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The Economic Base of Accra Ghana PDF

This document provides an overview of Accra, Ghana's economic base and recent economic performance to provide context for analyzing Accra's urban economy. It discusses how Ghana has experienced economic growth in recent decades due to factors like increased prices for gold and cocoa exports. While GDP per capita has risen, inflation remains high between 10-20% annually. The document analyzes Accra's economy at the international, regional, and local levels and examines the city government's revenue sources to identify areas for policy improvement.

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0% found this document useful (0 votes)
270 views16 pages

The Economic Base of Accra Ghana PDF

This document provides an overview of Accra, Ghana's economic base and recent economic performance to provide context for analyzing Accra's urban economy. It discusses how Ghana has experienced economic growth in recent decades due to factors like increased prices for gold and cocoa exports. While GDP per capita has risen, inflation remains high between 10-20% annually. The document analyzes Accra's economy at the international, regional, and local levels and examines the city government's revenue sources to identify areas for policy improvement.

Uploaded by

fornara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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The

Economic
Base of
Accra,
Ghana
Advanced Issues
in Development
Planning

Jorge Ubaldo Colin


Pescina
Economic Base of Accra Ghana Advanced Issue in Development Planning

Introduction

With more than three million inhabitants, Accra is


among Africa’s largest cities in a region undergoing
one of the continent’s fastest rates of urbanization.
Rapid in-migration, both from the countryside and
also from other West African nations, has brought a
series of transformations to Accra’s urban economy,
and with them, new challenges that influence local
policy makers’ decisions.

This working paper gives a short overview of


Ghana’s recent economic performance as context
for the analysis of Accra’s urban economy.
Following this section, the analysis breaks into three
geographic levels – international, regional and local –
to better capture the dimensions in which Accra is
understood as a city.

General policy recommendations are made at each


level when possible, always emphasizing the
information required to design proper policy. The
information requirements listed in each section can
be considered the first steps in addressing any
vulnerabilities and enabling the city to benefit from
its many strengths.

Given that this working paper intends to address


policy-making, it is also important to analyze the
financial base of the local government so as to
identify potential areas for improvement. The
subjects of analysis in this case are the revenue and
expense budgets of the Accra Metropolitan
Assembly (“AMA”). The report’s last section offers
some brief conclusions and highlights.

Page 2
Economic Base of Accra Ghana Advanced Issue in Development Planning

commodities), by both developed and developing


The Economic Base of Ghana:
countries has raised their prices after years of
Context depreciation.
Ghana, like many other sub-Saharan countries, has
In the specific cases of gold and cocoa, international
experienced a prolonged period of economic growth
prices for these commodities have risen almost
over the past 20 years, due to a series of internal and
threefold since 2005, increasing Ghana’s export
external factors that have influenced productivity
revenues considerably, and improving its overall
and terms of trade.
terms of trade (the relationship between the prices of
Figure 1: Ghana - GDP Per Head, Constant 2000 USD exports and imports). The increase is shown in
USD
340
Figure 2, where the values are shown as a percentage
320

300
of the price at the beginning of 2005.
280
Figure 2: Gold and Cocoa Int. Prices, 2005=100
260
300
240

220 250
Gold
200
200
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

150 Cocoa
Source: World Bank Databank
100

50
Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10
Jul-05

Jul-06

Jul-07

Jul-08

Jul-09
The effects of this growth can be seen in the overall
improvement in the gross domestic product (GDP) Source: Bloomberg
per capita, even after adjusting for inflation (in
constant USD). As shown in Figure 1, GDP per
Ghana’s Growth and Poverty Reduction Strategy I
head went from USD 212 in 1988 to USD 329 in
(GPRS I), launched by the government in 2003, was
2008, equaling a 55 percent real increase over 20
years, or an equivalent compounded annual growth formulated to enable the country to benefit from
debt reduction under the Highly Indebted Poor
rate of 2.22 percent. Economic growth has
Countries Initiative (HIPC). GPRS I attempted to
accelerated in the last five years, with a 20 percent
increase, at current prices, in the GDP per capita, improve macroeconomic fundamentals and to
significantly stabilize the economy, thereby
between 2003- 2008, equivalent to a compounded
improving the general framework for the
annual growth rate of 3.88 percent.
implementation of poverty-reduction policies.
An important component of this rapid economic
growth has been the price increase of two of Although significant achievements have been made
as a result of these strategies, important indicators –
Ghana’s main exports – gold and cocoa. An increase
such as inflation – remain high by international
in the demand for raw materials (also known as
standards. High inflation, with its significant cost for

