Growth prospects in Northern Ghana: Interim Conclusions and New - - PowerPoint PPT Presentation

Growth prospects in Northern Ghana: Interim Conclusions and New Directions

Presented by Andy McKay, ODI Accra, 20 July 2005

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Growth potential

• Began with two initial alternative hypotheses

– There is growth potential in northern Ghana – The best hope for northern Ghana is ‘better’ out- migration, and growth through remittances

• Findings support first hypothesis, focused

around agric and conditional on other factors

• But second still relevant:

– More so in some regions – Important in short to medium term when many cannot participate in growth

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Growth in Northern Ghana

• Also in national interest
• But lack of strong focus on growth in

Northern Ghana since 1970s

• Need to ask questions of local as well as

national leadership

• Also donors and NGOs

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Are there new options for growth?

• Some are old issues … but no less valid?
• Agric and agro-processing central, but focused
• n markets – and considering new options
• Unrealised potential of trade
• Tourism does offer significant potential
• Mining unknown … but need to find out
• Private sector led strategy
• But many changes needed to realise this, some

by government

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Agriculture and Agro-Processing

• Must be central area for foreseeable future

– but has past focus been on growth?

• Lack of focus on markets (now complex)
• Agro-processing
• Need for dry season agriculture
• New crops, livestock, new methods
• Growth can be combined with food

security

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Trade

• Trade as important factor in national growth
• North does trade with neighbouring countries –

but much greater potential

• Need to expand trade: neighbours, but also

south and non-African markets

• Key issues

– Road connections: to border and key routes in Ghana – Excessive checkpoints as barrier to trade – without losing controls on smuggling

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Tourism is an emerging opportunity

• Some successes, especially Northern

Region (e.g. Mole)

• Greater potential … but need to develop

sites (plus infrastructure)

• Develop links to tourism in south
• And need for stronger focus on tourism at

national level

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Mineral potential is unknown

• Reputed rich deposits: gold, iron ore,

limestone etc.

• But extent unknown, not systematically

exploited

• Need to assess potential

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Need for substantial progress on infrastructure

• Highways a priority – especially interregional

and roads to borders

• Irrigation: rehabilitation of large and small dams,

new methods (e.g. water from rivers)

• Need for big contract and capable contractors

for these quick necessities

– Local capacity building has failed – Need to review contract bidding process – Key roads within five years

• Electricity, water etc.

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Need to attract investors

• Existing investments in trading, hotels etc.
• Constraint finding investors in agric – existing

cases for special reasons

• Local firms/investors cannot expand beyond

small scale

• Characteristic abilities needed

– Capacity to mobilise capital without recourse to Ghanaian banks – Ability to make linkages to international markets – Ability to manage out grower process etc. – Need for skilled labour – technical education

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Need for institutions to address risk

• Irrigation
• Insurance of livelihoods
• Universal food for education

programme

• Some form of social security – e.g. a

universal pension or other cash transfer to vulnerable groups?

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Other issues to address

• Resolving conflict issues of critical

importance

• More effective decentralisation in key

areas

• Is there a need for regional development

strategies – and inter regional fora?

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Political representation

• Some informants made point about lack of

effective representation by political leaders

• If true, different interpretations

– Need for more graduate MPs? – Grass roots organisations too weak? – Northerners split on party lines?

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How to take this forward?

• Need to identify investors

– Work with business associations, Association of Ghanaian Industries, Chambers of Commerce etc.

• Government organisation

– Single window for investors in North (GIPC, GEPC, MOTI, MOPSD)? – Make rural enterprise development programme effective e.g. joint projects by District Assemblies? – Special Development Areas? – Infrastructure, removal of needless trade barriers

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Taking this forward (2)

• Political leadership

– Test out ideas with Northern political leadership and House of Chiefs (team)

• Donors

– Complete change of strategy needed: growth focused – Recognise failures: irrigation; capacity building of local contractors

• NGOs

– Serious evaluation of market intermediation activities: can they achieve scale?