Young entrepreneurs in the mobile telephony sector in Ghana: From necessities to aspirations

Despite increasing research interest in the mobile telephony sector, only a few studies have devoted attention to informal businesses in the sector. Using qualitative field data collected on young mobile telephony entrepreneurs in Accra, this paper argues that despite the businesses being ‘informal’, they cannot be dismissed as ‘necessity’ enterprises unworthy of support. On the contrary, many young entrepreneurs have aspirations which are influencing their desire to stay in business. The article thus questions the bifurcated nature of entrepreneurial motivations, using the burgeoning mobile telephony sector as a case study, and draws out implications for policy support for youth-run businesses in the informal sector generally

Transitions to adulthood among young entrepreneurs in the informal mobile telephony sector in Accra, Ghana

The rapid expansion of the mobile telephony sector in African countries has been accompanied by the establishment of a wide range of informal support businesses, mostly run by young people. Little is known, however, about the lived experiences of young entrepreneurs working in this rapidly changing, technologically-driven sector. Drawing on qualitative research conducted in Accra, this paper explores young people's experiences of running informal businesses within the mobile telephony sector, including the sale of mobile phones and accessories, repair and technical support services, and the sale of airtime and mobile money services. Fateful and critical moments relating to personal and family events, as well as social networks and structural factors, are shown to mediate young entrepreneurs' chances of success in this new ‘niche' economic sub-sector. Despite the challenges they face, the paper illustrates how many of these young people have been able to achieve financial independence, afford rental accommodation, provide support for family members, and establish and sustain households. The mobile telephony sector is shown to be offering young people the opportunity to carve out a living, facilitate transitions into adulthood, and even enable some to move up the social ladder. By highlighting the agency of this group of young people, and for some their success in achieving the status of adulthood through their hard work and ingenuity, this study offers an important counter balance to images of young people in sub-Saharan Africa as being ‘stuck' or in ‘waithood'

Boosting quality education with inclusive human development: empirical evidence from sub-Saharan Africa

This study examines the importance of inclusive human development in promoting education quality in a panel of forty-nine Sub-Saharan African countries for the period 2000-2012. The empirical evidence is based on Ordinary Least Squares (OLS), Fixed Effects (FE) and Quantile Regression (QR) estimations. It is apparent from the OLS and FE findings that inclusive human development has a negative effect on the outcome variable. This negative effect implies that inclusive human development improves education quality. This result should be understood in the light of the fact that the adopted education variable is a negative economic signal given that it is computed as the ratio of pupils to teachers. Therefore, a higher ratio reflects diminishing education quality. From QR, with the exception of the highest quantile, the tendency of inclusive human development in reducing poor quality education is consistent throughout the conditional distribution of poor education quality. Policy implications are discussed

Is Information Diffusion a Threat to Market Power for Financial Access? Insights from the African Banking Industry

This study assesses how information diffusion dampens the adverse effect of market power on the price and quantity of loans provided by a panel of 162 banks from 39 African countries for the period 2001–2011. First, from the Generalised Method of Moments results, a mobile phone penetration rate of 54.29, rising to 57 per 100 people are predicted to neutralise the adverse effect of market power on the average loan price and quantity respectively. Second, from the Quantile Regressions, mobile phone penetration rates of 56.20, 52.04 and 42.76 per 100 people is needed to nullify the negative effect of market power on loan quantity at the 10th decile, 25th quartile and 90th decile respectively. Third, a considerably lower internet penetration rate of 9.49 per 100 people is required to counteract the negative impact of market power on loan quantity at the 90th decile. Policy implications are discussed

Mobile Phones, Institutional Quality And Entrepreneurship in Sub-Saharan Africa

This study investigates whether mobile phone penetration modulates the effect of different indicators of governance on some indicators of the ease of doing business in Sub-Saharan Africa with data from the period 2000–2012 by employing the Generalised Method of Moments. Three broad concepts of governance are explored: (i) political (comprising voice & accountability and political stability/no violence), (ii) economic (involving government effectiveness and regulation quality) and (iii) institutional (including corruption-control and rule of law). Ten dimensions of entrepreneurship are considered. Two main findings are established with respect to the net effects of the interaction between mobile phones and governance dynamics. They are (1) reduced cost of business start-up procedure, the time to build a warehouse and the time to resolve an insolvency and (2) increased time to enforce a contract, to register a property and to prepare and pay taxes. Implications for theory and policy are discussed. Some of the engaged policy implications include the following. (i) Measures on how to leverage on the potential of mobile phone penetration for entrepreneurship opportunities by addressing challenge of access to and affordability of mobile phones on the one hand and on the other hand, improving on the role of the mobile phone as a participative interface between emerging entrepreneurs and governance. (ii) The relevance of the mobile phone in mitigating information asymmetry between entrepreneurs and government institutions, notably by: reducing government inefficiency (which potentially represents an additional cost to doing business) and decreasing informational rents, bureaucracy and transaction costs

