taxes
62
for the purposes for which they are collected. Some exception can be made in certain places, where residents
are encouraged to carry out development initiatives with specifications and under regulations, especially in lieu
of property tax payment. In other cases, where identifiable groups of revenue payers (such as hairdressers and
beauticians associations, yam sellers association, cattle dealers association, landlords association, and the
association of garages) can be found, such associations can use their institutional frameworks to collect these
revenues from their membership.
vi. Monitoring systems to reduce revenue leakages
The system for monitoring now, is the periodic unannounced site visits by revenue inspectors to check the
receipts of payees, and to verify them, with receipt stocks and duplicates in their possession. This can be
improved by adopting simple GPS coordinates based tracking system, or just asking collectors to pick the GPS
coordinated at every pay point for future tracking. It might also be necessary to hire new revenue collectors,
who are more energetic and naïve to the alleged shady deals some seasoned commission collectors engage in.
It is also essential that transparency and accountability is enhanced through social accountability systems. This
can be achieved through training of stakeholders such as CSOs in social accountability techniques.
4.2 SECTION 2: Growth Sectors of AMMA and the Role of Private Sector in Job Creation
4.2.1 Job creation potential of AMMA’s public sector
In order to establish which sectors have the propensity to employ the teeming youth, an analysis was carried
out on both the private and public sectors. The general perception is that in an economy like AMMA, the level
of formal education of the youth is generally low, thus making public sector jobs not accessible. In this instance
though, this was assessed in terms of the basket of jobs, a given public sector expenditure is likely to create for
those with a relatively low level of education, low skills and capabilities. Using the labour component of
AMMA’s annual expenditure patterns on infrastructure provision and other related projects from 2013 to 2017
mid-year, a trend analysis was carried out as presented in Table 22, to ascertain the number of jobs that are
created each year, for the various artisanal groups.
Table 22: Cross tabulation of jobs created per fiscal years Year
Type of Artisan Total
Mas
on
s
Ste
el B
end
ers
Pai
nte
rs
Ele
ctri
cian
s
Til
lers
Car
pen
ter
Plu
mb
ers
Fab
rica
tors
2013 50 37 38 32 27 46 26 26 282
2014 47 31 23 21 23 38 18 19 220
2015 116 70 60 53 39 93 40 61 532
2016 125 73 54 49 35 102 40 61 539
2017 39 25 7 9 12 29 11 16 148
Total 377 236 182 164 136 308 135 183 1,721
Effort was also made to establish in relative terms, which sectors of the local economy received the highest
share of the public expenditure. The logic is that, the sector receiving the highest share of the expenditure is
likely to create the most artisanal jobs, although this also depends on the type and focus of the expenditure. As
63
observed from Table 22, public expenditure that goes into the provision of infrastructure that promotes
governance, Local Economic Development, security and education, are those that have the highest propensity
to create jobs for the artisans. Interestingly, effective governance, security and education have all been identified
as triggers for the promotion of LED. This implies that investment in LED infrastructure and other related
activities that promote and support same, take the highest proportion of public expenditure in AMMA. In
conclusion, the public sector’s role in job creation cannot be downplayed, since increasing public expenditure
in certain sectors is likely to translate into increased jobs creation for the youth in AMMA.
Table 23: Trend analysis of public expenditure per sector YEAR Sector Percentage of public expenditure Rank
2013 Education (30%) 2
Governance (70%) 1
Total (100%) 2014 Education (54%) 1
Governance (34%) 2
Water (3%) 5
Security (4%) 4
Sanitation (5%) 3
Total (100%) 2015 LED (Infrastructure Development) (56%) 1
Education (32%) 2
Governance (4%) 4
Water (1%) 5
Security (6%) 3
Sanitation (1%) 5
Total (100%) 2016 LED (Infrastructure Development) (61%) 1
Education (25%) 2
Governance (6%) 3
Sanitation (2%) 5
Security (5%) 4
Health (1%) 6
Total (100%) 2017 LED (Infrastructure Development) (24%) 2
Education (21%) 3
Governance (28%) 1
Security (18%) 4
Health (9%) 5
Total (100%) Overall Total
4.2.2 Attributes of the private sector in AMMA Private sector job creation potential, was analyzed first with the view to understanding the very attributes of
the private sector in AMMA, and then its prospects for job creation, especially for the youth. Achieving this,
required that a variety of employers spread across different communities in the Municipality, were interviewed
first, to obtain first-hand information of issues regarding their industrial operations and organizational form.
The skills requirement for employment and their absorptive capacity, input and output for the various
enterprises, their production value chain, among other crucial information, were also obtained. Historical data
of establishments were collected, to understand the chances a business has to go from startup stage, through
to the survival, the growth and rapid growth stages. The study identified that, some of the enterprises have
been in existence since the late 1980s, whereas the most recently established ones, date back to just the past
year (2016). Detailed sub-stratification of the years of establishment and their percentages is depicted by Error!
Reference source not found.igure 7. It can be said, that less than 8% of all businesses exist longer than 19
64
years. This confirms the observation by some that it is more easy to set up a business, than to make it survive
and grow for prolonged periods of time (over 15 years) in AMMA. This finding can be corroborated by similar
research works done in the past, such as the Regional Spatial Businesses Report (2014) and the Business
Opportunity Identification Survey (2014).
Figure 7: Ages of businesses in AMMA
Source: Field Survey, 2017
Inferring from Figure 7, it can be seen that the percentage of industrial establishments in the Municipality has
been growing at 17.4% per annum (from 1978 – 2017). It is however worthy to note that, over 50% of employers
interviewed, established their business in the Municipality within the last 7 years. With respect to the types of
business establishments, and their sectors of operational in the Municipality, it was realized from the survey
(see Figure 8) that; manufacturing, wholesale, repair and retail industries cumulatively constituted 25.3% of all
industries. Transportation and storage industries constituted 3.3% of the total, accommodation and food
services represented 11%, whereas education takes 9%. A huge proportion (51%) of employers’ area of
operation was found to be in the category of “others”: This category comprises artisans, information and
communication, administrative work, recreation, among other informal activities.
Figure 8: Distribution of industries of operation in AMMA Source: Field Survey, 2017
Closely linked to the survival of businesses, is the business governance system in place. It is common knowledge
that sole proprietorships are likely to die with the demise of the sole proprietor. The survey revealed that, the
organizational form for majority of employers in the Municipality was sole proprietorship (cumulatively constituting
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Manufacturing, 16.7Wholesale, Repair and Retail, 8.9Transportation and
Storage, 3.3
Accommoadation and food Service, 11.1Education, 8.9
Other services 51.1
65
69%) with percentage shares of 56% and 13% for the informal and formal6 types respectively. Perhaps, the
predisposition of sole individuals to establish enterprises, rather than partner with others, is becoming
entrenched in the Municipality. This viewpoint is confirmed by a segment of the youth who aspire to solely
establish businesses in the future.
Figure 9: Organizational form type of ownership
Source: Field Survey, 2017
The survey further revealed that a typical enterprise in the Municipality averagely employs 7 people (SD=10.8).
A classification of the numbers employed by scale of operation (LMSM) has been elaborated in Figure 9
According to the enterprise categorization of the “Regional Spatial Business Report” (GSS, 2014),. This
categorization differentiates between 1) Large enterprises (employing) over 100 persons, 2) Medium enterprises
(employing 31-100 persons), and 3) Small enterprises (employing 6-30 persons), whereas 4) Micro enterprises
employ between 1-5 persons.
Figure 10: Number of persons employed by businesses in percentage(s)
Source: Field Survey, 2017
Micro enterprises constituted the highest (nearly 65%) of all business types in the Municipality. This finding is
corroborated by Ghana Statistical Service (2014); indicating that micro establishments account for 86% of all
6 For a business to be formal, it should have registered with the relevant agencies such as the Registrar Generals office, EPA, Ghana Revenue Authority, AMMA etc. and has a professional managing their accounts.
Formal Partnership, 3.3
Informal Partnership, 13.2
Formal Sole Proprietorship,
13.2
Informal Sole Proprietorship, 56.0
Formal Cooperative, 2.2
Informal Cooperative, 9.9
Other, 2.2
66
enterprises in the Municipality. Although a Pearson’s correlation coefficient of 0.29 (Sig=73%) showed there
is a positive relationship between the enterprise type and number of persons it employs, a linear regression
analysis of the two variables revealed that; enterprise type accounted for only 4% of the variations in number
of persons it employs (R²=0.36). The study also revealed that over 80% of employers had not employed any
persons within the last year.
4.2.3 Analysis of level of saturation from the point of view of organizational processes and
production value chain of enterprises The processes followed by businesses either in their product development or service delivery is an effective
way of understanding the potential jobs the business is likely to spin off along its production chain and the
support services they require. Value chain analysis, however, helps in the establishment and prioritization of
the impacts is has on the production process of other businesses in terms of production of their inputs, value
addition to their outputs and utilization of inputs and outputs of each other and their linkages (backward,
forward and lateral) that exist between the various businesses. These linkages have been defined as follows:
Forward linkages looks at all business relationships and processes that add value to the outputs of
other businesses in their product development or service delivery process;
Backward linkages look at all businesses that supply all the inputs required by other businesses to enable
them carry out their product development or service delivery process; and
Lateral linkages look at all business relationships and processes that provide business support services
for other business such as transportation, communications, and financial services.
With that in mind, conscious effort was made to gather information on the material inputs of the various
businesses, the potential outputs they produce and how these feed into the production processes of others and
their linkages in a simplified manner. The data was organized in a tabular form. Table 24 presents only selected
examples that illustrate from a business perspective, the product development or service delivery processes,
material inputs required and outputs produced, and their linkages with other businesses in AMMA and other
locations in Ghana. The assumption is that the higher the number of lateral, forward and backward linkages a
business has, the higher its job creation potentials, as it is more likely to spin off many jobs along its production
value chain. In the example presented in Table 24, the baking business is more likely to create jobs than
barbering, given that the barbering business has about 10+ potential backward linkages compared to baking,
that has 1+ potential lateral linkage, 2+ forward linkages and 10+ backward linkages. Groundnut processing
also has a higher job creation potential than barbers and baking, since it has 3+ lateral linkages, 5+ forward
linkages and 10+ backward linkages.
Table 24: Material inputs and outputs, and product/service delivery processes/ linkages
Enterprise Material inputs required and outputs produced
Product or service delivery process
Assess number of linkages with other businesses
Barbering Inputs - Combs, sterilizer, mirrors, blade, hair brush, shaving machine, methylated spirit, cosmetics, aprons, furniture and electricity.
Customers come and have their hair styled or cut
Sellers of combs, sterilizing machines, cosmetics, blades, methylated spirit; Carpenters and electricians; and Apron sellers or tailors or seamstresses.
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Output - Hair cut or hair styling
10+ potential backward linkages
Baking Inputs – Depending on the type of bakery the following are basic. Yeast, oven, firewood, baking containers, margarine, sugar, flour, eggs, bakery equipment and other ingredients Outputs – bread, meat pies, cakes, rolls etc.
Mix the floor at a mill or at factory with various ingredients Cleaning of baking tins or pans Cutting and shaping kneaded flour into products Flour is mixed and kept in oven for baking
Sellers of inputs such as flour, sugar, milk, margarine, others; Eggs from poultry farmers; Baking ovens, tins and pans from fabricators; Gas or energy form the energy sector Production of labels and wrappers for packaging from graphic designers 1+ lateral linkages 2+ potential forward linkages 10+ potential backward linkages
Groundnut Processing
Inputs - Raw dried groundnut, firewood or LP Gas, a mill, plastic containers or bottles, labels, roasting pots or trays. Outputs - bottled roasted grounded and ground nut paste
Groundnut is bought from northern Ghana and transported to production site The ground nut is fried and de-husked and bottled The de-husked ground nut is processed into paste and bottled The bottled groundnuts are labeled
Farmer of the groundnut who in turn depend on land owners and suppliers of seeds; Laborers to prepare the land and sow the seeds and tend the farm; Laborers for the harvesting and de-shelling; Laborers for the bagging and transporting; Firewood and LP gas retailers; Metal smelters and pot and tray producers and suppliers; The mills that process roasted ground nut into paste; Graphic designers who produce paper labels; Sellers of plastic bottles and containers; Food venders, restaurants and producers use the paste; and Those who retail the bottled groundnuts and paste make business out of this. 3+ Lateral linkages 5+ forward linkages 10+ backward linkages
Source: Field Survey, 2017
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e1 = Sector employment in the AMMA, e = Total employment in the AMMA, E1 = Sector employment in the Ashanti Region E = Total employment in the Ashanti region
4.2.4 Analysis of level of saturation based on the concentration and specialization of businesses in
AMMA
In addition to the analysis on the linkages and value chains, other important approaches to analyzing the level
of saturation or the absorptive capacity of industry, was to measure the level of specialization and the propensity
AMMA’s economy has to service its local residents and export products and services to the neighboring areas.
This was done using the location quotient (LQ) analysis, which measures the share of employment (or earnings,
etc.) in the various sectors of the economy relative to the benchmark (Ashanti) region. The assumption is, that
the higher the LQ, the higher the propensity of the local economy to produce more goods and services than
can be consumed locally, with the excess production meant for export. Closely related to this concept of LQ,
is the level of human capital endowment in AMMA and the earning per sector. With export demand increasing,
both formal and informal jobs will be created in the local economy. The LQ analysis is as presented Table 25.
LQ = {
𝒆𝟏
𝒆}
{𝑬𝟏
𝑬} where,
Table 25: Employment share of various sectors and location quotients of KMA and AMMA
Employment Share Sector of focus Ashanti
Region (persons)
KMA (persons)
Asokore Mampong (persons)
Calculation of LQ KMA
Calculation of LQ AMMA
LQ KMA
LQ AMMA
Service 441,025 45,365 16,731 {45,365
55,130}
{441,025
540,471}
{16,731
22,001}
{441,025
540,471}
1.0 0.93
Industry 92,463 9,676 5,216 {9,676
55130}
{92,463
540,471}
{5,216
22,001}
{92,463
540,471}
1.02 1.39
Agriculture 6,983 89 54 {89
55,130}
{6,983
540,471}
{54
22,001}
{6,983
540,471}
0.12 0.19
Total 540,471 55,130 22,001
The LQs reveal, that in comparative terms ( LQ of 1.0 as against 0.93) KMA’s service sector is more specialized
than that of AMMA, yet the LQ of 1.0, means that KMA’s share of employment in the delivery of services is
equal to that of the Ashanti region. It can be concluded that KMA is completely self-sufficient and neither
exports nor imports those services. On the other hand, AMMA has a smaller share of employment in the
service sector than Ashanti region. Thus the Municipality falls below the level of self-sufficiency and needs to
either import services from KMA to meet local demand for services or grow the services sector. In the area of
industry, the LQs indicates that AMMA has a slight urge over KMA given that the two areas have over 85% of
their industries as micro enterprises and approximately 11% of their industries as small enterprises. The LQs
1.02 and 1.39 for KMA and AMMA respectively can be interpreted to mean AMMA has a greater share of
employment (or earnings, etc.) in industry compared to industry performance in the Ashanti region. The
assumption is that for AMMA, the micro and small enterprises produce more goods and services than can be
consumed locally, hence have the potential to export the surplus.
In conclusion, AMMA specializes in the small and micro industrial sector.
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D (a→b) = Breaking point from City (a) to (b) (in miles), d = Distance between City (a) and (b) (in miles),
P (a) = Population of City (a),
P (b) = Population of City (a),
In order to establish whether or not households and businesses in KMA will demand or rely on AMMA for
services and industrial products, the Reilly’s gravitational model was employed. This was done with the
objective of assessing the business location potential for services, trading and industries and the preferred
shopping location by customers. The assumption underpinning this model is that; within a certain radius, a
group of customers will be willing to demand products and services in particular locations, defined using
variables such as market distance (competitors) and relative population shares of the areas. The model helped
in the definition of the breaking point of trade, from the center of Asokore Mampong Municipality,,to that of
the Kumasi Metropolis, as illustrated in figures 11 and 12.
To make this crucial assessment of potential retail and shoppers location considerations between these two
areas, the Converse revision of Reilly’s Law of Gravitation (also known as the Breaking-Point Model) was employed.
This was due to the limited data on certain variables and the simplicity of the formula.
Mathematically, the converse revision of Reilly’s Law states;
𝐷(𝑎 → 𝑏) = 𝑑
1 + √𝑃(𝑎)
𝑃(𝑏)
Where,
Distance between the centers of the two areas (d) was measured to be 4.99 miles/8.03 kilometers
Figure 11: Distance between the centers of the KMA and AMMA Source: Author’s calculation from Google Maps, 2017
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Table 26: Populations of KMA and AMMA
Base Year
Area Population Growth Rate
2017 Projected Population
2010 Asokore Mampong 304,815 8.63% 559,712
2010 Kumasi Metropolitan 1,730,249 2.75% 2,599,314
Source: GSS PHC, 2010; Asokore Mampong MTDP 2015
Substituting the values into the Converse revision of Reilly’s Law formula;
𝐷(𝑎 → 𝑏) = 4.99
1 + √559712
2599314
D (a → b) = 9.4 miles or 15 kilometers
The calculated 9.4 mile or 15 kilometers trade radius and break-point from Asokore Mampong to Adum implies
that; a customer residing within any location of this trade break-point (9.4 mi or 15 kilometers radius), would be
indifferent to trade and have an equal or 50% probability of shopping at either in Asokore Mampong
Municipality or Kumasi Metropolitan Area for non-specialty goods.
Figure 12: Radius of indifference to trade
Source: Author’s Construct, 2017
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4.2.5 Skill requirement by businesses and the relevance of trade certification to employment
The study identified that, 83% of all trades, required certain basic set of skills to be able to operate successfully.
This formed the basis for determining the suitability of an individual for employment. On this premise,
employers were asked to outline the basic skill sets required to operate in their product development and service
delivery. According to the employers, the skill set required encompassed: ‘sewing, hair braiding, competence,
book keeping, color combination, general repairs, communication skills, hospitality, marketing, cooking,
teaching skills, among others. The Table 27 shows the distribution of responses from employers regarding the
skill set(s) they require from prospective employee(s).
