BACKGROUND TO THE PROJECT
Unemployment and underemployment are widespread in Ghana. According to a study by the World Bank, 48% of Ghanaians aged 15-24 are classified as unemployed. Jobs in small and medium-sized enterprises (SMEs) are few, so most workers are employed in micro-enterprises in the informal sector. Although the expectations made of start-ups and entrepreneurs are high, they receive little or no support from the academic and scientific community, economic development initiatives or big corporations, and lack financing opportunities. In northern Ghana in particular, the perceived lack of prospects increases the pressure to migrate, and several young Ghanaians head off to Accra in search of work. Many earn a living there by collecting and recycling (e-)waste and plastic, despite the environmental and health risks involved.
Against this background, the project envisaged various measures to boost economic development and employment in Ghana’s formal and informal sectors: it aimed to support small and medium-sized enterprises (SMEs) from northern Ghana in improving their marketing and to enhance the advisory skills of start-up ecosystems from Tamale and Kumasi. It sought to enable people working in the informal sector on Accra’s Old Fadama scrapyard to increase their income-generating opportunities through self-employment. At the same time, it aimed to facilitate the introduction of a system to extend producer responsibility for plastic packaging that also improves job opportunities in the informal sector.
PROJECT OBJECTIVE
The project supported sustainable economic development in Ghana and helped to improve job opportunities in both the formal and informal sectors. The project thus contributed to the achievement of the 8th Sustainable Development Goal (SDG), which aims to promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
PROJECT ACTIVITIES
Strengthening start-up ecosystems in Kumasi and Tamale
A technical exchange was organised with a start-up hub from NRW to improve the advisory skills of start-up hubs in Kumasi and Tamale. Consultations and online seminars were held on specific issues for start-up founders. The start-up hubs from Ghana and NRW organised an innovation competition to which tandems consisting of Ghanaian and German start-ups with innovative joint business ideas could apply. The three winning tandems received prize money and business coaching to further develop their cooperation project.
Studying internal migration
Although it has now been cleared, the Old Fadama scrapyard used to attract large numbers of migrants from the north of the country. A study was conducted to better understand the push and pull factors shaping internal migration from northern Ghana to Accra and to develop services and opportunities to help counter this migration.
Financing mechanism for micro-investments in start-ups
A public-private financing mechanism was developed and piloted in cooperation with start-up hubs from Kumasi and Tamale to help start-ups and micro enterprises gain access to funding. The mechanism provided for micro-funding financed in equal part by project funds and by local companies. A total of 87 start-ups and SMEs from Tamale and Kumasi received support in the form of a micro-investment supplemented by coaching to advance their business idea or their company.
Internet portal for micro, small and medium-sized enterprises
In cooperation with four start-up hubs from Ghana and with support from an external advisor, an online platform called DAANI was set up to facilitate market entry for start-ups and micro enterprises from Ghana and to increase sales of their products and services by boosting their visibility.
Extended producer responsibility for plastic packaging
Extended producer responsibility (EPR) means that manufacturers and distributors of products and packaging are responsible for a product’s life cycle – including disposal and recycling. Ghana intends to introduce an EPR system for plastic packaging with a view to reducing plastic waste in the environment. Consultations and a moderated dialogue with the country’s plastics and recycling industry were held to support the Ghanaian Ministry of Environment in introducing the EPR system. This support included a stakeholder forum entitled ‘Paving the way to an EPR system for plastic packaging in Ghana’ held in Accra in April 2022. In addition, South-South exchange of experience was arranged with EPR representatives from Kenya and proposals were made for designing the legal framework for an EPR system for plastic packaging in Ghana.
Training for alternative income-generating opportunities
A basic training programme was held to train 70 young, marginalised women working in and around the former Old Fadama scrapyard. The programme covered practical training in four different vocational areas to enable the participants to earn a basic income. In addition, the participants attended English literacy courses, basic business management and IT courses, as well as empowerment training to boost their self-esteem. Upon completing the training, they received starter packs to help them on the way to self-employment.
Strengthening the hospital at the scrapyard
Measures to improve the hospital at the former Old Fadama scrapyard helped overcome existing psychological barriers and information deficits among members of the informal sector. The deployment of a Dagbani-speaking social worker boosted contact with the people who worked at the scrapyard and lived nearby in order to raise awareness of what treatment is available at the hospital and under what conditions.
Development education work
As a supporting measure, a web documentary entitled ‘Life’s what you make it?’ was developed to illustrate the realities of everyday life among young people in Ghana. The documentary was prepared as an instrument for education and training. It can be used in lessons at schools and other education institutions in conjunction with an existing travelling exhibition on the Ghana-NRW partnership and two virtual reality headsets.
Title: Promoting Sustainable Economic Development to Secure Future Job Prospects in Ghana
Term: May 2020 – June 2022
Region: Ghana
Sector: Sustainable economic development, circular economy
Supported by: State Chancellery of North Rhine-Westphalia
- Hopin Academy
- Kumasi Hive
- TU Dortmund University
- City of Dortmund Economic Development Agency
- AHK Ghana
- Ghanaian Ministry of Environment, Science, Technology and Innovation
- Ghana Recycling Initiative by Private Enterprises (GRIPE)
- Ghana Health Service
- Kumasi Metropolitan Assembly
- Tamale Metropolitan Assembly