Unlocking northern Ghana’s economic renaissance through youth entrepreneurship

The first time I entered a shopping mall was on 25th August 2015. I was 16 years old and had just been admitted to the University of Ghana to undertake my undergraduate studies. The mall looked gigantic. It was beautiful and surreal, and I couldn’t hide my amusement at how one building could contain several

stores, restaurants, and service providers.

The fleet of cars in the parking area especially blew me away. Given that I had spent the last 16 years of my life exclusively in the Upper West Region, I was quite thrilled to behold such a magnificent building and flurry of activity.

In the seven years since I first saw the Mall, numerous economic activities have proliferated in Northern Ghana, including the emergence of mini shopping malls across the three principal cities of the North (Tamale, Bolgatanga, and Wa), the renovation of the Wa airport which is currently the 5th busiest commercial airport in Ghana with over 25,000 passengers in 2022, the expansion of the Tamale airport to an International Airport, increase in various commercial activities and influx of several foreign merchants.

These improvements have driven growth in economic activities in the area and created numerous job opportunities for the people. Before colonial rule, Ghana’s economy was oriented towards trade. Commodities from the forest belt

were traded along routes through the north of present-day Ghana onwards to the Sudanese Kingdoms and North Africa. Consequently, cities and states formed in the country’s north. At this time, trade flowed from south to north; Ghana’s northern part was relatively more prosperous and populated than the south.

(Geier et al., 2015, p.105).

Various colonial practices acted to change the future development trajectories of the North. Principally, the Colonial State administered the North and the South respectively as a “periphery” and a “core” whereby Northern interest and development were sidelined (Brukum, 1998; Grischow, 1999; Plange, 1979b, 1979a,1984; Songsore, 2003).

Interventions by successive post-independence governments have also largely failed to adequately address the development gaps. This is despite multiple interventions, particularly in northern Ghana, to reverse such embedded problems. These programs include the Savannah Accelerated Development Authority (SADA), now the Northern Development Authority (NDA), which sought to help bridge the gap between the North and the South; and the Savannah Agricultural Value Chain Development Project (SADP). These initiatives, which aim to address youth unemployment are largely political schemes and hardly ‘survive’ beyond a change of government (Aning K. et al., Feb 2023, vulnerability assessment on

the threats of violent extremism and radicalization...).

In addition to these initiatives, over 50% of the Non-Governmental Organizations (NGOs) in Ghana operate(d) in its North. Tamale alone houses more than 200 local and international NGOs. All these organizations seek to address poverty and create economic opportunities in the area. Yet, it continues to be the country’s most impoverished. The charity aid model has not been effective in addressing the development challenges of the area. Northern Ghana must not be viewed as a dumping site for charity aid from local and international organizations but rather as a best-choice trade and business location.

It bears emphasizing that the economic transformation of Northern Ghana is achievable through the promotion of entrepreneurship, trade, and other economic activities in the area. Thus, there needs to be a paradigm shift from the aid agenda to aggressive support for the establishment of more businesses or promotion of business activities in Northern Ghana to create jobs and provide sustainable sources of livelihood for the people. An emphasis on entrepreneurship and trade NOT aid is the panacea to the development challenges of Northern Ghana.

According to the Ghana Statistical Service 2021 Population and Housing Census Report, 1 out of 4 young people in Northern Ghana is presently unemployed and over 50% of the population is living in abject poverty. The situation isn’t getting better. The World Bank 7th Ghana Economic Update Report noted that

850,000 more Ghanaians have been pushed into poverty in 2022; further propelling the nation’s poor into ultra-poverty. Now more than ever, there is a need to support the establishment of businesses that will create decent economic opportunities for the youth of Northern Ghana. And who better to create these

economic opportunities than the youth themselves?

Youth entrepreneurship has proven to be a leading contributor to job creation for the poor and underserved. According to a UN 2020 report, youth social entrepreneurship can create jobs and help the most underserved communities.