Table 27: Basic skill set(s) required by employers
Skill Set(s) Percentage (%) Rank Skill Set(s) Percentage (%) Rank
No Skill(s) 20.9 1st Communication & Interpersonal Skills 4.2 9th
Sewing/Tailoring 19.5 2nd Experience & Competence 4.2 9th
Teaching 7.0 3rd Accounting 2.8 11th
Marketing 6.7 4th Formal Education 2.8 11th
Braiding & Hairdressing 5.6
5th Smiting 2.8
11th
Cooking 5.6 5th Wood Work 2.8 11th
General repairs 5.6 5th Color Combination 2.8 11th
Basic Writing & Math’s 5.4
8th Pharmaceuticals 1.4
16th
Source: Field Survey, 2017
It was revealed that, 73% of skills needed for employability were acquired through informal education whereas
formal education was needed for 27% of skills that were needed for employability in their enterprises. A cross-
tabulation of industry of operation vis-à-vis how skills are acquired, revealed that, the skills acquired for almost
all industries of operation in the Municipality were dominated by informal education, except for a few segments
in educational and other industries (16%). With a Pearson’s correlation coefficient of 0.63 (Sig=58%), the study
identified, that there is strong positive relationship between industry of operation and how skills are acquired
for such trade(s). However, a linear regression between the two variables showed that; a xx%?? change in the
industry of operation is likely to have a residual effect of 20% on how skills are acquired.
Table 28: Cross-tabulation of industry of operation and skill acquisition
How are skills acquired Total Formal Education Informal Education
Industry of operation Manufacturing
2 10 12
Wholesale, Repair & Retail 2 4 6
Transportation & Storage 3 0 3
Accommodation & Food
Services
2 6 8
Education 7 1 8
Other services 5 35 40
Total 21 56 77
(Source: Field Survey, 2017)
Further employing the use of a parametric scale, to ascertain the level of importance employers assign to trade
certification, it was identified that; 56% of employers cumulatively deemed certification either as important or
most important, 44% of employers in the Municipality did not see the significance of trade certification. With
regards to the length and cost of certification, a Pearson’s correlation coefficient of 0.5, there is evidently a
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strong positive relationship between the cost of certification and employers’ perception about the importance
of trade certification. This was relationship was clearly defined upon modeling a multivariate regression analysis
on the importance of trade certification, cost and length of certification. The results indicated that the variations
in the perception of employers about the importance of trade certification are affected 24% and 10% by cost
and length of certification respectively. See Figure 13.
Figure 13: Importance of trade certification for employers Source: Field Survey, 2017
The study also revealed that, the average length for trade certification was 2 years and some 9 months; with
minimum and maximum durations ranging from 1 month to 4 years respectively. Meanwhile, the average cost
for trade certification in the Municipality was GH₵253 (SD=92), whereas employers indicated that the
minimum and maximum amounts they have paid for certification was GH₵100 and GH₵500 respectively. A
cross-tabulation of organizational form and length of certification indicated that, informal sole proprietorships
were more likely to experience lengthy periods of certification. See Table 29.
Table 29: Cross-tabulation of organizational form and length of certification
Organizational Form Total Formal Partnership
Informal Sole Proprietorship
Informal Cooperative
Other Services
Length of Certification (months)
1.00 0 0 0 2 2
6.00 0 2 0 0 2
36.00 3 15 6 0 24
48.00 0 4 0 0 4
Total 3 21 6 2 32
Source: Field Survey, 2017
i. Income and Employability of businesses
The study revealed that, the average income of a skilled person in any employers’ industry of operation is
GH₵395 (US$88), which translates into an average annual income of GH₵4,740 (US$1053). Indicatively, the
average annual income of a skilled person in any industry of operation in Asokore Mampong Municipality is
higher than the benchmark income for the national upper poverty line of (GH₵1314) (GSS, 2014). It was
further revealed that, earnings around GH₵30 (US$7) and GH₵3,000 (US$714) per month were the potential
minimum and maximum incomes that a person who engages in any economic activity in the Municipality earns
(skewness=0.9).
When employers were asked if they had any intention of employing persons into their industries of operation
within the next 6 to 12 months, only a few (20%) responded affirmatively. The number of persons they aspired
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0
LESS IMPORTANT
NOT IMPORTANT
IMPORTANT
MORE IMPORTANT
MOST IMPORTANT
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to employ ranged from a minimum of one to a maximum of four. The information collected is presented in
table 29. It is worth noting that manufacturing and services recorded the highest number of potential
employees, which translates into a cumulative percentage of 60%. This notwithstanding, industry faced a
number of challenges that hindered their performance, and reduced their employment capacity. These have
been listed below:
Record keeping skills;
Packaging and marketing skills;
Business management skills;
Financial management skills;
Human relations skills; and
Production efficiency skills.
Table 30: Cross-tabulation of potential employment and industry of operation
Organizational Form Total Manufacturing Wholesale, Repair &
Retail Accommodation & Food Services
Education Other Services
Next 6 - 12 months
1.00 4 1 2 1 2 10
2.00 1 0 0 1 2 4
3.00 0 0 0 1 1 2
4.00 0 0 0 1 0 1
Total 5 1 2 4 5 17
Source: Field Survey, 2017
ii. Specific demands for (skilled) labor and training needs, following extensive consultations with the
private sector
The study made a profound revelation, when it was noted that 63% of employers interviewed, were of the
viewpoint that the youth in Asokore Mampong Municipality do not have the requisite skills to enter the job
market. Employers further concluded that the skills and experiences the youth lack include: formal skills,
creativity, interpersonal skills, and general employable skills, on the job experience, informal skills and marketing
skills. Based on the percentage of employers who mentioned the specific skill sets the youth lacked, a ranking
was done. It demonstrates the priority areas for skills-development (programmes).
Table 31: Basic skill set(s) the youth lack
Skill Set(s) Percentage (%) Rank
Informal Skills 29.1 1st Marketing Skills 18.1 2nd Creativity Skills 17.9 3rd Interpersonal relationship Skills 14.7 4th Formal Skills 13.4 5th Job experience 4.5 6th Employable Skills 2.2 7th TOTAL 100
Source: Field Survey, 2017
Meanwhile, employers suggested numerous strategies to help fill these skill gaps of the youth in the
Municipality. These ranged from advice and counseling, change in attitude, informal training, formal education,
skill guidance programs, training seminars among other.
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The study showed that, although the majority (71%) of the employers had never denied any person a job in
their lifetime, the few who did, based such a decision on factors such as the applicant’s level of education and
inadequacy of skills. In some instance, age and gender played a role in the denial of job opportunity.
Figure 14: Reasons for which employers have denied people jobs in AMMA Source: Field Survey, 2017
4.2.6 Principal Growth Sectors for Absorbing Unemployed Youth Based on the economic and spatial analysis done on AMMA, the selection of growth sectors which are not
saturated, which could grow rapidly and absorb well trained disadvantaged youth, and which have the potential
to drive the local economy, were selected guided by the following four criteria: (i) availability of human capital,
market opportunities and other economic determinants along the value chain; (ii) existence of backward
linkages (which is the reliance on inputs from the local economy to create jobs), and an increase in local
participation through sustainable business management; (iii) existence of forward linkages (which concerns the
addition of value to inputs before exporting them which might require the establishment of input supply and
distribution centers; and (iv) availability of lateral linkages through the provision of transportation,
communications, and financial services. The study arrived at the following key growth sectors guided by some
detailed analysis on the linkages as presented in Table 31:
Event planning and organization. A sector consisting of makeup artistry, catering services, event
planning (weddings, funerals), fashion and decoration, and chairs and canopy rentals.
The prospects for growth of this identified growth sector lies in its many forward, backward and lateral linkages
not to mention the high local and external demand for products and services offered by its subsectors. Many
weddings and funerals are held each weekend in AMM and KMA. A wedding ceremony engages the services
of a fashion designer, tailor and a seamstress. The fabric and all the other accessories for the brides dress and
the groom’s suit to be sewn are also bought form a textile dealers, 7kente weavers or traders. The wedding
invitations will be printed and packaged for distribution to the invitees. The services of an event planner are
engaged to put together all the arrangements in connection with the marriage event and subsequently the
reception. In doing this, the event planner might engage the services of a decorator; hire chairs and canopies if
these are not offered as part of his or her services. A car is hired if needed by the couple and to move the
logistics for the events to the event location. The food and drinks for the reception are procured from a caterer
who demands inputs from other traders such as the wholesaler or retailer of the drinks and water, meat and
7 Kente is a high value tradition cloth which is used for traditional marriages or weddings.
Age10%
Level of Education7% Gender
5%
Inadequacy of Skills6%
None of the above71%
Other1%
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fish vendors, flour seller, the poultry farmer producing eggs, milk, margarine, rice etc. The makeup artist, hair
and nails stylist styles the bride’s hair and make her up whilst the barber gives the groom an impeccable tonsure.
The wedding bands, the necklaces, tiara and other ornaments are sourced from a jeweler. This only highlights
the interconnectedness of the growth sector, the multiple linkages that exist across these sectors and their job
creation potential along their value chain.
Graphic design and printing, including billboard design, product packaging and branding, posters,
banners and printing cards, fashion design and decoration, and general printing and secretarial services.
Taxes from bill boards were identified as one of the major contributors to Internally Generated Funds in
AMMA. This is indicative of the fact that it is already a thriving business. The identification of the graphic
design and printing sector as a potential growth sector however hinges on the growing demand for business
and product branding services which create a web of forward, backward and lateral linkages. The 1D1F is to
stimulate local industrial production to achieve self-sufficiency and ultimately to export the surpluses. Many of
these industrial outputs will require packaging, marketing and distribution. Packaging will require graphic design
and printing; marketing will require advertising using medium such as billboards design and creation of
webpages for online sales; distribution will sometimes need branded vehicles. Record and book keeping will
create demand for the printing of invoices and sales receipts books. These will translate into high demand for
stationery and transportation and haulage services. The growth of the sector will lead to an increased demand
for skills in graphic design, printing among others an opening for academic and other training institutions to
take advantage of the situation.
E-sales, telemarketing and on-line business support services including the creation of an e-marketing
hub8, picking and sorting of orders, packaging and shipping of orders, and online business support
services, and finally.
Social media has become an essential place for many engagements globally. The worldwide web has reduced
global distances and provided a common platform for social and economic interaction. The increasing use of
mobile phones and the internet connectivity in AMMA not to mention the forward, backward and lateral
linkages makes the e-sales, telemarketing and on-line business support services a potential growth sector in
AMM. The growth opportunities offered by this growth sector stems from the many avenues that exist for
small businesses that are into the production of clothes and leather products to sell their outputs online. There
are also many households in AMM and KMA that periodically need the services of skilled artisans such as
plumbers, auto mechanics, just to cite a few. The online business support services for instance provide an
avenue for a driver whose car breaks down on the road to call a dedicated line to request for the services of an
auto mechanic. The mechanic is dispatched to the location to attend to the caller who in turn pays for the
services. This applies to a household with a broken sewer that needs the services of a plumber. The sorting of
orders, packaging and shipping are additional support the sector offers to businesses that shop for people locally
or export products either by air or sea. Through the e-sale and online marketing platforms, orders that are
received are sorting and obtained from the market, the order are re-grouped based on locations and destination.
They are then packaged and delivered to the clients.
Transportation, haulage and urban mobility services including tricycle operation; haulage of goods; sale
and repairs of vehicles such as auto electricians, auto mechanics and body works as well as spraying.
The transportation sector is mentioned as one of the sectors that earns the highest incomes. It comprise the
haulage group, those who offer urban mobility services, those who sell spare parts and repair vehicles and parts,
those who carry out body works and auto spraying. As an identified growth sector the sector is still not saturated
8 Marketing of products via internet
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due to the high demand for haulage and urban mobility services in AMM and its vicinities. This growth sector
is the fulcrum around which all the other growth sectors revolve. The 1D1F and the planting for food and for
jobs initiatives of government give this sector the impetus to further grow. In order to move the industrial
products of the factories to the shops and the produce from the farms to the market centres, the demand for
haulage services becomes important. Within the markets, bulk breakers need the services of tricycle operators
to carry heavy loads from one point to another. The servicing of the haulage trucks and tricycles, by way of oil
and tire changes, falls on the services operators and the vulcanizing businesses. The auto mechanics are needed
from time to time to repair and service engine parts and the auto electrician to address electrical faults. All these
create jobs for the auto spare parts dealers and businesses. As demand for haulage and mobility services increase
it translates into an increase in the sales of garages that sell tricycles, cars and trucks. Fuel or gas stations increase
sales just as those who sell lubricants, car batteries and other accessories.
Table 32: Potential growth sectors, their sub-sectors and performance score
Broad growth sectors
Growth sub sectors Performance criteria
Performance score
Level of training needed
1. Events planning and organization
Make up artistry
Catering services
Event planning and scheduling
Fashion and decoration
Chairs and canopy rentals
- Forward linkages
- Backward linkages
- Lateral linkages
- Level of specialization
- Human capital
- Potential demand
- High
- Very high
- Moderate
- Moderate
- High - High
Moderate to high especially in areas such as:
- event scheduling; decoration;
- make up artistry;
- fashion design; and
- soft skills
2. Graphic design and printing
Billboard design
Product packaging and branding
Posters, banners and cards printing
Fashion design and decoration
General printing and secretarial services
- Forward linkages
- Backward linkages
- Lateral linkages
- Level of specialization
- Human capital
- Potential demand
- Moderate
- High
- High
- Moderate
- High
- High
High to very high especially in areas such as:
- basic computer applications skills
- designing with computer applications
- screen printing
- photocopying and scanning
- conceptualization of design and thoughts and
- soft skills
3323
E-sales, tele-marketing, and online business support service
E-marketing hubs
Picking and sorting online orders
- Forward linkages
- Backward linkages
- Lateral linkages
- High
- Moderate
- High
High to very high especially in areas such as:
77
33
Packaging orders, shipping and or delivery
Telemarketing and advertising
Online domestic and business support services
- emergency plumbing
- emergency electrical
- emergency bottled LPG delivery
- Taxi and pick ups
- insurance
- banking
- Level of specialization
- Human capital
- Potential demand
- Moderate
- Low - High
- soft skills and change in attitude
- telephone manners
- map reading and interpretation
- internet browsing
- record keeping
- time management skills
- Planning and scheduling of activities and events
- internet security protocols
4.
Transportation, haulage and urban mobility services
Tricycle operation
Haulage of goods
Logistics and movers
Sale, garages and repairs of vehicles
Auto electricians
Auto mechanics
Body works and sprayers etc.
Vehicle breakdown assistance services
o e
Forward linkages
Backward linkages
Lateral linkages
Level of specialization
Human capital
Potential demand
- Moderate
- High
- Very high
- Moderate
- High
- Very high
Moderate to high especially in areas such as:
- planning and scheduling of activities and events
- software application in vehicle diagnosis
- record keeping
- time management skills
- telephone manners
- internet browsing
- road and traffic regulation
4.2.7 Ten concrete project proposals for social business promotion and PPP Any concrete project for boosting the economic performance of AMMA, can be expected to gain a large market
beyond AMM into the surrounding districts, where some 2,294,382 people live. Such projects must build
capacity of targeted women, young persons and other unemployed people in AMMA, to provide goods and
services to catchment areas within AMM and surrounding MMDAs. The projects proposed after multiple
78
interactions with government officials, NGO/ CSOs, businesses, employers, youth, and communities are as
follows:
1. Project 1: Asokore Mampong Refuse Aggregation, Sorting and Collection Project
Problem: Up to 83.4% of the total population of AMMA, amounting to 60,447 households, depend on dumps:
both containers (62.7%) and open space (20.7%) to dispose of rubbish. The rubbish which is usually not sorted,
is usually a mixture of organic, plastics and metals. Much rubbish is burnt in the municipality, emitting fumes
which are injurious to health. Apart from 2.3% identified as burnt, 33.3% of solid waste collected, is dumped
indiscriminately or at public open dumps and finally gets burnt in open air.
Opportunity: To take advantage of the huge volumes of waste generated in AMMA, opportunity exists to
establish a range of business opportunities for collection, sorting, and recycling of solid waste. Waste business
has numerous opportunities, including employment for individuals engaged in recycling of especially aluminum
cans and materials into cooking utensils; feed for livestock from the organic waste particularly during the lean
season; users of door-to-door services and scavengers; and reduced cost of collection and disposal due to the
sale of metals and plastics to waste scavengers.
Comparative Advantage: Much work is going on in Ghana, aimed at promoting the 6th Sustainable
Development Goal with the active involvement of the World Bank, UNICEF and the presidency of Ghana.
Entrepreneur with demonstrated capacity in sanitation marketing are therefore more likely to attract support
from policy makers.
Potential Market: Any business of this nature would be of relevance to AMM and surrounding MMDAs
which are also facing similar challenges.
Target: Young persons in AMMA interested in collection and sorting of waste
Scale: 3 truck drivers; 75 tricycle drivers; 300 hands capable of moving 86,422 tons of waste per year at full
capacity and 22,000 – 43,000 tons annually within the next four years.
Scope: The business would target waste collection in AMMA and surrounding MMDAs. However, profit
estimated in the assessment does not include additional revenue to be made from processing of e-Waste for
metals such as gold, copper, aluminum, and brass.
Size: Moving up between 25- 50% of total refuse generated in AMMA plus 10% of KMA, Ejisu Juaben and
Effigya Kwabre Assemblies.
Basic Inputs: 2 acres of land, plant buildings, trucks, bins, buckets and other and equipment.
Revenue: Total investment of GH¢3,201,733.33 and interest recoverable within 2 years of commencement of
business. More revenue could be made with the burning, extraction and smelting of sorted e-waste and plastics.
Profitability: Business has a net present value of GH¢3,441,378.83 and internal rate of return of 159%. Besides
the financial profitability it would generate over 90 direct jobs and many more indirect jobs within the AMMA,
as well as leave behind an environment safe from refuse, clogged gutters and associated floods.