Page 3
Economic Base of Accra Ghana Advanced Issue in Development Planning

those possessing cash, can also result in important Remittances of Ghanaians working abroad, another
distortions to the decision-making and hedging important source of foreign currency for the
processes of both individuals and companies, with country, have also increased significantly since 2000.
regard to investment, setting prices and wages, hiring Although remittances are naturally difficult to
and foreign currency holdings. measure due to the informal means of transmission,
the World Bank estimates that Ghana received
Between 2005 and 2010 year-over-year (“YoY”)
USD125 million in remittances in 2008, equivalent
inflation has fluctuated between 10- 20 percent, as
to .8 percent of that year’s GDP.
indicated in Figure 3.

Figure 3: Inflation R\ ate (YoY) Figure 4: Remittances in Million US$


30% 140

25% 120

20% 100

15%
80
10%
YoY Inflation
60
5%
40
0%
Inflation 2000: 27.2%
20
Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10
Jul-05

Jul-06

Jul-07

Jul-08

Jul-09

2000 2005 2007 2008

Source: Bank of Ghana Source: World Bank

These figures, though high, have managed to remain


below the dramatic 27 percent that characterized the
year 2000. It is interesting to note that inflation tends
to increase every four years as national elections
approach, due to the marked depreciation of the
Ghana Cedi during these years. This was the case in
2000, 2004 and 2008.

Page 4
Economic Base of Accra Ghana Advanced Issue in Development Planning

grassroots organizations; international agencies have


International Accra
begun to work closely with and listen seriously to

The World Cup Final celebrated in Germany in 2006 this community.

was the Ghanaian national team’s debut in a world


The third movement, “globalizing from in-between,”
cup. With distinguished Ghanaians playing in some
includes all those individuals who are neither entirely
of the main football clubs in Europe, the event was a
foreign nor entirely local. The clearest example of
landmark in Ghana’s history. Out of all of the
this in Accra is the large number of return migrants
players participating in the World Cup Final, only
who remain part of important transnational business
one was playing in a Ghanaian club at the time, and
and social networks, combining traditional practices
he was transferred to a Russian team soon after the
with other “global” practices and associations
contest. This colloquial example should help
adopted while abroad. Some three million
illustrate the strong ties between Ghana and the rest
individuals fit in this category, including an estimated
of the world.
third of all highly educated Ghanaians living abroad

Grant (2009) describes three movements globalizing (The Economist 2003).

Accra. The first of these movements is “globalizing


These globalization movements have had a deep
from above,” in which international organizations,
impact on the economic and urban face of Accra.
the government and other institutions attempt to
The first has led to a large number of foreign
harness international capital. This movement started
companies establishing operations there. While some
in the last part of the 20th century.
of these international companies have established

During the 1980s, Ghana, as well as many other themselves in the traditional business areas, in what

developing countries, adopted a large number of was long considered “the European Town,” others

structural adjustments, with the intention of have triggered the development of new business

transforming its economy by granting the private markets more closely located to the international

sector a more important role. This policy shift economy, both geographically – with closer access to

allowed international companies to increase their the airport – and ideologically, with areas almost

activities in Ghana, and also fostered the exclusively occupied by international companies.

development of local companies. This is certainly the case of companies established


along Cantonments Road to the airport, a
The second globalizing movement involves a process phenomenon better appreciated in Map 1, which
of “globalization from below,” in which locals seek depicts the geographic distribution of all corporate
to benefit from new economic activity. The term activity in Accra in 1999, according to the
refers to the links forged by civil society in its companies’ national origins.
interactions with the broader global environment; in
general, this movement has been led by Two particularly interesting sectors to analyze are

nongovernmental organizations (NGOs) and other finance and the domestic import and export
businesses. While domestically-owned import and

Page 5
Economic Base of Accra Ghana Advanced Issue in Development Planning

export shops rely heavily on networks abroad and


maintain transnational strategies in the post-
structural adjustment period, more global financial
companies seem comfortable positioning corporate
offices in-country.

