pepsc-2004-dut-background

Geographic Location
The project area covers the five administrative districts of the Upper West Region ( UWR ) namely : Wa, Nadowli, Jirapa/Lambussie, Lawra and Tumu. It also extends into the Bole and Damongo districts of the Northern Region adjoining to the Upper West Region. UWR is located in the north western corner of Ghana and has an international border with Burkina Faso to the north and west, with Northern Region to the south and Upper East Region to the east. The total land area is about 18,480 km2 or about 8% of the total land area of Ghana.

St. John's carpentry enterprise

Building enterprise Nandom

Welding and fabrication enterprise Piena

Welding enterprise Tumu

Business-plan 2004-2008:

Preparing the future ...

Population
The total population of UWR is estimated at about 550.000 with about 10% of the population being urbanised. Household sizes are quite high (15 to 16 persons ) reflecting the compound nature of extended family units. Population densities are over 95 persons per km2 in Lawra district and 60 persons per km2 in Jirapa / Lambussie district, both of which are located in the north western corner of the Region. However in the Wa and Nadowli districts the figure is about 30 persons per km2 while in the Tumu district it is considerably lower at 10 persons per km2. Strips of high population are found along the road linking Wa / Nadowli / Lawra / Nandom / Hamile.

Poverty Levels
The Upper West is one of the most deprived and under-developed regions of Ghana in terms of access to social services and human development indicators. The Ghana Living Standards Survey Report Round 4 conducted in 1999 shows that despite a slight improvement in the poverty level of the UWR over the period 1992 to 1998 , the Region still remains the second highest poverty region in the country. The high poverty level of the people and the low population density combine to make the region one of low purchasing power and low aggregate demand for goods and services from business enterprises.

General characteristics of rural enterprises in the Upper West
Traditional rural enterprises in the project area are characterised by their small size, informal structure, low capital start-up requirements, high flexibility, low educational requirements and high labour intensity as well as the business acumen of the proprietor for success. These enterprises are based on existing technical knowhow, available labour skills and locally available raw materials. They are often home-based enterprises, carried out by rural men and women, and their products cater tor the basic needs of the people in their area. The artisans (crafts trade people) 'masons', carpenters, sheet metal workers and mechanics serve other sectors of the community by producing tools, repairing equipment and making construction facilities. Other rural craftsmen/women practise traditional crafts including: textiles weaving and dyeing , pottery making, yarn weaving and dyeing (local cotton ) and glass bead manufacturing. The service sector includes tailoring and leather works.

A strong interdependence and linkage exists between the agricultural sector and rural enterprises . This suggests that a dynamic growth in agricultural production is an important element in creating demand for the products and services of rural enterprises. Enterprises provide the tools and equipment used by farmers and the food processing sub-sector. Profits made by farmers may also be used in improving their houses and other facilities, thereby creating jobs for the building industry as well. However, in the present circumstances, agricultural productivity is low, and in most households food stocks cannot last throughout the year. The able-bodied men and youth from such low food security households now often immigrate to the south in search of dry season wage employment and some decide not to return. And when they return they often come back with very little cash to solve any problems at home. If agriculture could be made profitable, it would create demand for labour both on farm and in small scale enterprises thus leading to a reduction in outmigration. Employment Opportunities for the Youth in UWR

There are very few opportunities for the Youth in the UWR outside agriculture. However, it is believed that this can be overcome through the creation of an enabling environment where the youth would be assisted to meet the basic requirements for business. Presently , most graduates from the Vocational / Technical schools who wish to start businesses do not have saving accounts or collateral security to enable them access loans from the formal banking sector.

If graduates from vocational schools have to make progress in the trade and small scale enterprises, they would require credit facilities that are packaged in such a way as to meet their specific circumstances and needs. Management and skills in service training would also be required to help these potential entrepreneurs to benefit from services offered by the formal sector and to enable them to survive in an increasingly competitive market place. Aggressive marketing strategies would also be required to enable enterprises to market their products both at home and on international markets, information on market processes, specifications and market niches where their items can be sold. It is in this regard that PEPS-C has been providing a location specific package of start-up capital for young small scale entrepreneurs to enable them to meet the socio-economic development needs of the UWR.