2. Project 2: Asokore Mampong Centralized Smelting, Burning and e-Waste Plant
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Problem: AMMA is becoming a replica of Suame Magazine and a hub for scrap aggregation. Scrap is burnt haphazardly to extract lead, copper, and aluminum. Scrap burning is associated with fumes that are injurious to human health. The mobility map9 of the dwellers of Asokore Mampong municipality, from the point of view of communities identifies the Suame Industrial Enclave as a major destination for young men and women who use the municipality as a dormitory and ply various trades at the magazine on daily basis.
Opportunity: It is observed that AMM is gradually becoming another enclave as the people gradually move the trades they ply to the municipality and this must be regulated as early as possible. A centralized smelter well fitted with gadgets to manage fumes could be established where inhabitants after aggregating scrap converge to burn and extract whatever metal they are interested in (for a fee).
Comparative Advantage: The people have experience in dealing with scraps, as merchants who aggregate
scrap, recondition and sell; as laborers who disassemble parts by chiseling, fire, unscrewing as well as pulling
apart; and selling the parts to fabricators and artisans. They also engage in foundry, smelting and the production
of various metal parts through casting for industry. They also engage in vehicle repairs and assembly. AMM
appears to have more space than the Suame Magazine.
Potential Market: Suame Magazine is a unique industrial enclave that serves not only Ghana, but other
ECOWAS countries. Used and discarded machines are brought from all over the World and split apart at this
enclave. If for lack of space that the activities of the enclave are spilling over into AMMA, policy makers would
be doing the right thing, by positioning the Municipality to accommodate such activities in a planned manner,
to benefit from the numerous activities that localize around such enclaves.
Scale: The solid waste recycling center would off-take sorted waste from Project 1 above and provide
centralized burning processing and recycling services for the following yearly tonnes of materials over the four
year period:
Organic 72,467
Plastic 15,583
Metal 6,527
Glass 6,176
Scope: provide centralized plant for scrap dealers seeking to burn or recycle sorted materials from Asokore
Mampong Municipal Waste Management Project, and process into organic fertilizer, plastics pellets and metal
ores for sale to vegetable producers, foundries, and glass bottling companies.
Size: About 50-100 employees operating in the refinery situated on an acre of land, the facility would provide
kilns with gas chambers and tall chimneys as well as the associated crucibles and other consumables for
recycling.
Basic Inputs: Machines for recycling organic waste, plastics, metals, and glass
Revenue: At 40 pesewas per kilogram of waste processed, a loan of GH¢1,842,343.60 could be repaid three
to four years of commencement
Profitability: A net present value of GH¢819,815.86 and an internal rate of return of 96% is expected from
the investment at a discount rate of 22.5%.
3. Project 3: Asokore Mampong Fitting Mechanic Settlement Initiative
9 A map showing the places community members visit most on a particular day
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Problem: People in Asokore Mampong and surrounding areas, particularly KMA patronize second hand
imported cars popularly known as “home used”. They also use such cars for many years. Accordingly, there is
a huge amount of vehicles needing repairs, which has generated a vast industry for vehicle spare parts dealers,
as well as repairers and other auxiliary service providers. Auto mechanics form a large proportion of the vehicle
repair sector, and a major absorber/ career path for young persons who are unable to further their education,
particularly beyond the basic level. The masters in the sector accept such young persons as apprentices, around
the ages of 15, and train them over a period of 3-4 years so that around ages 19-21, they are experienced enough
to set up their own shops. The challenges they face setting up businesses are, however, numerous, and the
critical one is how to find the space on which to operate their shops, within the urban/ peri-urban setting where
land is very expensive.
Opportunity: The opportunity exists for the Municipal Assembly, the Traditional Authority, the Civil Society
groups and private sector interests to lobby landowners, to demarcate a sizeable plot of land, up to 10 acres for
fitting mechanics, and vehicle spare part dealers, as well as other auxiliary service providers, such as water and
sanitation, food and beverages as well as financial service providers could localize and provide vehicle repair
services to the public.
Comparative Advantage: The population of the youth in AMMA within the age cohort of 15-21 is high, and
as in other areas of Ghana, transition from basic to secondary education has been low and so also from
secondary to tertiary. Thus even graduates unemployment is high. The entry barriers into fitting mechanic
business are low in terms of avenues for training and cost.
Potential Market: Besides, the city of Kumasi is close by with numerous vehicles needing servicing, while the
lands have been fully converted to urban uses. AMMA, which is so close to Kumasi, is better placed to take up
auto-mechanic service needs.
Scale: 50 young persons who have graduated from apprenticeship training as auto mechanics but cannot find
the land on which to operate; and 100 basic education graduates who are ready to go into apprenticeship and
become auto mechanics.
Scope: Provide a quarter of a rented premise or plot for Master auto –technicians to sit and conduct business
where they can adopt two apprentices each.
Size: 10 acre plot of land with sheds, water, electricity and other services
Basic Inputs: Land, sheds, entry fees
Revenue: The Traditional Authority, Honorable Assembly Persons, communities as well as the faith based
organizations would work together to make land available for the young auto mechanics to ply their trade.
Profitability: An amount of GH¢4,160,000 would be required in a venture which is financially not rewarding
as the payback period would be over two years, but the venture is economically rewarding and socially desirable.
As has been the case wherever auto mechanics operate, their operations would attract other service providers,
including financial institutions, food and beverage sellers as well as water, sanitation and other services.
Although male dominated, their operations also attract more of services provided by women.
4. Project 4: Asokore Mampong Small Vehicles and Logistics Company
Problem: Transport business is flourishing between the KMA and the AMMA. The municipal is noted for a
whopping 47938 (39%) of industry workers involved in wholesale, retail, and repair of motorcycles. Typical is
the use of various kinds of tricycles. The patronage of the tricycle for conveyance of goods and human beings
has increased recently. The type known as Adedeta has almost overtaken the trotro and the taxi. People prefer
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to join the Adedeta because of its ability to maneuver through traffic and help passengers get to their
destinations ahead of other alternative transporters. Regulation is, however, very weak and lives of users could
be engaged.
Opportunity: There are opportunities for several revenue mobilization points to be created around the tricycles
just as it is done for taxis and trotros. Specifically: (i) creation of stations for tricycles, passing a resolution for
all the tricycles to operate from the stations and tolling the users; (ii) provision of identification tags to all
tricycle dealers at a fee; (iii) licensing of all tricycle drivers at a fee and fining and those caught without licenses.
Comparative Advantage: There are examples of KMA and AMMA numbering all taxi’s operating in their
various assemblies. A similar exercise could be implemented in with tricycles under AMMA.
Potential Market: AMMA remains the target market but could be extended to all other transport systems in
the municipality.
Target: The business would be targeted at unemployed youth seeking to develop a career in transportation
business, who wish to start by driving and owning Adedeta tricycles.
Scale: Support up to 50 young people to acquire tricycles for transporting people within and around the
AMMA.
Scope: Boosting the quick transportation of people, goods and services within and around AMMA
Size: Identify and support 50 youth to acquire and run Adedeta tricycles within and around AMMA
Basic Inputs: Provide 50 Adedeta tricycles on hire purchase to 50 young persons to be repaid within the
project period.
Revenue: Working 6 days a week, making sales of GH¢20.00 on daily basis, over GH¢300,000 is expected on
yearly basis.
Profitability: At a discount rate of 22.5%, the business has a net present value of GH¢413,987.53 and a highly
attractive internal rate of return of 747%.
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5. Project 5: Asokore Mampong Juicing Company
Problem: Women in Asokore Mampong Municipality have joined several others in the Kumasi Metropolis
into the production of roasted groundnuts, groundnut paste, and maize flour (Winimix), palm and kernel oil,
and gari. The women operated in groups and ply their trades at Akorem, Moke and Sawaba. The picture is
painted of the increasing demand for processed food products, including fruit juices.
Opportunity: The local fruit juice industry is flourishing as a result of increased demand of Ghanaians for
healthy food products. The industry is already being driven by the private sector and AMMA could collaborate
with an investor, who has expressed interest to establish a plant for processing fruits in the municipality. The
entrepreneur has identified farmers in SekeyreAfram Plains and BrongAhafo Region capable of supplying the
firm with raw materials in the short run.
Comparative Advantage: Tree crops production has picked up with farmers in Ghana of late as a result of deliberate policies by some development partners such as Adventist Development and Relief Agency (ADRA). Close to AMMA, farmers were identified in Sekeyre Afram Plains, Offinso and other MMDAs in the Brong Ahafo Region.
Obviously, crop production is not a strong area for AMMA, but the district has experienced food aggregators
and processors, especially women who move root, tubers, cereals, grains, pulses and nuts from all over Ghana,
and could easily go into fruit processing.
Potential Market: A large scale fruit processing plant in AMM would motivate increased production of fruits
in the surrounding more rural assemblies and provide employment for farmers, aggregators, transporters, and
processors as well as distributors of processed juices all over Ghana.
Target: Led by an entrepreneur to raise matching capital who would work with young graduates from the
Agricultural, Mechanical, and Biochemical Engineering of KNUST, Kumasi Technical University and other
tertiary Institutions to manage facility JHS and SHS graduates to provide unskilled labor.
Scale: A fruit juice bottling and packaging plant is to be established with capacity to produce and package two
hundred and eleven (211) crates of fruit juice per day
Scope: Product range would include pure citrus and mixed fruits including water melon, passion fruit, guava,
mango, and other spices such as ginger.
Size: An amount of three million, five hundred and seventy three thousand, six hundred and ninety three
Ghana Cedis (GH¢3,573,693), made up of GH¢3,460,094 capital equipment loan and 113,599 working capital
loan taken at 22.5% interest rate per annum.
Basic Inputs: Juice extraction plant, raw materials van, finished products distribution van, machinery and
equipment, and other equipment; 50 senior, middle, junior staff providing direct and indirect labor; Raw
materials including tones of oranges, melons, guava, mangoes and passion fruits, as well as spices such as ginger
purchased from farms in the rural areas of Ashanti Region.
Revenue: An average yearly revenue over 5 year of GH¢4,881,568.61 as against expenditure of GH¢3,432,012
Profitability: Borrowing at 22.5% per annum, the analysis reveals a profitable business with a net present value
(NPV) of GH¢7,835,511.06, an Internal Rate of Return (IRR) of 102% and a payback period of 4 years.
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6. Project 6: Asokore Mampong Pastes and Spices for Soups
Problem: The use of pastes from local pulses and peas such as groundnut, wrewre (nerineri), and agushi is painful
for most women if they have to begin the process from scratch. Many households can therefore only remember
the aroma of the grandmother’s soups, as they get stack with the monotony of current day city soups. Groups
of women in Asokore Mampong have specialized in the production of pastes from the above peas and pulses
which they sell at various markets in the Kumasi Metropolis and other surrounding areas. The pastes are,
however, not available in convenient packages and therefore despite the nutritional value not readily available
to the consumers. The introduction of these pastes in convenient packages such as groundnut paste, tomato
puree, or other edible crèmes would offer consumers opportunity to access the products in a safely packaged
manner, and variety of sizes for convenience, as well as drive the value chains of groundnut, wrewre (nerineri),
and agushi and generate employment along the chains.
Opportunity: Demand for local foods in Ashanti Region is great. People would travel long distances to
consume Tuo Zaafi (TZ), fufu and akrante/ snail/ adwene soup (local meats), others devote weekends for
some special meals, signifying that the people of Kumasi and surrounding communities have appetite for certain
local foods they would want to keep. Readily available and hygienically prepared pastes can help people to
satisfy these appetites right in their homes.
Comparative Advantage: The peri-urban nature of AMMA means that it can purchase the raw materials easily
from the rural communities around it, process the raw materials and sell the processed produce in the large
markets of Kumasi also close by. There are women in Asawase, Akorem, Moke and Sawaba some areas of
AMMA who are involved in the processing and trading of pastes who can be mobilized to begin to package
their products for local households, the elite Ghanaians and international consumers.
Market: The market for food products is fast growing. The Kumasi Central Market and Asafo Markets are
close by for retailers to off-take packaged pastes. Additionally, there are supermarkets that have sprang up all
over AMMA and other communities around Kumasi as a result of the Kumasi decongestion exercise to which
can become retail outlets to such products, not to talk about the malls that are springing up in Kumasi.
Target: Targeting about 50 women entrepreneurs and their workers already involved in the processing of
groundnut, wrewre (nerineri), and agushi pastes for snacks and soups.
Scale: 28,512 (432 of 66l drums) per year
Scope: To produce, package and sell regular and ginger flavored branded paste varieties of groundnut, wrewre
(nerineri), and agushi, which are packaged in 750g, 1kg, and 2 kg packages and are labeled with the appropriate
brand names, with a shelf life of 4 - 6 months, and 6 - 12 months plus months with refrigeration.
Size: Half an acre of land
Basic Inputs: Wooden shed for machines, Distribution van, Office, working area and dressing room, Fire
place, Diesel Engine (8HP), Mechanized Roaster, Miller, Crop drier (2 ton), Grain cylo, Mechanized sieve,
Vertical Sealing Machine and others.
Revenue: Enough to repay a loan of GH₵195,993.13 at a simple interest of 22.5% p.a, over a period of 4
years at a moratorium of one year.
Profitability: Profitable business with an IRR of 79% and a net present value of GH¢310,795.19.
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7. Project 7: Asokore Mampong Intensive Cattle Fattening Project
Problem: Livestock, including sheep, cattle, goats and pigs, are scattered over the AMMA. Keeping livestock
in the cities of late has been a nuisance but it has not generated as much conflict as has been the case in the
rural areas. Most farmers concentrate on fattening of cattle for the Kumasi cattle market and the Kumasi
abattoir at Kaase. Sheep and goats are reared as backyard activities by an estimated 1200 livestock farmers.
Opportunity: AMMA can take advantage of the already existing skills of the people in livestock rearing to
make the Municipality a major supplier of livestock to the Kumasi Abattoir. Pilot projects on intensive
production of livestock could be rolled with support from the Cattle Project of KNUST, where livestock
production could be studied as a specialized profitable enterprise rather than just another livelihood activity.
Comparative Advantage: The majority of the people of AMMA comes from the three Northern Regions of
Ghana and has Muslim background and experience in livestock production systems. Studies have shown that
when herds of cattle are brought to Ashanti Region, they are kept at an average distance of 38 km before they
are finally transported to the Kumasi Abattoir. AMMA is closer to the Kumasi Abattoir, which has the daily
capacity of 400 cows, 100 pigs and 200 goats, albeit hardly utilized at full capacity. They have much experience
in providing temporary livestock holding services and gradually releasing the animals for processing at the
Kumasi Abattoir. The people also have much experience in meat processing and in the trading of meat
products.
Potential Market: The livestock initiative would target the Kumasi Abattoir to feed it with healthy livestock
as well as supermarkets and food joints with milk and other dairy products. AMMA could also become a center
where farmers all over Ghana and the West African Sub- Region could be trained on intensive cattle production
in consultation with the Agricultural Department of KNUST.
Target: 50 young cattle dealers in AMMA producing to supply the Kumasi Abattoir.
Scale: 50 farmers are to be supported to run a kraal and be able to supply the Kumasi Abattoir with 600
fattened bulls half yearly (1200 per year). The cattle dealers would purchase 10 calves per month fatten them
over a period of six months and sell.
Scope: Confinement, fattening of cattle, and supply to the Kumasi Abattoir.
Size: A 2-acre plot of land capable of hosting maximum 1200 heads of cattle.
Basic Inputs: Acquisition of land, fencing, erection of kraals, stocking and management of farm.
Revenue: About GH¢4,800,000 is expected from the sales of 1200 bulls on yearly basis.
Profitability: At a discount rate 22.50% the enterprise is highly profitable with a net present value of
GH¢1,654,087.90 and an internal rate of return of 254%. A loan of GH¢2,902,959.40 taken for the business
can be repaid within the four year project period.
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8. Project 8: Asokore Mampong Shoes and Leather Works
Problem: Craft and related trade works is a major employer of people aged 12 years and above in the Asokore
Mampong Municipal Assembly (AMMA). The sector which engages 33,314 people, constituting 27.1%
(average) of the labor force of which 37.1% are men and 17.1% female. Among the trades they ply are tailoring,
dressmaking, shoemaking, leather works, kente, hand- crafted beads, jewelry, paintings, carvings, brass works,
woven baskets, leather works and smocks. Although the youth are ready to learn the trade, they are constrained
by inability to mobilize fees for apprenticeship, the cost of subsistence during training as well as start-up capital
to set up upon completion.
Opportunity: The Government of Ghana is promoting the consumption of local products and in some cases
where foreign involvement cannot be avoided, an increase in local content. Shoes and leatherworks are one of
such areas. The raw materials for shoe production, including leathers, bona, heels, boards and liners are
imported, however, the imported materials, form a smaller proportion of the cost of inputs and the amount
realized from locally produced shoes and leather bags, yet the quality has really improved recently to
international standards.
Comparative Advantage: The Kumasi Shoe Factory, close by is a clear example of a public –private -
partnership (PPP) arrangement between a Czech company, Knight Ghana Limited, and Defense Industries
Holding Company Limited (DIHOC) of the Ghana Armed Forces (GAF) from which AMMA can draw lessons
of experience. Additionally AMMA youth perceive shoe making and leather works as a key source of
employment for the youth, which must not be left out in local economic development. Some youths have
already mastered the trade, established their own workshop and are in the business of training apprentices to
also become masters.
Market: African countries including Ethiopia, Ghana, Kenya and Nigeria have become internationally
recognized as key players in Africa’s footwear revolution which is on-going. Ethiopia has over 30 tanneries and
several manufacturers that produce shoes and other leather goods for both the local market and for export.
The Ashanti Region, in Ghana is also noted for craftwork and Kumasi particularly for its rich culture. Tourists
who throng the tourists sites always want to go away with artifacts, most of which are not produced in Kumasi
itself but in surrounding communities such as Bonwire for Kente, Ahwaa for Carvings, Kurofrom for brass
carvings and Asawase for smocks. AMM, with the dominance of people from northern Ghana is expected to
feature crafts from Northern Ghana to add up to the variety in Ashanti Region. Besides, there are many
religious groups who prefer locally made apparel to imported ones. The market for locally made shoes and
leather works is therefore high.
Target: Fifty (50) young people of age 15-21, seeking to develop a career in shoemaking and leather works.
Scale: Each trainee gets an industrial sewing machine, a press, and a grinding machine on hire purchase.