Map 2: Geographic Distribution of all Corporate Activity in Accra in 1999

Map 2:Geographic Distribution of Domestic Companies in the Export and Import Sector in Accra in 1999

Map 3: Geographic Distribution of Financial Companies in Accra by Period of Establishment

Source of three maps: Grant (2009)

But who own these import/export businesses, and


where are their networks? In interviews conducted

Page 6
Economic Base of Accra Ghana Advanced Issue in Development Planning

by Grant (2009) with 68 returnees, 50 percent of For a number of years, the Mexican government has
these business owners reported themselves as self- entered into projects of common investment called
employed, and 30 percent of the total returnees “3x1 Tres por Uno (Three for One),” which triples
operated as international entrepreneurs. The specific every remittance dollar from migrants (or their
businesses they reported managing appear in Figure families), and commits the match to infrastructure
5, which also includes those countries with which and/or cultural projects in the migrants’ home
the companies run by international entrepreneurs in communities. These projects not only favor
had links. investment, but also create a sense of transnational
community, and consolidate efforts by different
This should give a less colloquial representation of
migrant organizations, thereby increasing their
the strong linkages between Accra and the rest of the
efficiency.
international community, one of Accra’s greatest
strengths. National, regional and municipal For such a program to be created in Ghana, more
government should consider taking this into account detailed information on migrants and returnees
when generating policy, for instance, through needs to be generated; while data from Grant (2009)
collaboration with these groups for mutual benefit. is valuable, it only represents a small fraction of all
Such examples exist in other countries, where returnees. Determining the income distribution of
remittances and returnees play key roles in economic this group, the specific neighborhoods to which they
development. are tied and their respective agendas is fundamental
for policy design. The program would also require
the allocation of matching funds, and an
environment of clear accountability, to foster
voluntary contributions.
Figure 5: Transnational Entrepreneurs in Accra and Countries for which Links were Stated

Import – Export United States


Cars
Clothing Germany
Food stuffs
Building materials Lebanon
Business machinery
United Kingdom
Real Estate Development
Nigeria
Passive Investor
The Netherlands
Medical Services
Italy
Consulting
Canada
Construction
France
Source: Based on interviews in Courier
2004 reported by Grant (2009) Benin, Togo, Niger, Cote d’Ivoire

Page 7
Economic Base of Accra Ghana Advanced Issue in Development Planning

Individuals have mostly migrated to Accra seeking


Regional Accra
jobs, or due to job transfers (35 percent), to

As the national capital and one of the largest cities in accompany their partners or for marriage (27

West Africa, Accra has a significant capacity to percent), or to pursue their studies (9 percent). This

attract migrants and business activity from across the underscores the importance of Accra as a regional

region. Kessides (2006) describes the potentially center of economic activity and for the formation of

positive cycles for economic development that can human capital. While playing a major role in the

emerge between urban and rural economies. Access economic development of their original regions,

to urban markets and services for non-farm migrants also represent a large fraction of Accra’s

production stimulates agricultural productivity and economic base, in terms of labor supply, housing,

rural income, which in turn generates demand and service requirements and consumption. (All data is

labor supply for more goods and services. In cities, from Ghana Statistical Service (GSS), 2008).

individuals and families benefit from improved


Migrants to urban areas do not, in general, simply
access to different markets, including the labor
add to the ranks of the urban poor, despite
market, which allows for wider income
commonly held beliefs. Montgomery et al. (2003)
diversification. Migration and remittances allow
found through demographic and health surveys in
individuals to escape areas of low economic growth
different developing countries that migrants are only
and enter into more dynamic sectors, increasing their
slightly more likely to be defined as poor.
potential income and reducing the overall poverty
level. This mobility played a major role in Ghana’s For Accra’s urban economy to benefit from the
poverty reduction through the 1990s, most city’s regional positioning, a focused policy
impressively among rural forest residents, whose environment needs to be put in place. However, data
progress has been directly attributed to their receipt that could help design specific policies – regarding
of remittances (McKay and Aryeetey 2004). migrants’ employment, income, savings, remittances,
expenditure patterns and spatial distribution within
To understand the importance of migration in
Accra – does not exist, making it less likely that
Accra’s urban and economic profile, it is useful to
policy-makers will be able to make use of this vital
look at the composition of its population. According
human capital to strengthen Accra’s regional
to the Ghana Statistical Service, “migrants” are
position.
defined as individuals who have spent more than
one year in the city in which they were interviewed.
In 2008, 39 percent of the population of Accra were
in-migrants, and 16 percent were returning migrants;
adding these two groups together, it can be said that
according to the above definition, migrants
constitute 55 percent of the total population of
Accra.