Despite the enormous potential for youth entrepreneurship in Northern Ghana, these youths lack the needed leadership and business skills, mentorship and capital to establish, sustain, and scale their business ventures. The World Bank highlights Ghana's substantial SME financing gap, estimated at $4.8 billion (World Bank Group, 2017, MSME Finance Gap: Assessment of the Shortfalls and Opportunities in Financing Micro, Small, and Medium Enterprises in Emerging Markets).

According to Impact Investing Ghana, this deficit is most pronounced in regions outside Accra, particularly the Northern regions, which experience the highest incidence of multidimensional poverty and high youth unemployment rates. Enters the Coalition for Positive Impact (CPI), a youth-led social enterprise leading the economic transformation of Northern Ghana through youth entrepreneurship. CPI nurtures and develops Northern Ghana’s youth into transformational leaders and entrepreneurs through entrepreneurial innovation, mentorship, and technology.

The organization was established in November 2018 and headquartered in Wa, the capital of Ghana’s poorest region, where over 70% of the people are presently living below the poverty line (Ghana Statistical Service). Since its launch, CPI’s programs have impacted over 5,000 youths across Northern Ghana and inspired a community of young leaders and entrepreneurs to address pressing community issues.

Its annual flagship program, Igniting Dreams, is an entrepreneurship development initiative that promotes youth entrepreneurship in underserved Northern Ghana by enabling them to access essential capacity-building and business development services to build thriving businesses and create jobs. The program also provides startup capital for these entrepreneurs to grow and scale their businesses. To date, Igniting Dreams has delivered essential capacity-building and business development training to over 3,000 underserved Northern Ghana youth to help them develop their entrepreneurial potential. It has also connected these underserved youth, who lack valuable networking opportunities, with some of Ghana’s most influential leaders and entrepreneurs for mentorship.

Additionally, CPI has partnered with development partners to invest over ₵100,000 capital in 30 underserved youth to launch and scale their businesses, while paying attention to Environmental, social, and corporate governance (ESG) practices, with 62% of its brilliant founders being young women; collectively creating 300+ jobs for the youth of Northern Ghana.

Hamza Mabruka (24 years), the first winner of the Igniting Dreams Prize. CPI supported her with GH₵1,500 in January 2019 and business development training to help her develop essential business skills. This prize money helped her register her business venture. Mabruka eventually raised follow-up funding exceeding ₵200,000.00. She currently farms on 32 acres, engaging 52 farm workers in various farming activities and 16 full-time employees. Her current project which is at the completion stage will create economic opportunities for 345 women Shea collectors who will be processing their Shea nuts at her Shea processing company. Prior to winning the "Igniting Dreams Prize&#", Mabruka had not launched her business and knew little about entrepreneurship. All she had was an idea and a prototype, but CPI identified her potential and helped her make her dream a reality.

Kipo Olivia also received business development training and GHS5,000 from the program in January 2020 to fence her farm and purchase an irrigation machine. Following this support, Olivia has gone on to raise an additional GH₵200,000 for her business, Kobaa O.K, and created over 30 job opportunities for her

community members. Currently, she farms on 15 acres and installed a borehole with a solar irrigation system which will allow her to farm all year round in the Savannah region of Northern Ghana.

Finally, Hamid Adams, who received business development support for his Shea processing company, Tondaar Ventures, has created over 100 job opportunities for women Shea collectors in the Upper West Region and empowered them to increase their production and profits. His business has also recently attracted a remarkable ₵100,000.00 financing from Leverage Microfinance Limited. This fund is propelling him to meet booming domestic demand and enabling him to tap into the international market, especially the UK, Canada, and Germany.

The Igniting Dreams program's remarkable impact on young entrepreneurs and their communities showcases its transformative ability to support underserved entrepreneurs in achieving their dreams. CPI’s 10-year goal is to raise $10 million from development partners, financial institutions, and impact investors to help 10,000 youth with similar testimonies like Mabruka, Olivia, and Hamid.

The aim is to enable them to launch and grow businesses and create 1 million decent jobs to address poverty, youth unemployment, and inequality in Northern Ghana. Its long-term goal is to transform Northern Ghana into the Silicon Valley of Africa, focused on promoting booming entrepreneurship, investment, and economic activities in the area, specifically in Agriculture, Technology, and Fashion.