Scope: Producing for the financial analysis, only shoes and sandals
Size: A capacity of 50 shoes every four days, and 50 sandals completed daily
Basic Inputs: Land, workshop structure, machinery and equipment
Revenue: A net income of GH¢1,760,730 over the four year period
Profitability: A net present value of GH¢482,008.69 and a rather high internal rate of return of 306%.
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9. Project 9: Asokore Mampong Young Tailors and Seamstresses Project
Problem: The main employment opportunities are hairdressing and sewing for women and welding and
fabrication, and fitting mechanic for men. Sewing of clothes for both men and women was not just profitable
but also easier for the youth to establish after passing out of training compared to fitting mechanics who found
it more difficult to find land on which to work after training.
Opportunity: The potential exists for tailors and seamstresses to be supported to scale up dress making to
serve all Muslims because of the Jarabia which are won by Muslims. Producing the Jarabias locally would save
the country much foreign exchange.
Comparative Advantage: Tailors and seamstresses in AMM are already known and accepted within the
Asokore Mampong Municipality. Their products have seen patronage by chief executives and public servants
in Ghana.
Potential Market: Tailors in the Municipality are known to serve high level public servants and people holding
political positions in Ghana. A key product which is patronized especially by Muslims during Eid-Ul-Fitir and
Eid-Ul-Ada celebrations is the jarabia. Apart from the jarabia, market also exists for Jonathan suits, named after
the former Nigerian President, Goodluck Jonathan which has found patronage among politicians, ministers
and high level executives in Africa.
Scale: 50 apprentices every 2 years a total of 100 apprentices for the four year period, supervised by 15 master
tailors and seamstresses.
Scope: Dress making involving tailors and seamstresses making local apparel including jarabias, smocks and
suites for sale within the entire nation and beyond.
Size: Producing the equivalent of at least 200 Jonathan suits per month for various sales outlets.
Basic Inputs: Land, Structure, Machines (industrial sewing, over-locking and embroidery machines), Materials,
Electricity
Revenue: A net present value of GH¢422,671.86, which is enough to pay for the machines of two batches of
50 apprentices over a period of 4 years, pay for the structure and the land.
Profitability: The business is based on the assumption that all clothes produced in a month would be sold and
that all the months will have an average demand of 200 pieces of the equivalent of Jonathan suite. Such
assumptions are possible with intense marketing and promotion estimated at 5% of total sales. The internal
rate of return calculated over the four years for the net cash inflow is 207%, signifying a profitable business.
Besides the profitability it would provide a permanent source of employment for 100 young people, who can
practice anywhere in Ghana and beyond.
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10. Project 10: Asokore Mampong ICT and Hardware Company
Problem: Asokore Mampong Municipal Assembly had 420 employees (0.3% of the work force) as of 2010 ,
involved in information and communication service provision (GLSS, 2014). Six percent (6%) of the service
providers are males and 1% females, who provided services to a population of 148,286 (68%) aged 12 years
plus having access to mobile phones or internet facilities. Many young persons in the Municipality are interested
in taking to ICT service provision as a source of livelihood. At Asawase Community Centre, there is an ICT
Centre which can be overhauled and used to train the youth. The ICT Centre is situated in a school, close to a
football park which has not been grassed. The visible effect of this is that the center is full of dust which is not
conducive for ICT gadgets.
Opportunity: There are all kinds of ICT based enterprises and support services that could yield much revenue
to the private sector as well as AMMA. AMMA could therefore facilitate the establishment of a robust ICT
center where people could go and resolve their problems for a fee. The school based ICT centers could be
adopted, overhauled, reconditioned and upgraded to accommodate ICT hardware and software training
activities.
Comparative Advantage: There are young people in AMMA who have acquired the skills and are able to
provide ICT hardware, software services as well as train others to provide the same services. There are public
and privately owned internet cafes where young people converge to access internet services for various
purposes. There are school based ICT Centers which can be overhauled, reconditioned and upgraded for ICT
hardware and software training.
Potential Market: Within and around AMMA are institutions of learning and research such as the KNUST,
KPOLY, KTI, and BRRI, CRI, FORIG and others, whose employees have high demand for ICT hardware
and software, retail and repair services. The institutions and their employees have demand for reliable and
quality computers and computer accessories supplies, repairs and after sales. Such employees include
particularly, students, lecturers and technical staff.
Target: Unemployed youth within AMMA, KMA, Ejisu Juaben and Kwabre East
Scale: Expansion of facility by adding more working space, adding air conditioners and making it dustproof,
and upgrading it by making it capable of training 20 apprentices at a time.
Scope: Overhaul, recondition and upgrading of one school based ICT Centre to become a hub for training the
youth in mobile phone and computer installation, servicing and repairs.
Size: 3 masters, training 40 youth, in two batches of 20, over a period of two years.
Basic Inputs: Inputs required include GH¢60,000.00 for expansion of an existing ICT facility; GH¢30,000.00
for dust proofing the old facility and acquiring furniture and fittings for the expanded facility and well as enough
funds to resource apprentices with equipment and tools including a blower, a meter, a set of screw drivers,
testers, soldering iron, and pen drives.
Revenue: Over the four years, the facility expects an average net revenue of GH¢68,396.46 and a total net
revenue of GH¢273,585.82, enough to repay all the capital investments over the period.
Profitability: At a discount rate of 22.50% per annum, the enterprise has a net present value of GH¢142,789.47
and an internal rate of return of 432% signifying a highly profitable business.
See Appendix V for the proposed Action Plan for rolling out the ten concrete projects.
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4.3 SECTION 3: NBU Project Baseline, Monitoring and Evaluation
The following data have been identified as the baseline indicators that align with the NBU logical framework,
meant to facilitate the monitoring and evaluation of the project proposed for implementation. Table 33
provides a list of the indicators, their baselines and sets the stage for future targets by providing additional
baseline information and indicators.
Table 33: Area of Focus, Indicators and Baseline Data
Areas of focus Indicators Baseline Project target
PDO Level Result 1: Youth employment and inclusive socio-economic growth in AMMA stimulated through joint key stakeholder collaboration
1.Youth employment i. Overall unemployment rate among the youth (%)
14
ii. Proportion of males unemployed 53%
iii. Proportion of females unemployed 47%
% of youth who have requisite skills required by industry
37
2. Income data on youth iv. Average monthly income of the youth employee (Gh¢)
342
v. Average monthly income of the youth employer (Gh¢)
395
3. Growth sectors for stimulating youth employment and inclusive growth
vi. Number of growth sectors identified 4
vii. Number of sub growth sectors identified
15
viii. Number of growth sectors developed 0
ix. Number of PPPs and Social businesses created in the identified growth sectors
0
x. Number of new PPPs and Social businesses identified in the new growth sectors
0
xi. Number of youth employed in new enterprises created in the identified growth sectors
0
Xii Percentage of local officials who agree
that private partnership and social
businesses improve the implementation of
capacity of AMMA
30%
PDO Level Result 2: Improved sustainable local economic growth and expanded job creation by enhanced collaboration of Civil Society Organisations (CSOs), Asokore Mampong Municipal Assembly (AMMA) and other stakeholders (targeting 500 youth)
1.Skills training offered to the youth to make them more employable
Number of youth who have benefitted from skills training
0
2. Provision of support for enterprises
Number of enterprises supported to scale up
0
3. Rate of enterprises formation
Number of new enterprises formed 17.4
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Areas of focus Indicators Baseline Project target
PDO Level Result 3: Capacity of Asokore Mampong Municipal Assembly (AMMA) enhanced to collaborate with civil society and private sector to mobilize revenues for local development while promoting transparency and accountability to citizens, and piloting 2 Social Businesses and 3 Public Private Partnerships PPP
1.Promoting transparency and accountability in revenue mobilization
Number of staff and stakeholders trained on social accountability
0
Number of stakeholders taking part in Social Accountability activities such as budget tracking and town hall meetings
0
Number of social accountability indicators
established
0
Number of stakeholders mobilizing
revenues for onward payment to AMMA
0
Number of Social Accountability Committee established and meeting periodic ally
0
Enhancing the role of citizens in budgetary allocation of funds for development
Number of stakeholders taking part in participatory budgeting
Number of media houses carry news on budgetary decisions reached
0
The number of newspaper articles dealing with budget tracking increased
0
Number of byelaws adopted that are meant to stimulate private sector development
0
Proportion of total AMMA budget, spent on at least 3 new activities included in Action Plan by Y4 (actions favor women equally to men).
0
Number of people who see revenue payment as useful
15%
Percentage of AMMA, CSOs and private sector who rate their collaboration as “good”
20%
Efficiency of the revenue mobilization system
Overall collection efficiency
Under 50 %
Collection efficiency of paid staff
Collection efficiency of commissioned collectors
Collection efficiency of outsourced collectors
30%
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CHAPTER FIVE
5 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings
The study, which focused on actions to stimulate inclusive development of the youth, disadvantaged and
vulnerable groups in Asokore Mampong Municipal Assembly, came out with findings from the following
categories: (i) the desk study; (ii) the external/ internal environmental scan; (iii) access of youth to the labor
market; (iv) the revenue performance of AMMA; (v) growth sectors and drivers of the local economy; (vi) the
specific demands for (skilled) labor and training needs; and (vii) the characteristics of disadvantaged and
vulnerable youth. Further details have been provided as follows:
1. Key findings from the desk study
There is a sound basis for the increased acceptance of LED in Ghana, including AMMA. The review
of Local Economic Development literature revealed that in Africa, LED was largely triggered by the global
economic crises, which compelled many African countries to look for home grown solutions to local issues and
required the mobilization of resources from the local level. Although there have been variations in the
definitions of LED, they have been territorial and participatory in nature, global in outlook but focused on local
social economic opportunities, and aimed at sustainable economic development. There are several approaches
that can be used in the identification of the growth sectors, yet their usability is contingent on availability of
quality panel or longitudinal data. In the absence of such data, other methods such as income per sector analysis,
location quotient analysis; share shift analysis; and tress index are used. LED is not new to Ghana, Ashanti
Region and Asokore Mampong Municipality, which was created only just five years ago. In spite of the wide
acclamation of LED, local capacity required to facilitate the corresponding participatory processes (securing
effective participation of all stakeholders), is often lacking.. The local capacity gaps among MMDAs in Ghana,
well explains the low results seen from the implementation of pro LED strategies.
2. Findings from Environmental Scan
The internal and external factors that promote or militate against the economic development of AMMA were analyzed using the tool PESTLE, an acronym for environmental, political, economic, social, technological, legal and environmental factors that affect economic development. The following key revelations were made on each of the factors:
Factor Opportunities Threats
Political Ghana has a stable democracy and AMMA, where the LED programme is to be implemented, is peaceful for business to thrive. There is the political will to strengthen MMDAs and to roll out initiatives for youth employment through, for example, the One District One Factory (1D1F) and the Planting for Food and Jobs (PFJ) initiatives of GoG. These are geared towards promoting
There appears to be political polarization in AMMA. Playing the political card could compromise objectivity, affect efficiency of work, and it can easily lead to politicization of development issues.
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youth employment and local economic development.
Economical Ghana still remains an attractive destination for development partners and actors who are interested in Ghana’s economic development. There is a vast market for enterprises in AMMA, due to its proximity to KMA. Key enterprises such as the Kumasi Abattoir, the Kumasi Central Market, and the Suame Magazine depend on AMMA for labor force. AMMA is surrounded by KNUST, the Kumasi Polytechnic and the Kumasi Technical Institute, which guarantee the provision of highly skilled labour and provide an avenue for training. There is cheap labor available in AMMA. AMMA has capacity to handle the spilled over businesses from Kumasi due to the overcrowded nature of the city of Kumasi, especially the Central Business District (CBD). AMMA has a huge potential for revenue mobilization, especially from property taxation.
The volatile nature of the Ghanaian economy, with rising inflation rate and increased Government borrowing, weakening currency and high interest rates makes doing business unpredictable. There is high graduate unemployment. Most enterprises in AMMA are small and home based. High government borrowing could crowd out the private sector. Revenue projections are not based on realistic and accurate information. There is low level of involvement of the citizenry in the determination of fees and rates. The level of awareness among the citizenry on the use of internally generated funds is low. Property valuation is not done frequently, making it difficult to accurately project revenues. There is high revenue leakage due to poor monitoring systems for revenue collection.
Social Literacy rate among the youth is relatively high. There are NGOs and the NCCE who can help in sensitizing communities about their civic rights and responsibilities. There is redevelopment and conversion of residential properties in AMMA, into mixed use development. There is an increase in the number of business startups in AMMA. .
Most communities have their unique identities and culture, which are different from the Ashanti culture. This difference, if not well managed, might lead to conflicts. Many women are engaged in petty trading which yields low financial returns. Many women engage in petty trading with low returns. A large proportion of migrants (40.5%) are not likely to stay beyond four years. There have been reported cases of congestion related diseases such as flu, cold and H1N1. There are also cases of drug abuse, threat of armed robbery and crime in the municipality.
Legal
Ashanti Region in general, is an area where people have confidence in the legal system. They would not take the law into their hands, but would rather seek redress at the courts. The numerous inhabitants of AMMA who have migrated from the North, have accepted the peaceful conditions and ways of living in Ashantoi region and AMMA.
Most enterprises are micro, informal and not registered. Enterprises are scattered, home based, and difficult to track and regulate, making revenue mobilization difficult. AMMA has not been effective at promoting businesses and eliminating bottlenecks to business growth and overall development.
Technological There is the evident adoption and use of ICT for business purposes in AMMA. Households in AMMA are already familiar with the use of ICT for social
Internet scams are a threat to web based businesses. Rampant fire outbreaks in homes and work places threaten businesses, for example by making them reluctant to invest
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purposes. There are numerous skilled artisans, fabricators, industrial machine operators, auto mechanics and auto electrician in AMMA, who have acquired skills especially in auto diagnosis. There is an increase in demand for mobile money transfer services. Mobile (smart) phone ownership and internet access is increasing progressively. The level of internet connectivity and use in AMMA, potentially opens the population up to the huge and powerful world wide web and what it has to offer. Energy availability from the national electricity grid has stabilized. AMMA is surrounded by several institutes of science and technology.
in the acquisition of ICT equipment. Most motorbikes and tricycle drivers are not licensed. The capital intensive nature of technology threatens its full adoption. Youth have difficulty raising funds to acquire machinery and ICT equipment. The rapid changes in ICT adoption require continuous skills upgrade.
Environmental AMMA is in close proximity to some crop production areas. AMMA has good soils for backyard vegetable production. Proximity of AMMA to the Kumasi Central market makes it easy to sell fresh vegetable. The sunny environment in AMMA makes it conducive for sun-drying produce. The environment is suitable for primary and secondary food processing. Above all, AMMA has a relatively good network of roads, which facilitates physical connectivity.
Indiscriminate dumping and burning of refuse and improper waste management negatively impact the built-up area. Poor quality of housing structures, low maintenance and inadequate urban service levels affect property values in AMMA. Inadequate land availability, especially in the built-up areas, has implications for the expansion of businesses. There is high occurrence of unplanned and unregulated conversion of housing to commercial uses.
3. Key findings on the attributes of the youth, employability and income
The attributes of the youth and the number of factors that promote or militate against the employability of the
youth in Asokore Mampong Municipality, have been identified as follows:
i. The youth in AMMA have relatively higher annual income GH₵4,098 (US$910) compared to the
benchmark income for the upper poverty line, which is GH₵1314 (US$ 312). When given financial
literacy training, the youth can save, invest and work their ways out of the vicious cycle of poverty.
ii. A bivariate regression analysis (R²=7%) shows that gender does not substantially affect variations in
unemployment among the youth in the Municipality (r=0.36).
iii. Although the survey recorded minimum and maximum average monthly incomes of GH₵30 and
GH₵3,000 respectively, a Gini coefficient of 24% shows a rather low level of income inequality
amongst the youth in the Municipality.
iv. A good proportion of the youth who faced challenges accessing the job market were those whose
education halted at Junior High School level.
v. There is a weak relationship between the level of education of the youth and the amount of income
earned (correlation=0.07). When this is validated by a bivariate regression analysis; it showed that, a
change in the level of education of the youth does not significantly affect the amount of income
(R²=0.5%).
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vi. Nearly 6 out of every 10 youths who learnt one or more trade, did not graduate. The variety of reasons
assigned for this phenomenon include: “financial difficulties; long durations for learning these trades;
changes in career or job ambitions, loss of interest in the trade; problems with employers (master
craftsmen); non-lucrative nature of the trade ventured; informal nature of the trade which did not require
graduation; the commuting distance from home to place of learning trade; and personal reasons,
among others”.
vii. The skills the youth seek to acquire in the future included: catering, cosmetology, dress making, driving,
electrical fitting, furthering education, graphic designing, imports, teaching, trading, among others.
viii. Many young men, even those who dropped out of school at SHS level and could not find their desired
jobs, were operating tricycles, conveying goods, people or refuse.
ix. The majority (65%) of young persons in AMMA have learnt one form of trade or the other. This
signifies general readiness to learn trades. Trades learnt include barbering, baking, beads making, bread
making, beautician, carpentry, dress making, decoration, electrician, masonry, bus conductor, leather
work, auto mechanics, plumbing, and welding.
x. Patronage of trade skills by youth groups is inversely related to the duration of training and the cost of
the training. Where the duration is long and the cost involved is high, few young people are able to
patronize, where the cost is low and duration is short, more young people are able to patronize. Young
men are able, for example, to patronize tricycle operation, because it takes less than a month to learn
to drive and it start-up costs are relatively low..
xi. The key challenges youth faced accessing the job market include: lack of start-up capital; lack of
employable skills; government policy constraints such as freezing employment into the public sector;
low level education; seasonality and instability of certain markets; and vulnerability due to ambulatory
and other physical challenges.
xii. Among the factors that facilitate access of youth to the labor market is educational attainment. The
difference in educational attainment between male and female youth at various levels is quite small and
tilted in favor of women respondents. This slightly correlates with unemployment rates, with the study
revealing that more young men (53%) are unemployed compared to young women (47%). Having
stated this, the bivariate regression analysis (R²=7%), shows that gender does not substantially affect
variations in unemployment among the youth in the Municipality (r=0.36).
xiii. Even though certification was not a requirement for most of the jobs done by youth, it was evident
that the majority of youth which was certified, had relatively little challenges accessing the job market.