Page 8
Economic Base of Accra Ghana Advanced Issue in Development Planning

tremendous potential of the informal sector with


Local Accra
regard to the overall urban economy. Assuming the

The analysis here regarding the local strengths and proportions of income and employment in Accra are

vulnerabilities of Accra’s urban economy is focused the same as the national level figures, this would

on two main areas: employment and housing. These mean that the informal sector has a share of around

areas were selected because of their importance to 32 percent of the total local income. If productivity

the general population, their dynamic nature and in the informal sector could be doubled, raising it to

their relevance for the urban planning process and about 25 percent of the per-capita productivity of

economic development. the formal sector, this would imply an increase in


overall income of close to 40 percent – the
According to GSS (2008), workforce employment in equivalent of the 15-year growth seen in per-capita
Accra by sector is: value. Such a change in productivity would also have
an important redistributive effect, since individuals
 12.8% Public
currently employed in the informal sector tend to be
 15.3% Private Formal
those with lower income and living standards.
 69.7% Private Informal
 0.7% Para-statal It is important to acknowledge that the development

 1.5% Other of a large informal sector in Accra is in itself only a


manifestation of other phenomena, including the
While no data exists specifically for Accra at the lack of formal employment, training, education and
national level, Farvatcque-Vitkovic (2008) estimates credit, among other factors. Government policy,
that while the share of the informal sector in addressing these factors has been shown to be much
employment is 85 percent, its share of the national more effective in turning informal economic activity
income is only 40 percent. While these figures into formal enterprises, as opposed to imposing
highlight the extreme income inequality between the simple prohibitions or acts of coercion. As part of its
two sectors, and the under-utilization of the human city profile for Accra, UN-Habitat (2009) generated
resources allocated to the informal sector, this is not a series of recommendations to increase informal
to suggest that the informal sector implies a burden sector productivity as a means to fight urban
on the overall economy. To the contrary: as poverty. These recommendations primarily tackle
highlighted by Owusu (2007), the informal sector is the long process involved in registering a business,
fundamental in the livelihood strategies of many the availability of credit and the lack of training for
households, including those with formal small producers and service providers.
employment, since informal entrepreneurial activities
usually complement low salary income. Indeed, the Information on the income and the specific areas of

significant difference between the informal sector’s activity of individuals employed in the informal

share of overall employment, and of the national sector in Accra is difficult to come by, except

income, should allow us to hypothesize as to the through original field-based research. This makes

Page 9
Economic Base of Accra Ghana Advanced Issue in Development Planning

any analysis of the potential for industry and However, few sectors seem to pose such a
decisions regarding consumption, investment and conundrum in Accra’s urban landscape. Within the
migration difficult. Income information would allow last decade, Accra has seen a building boom of
a comparison of the options of urban informality as luxury housing in the form of condos and gated
opposed to rural work and afford a better picture of communities. Foreign and national companies have
the overall poverty rate of individuals in the informal also participated in the building boom, targeting the
sector. higher income segments of the population with
“western” style units, as opposed to the traditional
Map 4 shows the geographical distribution of formal
compound or family houses.
and informal businesses according to the inventory
performed by Farvatcque-Vitkovic (2008). The map An inventory analysis conducted in 2004 and
highlights the important concentration of informal reported by Grant (2009) shows the location and
businesses in the peripheries of Accra and the Korle price range of close to 4,000 units in gated
lagoon area. communities in Accra.

Map 4: Formal and Informal Businesses in Accra

Source: Farvatcque-Vitkovic (2008).

Housing is most likely one of the main areas of With units ranging in price from USD 25,000 to
interest for planners, city authorities and developers. USD 400,000, it is safe to say that the building boom

