Promoting Ghana’s economy

Project description

Title: Programme for Sustainable Economic Development (PSED)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Co-funded by: Swiss State Secretariat for Economic Affairs (SECO), European Union (EU)
Country: Ghana
Lead executing agency: Ministry of Finance (MoF)
Overall term: 2006 to 2022

Trainee tradeworker in the construction industry in Ghana at a workshop

Context

Ghana’s economic development since the mid-1990s is a success story for sub-Saharan Africa. However, income and assets are very unevenly distributed. Furthermore, around 80 to 85 per cent of the population work in the informal sector. Many people find it difficult to secure employment due to their lack of qualifications.

The financial sector also went through a crisis from 2017 to 2019 and lost a lot of the population’s trust. Many small and medium-sized enterprises are barely able to access financial services. Although handling bank transactions via a mobile phone (known as mobile money) is gaining in significance, this requires an internet connection. Because this is lacking or people cannot afford it, digital services are hardly available, especially in rural regions.

As a result, many young people do not see any opportunities for themselves in Ghana and must be considered as potential migrants.

Basic finance course in Ghana

Objective

The conditions for humane, productive employment have improved. 

Women entrepreneurs from the tech field in Ghana at an Investment Readiness Workshop

Approach

The project works between the public and private sectors in both rural and urban regions.

Together with the management consultancy AFC, the project is stabilising the financial sector. It supports the regulatory authorities and develops financial products. This enables smaller and medium-sized enterprises to access financial services more easily.

The project’s activities also include improving training providers, developing curricula and organising teacher training courses. As a result, graduates have better employment opportunities. The European Union and the Swiss State Secretariat for Economic Affairs are cofinancing the engagement in the technical and vocational education and training sector, and the project is also cooperating with the management consultancy PLANCO in a consortium with GOPA Infra in this area.

Training for entrepreneurs combined with basic equipment gives potential migrants an alternative to emigrating. Furthermore, the Digital Transformation Centre Ghana works together with innovation actors and local offices to provide digital services for rural regions.

Last updated: July 2021

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