Furthermore, over 60% of the youth surveyed indicated that they would want to acquire skills in the
future and get certified.
4. Key findings on AMMA’s private sector
i. It is easier to set up a business than to make it survive and grow in AMMA.
ii. The percentage of industrial establishments in the Municipality has been growing by 17.4% per annum
(from 1987-2017).
iii. Over 50% of all the business establishments enumerated were formed within the last seven years.
iv. It was revealed that 73% of skills needed by employers were acquired through informal education.
Employers indicated that formal skills education was required for 27% of all positions within their
businesses.
5. Key findings on the revenue performance of AMMA
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i. Despite having a revenue policy, the policy formulation process did not adequately involve the
stakeholders. The policy is therefore not sufficiently owned by the people and so they are passive in its
implementation.
ii. There are a plethora of social and economic opportunities especially in the informal economy, which
present a huge potential for revenue generation. Most of the business enterprises are, however, home
based, not registered, and operate underground, making them difficult to track and to include into the
tax net.
iii. Revenue estimation was done rather arbitrary, leading to short falls in revenue generation compared
to projections. In turn, this usually leads to a lack of funds for the implementation of development
interventions.
iv. The gap between estimated and actual intergovernmental transfers has been over 40% in the 2013 to
2016. The unpredictable nature of inflows make planning and implementation of development
interventions difficult.
v. In the last 6 years, on average, the contribution of internally generated funds to total revenue, was
seven times lower than the inter-governmental transfer. Variations in the amount of internally
generated funds are high. It was. for instance. six times lower in 2012 but nine times lower in 2016.
vi. Whereas an improvement in the general environmental conditions in AMMA has implications for
improved quality of life (and might reduce the amounts realized from the subhead sanitarian), the high
demand for dislodging services might justify a social business case for same.
vii. The creation of a competitive business environment can potentially create jobs and enhance revenue
mobilization for AMMA, for example by attracting and supporting industrial activities, the building of
markets and shops through joint partnerships, by developing businesses around the airline industry,
and by export promotion.
viii. Property taxes, factory and operational licenses and sanitarian are the three most significant
contributors to AMMA’s internally generated fund.
ix. It might be advised to hire new revenue collectors, who are more energetic and naïve to the alleged
shady deals some seasoned commission collectors engage in.
x. The level of transparency and accountability in connection with the collection and allocation of revenue
is low, due to a lack of social accountability system.
xi. The highest proportion of AMMA’s public expenditure currently goes into LED related investment
with the aim of promoting LED.
xii. The public sector’s role in job creation, is important: increasing public expenditure in certain sectors is
likely to translate into increased jobs creation, for example for youth in AMMA (especially if labour
intensive approaches are used).
6. Key findings on growth sectors and drivers of the local economy
Growth sectors, which are not saturated, grow rapidly, and could absorb well trained disadvantaged youth, were
selected guided by availability of human capital, economic determinants and market opportunities along the
various production and service delivery value chains (their backward; forward and lateral linkages). The study
identified the following key growth sectors:
i. Event planning and organization. This sector consists of: makeup artistry, catering services, event
planning, fashion and decoration, and chairs and canopy rentals;
ii. Graphic design and printing, including: billboard design; product packaging and branding; posters,
banners and printing cards; fashion design and decoration; and general printing and secretarial services;
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iii. E-sales, telemarketing and on-line business support services including: the creation of an e-marketing
hub; picking and sorting of orders; packaging and shipping of orders; and online business support
services; and finally
iv. Transportation, haulage and urban mobility services including: tricycle operation; haulage of goods;
sale and repairs of vehicles such as auto electricians, auto mechanics and body works as well as spraying;
7. Key findings on the specific demands for (skilled) labor and training needs
i. From the point of view of respondents, skills training needs are in the following sectors: baking,
shoemaking, hair dressing, beautician including make artistry, decoration, graphic designing, bread
making, dressmaking for females, and tailoring for males, driving and fitting mechanics for males. ii. From the point of view of employers, the skills training needs are in the following sectors: sewing,
braiding, general competence, book keeping, color combination, general repairs, communication
skills, hospitality, marketing, communication & interpersonal skills, and creativity skills.
iii. For the four identified growth sectors for LED promotion, the study also identified relevant skills
requirements. They include (a) hard skills such as event scheduling, decoration, make up artistry,
fashion design, basic computer applications skills, designing with computer applications, screen
printing, operating photocopiers and scanners, conceptualization of design and thoughts, telephone
manners, map reading and interpretation, internet browsing, record keeping, time management skills,
planning and scheduling of activities and events, internet security protocols, software application in
vehicle diagnosis and road and traffic regulation.; and (b) Soft skills include communication and
interpersonal relationship skills, problem solving, having a sense of initiative and motivation, working
under pressure to meet deadlines, organizational skills, team playing ability, learning and adapting,
numeracy, value for diversity and difference, integrity and negotiation skills.
8. Key findings on the characteristics of disadvantaged and vulnerable youth
Head porters, persons with disability, and unemployed youth figure prominently among the vulnerable groups
in AMMA, and the Kayeye are an over-represented ethnic group. Those whose education halted at Junior
High School level find it particularly difficult to secure employment and are likely to become part of the
vulnerable groups, in time. There are various minority ethnic youth groups in AMMA with low self-esteem,
who lack role models, and have no access to social networks. According to employers, these minority and
vulnerable groups also exhibit a rather poor work attitude, characterized by the attributes of tribal affiliations,
joblessness, lack of role models and formal education. Those who do not have either formal or informal skills,
are often involved in crime, the selling of hard drugs, sexual abuse, and other social vices. Vulnerable and
minority youth groups with very specific problems include orphans and trafficked children, with the Kayeye
being over represented once again. Head porters stand out for vulnerability. They are vulnerable to sexual
exploitation, theft, sexually transmitted diseases, and unwanted pregnancies (they often raise their children on
the street). Truck pushers too face risks of direct poverty. They are mainly school dropouts at the basic levels,
and are increasingly pushed out of their businesses by the tricycle, which has come to replace them.
9. Summary of proposed Pilot Projects
Pilot Project Products No. of Jobs NPV
(GH¢)10
IRR
10 The NPV and IRR were calculated at a discount rate of 22.5%
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1. Asokore Mampong
Municipal Waste
Aggregation and
Sorting Project
Waste collection, aggregation and Sorting
20 truck drivers; 75 tricycle drivers; 300 hands
3,441,378.83 159%
2. Asokore Mampong
Centralized Smelting,
Burning and e-Waste
Plant
Recycling of organic, plastic, metals, bottles and e-Waste
50- 100 employees 819,815.86 96%
3. Asokore Mampong
Fitting Mechanic
Settlement Initiative
Training and settling of fitting mechanics
50 young persons, 14 spare parts dealers, and numerous other auxiliary service providers
- -
4. Asokore Mampong
Small Vehicles and
Logistics Company
Tricycle business (adedeta tricycles)
50 young entrepreneurs 413,987.53 747%
5. Asokore Mampong
Juicing Company
Daily output of 211 crates of bottled water melon, passion fruit, guava, mango juices
50 employees and many more in the fruit supply and juice distribution chain
7,835,511.06 102%
6. Asokore Mampong
Pastes and Spices for
Soups
Processing and packaging of groundnut, wrewre (nerineri), and agushi pastes for snack and soups
50 women entrepreneurs and their workers
310,795.19 79%
7. Asokore Mampong
Intensive Cattle
Fattening Project
Cattle Fattening Project
50 young cattle dealers 1,654,087.90 254%
8. Asokore Mampong
Shoes and Leather
Works
Shoes and Leather Works
Fifty (50) young people of age 15-21
482,008.69 306%
9. Asokore Mampong
Young Tailors and
Seamstresses Project
Local apparel including jarabias, smocks and suites
100 apprentices and 15 masters
422,671.86
207%
10. Asokore Mampong
ICT and Hardware
Company
Computer hardware, software and repair services
3 masters and 40 apprentices
142,789.47 432%
5.2 Conclusion
Giving the interactions the consultants had with various stakeholders, it is clear that LED has the potential, if
applied well, to stimulate growth in Asokore Mampong Municipality and generate sustainable jobs, especially
for the youth, most of who are migrants. Effective application of LED processes hinges on a number of factors.
Firstly, the MCE and the MCD, who are the topmost technocrats at the assembly, are busy with higher policy
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assignments, and have to delegate LED implementation, for example to the MPO. He appears to be the one
who was foremost implicated in designing a LED approach within AMMA, which requires financial
commitment from the assembly members and revenue departments.
Beyond capacity and participation issues, the influence of the city of Kumasi on Asokore Mampong is very
clear. It presents more advantages for growth than disadvantages, on several fronts: Firstly, it was realized that
income levels of the youth of Asokore Mampong were higher than the benchmark income for the upper poverty
line, because of the numerous job opportunities in Kumasi (due in part to important enterprises like the Kumasi
Central market, Kumasi Abattoir, and Suame Magazine). Secondly, because AMMA residents take on petty
activities that the Kumasi city dwellers refuse, such as cleaning and collection of refuse. Thirdly, Kumasi was
just one transport point away and AMMA residents can easily get to Kumasi by jumping into the Adedeta
tricycle or a vehicle. Fourthly, Kumasi provides numerous opportunities for marketing. Fifth, the de-
congestion effort made to free Kumasi of activities favored suburbs like Aboabo, Asawase, and Akroem, where
many inhabitants have turned their businesses into home based activities.
The negative influence of Kumasi on AMMA is the fact that some of the residents of AMMA used the
municipality solely for residential purposes and are not motivated to undertake any economic activity in the
Municipality. For these individuals the only benefits AMMA can derive directly from them is the collection of
their property taxes. Land has become a very scarce commodity in AMMA and might require intensive land-
use planning to guarantee proper use in the future. Ten innovative projects proposed in this study, would--if
implemented-- yield high returns and tangible benefits to the people. Very clearly, the findings reveal the
relevance of the NBU study, and offers assurance that the implementation of the packaged recommendations
will go a long way to address the many economic challenges that militate against the development of the
AMMA.
5.3 Recommendations
Based on the findings, the following are recommended:
1. Addressing internal and external factors that militates against economic development of AMMA
Elimination of bottlenecks to achieving economic growth requires a departure from the ‘business as usual’ approach to doing things. Over two decades of adopting and implementing decentralized governance systems with a socially oriented approach to development, we have very little to show for all the resources invested as a country. The new order, is an integrated development approach that delivers development to meet social needs, while creating incentives to attract private sector investments in the development process. This can be done by creating a framework that protects the vulnerable and provides resilient and liveable communities that are also competitive. Achieving this requires that the following recommendations are pursued:
General pre-condition for achieving economic development in AMMA through LED promotion
The promotion of Local Economic Development is obviously the new path to achieving inclusive and sustainable development through job and wealth creation. To that end, it will be ideal for AMMA to focus on community based economic development that creates employment opportunities and encourages investment within the Municipality through local enterprise development and community partnerships and collaborations. In order to succeed, AMMA must essentially employ businesses as a vehicle for the promotion of growth and wealth creation. That involves instituting systems that encourage new businesses start ups, creating opportunities to attract new businesses into the Municipality and encouraging already existing businesses to grow and expand by promoting and rewarding innovation and entrepreneurship. The building blocks for
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creating this competitive milieu, are increased investment and improvement in physical infrastructure of the Municipality; expanding the social and economic base of the Municipality by eliminating negative externalities that erode agglomeration and other positive economic forces. Raising the needed revenues needed for investments calls for a paradigm shift from the revenue mobilization, allocation and utilization approaches currently in use. The new business unusual approach, is to adopt a participatory approach to the mobilization, allocation and utilization of revenue. This will mean increasing the role the citizenry and Civil Society Organisations play in the formulation of revenue policy. Enhancing transparency and accountability in the revenue allocation and utilization through social accountability systems and enhanced fiscal controls is another strategy that can be implemented. The revival of non-functional feedback systems, when they currently exist, and the institution of new ones where they do not exist, provide a new sure way of curing ineffective leadership problems. Increasing income flows, involves expanding the revenue base, adopting efficiency improvements systems and reducing leakages. Protecting the poor, marginalized and disadvantaged groups against potential neglect and exploitation in a market led process requires that a number of safety nets are put in place. These might include guaranteeing some basic essentials and offering them the opportunity to effectively participate in the governance process. This might take the form of empowerment that enables them to hold duty bearers accountable. By promoting representation of these excluded groups either in local governance or promoting the participation of excluded groups in local meetings to discuss planning, budgeting and development projects their voices will be heard. To sustain the potential gains that might result from such initiatives, civil society would have to take on an increased role as the third force that keep in check government inactions and the downsides of the market forces. Development actors will also have to be particularly attentive to human capital or human resource development as they would do with the adoption of new technology, information systems as well as organizational systems. Human resource development involves more than training. It involves a holistic approach to enhancing the aptitude of the person through tailor-made skills development that are responsive to the real needs of the job market and the transformation of the very attitudes of the learner that makes the individual less employable. It must be learner and client focused. On that basis, the training should be packaged for and be responsive to the needs of the youth groups and the employers and must align well with the evolving job market. This training and capacity building gap can jointly be bridged through partnerships between the government on one hand, civil society, and the private sector on the other. The following are some of the specific things that can be done.
2. Promoting economic development of AMMA
i. AMMA can take advantage of the potential market KMA offers due to AMMA’s proximity to KMA. It has been established that, with the exception of special goods, residents of KMA are indifferent shopping any distance at a 15 kilometres radius from the centre of AMMA. The location quotient analysis revealed that AMMA has a competitive urge in small and micro scale industrial activities such as food processing, and the production of some local apparel among others. AMMA can cash in on these, to drive the growth agenda.
ii. Pursuant to section 32 of the Local Governance Act (2016), AMMA can join forces with KMA to undertake projects that require a huge capital investment, and yield high social, economic and environmental returns. Waste management can be cited as an example where AMMA spends GH¢1,839,600 to collect GH¢1,716,960 on treatment and disposal of waste, in 2017 alone.
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iii. By improving governmental efficiency in public service delivery; investing in infrastructure and creating a legal framework that promotes rule of law and eliminates negative externalities, AMMA will be enhancing its competiveness.
iv. AMMA can liaise with Nananom to secure lands for private sector to establish businesses. Such lands offered by Nanamon could be put into such projects as an equity, thus guaranteeing continuous income streams to the stools. The stool lands revenue that might accrue later, can augment AMMA’s internally generated revenue.
3. Eliminating impediments for youth to access the job market
i. Although the moratorium on employment into the public service is still in force, public sector investments can use labour intensive approaches and target certain categories of youth. AMMA can leverage on the existing political will for LED promotion to attract resources from government initiatives and the international development community, in support of LED and youth employment programmes. Examples can be cited as the 1D1F and the PFJ initiatives.
ii. Giving preferential treatment to the vulnerable and excluded might reduce their vulnerability, through the institution of job quota systems in the public sector, and encouraging private sector to do same through moral suasion or as part of corporate social responsibility
iii. Pursue partnership with Civil Society Organisations to create social businesses and leverage private sector capital through PPP arrangements. The implication of this is, that AMMA will have to identify social services they find difficult to deliver, and offload them to private sector/CSO partnerships.
4. Meeting the skills and training needs of the private sector and job market
i. Conscious effort should be made to design training packages that respond to the needs of private sector to
meet their labour needs as well as create job opportunities for the youth. The skills needs of the private sector
represented by businesses in AMMA have been identified as booking keeping skills, color combination skills,
marketing, interpersonal and communication skills, problem solving skills, initiative and motivation, working
under pressure and meeting deadlines, team playing ability, numeracy, value for diversity and difference,
negotiation and organizational skills.
ii. To fuel the growth of the identified growth sectors, specific training packages must be made available to the
youth either through cost sharing or a subsidy scheme. Growth sectors are: in such areas as event scheduling;
decoration, make up artistry, fashion design, basic computer applications skills, designing with computer
applications, screen printing , operating photocopiers and scanners, conceptualization of designs, telephone
manners, map reading and interpretation, internet browsing, record keeping, time management skills, planning
and scheduling of activities and events, internet security protocols, software application in vehicle diagnosis
and road and traffic regulation.
iii. In order to facilitate and encourage the youth to get certified in the trades they learn, AMMA can incentivize
the youth to get certified by making certification a condition for taking public sector jobs.
5. Approaches to devising innovative approaches to revenue collection for AMMA
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i. The revenue base can be expanded through the promotion of business initiatives and registration of
existing ones. This strategy involves supporting and nurturing business initiatives or ideas to increase
start-ups and support their survival and growth. In addition to this, existing businesses can also be
registered to expand the tax base.
ii. One approach to addressing the problem of an obsolete tax roll or fiscal cadaster will be to engage
land economists and valuers being trained at KNUST to re-value properties in AMMA (probably using
the area based approach). In its current state, the tax roll makes it difficult to assess the total value of
AMMA’s revenue. This makes contracting out revenue collection economically irrational, since
performance assessments are difficult to make..
iii. NCCE can be used to increase tax education, by sensitize communities on the rights and obligation of
citizens. As part of the education, it will be useful to explain what the taxes are used for to enhance
confidence and promote voluntary compliance. Furthermore, applying (existing) social accountability
systems is also recommended, to increase transparency in revenue allocation. Implementation of these
participatory budgeting processes, is a sure way of giving a say to the public on how the mobilized
revenue is allocated.
iv. The increased mobile (smart) phone use and internet availability offers high prospect for digitizing the
revenue mobilization and monitoring systems. For instance, people can be encouraged to pay their tax
and non-tax revenue through the mobile money and other mobile banking systems. This will require
setting aside a dedicate line for revenue receipts.
v. Collecting revenue through trade association is yet another avenue for revenue mobilization with very
low transaction cost. Trade associations already have systems that are well organized to collect dues
and other payments. The frequency with which meetings are held by these associations implies that
members are in constant touch with leadership. Training leadership of these associations can help
facilitate revenue mobilization.
vi. Where AMMA cannot effectively utilize revenue collected to develop a certain area, community
initiatives can be endorsed by allowing those collected taxes to address specific community needs.
vii. The inadequacy of land for lateral development, provides yet another avenue for revenue mobilization.
