A guide to understanding local economic development and its implementational challenges in Ghana

The document defines Local Economic Development (LED) as a participatory, bottom-up process aimed at improving economic conditions for a locality. It argues that while Ghana has a decentralization agenda and a National LED Policy (2013), implementation is hindered by low awareness, inadequate technical guidance, and a lack of dedicated funding. The report suggests that MMDAs must shift from top-down approaches to collaborative partnerships with the private sector, leveraging human capital, ICT, and territory branding to reduce poverty and unemployment.

• Local Economic Development (LED) is characterized as a participatory and inclusive bottom-up process involving public, private, and civil society stakeholders to build entrepreneurial capacity and improve the quality of life for local citizens.
• Despite the existence of the National LED Policy (2013) and the Local Governance Act 2016 (Act 936), implementation in Ghana is stalled by low awareness of the policy among MMDAs and the private sector, as well as a general misunderstanding of the LED concept.
• Financial constraints significantly hinder LED, as there is no dedicated fund for its promotion in districts; existing revenues like the District Assembly Common Fund (DACF) and District Development Facility (DDF) are primarily earmarked for social interventions.
• The report identifies a critical lack of technical guidance and poor mainstreaming of LED into Medium-Term Development Plans (MTDP), noting that LED is often misleadingly classified merely as 'enhanced competitiveness of Ghana's private sector'.
• Access to finance remains a primary obstacle for Micro, Small and Medium Enterprises (MSMEs) in Ghana due to high interest rates and unattainable collateral requirements, despite the presence of schemes like MASLOC and EDAIF.
• The document advocates for the use of Information Communication Technology (ICT) to accelerate local development, noting a significant increase in mobile data subscriptions in Ghana (89% increase in 2017 compared to 2013).
• To improve LED, the report recommends that MMDAs move beyond short-term fixes toward long-term structural perspectives and establish transparent procurement systems that prioritize local businesses.

APA

Sarfoh, K. O., Anaafo, D., Sarpong, E. T., & Asante, D. A. (n.d.). A guide to understanding local economic development and its implementational challenges in Ghana. Good Governance Africa. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2020/05/GGA-WA-LED_c-7.pdf-final.pdf

Chicago

Sarfoh, Kwadwo Ohene, David Anaafo, Edward Teye Sarpong, and Dennis Asare Asante. A guide to understanding local economic development and its implementational challenges in Ghana. Good Governance Africa, n.d. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2020/05/GGA-WA-LED_c-7.pdf-final.pdf.

Wikipedia

{{cite report |last1=Sarfoh |first1=Kwadwo Ohene |last2=Anaafo |first2=David |last3=Sarpong |first3=Edward Teye |last4=Asante |first4=Dennis Asare |title=A guide to understanding local economic development and its implementational challenges in Ghana |publisher=Good Governance Africa |url=https://digitalmallblobstorage.blob.core.windows.net/wp-content/2020/05/GGA-WA-LED_c-7.pdf-final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sarfohndguide, author = {Sarfoh, Kwadwo Ohene and Anaafo, David and Sarpong, Edward Teye and Asante, Dennis Asare}, title = {{A guide to understanding local economic development and its implementational challenges in Ghana}}, institution = {Good Governance Africa}, url = {https://digitalmallblobstorage.blob.core.windows.net/wp-content/2020/05/GGA-WA-LED_c-7.pdf-final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }