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Is Ghana an Attractive Proposition for IT Services
 During the last 10 years, the Ghanaian government has made a serious effort to increase foreign direct
investment (FDI) and to use that as a vehicle for export-led growth. Much of the emphasis has been
on using technology to fuel the growth engine and as a means of diversifying from Ghana’s traditional
staple exports, cocoa, gold and timber.
The need for improvement is greater now than ever: cocoa
prices have tumbled due to global overcapacity, timber production has become increasingly
unsustainable and gold—no longer the standard it was—has fallen in value. As a result, the country’s
GDP per capita has stagnated.
Ghana believes technological investments are the answer to its export and employment problems
and that it has a number of advantages over its West African neighbors. It is seeking to increase
investment to make an early push into the sector and, ultimately, to turn itself into a major
information and communications technology (ICT) and business process outsourcing (BPO) services
player. Some have suggested that Ghana could in time become the “Bangalore of West Africa.”
This paper examines Ghanaian efforts to grow its investment in the ICT and BPO sectors and
attempts to determine whether Ghana can be successful. The authors base their conclusions on an
analysis of the current investment environment, the labor market and the country’s infrastructure, as
well as the rule of law and government policies and incentives. The authors, who interviewed
entrepreneurs and conducted a survey to inform their views, also present a breakdown analysis on the
different BPO areas. The authors conclude that while Ghana cannot compete effectively with India in
the foreseeable future, the country is competitive in such low-skill, low-margin areas as transcription
services, account activation, surveys and basic customer care. They conclude, too, that current
government efforts are justified, since Ghana needs only to be moderately successful to have a
positive impact on its economy.
----------------------------------- Evaristus Mainsah, MBA Eri Ikezi, MIA - Fall 2003
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