CIAO DATE: 07/2009
September 2008
Columbia Center on Sustainable Investment
The development of urban infrastructure is intimately connected with the process of economic growth. Businesses depend on reliable water and electricity sources, affordable and plentiful land for expansion and modern transportation networks to reach the markets they serve. Inadequate infrastructure can deter investments and lead to a general climate of economic decline. In the city of Kumasi, Ghana’s second largest city, the growing economy and surge in population are placing stress on the infrastructure systems. In 2006, the population of Kumasi grew at 5.5% - almost twice the national average. This rate of growth presents both challenges and opportunities to businesses and economic growth in Kumasi and the Ashanti region. The primary infrastructure constraint for 43% of the entities interviewed was inconsistent electricity supply and energy costs. This study found that the primary concerns are the erratic supply of electricity, frequent voltage fluctuations, and the high cost of alternative sources of energy. Currently, businesses in Kumasi are experiencing, on average, five power outages a month, lasting approximately three hours each.
Resource link: Assessing Infrastructure Constraints on Business Activity in Kumasi, Ghana [PDF] - 372K