Page 10
Economic Base of Accra Ghana Advanced Issue in Development Planning

has come hand-in-hand with soaring real estate reports, as part of its Living Standard Survey 2008,
prices in the higher-end developments. This increase that 40 percent of households live in rented units,
in prices has not been limited to units targeted to the but that only 5-10 percent of these households’
higher-income segments of the population. income is spent on housing. These figures seem
Traditional compound housing is priced at more inconsistent with the cost of housing estimates made
than USD 8,800 per unit; earlier research on housing by researchers and international agencies.
in Accra already revealed that home ownership is
Consistent data and revisited notions regarding
largely available only to the wealthy (Konadu-
informal housing are needed to quantify the number
Agyemang 2001).
of people living in informal housing and their
This increase in price and the existing constraints in geographical distribution. As of today, the
supply of more affordable units has led basic population of informal settlements is unknown, due
housing conditions in Accra to deteriorate, to the to the large “floating population,” that is, the
point of situating it among the more inequitable tremendous fluctuations and movement of residents
cities, with a house price-to-income ratio of 14: 1 during the day and night. Information regarding
and a rent-to-income ratio of 21:1 in 2001 (UN informal dwellers’ sources of income and
Habitat 2003), pushing many to opt for informal employment is also unknown, making it difficult to
housing solutions. assess the potential of self-help programs, the
required housing needs, and the linkages between
Informal settlements have grown in different areas
location and livelihood strategies. Location becomes
of the city, either relying on traditional titles to land,
particularly relevant for informal housing settlers,
or building in spite of them. Policies designed to
whose mobility is generally limited to locations
succeed in large informal settlements will likely have
within walking-distance. This renders forced
to come from a discussion among the current
relocations, for instance, an effective termination of
residents and other stakeholders, through different
their sources of income.
dwellers organizations and different levels of
government. Another relevant factor not discussed in this
working paper is land tenure, which places a high
UN-Habitat estimates (2009) indicate that 58 percent
cost on most urban dwellers, limiting the potential
of Accra’s population lives in informal housing. UN-
availability of credit, incentives for investment,
HABITAT recommends a series of “slum”
potential for taxation and overall behavior.
upgrading programs, either through self-
improvement or joint investment. Although a large
proportion of the population would no doubt
benefit from such programs, official GSS figures
recognize only 15 percent of the total population of
Accra as living in informal housing. GSS also

Page 11
Economic Base of Accra Ghana Advanced Issue in Development Planning

Accra Metropolitan Assembly’s


Figure 6: AMA’s Revenue: Internally Generated (IG)
Financial Background and Foreign Resources (FR) – Million Cedis

While a large number of policy recommendations 35

can be carried out with no additional economic 30

25
resources, large public projects can rarely succeed
20
without financing. Therefore, it is essential to 15

analyze the financial base of the local government, in 10

order to identify potential areas for improvement. 5

The subjects of analysis in this case are the revenue -


2002 2003 2004 2005 2008 2009*

and expense budgets of the Accra Metropolitan


Assembly (AMA).
Source: AMA Ministry of Finance
The AMA classifies its revenues by origin: internally
generated revenues and foreign resources. The latter
come from the national government or other Historically, the balance between internally generated

institutions through 1) the recurrent expenditure revenues and foreign resources is about 1:1, although

transfers program, which fully covers salaries and recent improvements in local tax collection have

other remuneration of AMA staff, within the limit of increased the percentage of internally generated

an assigned manpower-ceiling, and 2) the Common revenues to about 60 percent of the total. Internally

Fund, which allocates a portion of the stool land generated revenue comes mainly from three sources:

royalties (from the tribal chiefs) and other sources of 1) property rates and a poll tax on every person aged

national revenues, to a fund to be distributed among 18 years or older; 2) fees, including those on

the different metropolitan assemblies. slaughterhouses, markets stalls, trading kiosks and
other commercial facilities; and 3) licenses, including
As indicated in Figure 6, AMA revenues have those issued on dogs, beer and wine sales, artisanal
significantly increased in the last decade. However, it and other vendor sales, gas stations and lorry parks.
is important to consider that this is at current prices Together, these three sources represent close to 80
in Cedis. Although total revenues almost doubled percent of the total internally generated revenues.
between 2005 and 2008, the real increase after Estimates by UN-Habitat (2009) indicate that AMA
adjustment by inflation is closer to 30%, a is only utilizing close to 30 percent of its total
substantial raise nevertheless. taxable base.
Figure 7:AMA’s Internally Generated by Source –
Percentage for 2005 IG revenues

Rates
Lands
Fees and Fines
Licenses
Rent
Source: AMA Ministry of Finance Investment income
Misc

Page 12
Economic Base of Accra Ghana Advanced Issue in Development Planning

overall revenues, or decreasing expenditures in other


areas.