The redevelopment of building currently taking place in AMMA bodes well for increased receipts from
the issuance of development and building permits to the sale of building jackets. Getting the desired
results requires the preparation of a redevelopment plan that sets out the zoning regulations. It will
also require that support is given to the physical planning department.
6. Promoting the growth and expansion of the growth sectors
i. Adopt the value chain approach to production and marketing of products and service delivery.
ii. Target business skills development among the relatively higher literate youth
iii. Provide support services to move enterprises from homes to centralized workplaces
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iv. Collaborate with law enforcement agencies to regulate enterprises.
v. Strengthen business and entrepreneurial skills of artisans and enterprises especially with the
deployment of ICT
vi. Promote enterprises involved in primary and secondary food processing, particularly those run by
women
vii. Promote other crop value chains such as agro-chemical inputs, aggregation and transportation of farm
inputs, that complement crop production
viii. Prepare and implement redevelopment plans that permit home-based activities
ix. Support business survival and promote their growth through (revenue) incentives.
x. Explore strategic (public private) partnerships and collaboration with identified Private Sector, NGOs
and CSOs on the implementation of projects such as construction, health, education, social marketing
and revenue mobilization.
xi. Foster collaboration with financial service providers
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APPENDIXES
Appendix I: Sources of Data
Table 34: Sample size selection methodology for the youth
Localities in AMMA Population concentration
Total number of respondents
Number males enumerated
Number females enumerated
1. Aboabo 23,741 44 22 22
2. Asawasi 80,258 55 27 28
3. Akorem 25,795 18 9 9
4. Adukrom 28,617 19 10 9
5. AsokoreMampong 26,320 19 9 10
6. SepeTimpon 20,708 18 7 11
7. Sawaba 23,741 16 8 8
8. Asabi 5606 5 2 3
9. Parkoso 4204 4 2 2
10. Akwatia line 11211 10 5 5
11. Bobai 8409 7 4 3
12. New Zongo 9810 8 4 4
TOTAL 223 109 114
Table 35: Sample size selection methodology for entrepreneurs
Types of businesses Large Medium Small Micro11
Numbers in total 3660 1731 7126 9484
Percentages 16.6 7.9 32.4 43.1
Sample fractions 0.166 0.079 0.324 0.431
Sample sizes 20 9 39 52
Table 36: Samples drawn by industry types
Industry Both Male and Female Ratios Large size Medium Small Micro
Agriculture, Forestry and Fisheries 3053 0.025 0 0 1 1
Manufacturing 19928 0.162 3 1 6 8
Construction 4243 0.035 1 0 1 2
Wholesale, repair and retail of vehicles
47938 0.391 8 4 15 20
Transportation and storage 8840 0.072 1 1 3 4
Accommodation and food service activities
10989 0.090 2 1 3 5
Education 5099 0.042 1 0 2 2
Other Services 12242 0.100 2 1 4 5
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Others 10385 0.085 2 1 3 4
Total 122717 20 9 39 52
Table 37: List of government officials enumerated
Designation Numbers
1. Municipal Chief Executive 1
2. Municipal Coordinating Director And Assistant 2
3. Municipal Planning Officer and Assistant 2
4. Municipal Budget Officer and Assistant (AMM and KMA) 3
5. Municipal Finance Officer and Assistant 2
6. Internal Auditor And Assistant 2
7. Director, Business Advisory Centre and Assistant(AMM and KMA) 3
8. Municipal Director of Education 2
9. Municipal Director of Health and Assistant 2
10. Director, NCCE and Assistant 2
11. Director, NBSSI and Assistant (AMM and KMA) 3
12. Director, Department of Social Welfare (AMM and KMA) 3
13. Director, Youth Employment Authority 1
14. Presiding Member, AMMA 1
15. Conveners of Sub-committee 5
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Appendix II: Meetings with Stakeholders
Appendix II. a: Meeting with CSOs and NGOs Respondents
1. Habib Mohamed, Centre for Youth Literacy and Development (CYLID), 0243964378
2. Haruna Yoda, Center for Community Livelihood Development (CCLD), 0243169015
3. Bun Bida, Muslim Family Counseling Services (MFCS), 0262191950
4. John Kojo Owusu, Environmental Protection Agency of Ghana, 0244760994
5. Faustina Osei Prempeh, Rights and Responsibility Initiative Ghana (RRIG), 0245164088
6. Rebecca Moses, St. Theresa's Cooperative Credit Union, 0246564129
7. Pascal Numado, Elder, Favor Land Ministry, Asawase, 0242502410
8. Kwabena Owusu Ansah, Caretaker, Holy Ghost Chapel International, Asawase, 05461833751
Identify the socio-economic attributes of the youth
It was generally seen that minority ethnic youth groups in AMMA most of who hail from the three northern
regions of Ghana were characteristically jobless, had little or no formal education, and did not also have formal
or informal employable skills. The minority youth groups however, had the attributes of creativity, ready to do
menial jobs, but indulging in hard drugs, engaging in crime, and other social vices. They get involved in crime,
sometimes against their wishes, lacked societal insight and did not care about education.
There were also vulnerable youth groups with characteristics and attributes similar to the minority groups
above. They live in slums, lack social networks, migrated from far places, easily fall prey to charlatans who take
advantage of the girls in particular, and rob them of the little money they have to make their vulnerability
situation worse. Some of the vulnerable and minority youth groups have low self-esteem, lack role models, have
no access to social networks, and exhibit poor work attitude.
Factors that militate against youth in accessing the labor market
There was general agreement that skills played a major role in the employability of the youth. The skills set in high demand in AMMA were as follows:
dress making and fashion design
hairdressing
soap making
carpentry
electrical installation
building construction
shoe making
masonry
plumbing
metal fabrication
These skills were mainly acquired through informal education and but a few got them through formal education.
Formal education in the municipality was dominated by people with basic, secondary and then vocational
education. It took between 6 months to 3 years to acquire informal skills at an average cost of GH¢580.
Certification was not a requirement for one to practice after acquiring most of the above skills. It could take up
to 2 years to get certified at a cost of around GH¢350. Just a few employees are certified. One could get certified
by joining trade associations, NBSSI or taking examinations.
The NGOs/ CSOs contributed to job creation in diverse ways. MFCS has an integrated skill development
(ISD) facility under which the youth in the municipality are provided entrepreneurship skills. About 65% of
targeted youth groups are employed. Other NGOs support the youth to acquire skills through apprenticeship
training.
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Identify the skills and training needs of the private sector
Although there is no statistics on jobs created but private sector has more potential as the engine of economic
growth to create jobs. Numerous opportunities in areas such as:
Fuel station attendants
Shop attendants
Bankers and mobile bankers
Seamstresses and tailors
Insurance agents
Drivers
Drivers' assistants
Union staff
Sales agents and
Construction workers
Skills needed for the private sector jobs include the following:
Reading, writing, and analytical skills
Basic bookkeeping and accounting skills
Cooking skills
Marketing, tailoring, dress making, carpentry, and bricklaying skills
Good leadership and management skills
Clerical skills and technical skills
Such skills are obtained through formal education, apprenticeship training, capacity building workshops, and
informal training. Depending on the type of training, it might take between one month and up to three years at
a cost ranging from GH¢300 to up to GH¢1,700.
Growth sectors and highest employers in the Municipality
The sectors and activities which employ the highest number of people in the Municipality include (i) transport
sector including, trotro12, taxi, motor tricycle, and trucks; (ii) commercial sector including, microfinance/ mobile
banking, mobile money banking, filling stations, hotels, restaurants, and chemical sellers; and (iii) the artisans
featuring dressmaking, fitting mechanics, masonry and carpentry. The sectors and activities, which yield the
highest returns are (i) transport sector especially the minibus and motor tricycle operators and (ii) business
operators. The sectors and activities giving the highest income to people in the Municipality are (i) transport
sector especially the minibus and motor tricycle operators; (ii) artisans such as hair dressers, shoemaking,
fashion design, and mobile money; and (iii) informal buying and selling.
The economic drivers of the municipality are (i) transport sector; (ii) commerce; and (iii) artisans. The NGO/
CSO leaders prefer to invest within AMMA and in (i) Agricultural sector specifically livestock, and poultry;
artisanal work; (ii) informal; and (iii) food selling. Preference for investing within AMMA is due to readily
available market. Respondents would invest in AMMA for closer monitoring create opportunities for the youth
and get higher economic advantages. Sectors which could absorb well trained disadvantaged youth include
poultry farming, refuse collection, construction, farming and trading in foodstuff.
AMMA, NGOs/CBOs and the private sector can collaborate to stimulate economic growth by animating
communities about opportunities; supporting in the identification of disadvantaged groups, and talents; and
creating a platform where information on expertise could be shared.
Certain services currently being offered by AMMA could be offloaded to the private sector include revenue
mobilization, youth in entrepreneurship development, and sanitation and construction.
12 A mini bus in Ghana, that drops passengers in town at short distances
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Profit oriented activities or ideas that can be developed by AMMA and private sector through joint venture
arrangements are revenue mobilization and fabric design.
The Assembly could train women and young persons in fabric design while the private sector supports with
the supply of raw materials. The fabric initiative could be within 6 months to 4 years.
Human capital is available for such an initiative.
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Appendix II. b: Meeting with Honorable Assembly Persons The meeting was held at the Municipal Assembly on October 17, 2017 at 4 pm
Participation
Taking part in the discussions were the following persons:
Name Electoral Area Contact number
Hon. Alahaji Bawa New Zongo 0242109426
Hon. Noah Owes Asawasi 0268540893
Hon. Alhaji Anyars Sawaba 0244662116
Hon. Hardi Ibrahim Aboabo No. 2 0242769923
Development Issues in AMMA
Commenting on development in AMMA, the honorable assembly members felt development was imbalanced.
Some areas were developing fast whiles other areas such as Aboabo No. 1, Sawaba, and Akwatialine were
stagnating. One of the key challenges faced by the various electoral areas they oversee were floods. Flood prone
areas such as Aboabo No. 2 needed expansion of their drainage and dredging of riverbeds to ease the flow of
water. They noted that despite being stakeholders on development they are left out of land allocation
discussions. The traditional authorities do the land allocations but when there are floods no community
members go to the chief. Sanitation is also a problem especially at New Zongo. Rezoning has been done several
times but it is so difficult to even find a place to use as refuse dump, public meetings and for games. Roads are
therefore blocked for every little public ceremony such as funeral, out-dooring, marriage. In the next ten years,
should there be a fire outbreak AMMA is likely to face crises.
Job opportunities in AMMA
Job opportunities in AMMA include the following:
Youth Employment Programme (YEP)
Teaching in private schools
Apprenticeship at Suame Magazine
Fitting Mechanic
Tailoring
Driving
Fitting mechanic is the most predominant job opportunity but some mechanics are moving into driving. More
people are moving from fitting mechanic to driving because the start-up for driving is smaller than tailoring
and fitting mechanic.
The tricycle is preferred to taxis and trotros13 for conveyance of goods. The yellow tricycle is currently being
heavily patronized to the extent that some taxi owners are even disposing off their taxi’s to acquire them. People
prefer the tricycles because they are able to maneuver in traffic situations and get passengers to destinations
faster. The ordinary tricycles are used for conveying goods and waste. Tricycle purchases come with very
attractive warranties, have low maintenance costs and are generally cheaper than taxi and trotro.
13 Small bus used in transporting passengers within cities in urban areas in Ghana
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Constraints to employment opportunities
Without some basic educational qualifications an individual cannot be engaged by the Youth
Employment Program nor teach in a private school;
Many young persons are reluctant to go and learn a trade because they want quick money;
Litigation over land for the provision of public goods is a concern;
The youth face difficulty in finding land for establishing enterprises after graduating from their
apprenticeship training;
Poverty makes it difficult for parents to finance apprenticeship fees of their wards;
Institutions
Level of trust and confidence they repose in the police, courts and AMMA and their level of co-operation.
Institution In percentages
Comments Confidence Trust Cooperation
Police 20 20 20
Court 50 50 80
AMMA Negative Negative 75
They cooperate with AMMA by attending meetings and participating in AMMA. As for trust and confidence, they felt if should even be ranked negative.
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Appendix II. c: Meeting with the Revenue Department Meeting held on 17/10/2017
In the attendance were the following:
Name Designation Contact Number
Isaac Yormekpe Assistant Internal; Auditor
Mustapha Suraj Assistant Budget Analyst
Matilda N.B. Adura Assistant Planning Officer
Gifty Adusei Development Planning Officer
Collins Ohene Gyan Planning Officer
Revenue Policy
Revenue team was not sure whether AMMA had a revenue policy or not. What they were sure about was the
gazette fee fixing document. That was considered too general and needed to be localized. A copy of the revenue
policy they thought they would give to the NBU team for study.
Potentials for revenue
The tax roll by AMMA has not been reviewed for a long time. It is therefore outdated;
The following were some of the revenue related issues:
o The properties in AMMA has not been valued for quite a long time, fee fixing is therefore
based on empirical evidence;
o The failure to conduct a revaluation of old structures is due to lack of funds;
o AMMA is currently not collecting any tolls because markets, taxi ranks and lorry stations are
not tolled;
o The district gets a little revenue from marriage registration but nothing from burial certificates;
o The signals picked from meetings held with the various groups showed that they are ready to
pay tolls;
On the revenue administration system of AMMA the following were noted:
o Revenue is collected by paid staff, staff on commission and by contractors;
o The district gets positive net revenue from permanent staff collectors in the sense that they
are able to collect revenue enough to offset the amount of money expended on them by
AMMA;
o Commission collectors are paid 20% of the total revenue collected whilst the outsourced
contracts get 30% paid;
o Despite the differences in amounts collected, it was admitted that the juiciest sources of
revenue were subcontracted (out-sourced) to 3rd parties and the least attractive sources were
those handled by the paid staff;
Revenue target setting is not scientific but incremental. Targets are therefore lax and not challenging
enough;
o Performance contracts are not assessed and reviewed on yearly basis;
o The quantum of resources available in AMMA has not been assessed. It is therefore not
possible to estimate revenue, nor is it possible to monitor collectors;
o Town and Country Planning Department has not been able to provide current land use plan
against which revenue blocks cold be identified;
o Not much support is obtained from the NCCE in raising awareness of communities on the
payment of tax and non-tax revenues;
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o Pay As You Earn is applied in the sense that there are differentials in the sizes of collections
depending on location. Enterprises based on the main Accra Kumasi road and those located
at the Central Business Districts tend to pay more;
If your property rates increase, would you be ready to pay?
o On condition that street lights are provided; armed robbery attacks are minimal, streets are
cleaned and street lights are provided;
o If collectors go round with photos of projects implemented;
On revenue leakage, there was instance that some collectors took gifts from the people in lieu of
revenue they were to pay. To minimize leakage, the following actions could be taken:
o Step up systems to effectively monitor collectors;
o Create a database of ground data against which collectors could be mobilized; and
o Acquire a software for tracking revenue collection.
Budgeting issues within AMMA
On the role of the ordinary citizen in the prioritization of projects and allocation of funds for projects,
it was assumed that once they were represented their various assembly persons, they were involved. It
is however obvious that the assembly persons were not resourced enough to provide effective feedback
to their people;
In many cases, budgets were discussed in the afternoon after heavy lunch and presented swiftly when
the sluggish participants could not scrutinize issues as they should;
Zonal rate fixing hearings were mostly done to fulfil FOAT and UTDG requirements;
Participants who attended public hearing often expect to be given something to offset their transport cost as
well as for refreshment. It is thought that in the spirit of collaboration and partnership, participants should not
expect any such frivolities.
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Appendix II. d: Meeting with BAC Meetings were held on October 20 and 21, 2017
Participating in attendance were the following:
Name Designation Contact Number
Adjei Poku Emmanuel Service Person 0546725519
Koduah Ebenezer Service Person 0249411461
Boraka Musah On attachment 0546887612
Emelia B. Fosuhene Community Development Officer 0501428503
Gbologah Deborah Service Person 0545858293
Aikins Agyemang Manager 0244024927
Categories of Enterprises
In AMMA, non-farm activities such as metal fabrication, fitting mechanic, dress making and tailoring, hair
dressing are some of the enterprises. So far the BAC has mobilized groups around the aforementioned
enterprises except shoemaking and leatherworks.
Classified enterprises being handled by the BAC are as follows:
Category Definition No. of males No. of females Total
Start up Micro 37 55 92
Survival Small 112 137 249
Normal growth Medium 52 37 89
Rapid growth Large 7 3 10
BAC classifies their clients into farm based, agro-processing, postharvest, agro-industrial, and others. Farm
based activities are those which have to do with direct crop, livestock or fisheries production. Post-harvest has
to do with primary processing of farm produce in diverse ways such as sun drying, sorting, cleaning, winnowing
and etc. Agro-processing has to do with the production of agriculture based products such as groundnut paste,
palm nut oil, groundnut oil. Agro-industrial activities involve further processing Agro-processed materials into
other products such as palm oil to soap, and flour to pastries. The category of ‘others’ include the traditional
crafts such as the fitting mechanic, dress making, repairs and fabrication which rather forms about 75% of BAC
clients. The rest of the categories range between 5 and 7%.
