By Isaac AIDOO, in Accra, Ghana
Ghana’s entrepreneurial ecosystem has in the past years been quite buoyant due largely to concerns about rising youth unemployment and advocacy on promoting innovation through technology.
In their bid to unearth and harness the entrepreneurial skills of the youth in Ghana, governments, past and present, have made youth employment interventions. However, none of the programmes have provided the needed jobs.
A World Bank report launched in 2020 and titled, “Youth Employment Programmes in Ghana: Options for Effective Policy Making and Implementation”, identified agribusiness, entrepreneurship, apprenticeship, construction, tourism and sports as key sectors that could offer increased employment opportunities for the youth in Ghana.
Ghana is faced with 12 percent youth unemployment and more than 50 percent underemployment, both higher than overall unemployment rates in sub-Saharan African countries, the World Bank has said.
Managers of Ghana’s economy have trumpeted the fact that the country’s public sector can no longer support new employment as it is choked. In fact, rather than employ more into the public sector, there are attempts at downsizing in the public sector, especially under an International Monetary Fund (IMF) Programme.
Ghana’s public sector is estimated to be employing more than 700,000 workforce, consuming over 60 percent of the national cake in wages.
This situation has led many experts to preach entrepreneurship as the only solution to the unemployment crisis. Indeed, senior ministers in government have said “the solution to the country’s graduate unemployment is a vibrant private sector.”
US initiative to revolutionise ecosystem
Thanks to a United States (US) government led support and partnership initiative with Ghanaian startups, the country’s entrepreneurial landscape is set for a reawakening.
Dubbed Partnership Opportunity Delegations (POD), an initiative of the US Department of State’s Office of Global Partnerships, a 16-member delegation made up of representatives of US companies and organisations focused on climate, technology and innovation was in Ghana in February to engage Ghanaian businesses, startups and policy makers to understand Ghana’s dynamic entrepreneurial potential and delve deeper into partnerships and investment opportunities.
The delegation has been engaging budding Ghanaian entrepreneurs at the Impact Hub Accra under its Net Nero Accra initiative in partnership with Impact Hub New York Metropolitan.
The meeting offered the U.S. delegation the opportunity to learn about Ghanaian entrepreneurs that are focused on developing and up-scaling climate solutions, including electric mobility, emission reduction technology, solar energy, and green housing technology.
Dorothy McAuliffe, U.S. special representative for global partnerships, said the engagement with the young innovators was fruitful with exciting prospects and opportunities.
“The entrepreneurs are thinking big and have great climate and technology ideas that can be scaled to protect nature, advance technology in Ghana and sub-Saharan Africa. We have learnt a lot, and we have identified opportunities,” she said.
The U.S. delegates included representatives from ventures and startups, educational institutions, startup ecosystem developers, climate and sustainable technology investors, Ghanaian diaspora, NGOs, and international organisations.
On December 12, 2022, secretary of state, Antony J. Blinken, announced the Partnership Opportunity Delegation (POD) to Accra, Ghana.
The delegation was to travel to Accra to cultivate and enable collaboration and partnership opportunities between the U.S. private sector and West Africa’s burgeoning climate innovation and entrepreneurship ecosystem.
Mana Mobility
Valerie Larbi, chief executive officer of Mana Mobility, said the company had a mission to cut emission and help reduce the dependency on fossil fuels by developing affordable, and reliable, electric vehicles (EV) to cart goods.
She explained that EVs were designed to interface seamlessly with one’s phone via the Mana Application.
“We are enabling a community of drivers and riders to plug into our ecosystem of e-mobility services – from charging, to repair, to insurance, to income generating opportunities,” she said.
“At MANA, we’re a team of innovators, creators and change-makers committed to reducing bad gases, creating jobs, and making transport accessible to all.”
Ecoligo Ghana
This is a company that invests in solar energy production. Abdallah Smith, sales associate of Ecoligo, says the company’s transformative approach had shown that investing in renewable energy could generate a return, while contributing to climate solutions.
Ohemaa Green Housing
Augustina Bruwah Busiah, chief executive officer of Ohemaa Green Housing, says her firm has found sustainable solutions to Ghana’s housing deficit challenge using plastic waste and other components to build affordable housing.
Local hubs critical launchpads for startups
The success or otherwise of most startups and budding entrepreneurs in Ghana have largely depended on incubators or hubs which support startups with funding and mentoring among others. The accelerator and incubator ecosystem in Ghana is promising and continually expanding.
The Impact Hub in Accra, founded in 2013 is Ghana’s top centre for social entrepreneurship and innovation and, indeed, is a major partner in the US led POD partnership. The Hub provided a platform for pitch sessions for the entrepreneurs.
The Meltwater Entrepreneurial School of Technology (MEST) has for the past 15 years been helping aspiring African technology entrepreneurs with training, investment, and mentoring.
‘Explore Ghana’s limitless, untapped entrepreneurial opportunities’
Meanwhile Ghanaian astute banker and entrepreneurial icon, Bernardette Naa Hoffman, has been rallying young, budding entrepreneurs, especially women, to explore the limitless untapped entrepreneurial opportunities in Ghana.
She called on the youth, specifically inviting “young ladies” to take stock of their own talents and capabilities.
“This is important in identifying how different they can be in a pool of several talented young females. As part of this inventory taking exercise, the youth would need to pose some questions and provide honest responses to themselves,” Hoffman submitted,
She implored the young men and women to ask themselves the following questions: “Would anyone pay money for this? If so, what commercial value would I put on this service or product? Do I need money to start? How much is required? Can I do it on my own? Do I need to join forces with others? Are there others providing similar service, and how different is the new offering from what is existent on the market? Do I have the requisite knowledge and/or certification?” If not, is there a willingness to learn? etc.”
Hoffman, a former banker, now an entrepreneurial coach, and director of business development and supply chain, Berhill Services Limited in the United Kingdom, points out that for young persons who are hungry to be entrepreneurs, “identifying the opportunity is one thing, meeting the opportunity prepared is another. It is imperative for the youths to be prepared to take up the mantle when the opportunity arises.”
Tough business environment, a huge challenge
The entrepreneurial terrain is pretty rough. According to Hoffman, for various reasons, many Ghanaian businesses do not live past the first generation. In the few cases where they do, they don’t grow, and where there is no growth, they fizzle out and eventually die. Understandably, due to the risks associated with startups and by extension entrepreneurships in our environment, there is minimal support by the banks.
According to her, the average Ghanaian entrepreneur would struggle to sustain their business without financial support from the financial institutions. This also puts a cap on the extent to which they can expand and grow. Additionally, where there is hope for support, the requirement almost becomes a disincentive to access the support.
Worker integrity non-negotiable
As previously raised by other Ghanaian business owners, lack of integrity among employees is the foremost internal challenge faced by business owners. In most cases people are not sincere. Insider fraud and dealings have become a growing concern for small and large organisations alike.
Workers involvement in theft, forgery, and all the evils one can think of has taken a worrisome trend.
Slow wheels of justice inimical to business growth
Hoffman bemoans the slow pace at which the wheels of justice turn, when young businesses are involved in legal battles.
“Where there are legal battles to fight, the wheels of justice turn so slowly, making it an unattractive path, and increasing the cost of doing business,” she stated, recommending “an introduction of the small claims courts for entrepreneurs would be a great relief for business owners.”
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