Activity File
Improving Business Competitiveness and Increasing Economic Growth in Ghana
The Role of ICT-ITES
Summary
The Government of Ghana has identified information and communication technology-enabled services (ITES) along with agri-processing, tourism and other value-added sectors as key to further economic growth. Today, the ICT sector in Ghana is only a small part of the economy. For example, ITES, including Business Process Outsourcing (BPO) such as call centers, claim processing, currently provides just 2,000 jobs. How can the government, its development partners, the private sector and other key stakeholders identify and address the opportunities and challenges to develping this sector? A recently completed study, part of infoDev's growing series of country studies on ICT, growth and competitiveness, provides a framework for identifying the key drivers for the ITES sector, compares Ghana with other regional and global competitors, and makes concrete recommendations for action, which will be addressed under the $40 million World Bank e-Ghana project.
Background / Terms of Reference
Ghana has entered a phase of accelerated economic expansion over the last three years with real GDP growth averaging 5.2 percent, compared to a twenty year average of 4.4 percent. Despite this acceleration, the pressures from a more liberalized global economy are mounting, particularly in agriculture, which currently represents about 35 percent of GDP. In response to increased global competition, the Government of Ghana has identified ITES along with agri-processing, tourism and other value-added sectors as key to further economic growth.
infoDev, in close cooperation with the World Bank Group and the Government of Ghana, particularly the Ministry of Communications, is conducting an in-depth review of the potential for, and constraints to, the further development of competitive ICT and ITES sectors in Ghana. The study includes five main components:
- A review of the position of Ghana’s economy within the international business environment and the opportunities/challenges for increasing exports in ITES and agri-processing, as well as growth opportunities in tourism and other emerging sectors;
- A review of international best practice and Ghana’s experience to date with harnessing ICT for building competitiveness and increasing growth, particularly in ITES;
- An assessment of the needs with respect to regulatory and institutional environment, human resources, ICT infrastructure, and other constraints facing entrepreneurs and firms in Ghana
- Recommendations for appropriate actions to address constraints and to support the realization of Ghana’s growth potential in these emerging sectors, particularly in ITES, and in harnessing ICT for sustainable development, including relevant channels for investment promotion of Ghana to foreign investors for specific activities in ITES in which Ghana has a strong competitive advantage. The investment promotion assessment will provide the basis for a MIGA publication.
- Conversion of these recommendations into project components of the World Bank Group's e-Ghana project with detailed implementation strategies.
The study is available on infoDev's website.