Category Examples and recent activities
Farm based Poultry farming
Grass cutter and rabbit production (BAC trained grass cutter and rabbit producers recently)
Cattle, sheep and goats
Postharvest Maize aggregation, drying and treatment
Pepper aggregation, drying and treatment
Agro- processing
Maize flour (Winimix)
Groundnut paste
Palm and kernel oil extraction
Gari processing
Agro-industrial Soap and detergent making
Others Iron gate designers
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Carpentry
Masonry
Aluminum cooking pot smelting
Leatherworks and shoemaking
Fitting mechanic and repairs
Welding and fabrication
Dress making
Kente weaving, smock making, bead making and handicrafts
Graphic designers
Constraints to Enterprise Development and growth
High illiteracy and low level of education;
Lack of employable skills, including ICT and automation- at least 20% academic intelligence and 80%
creative intelligence needed;
Generation of smoke from burning of materials in the process of extraction of some metals and
aluminum pot smelters;
Smoke affecting most of the wood fuel dependent enterprises such as gari processing, roasted
groundnut and groundnut paste producers;
Workers work all year round without taking leave;
Head porters often lose their monies after working hard all day;
Reluctance of the people to work with microfinance institutions because of the bitter history of some
institutions bolting away with their savings;
Land is becoming scarce and difficult to acquire. It is thus common to see artisans squatting on land
belonging to private individuals;
There are security problems such as theft, armed robbery and breaking into containers belonging to
artisans; and
Due to the Municipality being a transit point there are diverse diseases, sexual promiscuity, crime that
is brought in by immigrants’
Challenges to Enterprise Development
Lack of credit and start-up capital;
Difficulty in going through the credit application and appraisal procedures;
Sitting for long hours and straining of eyes for tailors and dressmakers;
Enterprise Support Activities of BAC
The BAC organizes training to boost creative intelligence skills of clients and improve their
employability. Training is on-going in the following areas:
o Basic recordkeeping
o Basic management
o Refresher training for those who are already in business
o Trade skills such as batik tie and dye making, soap and detergent making, production of
pastries, livestock production, and shoemaking at financing arrangements shared between the
GoG, IFAD, AfDB and trainees. Sometimes, individuals such as the current Municipal Chief
Executive absorb the cost of the trainees.
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BAC provides credit through collaboration with participating Rural and Community banks (RCBs)
such as Asokore Rural Bank. The BAC assesses the client and makes recommendations to the bank to
support them with credit facilities. The bank uses its own loan monitoring and repayment systems to
ensure that the client repaid any credit provided.
The BAC is about to start rolling out a new matching grant facility.
Recommendations for addressing the constraints and challenges
The following recommendations may be pursued to help overcome the challenges and minimize the effects of
the constraints:
Ban haphazard burning of plastic and refuse within the municipality. All refuse should be collected and
sent to a specific area demarcated for refuse;
Get a piece of land and establish a facility with tall chimneys for all smelters and those who burn
materials to operate;
Support young artisans to write NVTI at least and be certificated;
Encourage all runners of enterprises to open accounts with a financial service provider and save money;
Encourage clients to conduct business from more permanent locations; and
Provide startup capital and matching grants.
Institutional assessment
When asked to score the police, courts, and AMMA on cooperation, trust and confidence, they mentioned the
following without ranking:
Institution In percentages
Comments Confidence Trust Cooperation
Police 22 2 22/15/10 The police are bullies
Court 80/60/70 50 80 Cooperation with the police and the courts is not as a result of free will.
AMMA 75 75 75
The people trust AMMA because of some of the identifiable development projects they are undertaking
A success story of the BAC is Champion Shoes at Aboabo No. 1. The entrepreneur who was supported now
exports products to South Africa and Nigeria.
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Appendix II. e: Meeting with Potential MSMEs and Private Sector Owners Respondents
1. Stephen Ashong Opoku, TV repairer, 0247231189
2. Gloria Gyau, Clothing Trader, 0246751144
3. George Sackey, Businessman, 0276398852
4. Osei Mensah Bonsu, CBS, Manager
5. Nicholas Daffour, 0502027991
6. Rubama Mohamad, Estate Company,
7. Akotosu
8. Charles Kwapong, Station Manager, Total Filling Station, Aboabo, 0244667826
9. Mr. Baah, Station Manager, Goil, New Zongo, 0243083749
10. Ibrahim Mohamed, Station Manager, Nasona Filling Station, 0243964898
11. Bernard Ankomah, Station Manager, Total Filling Station, Asawase
12. Hamma Kuba, Station Manager, Bernarb Oil, Niima, 0246274257
13. Maxwell Amankwa, Director, Maxwel Susu, Adukrom, 0554451341
14. Issah Abdul Hamid, Director, Mobile Banking (susu), Sawaba, 0244011508
Socio-economic attributes of the youth
Majority of Private Sector respondents agreed that there were youth who constituted an ethnic minority who
dwell in slums are joblessness, illiterate, earn pittance, have poor appearance, and lack both formal and informal
skills. Their attributes include involvement in menial jobs, being very creative, easily convinced to go against
their will, taking solace in hard drugs, engaging in crime and other social vices, take advantage of any opportunity
that comes their way, take interest in education, engaging in illegal activities for survival. It was agreed that there
were young persons who were vulnerable who also have the characteristics of minority groups.
Factors that facilitate or militate against youth in accessing the labor market
Ten percent (10%) of respondents described the unemployment situation of AMMA as alarming, 40% saw it
as very high, whiles another 30% said it was high. The uneducated, the youth, particularly women are most
likely to be unemployed. The main socio-economic attributes of the youth aged between of 15 to 35 is
unemployment.
The respondents agreed that unemployment is a national problem which affected all tribes equally, however
some of them felt that people from the three Northern Regions were more likely to be unemployed and
especially the Dagomba as well as the Asante tribes. Poor health was not considered as the reason for being
unemployed. The respondents said the unemployed were in good physical health.
Sixty (60%) of private sector respondents said yes to skills playing a role in employability while 40% said no.
The skills in high demand in the municipality were trading, dressmaking, selling at the market, artisanal skills
such as carpentry, bricklaying, hair dressing, dress making, technicians, carpentry, mechanics and literacy skills.
The skills could be acquired within half a year to six years at a cost range of GH¢150- 1000.
Majority of respondents said certification was not a requirement to get employed. It took 1 month to 3 years
to get certified at a cost of GH¢120 - GH¢5000. Respondents assessed 10-80% of employees as certified in
what they do. Certified employees earned in the range GH¢200 - GH¢1000 on monthly basis. A person may
get certified through proficiency training by registering with the registrar of businesses by passing out or
graduating after apprenticeship training and enrolling in a professional institution.
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The private sector can contribute to youth development by providing on-the-job training, for filling stations by
expanding business to include servicing of vehicles, shops, pharmacies, vulcanizes and alignment services, and
helping them to enroll in professional institutions. Works with AMMA to ensure that only young persons with
the requisite qualifications are employed. Private sector provides training in the following:
carpentry, fashion, painting, designing, publishing
shoemaking, sandals and leather bags
photography
dress making, tailoring, fashion design and decorations
safety standards, customer orientation and sales management
food selling
services including pump attendants, loading boys, cleaners and shop attendants
fitting, electrician and general auto mechanics, and driving
The private sector
skills on the use of modern cameras
skills on how to use modern mechanical engineering workshop machines
skills on food preparation
skills in IT
Skills are acquired between one month and at an estimated cost of GH¢200 - GH¢1700.
Petty trading, local restaurant operation, sewing, are some of the potential Growth sectors and highest
employers in the Municipality.
The informal sector contributes to employment more than the formal sector. Education, health and petty
business and activities employ the highest numbers of people in the Municipality. The same sectors contribute
the highest returns in terms of income.
The respondents were asked if they would want to invest and they were also asked to supply reasons:
Where to invest Why
trade(buying and selling)
skills acquisition
supermarket
restaurant
agricultural sector
agro processing
waste management
for income
for wealth
there is a large market
labor is cheap
generates more returns quickly
high potential for growth and government support
For the following reasons, private sector initiatives would invest their resources either within or outside AMMA:
Where are people investing Why are people investing
Within AMMA a new municipality
huge investment potential
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Outside of AMMA Investing in AMMA is meagre
Collaboration between AMMA, NGOs/CBOs and the private sector for economic growth
AMMA, NGOs/CBOs and the private sector can collaborate to stimulate economic growth through the
following strategies:
Initiate and build stronger alliances
Identify youth who lack skills and give them the needed attention
Educating young people on establishing their business and supporting very good business ideas
AMMA is currently involved in revenue mobilization but it can be offloaded to the private sector.
Profit oriented activities that the private sector could collaboratively explore with AMMA include skills
development and introduction to business and Artisanal and technical training.
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Appendix II. f: Participation at the Stakeholders Workshop
NO. NAME ORGANIZATION / DESIGNATION
PHONE NUMBER
EMAIL ADDRESS
1 MUSTAPHA SURAJ Municipal Budget Officer 0244053716 [email protected]
2 COLLINS OHENE GYAN Municipal Planning Officer 0244162412 [email protected]
3 GLADYS ANABA Municipal Head of Revenue 0244984483 [email protected]
4 ESTHER APRAKU NYARKO Municipal Social Welfare Officer 0243819698 [email protected]
5 AIKINS AGYAPONG Business Advisory Center (BAC) 0244024927 [email protected]
6 HAMDIYA SUALA Voice of Vulnerable (VoV) 0242232740 [email protected]
7 NICHOLAS AMUZU Rev. Minister, Church of Pentecost 0240108589 [email protected]
8 MARGRET FRIMPONG Hairdresser & Beauticians Association 0244296035 9 KWADWO FRIMPONG Tailors & Dressmakers Association 0242797587 [email protected]
10 IVY OWUSU Ash FM (MEDIA) 0555166688 11 HAMZA ADAMS Alpha Radio (MEDIA) 0246748411 [email protected]
12 SARPONG HAYFORD Ash FM (MEDIA) 0571381384 [email protected]
13 TIJANI MAHMOUD Muslim Family Counselling 0244939121 [email protected]
14 BERNARD AMOAKO SOS Programme Director 0240975379 [email protected]
15 FAUSTINA OSEI PREMPEH Rights and Responsibility Initiative Ghana 0245164088 [email protected]
16 AMINATA IBRAHIM Empowerment Center for Women & Children
0244530644 [email protected]
17 SAMUEL ABOAGYE NBU Hub Manager 0244722599 [email protected]
18 DANIEL OKITI BOAMAH NBU Program Manager 0209120990 [email protected]
19 CHARLES OWUSU-FORDJOUR Education Directorate 0244965706 [email protected]
20 MOHAMMED MUBARAK ICT Center 0240778080 [email protected]
21 CLAUDIA FAH Ghana Standards Authority 0264309627 [email protected]
22 MUSA YIADOM Transport Association – GPRTU, Sepe 0243834844 23 AUGUSTINA GAISIE Registrar Generals Department 0244891119 [email protected]
24 KWADWO ANTWI 0249269630 [email protected]
25 MAMUDA OSMAN MOTI Regional Officer 0243205775 [email protected]
26 CHIEF ALHASSAN WAHABU Head of Yadiga Comm. (PRO of Zongo Chiefs)
0243953853
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NO. NAME ORGANIZATION / DESIGNATION
PHONE NUMBER
EMAIL ADDRESS
27 CHIEF NASIRU ALHASSAN BARAW
Head of Baribari Community 0248642359
28 MOHAMMED LAWAL CHIROWA Ref for Kotokoli Chief 0244462292 [email protected]
29 CHIEF USMAN TANKO Head of Busanga Cimmunity 0244526556 30 NANA BOAKYE-ANSAH DEBRAH Nana Asokore Mamponghene 0205115116 [email protected]
31 NANA AKOSUA ABRAFI Queen mother of Sepe Timpon 0244698946 [email protected]
32 Abusuapanin KWAKU KARIKARI Abusuapanin of Sepe Timpon 0244965852 [email protected]
33 Hon. ALHAS ABUBAKAR MOHAMMED
P/M Assembly (Assembly Man) 0244467951
34 NANA BUGALI B. ASOY G/A (Assembly Man) 0244464004 35 KWAME NKRUMAH ARTHUR Sepe – Timpom (Assembly Man) 0244034436 [email protected]
36 Hon. ABDALLAH IDDRISU M. Adukrom (Assembly Man) 0244996155 [email protected]
37 APPIAH GRACE AMMA 0276051763 38 HARUNA YODA CCHD – Kumasi 0243169015 [email protected]
39 NANA ABENA KONADU Bobai Queen mother 0243020381 40 ALICE ANTHONY Youth Employment Agency 0244487965 [email protected]
41 KINGSLEY OWUSU NBU 0545858470 [email protected]
42 ABENA SERWAAH POKU NBU 0245797572 [email protected]
43 SHAIBU FUSEINI NBU 0245797572 [email protected]
44 AHMED T. A. ALI SARKIN Zongo palwe 0244612569 45 TIJANI MOHD SHEHU SARKIN Zongo palwe 0244783366 46 DANFUL NICHOLAS CCHD 0502028991 [email protected]
47 PATRICK OTI BIOH NEYOD 0245835490 [email protected]
48 HILTON TERRY KESSIE NEYOD 0246697644 [email protected]
49 BAFFOUR EMMANUEL GYAN SOS Children 0549427158 [email protected]
50 MATILDA N. B. ADU AMMA Planning 0202858907 [email protected]
51 NTIM BENJAMIN AMMA Planning 0541121197 [email protected]
52 WERSONG ANDREWS AMMA Planning 0546090518 [email protected]
53 KYEI BIRAGO AMMA Planning 0207329843 [email protected]
54 GIFTY ADUSEI AMMA Planning 0243702601 [email protected]
55 ABRAHAM TWUMASI Registrar General Department 0246202832 56 NANA AMOAH YEBOAH Nana Gyaasehene 0277452810
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NO. NAME ORGANIZATION / DESIGNATION
PHONE NUMBER
EMAIL ADDRESS
57 ASHONG ELIZABETH Sustainable Livelihood Consult 0544586079 [email protected]
58 KORSI ASHONG Sustainable Livelihood Consult 0208175983 [email protected]
59 ANTHONY K. SARFO Consultancy Team 0240173884 [email protected]
60 JUSTICE PROSPER TUFFOUR Consultancy Team 0541096273 [email protected]
61 PRINCE ABOAGYE ANOKYE Consultancy Team 0244437042 [email protected]
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Appendix III: TOR for the Assignment
TERMS OF REFERENCE
STUDY ON THE PROMOTION OF LOCAL ECONOMIC DEVELOPMENT AND YOUTH EMPLOYABILITY IN THE ASOKORE
MAMPONG MUNICIPALITY (AMM) IN KUMASI, GHANA
AMMA and SOS Children’s Villages Ghana are seeking expression of interest from qualified research teams or consultants, to undertake an economic study in Asokore Mampong Municipality in Kumasi. The research results will form the basis for an economic Action Plan, youth employment initiatives, and the system of Monitoring and Evaluation of the “No Business as Usual” development project.
Background The consortium partners SOS Children’s Villages Netherlands (SOS CV/NL), Asokore Mampong Municipal Assembly (AMMA), and SOS CV Ghana (SOS CV/Ghana), have situated their action in disadvantaged neighborhoods of Asokore Mampong Municipality (AMM). The municipality shows a youthful population with an estimated 58.3% of the population below 24 years of age. This age cohort is expected to double in 20 years’ time according to predictions. Economic development in Kumasi is reasonable, but AMM attracts large numbers of (unaccompanied) migrant youth in search of employment. Job opportunities are limited, and youth unemployment is high, especially for the disadvantaged. Revenue collection remains problematic for AMMA, in an economy that is dominated by informal activities, employing about 86 percent of the economically active workforce. It is against this background that the European Community (EC) funded the “No Business as Usual” project which has been formulated to enhance economic growth, youth employability, and the capacity of Asokore Mampong Municipal Assembly (AMMA) to collaborate with civil society and private sector to mobilize revenues for local development while promoting transparency and accountability to citizens. To facilitate the start-up of the No Business as Usual project, three interlinked research themes are prioritized:
1. An up-to-date analysis of the rapidly changing economy in the municipality is lacking, and economic constraints and opportunities are poorly known. There is a lack of collaboration between important stakeholders (AMMA, CBOs/NGOs, Private sector). They don’t meet regularly and there is no joint Action Plan to stimulate growth innovatively. By contrast, revenue collected is traditionally spent on physical infrastructures (bridges etc.) only. Revenue collection is low, and it is not clear how revenue collection can be increased in order to liberate funds to stimulate economic growth.
2. Youth unemployment is high, especially for disadvantaged youth. Traditional employment sectors are saturated. It is not known what the leading growth sectors are. Jobs not requiring technical skills are scarce. It is poorly understood how to train and equip disadvantaged youth with skills needed in new economic growth sectors (including e.g. life and work attitude skills). Both AMMA and CSOs need to understand better what the needs of the private sector are, and tailor training programmes accordingly.
3. Finally, the project is in need of baseline data, to measure progress of its interventions, for example at mid- and end-term evaluations.
The approach outlined in the NBU project seeks to deliver a range of interlinked activities and results, so as to address the first two problems. To refine project design, the current research is deemed necessary. Purpose of the assignment The purpose of this consultancy assignment is not to conduct a theoretical, “scientific” research study. Instead, it is to provide the No Business as Usual project team with practical well researched information on which it can base planning and implementation of activities to stimulate growth and employability for disadvantaged youth. For that reason, the Research Team should consult extensively and directly with representatives of the (in) formal private sector especially, both with male and female entrepreneurs, as they constitute the engine of economic growth in AMM. Review of documents and scientific research reports is needed, but can only make up 10% of the overall final report maximally. Furthermore, other important stakeholders like government and CSO/NGO staff, should also be consulted, as well as youth. The study should establish how AMMA, the private sector, and NGOs/CBOs can create synergy advantages and exploit complementarity, while collaborating for change. It is the desire of SOS and AMMA that 1 (or 2 at most) NBU staff participate in a limited number of well-defined activities of the study (such as some focus-groups interviews with stakeholders), in order to increase their knowledge of stakeholders/target groups. When the contract will be awarded, this will be worked out in mutual agreement.
