Accra, Ghana – A new German-funded initiative, the Private Sector and Innovation Promotion in Ghana (PSInno) programme, was launched recently to significantly bolster agribusiness and the digital economy in northern Ghana, aiming to support over 1,100 businesses and create approximately 2,000 jobs by 2028. The government, represented by Cynthia Djokoto, Director of SME Development at the Ministry of Trade, Agribusiness and Industry, emphasized the critical role of northern Ghana in the nation’s economic transformation, positioning the initiative as a driver of sustainable growth through private sector development.
Context: A Strategic Focus on Northern Ghana
The PSInno programme is a collaborative effort between the Ghanaian government and Germany, facilitated by the German Agency for International Cooperation (GIZ). This partnership aims to leverage the untapped economic potential of Ghana’s northern regions, which have historically faced developmental challenges. The initiative is designed to move beyond traditional aid by fostering a stronger, more competitive, and innovative private sector.
Northern Ghana possesses significant assets, including vast arable land, a youthful population, and established value chains in key sectors like grains, shea, and livestock. However, these resources have often been underutilized due to a lack of structural support linking agriculture directly to industry. Post-harvest losses have been a persistent issue, impacting farmer incomes and economic growth.
Main Body: Supporting Businesses and Fostering Innovation
The PSInno programme will focus on two key areas: strengthening the agribusiness sector in northern Ghana and promoting the digital economy nationwide. A particular emphasis will be placed on supporting enterprises led by women and youth, recognizing their crucial role in economic development and job creation.
The initiative plans to support more than 1,100 businesses and foster the development of at least 60 innovations. By creating approximately 2,000 new jobs by 2028, PSInno seeks to provide viable economic alternatives, particularly for young people who might otherwise seek opportunities abroad or engage in risky ventures.
Government officials highlighted the importance of structured approaches, such as contract farming, to connect smallholder farmers directly to markets. This not only reduces losses but also creates employment opportunities, especially for women and the youth. The National E-commerce Strategy is also being leveraged to enhance the competitiveness of small and medium-sized enterprises (SMEs) in both domestic and international markets, including those under the African Continental Free Trade Area (AfCFTA).
Expert Perspectives and Data Points
Frederik Lanhshoft, the German Ambassador to Ghana, underscored Germany’s commitment to ensuring that economic value generated in northern Ghana benefits local communities through sustainable employment. He stated,
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