Pilot projects involving naming streets and


AMA’s expenditures are distributed between
numbering homes, now being undertaken by the
personnel emolument, capital expenditures,
current AMA leadership, have increased land fees
administrative expenses and sanitation services.
revenues up to 80 percent in neighboring Ivory
Figure 8 shows the distribution of expenditures
Coast. (See Farvacque-Vitkovic et al. (2005) for
among these categories.
specific details regarding this program.) Working
together with Ghanaians living abroad could also
Figure 8: AMA’s Expenditure – Percentages significantly improve investment capabilities if the
for 2009 total expenditures
local government could attract one percent of
remittances for capital investment, which would
increase its overall investment budget by close to 100
Personnel
Emolument
percent.1
Capital Expenditues

Administration

Sanitation

While the dominance of sanitation is overwhelming,


it is interesting to analyze the capital expenditure
allocation and its implications for the overall policy-
making process. Capital expenditure represents 8
percent of the total expenses budget, or around 1.8
million Cedis, the equivalent of USD 1.2 million.
Given the size of the city, this is equivalent to only
USD 0.60 per person. The inability of the AMA to
allocate more resources to investment not only
prevents the creation of much-needed infrastructure,
but also acts to the detriment of the existing
infrastructure.

The low level of investment capacity will definitely


become a burden for any policy action desired by the 1
The World Bank estimates the remittances to Ghana as
AMA. Therefore, it should be a priority to increase close to USD120 million in 2008, the Central Bank of
Ghana estimates remittances to be closer to USD1 billion
the local investment capacity, either by increasing
for the same period.

Page 13
Economic Base of Accra Ghana Advanced Issue in Development Planning

policies should be among the first steps in


strengthening Accra’s regional position.
Conclusions
On a local level, nearly 70 percent of all workers are
While important economic growth has taken place in in the private informal sector. It is important to
Ghana and in Accra during the last decade, this acknowledge that the development of a large
growth has not alleviated the poverty of many of informal sector in Accra is in itself only a
Accra’s residents. The improvement of these manifestation of other phenomena, including the
conditions should be the goal of local policy-makers, lack of formal employment, training, education and
who, in order to succeed, will need to take advantage credit, among other factors. Addressing these
of the local strengths and attend to the existing factors, incorporating the informal, will be the only
vulnerabilities of this population. way to enable the population and the city to benefit
from this vast economic activity. Doubling the
One of Accra’s main strengths is its links to the
productivity of the informal sector, raising it to
international economy, at the corporate, individual
about 25 percent of formal sector’s per-capita
and family levels. These links manifest themselves in
productivity, would increase overall income by close
high transnational entrepreneurship, remittances
to 40 percent, the equivalent of 15 years of growth in
from abroad and an overall increase in productivity
per-capita value.
due to the regular contact with other business
practices. Currently, there is little data regarding the Housing remains one of Accra’s main challenges.
specific patterns and profiles of this transnational The increases in housing prices, along with existing
group. Policy-makers should make efforts to gather constraints in supply for more affordable units, has
such data, which can help to guide them in their led basic housing fundamentals in Accra to strongly
attempts to build bridges of cooperation and co- deteriorate, making ownership a reality only for the
investment with this community. wealthy and condemning an estimated 58 percent of
the population to live in informal housing.
On a local level, although migrants represent 55
Consistent data and revised concepts of informal
percent of the total population of Accra, there is no
housing are needed to give some concrete
specific policy to attend to their needs or to reap the
dimensions to the numbers living in informal
benefits of their production capacity. That
housing, their geographical distribution, and
individuals come to Accra mainly for work or to
economic profile.
study suggests the importance of Accra as a regional
center of economic activity and for the formation of While many policy recommendations can be carried
human capital. Specific policies are now required to out with no significant additional economic
allow Accra’s urban economy to benefit from the resources, large public undertakings can rarely
city’s privileged regional position. The collection of succeed without financing. Capital expenditure
relevant data that could help design these specific represents 8 percent of the total expenses budget, or
USD 0.60 per person. The low level of investment

Page 14
Economic Base of Accra Ghana Advanced Issue in Development Planning

capacity will certainly turn into a burden for any


policy action commissioned by the AMA, opening
the door for dangerous cycles of poverty and
investment. Programs to increase the potential
capital expenditure by the AMA should be a priority,
as they will fuel the accomplishment of Accra’s
future ambitions.

Page 15
Economic Base of Accra Ghana Advanced Issue in Development Planning

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(2007). Vol. 1, Accra Profile.
Grant, Richard (2009).Globalizing City: The Urban and
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N.Y.: Syracuse University Press).
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Marshall, Robert et al. (2000). Urban Livelihoods and


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