Specific objective of the assignment Although interlinked, the study outcome has to address three themes in respective stand-alone sections of the report: Section [I] To identify the internal and external factors that promote or militate against the economic development of the Asokore Mampong Municipality. It is to identify the factors that facilitate youth in accessing the labor market, particularly in relation to skills and training
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needs of the private sector. Furthermore, it is to assess the revenue performance of the Municipality. Finally, the study is to identify innovative initiatives for the allocation of revenue collected, to 10 concrete pilot projects contained in an ACTION PLAN (for 4 years) in which AMMA, NGOs/CBOs and the private sector collaborate to stimulate economic growth. The study is to focus on inclusive development of (young) disadvantaged women especially, such as marginalized females, poor women and the Kayaye minority. Section [II] To identify 4 growth sectors of the local economy and their growth drivers. Which sectors are not saturated, grow rapidly, and could absorb well trained disadvantaged youth? The study should sketch the specific demands for (skilled) labor and training needs, following extensive consultations with the private sector. An analysis of the characteristics of disadvantaged youth has to be made, as they face particular problems: they often have low self-esteem and lack role models, social networks, and skills related to work attitude, pitching, business plan making, etc. Section [III] To establish the current status for a number of SMART baseline indicators, included in the NBU project document (Log Frame). The baseline data obtained, will facilitate the monitoring and evaluation of the project, and allow for adaptation of activities. Scope and focus of the assignment Geography: The consultant is expected to work in the Municipality and must demonstrate a good understanding of the linkages between Kumasi’s main economic centers, on the economy of Asokore Mampong Municipality, and its impact on growth and development. The study deals with Asokore Mampong Municipality only, not with the wider area of Kumasi, although reference to the latter must be made. Given the strong emphasis the project places on gender, data collection and analysis will have to be gender focused. Focus is on disadvantaged neighborhoods. In line with the objectives of the assignment, the consultant will be required to focus on these four thematic areas namely: Economic growth, Youth employment, Revenue generation and Growth sectors. Methodology: The research team is invited to submit a work plan and sampling methodology in their proposal. Regarding your proposal for Section 1 and 2 Indicate which methods you apply to collect and analyze information (e.g. focus groups discussions, interviews with key resource people, study of key documents, ranking, triangulation, etc.). Indicate how you connect to four key-stakeholders especially: AMMA, private sector businesses, CSOs/NGOs, and disadvantaged youth. Amongst others, you are expected to consult at least 30 government officials from various departments and institutions, 120 entrepreneurs from all sectors (both formal and informal, both women and men, production industry, services, trade and commerce, transportation, etc. etc.), 20 CBO/NGO staff (also contact smaller CBOs, including faith based CBOs, as the number of NGOs is small in the area), 80 disadvantaged and 80 regular youth (60% women), and representatives from other institutions and sectors (20 in all) (e.g. knowledge institutions (5), financial service providers (5), and Chamber of Commerce (1). Written forms documenting the consultations systematically (name, place, function, age, summary of discussions, etc.) should be submitted with the report. Intermediary results are to be presented during the 2 progress meetings with NBU staff (see below, Benchmark 1 after 1/3 of the study has been executed and Benchmark 2, after 2/3 of the study has been executed). Proposal for Section 3 (Baseline Data) The baseline study should adopt a mixed methods approach, integrating quantitative and qualitative methods for triangulation of data. The baseline study shall use the Log Frame of the No Business as Usual project as its conceptual framework, which you will receive if awarded the contract. The LF describes how activities, results, and specific objectives, and overall objectives are linked. Especially, it identifies SMART indicators for which data have to be collected. Examples of indicators are: Examples of indicators for which the current status (at project beginning) needs to be determined:
Specific objective 1
The number of SBs and PPPs has grown significantly
Specific objective 2
Start-ups entrepreneurs shared ideas, linked, learned
Results
AMMA applies improved participatory planning methods, like town hall meetings using accountability tools
Local government and civil society consult each other regularly to address socio-economic problems
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Population involved in improved revenue planning, town hall meetings, budget tracking, and PPPs/SBs, is more prepared to
pay revenue
Indicate in your proposal how you intend to collect data for these and other indicators (not included in this example), and treat how you intend to measure indicators pertaining to behavioral change (which are more difficult to measure). Storytelling and focus groups discussions are possibilities. Sampling Strategy (For both Section 1 & 2 combined, and for section 3): The research team will have to design a sampling method that ensures that representative data are generated. The final methodology will be agreed upon between the selected research team and NBU. Stakeholders workshop in the NBU Hub: Towards the finalization of the research, the research team should discuss its findings in a seminar with stakeholders organized in the Hub. Feedback from this seminar should be included in the final report. A separate budget exists for this activity.
Research questions The report is to address the following research questions: Section 1 1.1 What are the constraints to and opportunities for economic growth in the municipality? 1.2 What are the characteristics of youth in the AMM related to educational and socio-economic background, and what are the principal causes of youth unemployment, especially for young women? 1.3. What are the principal characteristics of revenue collection by AMMA, and how could revenue collection and spending be improved? 1.4 What are 10 concrete outlines (to be included in an Action Plan) for innovative projects that stimulate economic growth and youth employability, to be implemented in a joined effort by private sector, CBOs/NGOs, and AMMA? 1.5 Analyzing existing revenue collection and spending, how can AMMA allocate budgets for 10 joined actions by AMMA, CSOs, and private sector, to be implemented in the cause of this project? Section 2 2.1 What are 4 growth sectors in the AMMA which may absorb unemployed youth and what are its characteristics and employment demands? 2.2 What are the enabling/hindering factors for youth accessing the labor market in those four sectors? 2.3 What general type of skills does the private sector particularly demands from youth in those 4 growth sectors? Section 3 What baseline information needs to be collected for the indicators mentioned in the NBU Log Frame, so that the project staff can Monitor and Evaluate progress meaningfully and practically? Expected deliverables The consultant has the overall responsibility for producing the deliverables according to the quality standards of EU reporting for similar projects. The expected deliverables will be: Section 1 1.1 The 5 principal constraints to and opportunities for economic development are presented, and particular attention is given to constraints/opportunities for inclusive growth for (young) women. 1.2 The general education / socio-economic characteristics of youth in the AMM are provided and possible pathways for unemployed youth to access the labor market, (especially young women) are given and explained, including recommendations. 1.3. The 3 priority reasons for low revenue collection are given and 3 recommendations for change are presented. 1.4 Based on their findings and consultations with AMMA, private sector, CBOs/NGOs, and other stakeholders, the Research Team proposes an ACTION PLAN consisting of 10 concrete and innovative projects interventions (summarized in one A4 page per project). The actions are to stimulate economic growth and youth employment, and are jointly executed by AMMA, the private sector, and CBOs/NGOs. 1.5 The report, after consultations with AMMA, proposes means to allocate revenues from the AMMA budget to contribute to fund the implementation of the 10 projects. Section 2 2.1 The four principal growth sectors that can absorb unemployed youth (auto-employed or as employee) are identified and reviewed, and it is described in which way they offer opportunities for youth employment (training). 2.2 The enabling/hindering factors for youth accessing the labor market in those four sectors are described and explained. 2.3 The skills that the private sector needs in the 4 growth sectors, are described.
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The results of Section 1 and 2 are presented in a seminar in the NBU Hub and discussed with stakeholders. Their input is fed into the report findings. Section 3 All baseline information necessary to evaluate the project after 2 or 4 years, and to monitor progress, is collected for all the indicators mentioned in the NBU Log Frame. For all sections: All written intermediate-reports, survey forms, interview reports, etc. are numbered systematically, dated, collated, and given to the NBU project staff upon submission of Benchmark 1 reporting, Benchmark 2 reporting, and the end report (allowing further exploitation). 7. Structure of the report
The final study report should adhere to the following tables of content:
Title page
Foreword
Acknowledgements
Acronyms
Table of Contents
Introduction
Executive Summary (maximum 4 pages, specified for 3 sections)
Methodology (maximum 3 pages, specified for all sections)
Limitations
Key Findings per Section: -Section I (Answers to Research question 1.1, 1.2, 1.3, 1.4, 1.5) -Section II (Answers to Research question 2.1, 2.2, 2.3) -Section III (State the baseline date per numbered SMART indicator, and refer to Log Frame). Provide a summary report for all indicators as annex.
Conclusion and recommendations (2 pages)
Appendices (including: Terms of reference, Data collection tools, List of documents reviewed, List of all persons and groups interviewed or consulted, sites visited etc.)
8. Competencies and Qualifications The Research Team is expected to display professional competence and must have mastery over the subject matter, including good research, analytical and problem solving skills. They must commit themselves to meeting deadlines. Researchers must also have excellent and effective written and oral English language skills. The Research Team must have the ability to present information in a brief and accurate manner. Ability to work under pressure. Educational qualification of the lead researcher must include an advanced academic degree in economics, development, or planning, and the researcher must have good knowledge in finance and budgeting, local public administration, or similar relevant experiences. Experience in conducting impact assessments, baseline studies or other types of programme evaluation studies/ research. Proven publication record (Attach at least two research samples). 9. Contract management The Research Team is expected to prepare an inception report with a work plan that outlines how it carries out the assignment. This should cover the consultant’s understanding of the terms of reference, methodology to be used, limitations or constraints to the assignment, as well as the time schedule, and 2 Benchmark delivery dates to guide the execution of the assignment. The first Benchmark is to be planned when 1/3 of the work has been executed. The second Benchmark is after 2/3 of the study has been executed. SOS and AMMA will exchange at these 2 distinct Benchmark moments with the Research Team, to evaluate and appreciate preliminary findings and work progress. Payment of the work is executed in 3 corresponding installments:
20% is paid before the beginning of the work.
25% is paid after a first progress update meeting with AMMA/SOS for Benchmark 1. The Research Team will have to present a 2-page progress report, clearly indicating results booked, at 1/3 of the activities being executed. They present documents testifying to all activities executed, and provide lists of stakeholders and target groups consulted.
25% is paid after a second progress update meeting with AMMA/SOS for Benchmark 2, when 2/3 of the work has been executed.
30% % is paid after submission of the final report. Research Team and SOS/AMMA are to agree in mutual understanding on final editing of the report.
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10. Work Schedule The assignment will cover a period of 8 weeks maximally, including the desk review. 11. Application process Consultants/Firms that meet the requirements should submit expression of interest, which should include the following:
1. Cover letter including the consultant’s/firm’s suitability for the assignment and current contact information. 2. CV of lead consultant including contact details of 2 referees. If the lead consultant is planning to use staff, provide name
and CV’s of staff involved and indicate expected role research team. CVs of all members of the proposed research team should highlight research experience relevant to the study.
3. Research proposal based on the ToR provided that includes a clear description of the intended scope and methods to be used, work plan, potential risks, and a detailed timeline. Detailed budget for this study which must be inclusive of VAT and all other costs.
4. Description of relevant experience in undertaking similar studies in the past 4 years. 5. Submission of two examples of recent research work undertaken by the tendering part/parties in a related field.
The study shall be expected to begin within 3 weeks after the project is awarded. Tender documents should be submitted in - 3 Hard copies (1 original) and (2 copies) in sealed envelopes and - Soft copy (as PDF file) on a USB stick in a sealed envelope The tender documents should be addressed and submitted to: The Programme Director P. O. Box KS 15280 SOS Children’s Villages, Asokore Mampong Kumasi CLOSING DATE FOR SUBMISSION: 22ND AUGUST 2017 BY 4:00PM For any further enquires, candidates may only contact Mr. Bernard Amoako on (+233)240975379. The tender document should refer to “NBU study” in the subject line, and including support documents as outlined above. Note that qualified consultants may be subjected to a background check as a condition of engagement.
Appendix IV: Case study with Tri-cycle Driver
Aboboyaa (Tricycle) Business, Asokore Mampong, the case of Abba Mekadi, Driver of APSONIC M16 1846
AS
Mekadi is married to a housewife with whom he has three (3) children aged 7 years, 3 years, and 8 months.
Mekadi does his business at Kwadaso onion market.
He could identify three main types of tricycle business as follows:
1. Specialized, one product, stationed dealers involved in onion, yams, woodcuts, meat and others;
2. Taxi usually use Adedeta or Mahama camboo (waawaa)
3. Bola (dealers in waste)
Type of tricycle business
Profitability
Percent of Dealers
Daily sales (GH¢)
Amount per day (GH¢)
Notes
Specialist 3rd 10% 25 0-140 Usually they drive their own tricycles. Operate from locations such as onion market, Kwadaso;
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Sokoban Wood Village; Yam Market, Central Market, Kumasi
Waawaa 2nd 30% 25-30 They usually drive for others. People prefer it to other means because it gets full on time, maneuvers to destinations faster
Bola 1st 60% 30 80-200 Use newer machines, which they do not own. Starts work at 4:00 am, finishes by 10 am and washes vehicle daily
Employers, according to Mekadi, look for the following traits in engaging a tricycle driver:
Honesty
Driving experience with a geared motor (possibly licensed)
Motor fitting skills
Bravery
On length of time and cost involved in training to become a tricycle driver, Mekadi’s response was as follows:
It could take one month for a brave person to learn to ride a geared motor. Most trainers do it free of
charge;
Motor fitting could take between 6 months and one year. One needs a tools box and sometimes some
fee depending on trainer. Some trainers do not take any fees;
Challenges involved in the tricycle business:
Overloading, stressing the machines and reducing life span
Poor driving skills
Indiscipline
Harassment from police (allegedly instigated by trotro and taxi drivers, especially for Adedeta)
Unclear policy on licensing of motor drivers (Police and DVLA hold different views)
Capital and running costs
Purchased his vehicle at GH¢5500
Fuel GH¢10-30 daily
Oil GH¢10 weekly
Sales GH¢25 daily
Driver 1 day bonus per week
Salvage after 2 years GH¢100-2500;
Spare parts and maintenance regime
Key spare parts include the following:
Spare Cost (GH¢)
Workmanship Cost GH¢
Connecting rod 80 Workmanship on connecting rod 20
Engine block 120 Fitting on engine block 20
Piston and Rings 10-40 Fitting on piston and rings 10-15
He could remember how he had an electrical problem which the mechanics could not resolve until after two
weeks. Finally it was a small spare part which was replaced for GH¢10.
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Appendix V: Action Plan for rolling out the 10 Concrete Project Activities
Activities Timeframe Expected
outcomes/Milestones Responsibility Key Inputs
Amount/Loan/ Start-up (GH¢) Year 0 Year 1 Year 2 Year 3 Year 4
1. Secure land for the 10 Concrete Projects
16 acres of land acquired and documented for the 10 concrete projects six months from commencement of project
NBU Project Manager, MPO, CSOs and private sector
28,847.50
2. Animate communities on the 10 concrete projects
Community animation completed within six months from commencement of project
NBU Project Manager, MPO, CSOs and private sector
57,695.00
3. Prepare architectural plans and designs for the 10 concrete projects
Project design and architectural/ engineering drawings ready for construction to commencement of projects
NBU Project Manager, MPO, MPE, CSOs and private sector
42105.284
4. Engage contractors to put up structures for the 10 Concrete projects
Bidding completed by the 6th month of commencement
NBU Project Manager, MPO, MPE, CSOs and private sector
42105.284
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Activities Timeframe Expected
outcomes/Milestones Responsibility Key Inputs
Amount/Loan/ Start-up (GH¢) Year 0 Year 1 Year 2 Year 3 Year 4
5. Roll out the 10 concrete projects
Construction work completed within 6 months by end of Year 1
NBU Project Manager, MPO, CSOs and private sector
5.1 Project 1: Asokore Mampong Refuse Aggregation, Sorting and Collection Project
Fully operational, a year from commencement upon completion of structures
NBU Project Manager, MPO, CSOs and private sector
2 acres of land, plant buildings, trucks, bins, buckets and other and equipment
3,201,733.33
5.2 Project 2: Asokore Mampong Centralized Smelting, Burning and e-Waste Plant
Fully operational, a year from commencement upon completion of structures
NBU Project Manager, MPO, CSOs and private sector
1 acre plot of land, machines for recycling organic waste, plastics, metals, and glass
1,842,343.60
5.3 Project 3: Asokore Mampong Fitting Mechanic Settlement Initiative
Fully operational, a year from commencement upon completion of structures
NBU Project Manager, MPO, CSOs and private sector
10 acre plot of land, sheds, connected with water, electricity and other services at commercial rates
4,160,000.00
5.4 Project 4: Asokore Mampong Small Vehicles and Logistics Company
Operation commences within 3 months of commencement upon recruitment of matching grant administrator
NBU Project Manager, MPO, CSOs and private sector
50 Adedeta tricycles on hire purchase to 50 young persons
311,156.25
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Activities Timeframe Expected
outcomes/Milestones Responsibility Key Inputs
Amount/Loan/ Start-up (GH¢) Year 0 Year 1 Year 2 Year 3 Year 4
5.5 Project 5: Asokore Mampong Juicing Company
Fully operational, a year from commencement upon completion of structures
NBU Project Manager, MPO, CSOs and private sector
Juice extractor, raw materials van, finished products distribution van, other machinery and equipment
3,573,692.99
5.6 Project 6: Asokore Mampong Pastes and Spices for Soups
Fully operational, a year from commencement upon completion of structures
NBU Project Manager, MPO
Half an acre plot of land, Wooden shed for machines, Distribution van, Office, working area and dressing room, Fire place, Diesel Engine (8HP), Mechanized Roaster, Miller, Crop drier (2 ton), Grain cylo, Mechanized sieve, Vertical Sealing Machine
195,993.13
5.7 Project 7: Asokore Mampong Intensive Cattle Fattening Project
Fully operational, a year from commencement upon completion of structures
NBU Project Manager, MPO, CSOs and private sector
A 2-acre plot of land; 1200 heads of cattle, fencing, kraals
2,902,959.40
5.8 Project 8: Asokore Mampong Shoes
Full operation commences once space is secured
NBU Project Manager, MPO, CSOs
Workshop structure, machinery and equipment
468,966.83
134
Activities Timeframe Expected
outcomes/Milestones Responsibility Key Inputs
Amount/Loan/ Start-up (GH¢) Year 0 Year 1 Year 2 Year 3 Year 4
and Leather Works
and private sector
5.9 Project 9: Asokore Mampong Young Tailors and Seamstresses Project
Full operation commences once space is secured
NBU Project Manager, MPO, CSOs and private sector
Structure, Machines (industrial sewing, over-locking and embroidery machines), Materials, Electricity
757,050.00
5.10 Project 10: Asokore Mampong ICT and Hardware Company
Full operation upon completion of expansion facilities
NBU Project Manager, MPO, CSOs and private sector
Expansion of an existing ICT facility (GH¢60,000.00); dust proofing the old facility (GH¢30,000.00); and equipment and tools for apprentices.
114,779.58
6. Project Implementation, Monitoring and evaluation
Project Inception, Mid-Term and End-line Reports; Quarterly Milestone and Spend Forecasts; Quarterly Reports, Monthly Progress Reports
NBU Project Manager
34,150.61
Total 17,699,428.17
135