Doing Business and Inclusive Human Development in Sub-Saharan Africa

Purpose- This study examines how doing business affects inclusive human development in 48 sub-Saharan Africa for the period 2000-2012. Design/methodology/approach- The measurement of inclusive human development encompasses both absolute pro-poor and relative pro-poor concepts of inclusive development. Three doing business variables are used, namely: the number of start-up procedures required to register a business; time required to start a business; and time to prepare and pay taxes. The empirical evidence is based on Fixed Effects and Generalised Method of Moments regressions. Findings- The findings show that increasing constraints to the doing of business have a negative effect on inclusive human development. Originality/value- The study is timely and very relevant to the post-2015 Sustainable Development agenda for two fundamental reasons: (i) Exclusive development is a critical policy syndrome in Africa because about 50% of countries in the continent did not attain the MDG extreme poverty target despite enjoying more than two decades of growth resurgence. (ii) Growth in Africa is primarily driven by large extractive industries and with the population of the continent expected to double in about 30 years, scholarship on entrepreneurship for inclusive development is very welcome. This is essentially because studies have shown that the increase in unemployment (resulting from the underlying demographic change) would be accommodated by the private sector, not the public sector

The Comparative Economics of ICT, Environmental Degradation and Inclusive Human Development in Sub-Saharan Africa

This study examines how information and communication technology (ICT) could be employed to dampen the potentially damaging effects of environmental degradation in order to promote inclusive human development in a panel of 44 Sub-Saharan African countries. ICT is captured with internet and mobile phone penetration rates whereas environmental degradation is measured in terms of CO2 emissions per capita and CO2 intensity. The empirical evidence is based on Fixed Effects and Tobit regressions using data from 2000-2012. In order to increase the policy relevance of this study, the dataset is decomposed into fundamental characteristics of inclusive development and environmental degradation based on income levels (Low income versus (vs.) Middle income); legal origins (English Common law vs. French Civil law); religious domination (Christianity vs. Islam); openness to sea (Landlocked vs. Coastal); resource-wealth (Oil-rich vs. Oil-poor) and political stability (Stable vs. Unstable).Baseline findings broadly show that improvement in both of measures of ICT would significantly diminish the possibly harmful effect of CO2 emissions on inclusive human development. When the analysis is extended with the abovementioned fundamental characteristics, we observe that the moderating influence of both our ICT variables on CO2 emissions is higher in the group of English Common law, Middle income and Oil-wealthy countries than in the French Civil law, Low income countries and Oil-poor countries respectively. Theoretical and practical policy implications are discussed

Basic Formal Education Quality, Information Technology and Inclusive Human Development in Sub-Saharan Africa

This study assesses the relevance of basic formal education in information technology for inclusive human development in 49 countries in sub-Saharan Africa for the period 2000-2012. The question it aims to answer is the following: what is the relevance of basic formal education in the effect of mobile phone penetration on inclusive human development in sub-Saharan Africa when initial levels of inclusive human development are taken into account? The empirical evidence is based on instrumental quantile regressions. Poor primary education dampens the positive effect of mobile phone penetration on inclusive human development. This main finding should be understood in the perspective that, the education quality indicator represents a policy syndrome because of the way it is computed, notably: the ratio of pupils to teachers. Hence, an increasing ratio indicates decreasing quality of education. It follows that decreasing quality of education dampens the positive effect of mobile phone on inclusive development. This tendency is consistent throughout the conditional distribution of inclusive human development. Policy implications for sustainable development are discussed

Who is Who in Knowledge Economy in Africa?

This study assesses the knowledge economy (KE) performance of lagging African countries vis-à-vis their frontier counterparts with regard to the four dimensions of the World Bank’s knowledge economy index (KEI). The empirical exercise is for the period 1996-2010. It consists of first establishing leading nations before suggesting policy initiatives that can be implemented by sampled countries depending on identified gaps that are provided with the sigma convergence estimation approach. The following are established frontier knowledge economy countries. (i) For the most part, North African countries are dominant in education. Tunisia is overwhelmingly dominant in 11 of the 15 years, followed by Libya which is a frontier country in two years while Cape Verde and Egypt lead in a single year each. (ii) With the exception of Morocco that is leading in the year 2009, Seychelles is overwhelmingly dominant in ICT. (iii) South Africa also indomitably leads in terms of innovation. (iv) While Botswana and Mauritius share dominance in institutional regime, economic incentives in terms of private domestic credit are most apparent in Angola (8 years), the Democratic Republic of Congo (3 years) and Tanzania, Sierra Leone and Malawi (each leading in one year)

Mining in Green Technology Space : Perspectives of Multinational Mining Companies in Ghana

This qualitative study explores the motivation for and trends in the adoption of green technology among multinational mining companies in Ghana. Multinational mining companies are noted as massive waste generators and energy consumers. As mining activities increase, the risk of greater environmental pollution and degradation also looms. However, a green mining technology across mine life cycles emphasizes the need for judicious utilization of resources and reduction in the effects of mining activities on communities. The adoption of green technology processes and procedures in mine work environments, constitute greater effort towards achieving a more sustainable and environmentally friendly mining practices. Drawing on a qualitative case study methodology, primary data were collected from selected officials of multinational mining companies in Ghana using in-depth interviews. The paper documents green technology awareness messages across various mines and explore the motivating factors for adoption of green mining technologies. The paper also provides an understanding of the fad of green technology adoptions among the multinational mines, which contributes to the reduction in the effects of mining operations on mine workers and local communities. The paper has practical implications on grounds of highlighting sustainable mining, a reduction in pollution and degradation of the environment, promoting awareness on safety and health among individual mine workers, and mining communities. The work recommends green technology adoption as a priority to leverage lean production across the multinational mines in Ghana.