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ECONOMY
 Rural-Urban Distribution


From the 2000 census, it was projected that 62.8% of the population of the Municipality will live in urban areas and 37.2% in rural in 2006. Communities that were considered urban had populations above 4,500 which included Agogo (31,838), Konongo (30,108), Odumase (11,917), Patriensa (5,707), Domeabra (5,162), and Juansa (4,698).  Together it is estimated that there is a total urban population of 89,430 out of a total District population of 142,434 for 2006. Two of the urban towns, Konongo and Odumasi, are located along the major Accra-Kumasi trunk road (Class I), while Agogo has technical and second cycle institutions and is a major commercial area for the people in the northern part of the district. This helps to explain the concentration of socio-economic infrastructure in these towns.

Markets

Markets provide avenues for transactions in the buying and selling of both agricultural and industrial goods.  They also contribute significantly to the Assembly’s Locally Generated Revenue (LGR).  Agogo, Konongo and Odumasi have daily markets as well as weekly markets held on Tuesdays and Fridays.   Daily markets have also been identified in Patriensa, Domeabra, Juansa, Dwease, Praaso, Hwidiem, Wioso, Pekyerekye, Obenimase, Akutuase, Nyaboo, Woraponso, Amantena, and Ananekrom.  

The two largest markets in Asante Akim Central Municipal include the Konongo Market and the Agogo Market.  Market surveys were conducted at the Konongo Market on Tuesday, 17th January 2006 (market day) and Wednesday, 18th January 2006 (non-market day).  A market survey was also conducted on market day at the Agogo Market on Tuesday, 14th February, 2006.  This survey was undertaken by a Canadian intern through a partnership between the NALAG and the Federation of Canadian Municipalities (FCM).

Market Premise

As shown in Table 1 below, the Konongo Market is much larger than the Agogo Market, with the former having 545 market structure units (stores, stalls, and open sheds), 1028 free-standing tables (excluding those within market structures), and 330 floor sellers on market day.  The Agogo Market has 161 market structure units, 199 tables, and 140 floor sellers on market day. The condition of these premises are average to poor for both markets.  

As the diagram above illustrates, a large percentage of traders do not have an actual premise from which to sells their goods, but rather sell from the floor.  The Konongo Market has a particularly large number of floor traders (330) on a market day, while the number of sellers on the floor at Agogo makes up more than a quarter of the traders at that market.  These results imply that the market structures are inadequate for the number of traders at the markets.  However, it should also be noted that on Konongo market days, the central area where there are market structures (i.e. stalls and open sheds) is quite sparse of goods since traders choose to sell their sell their goods instead at the periphery, where there is the greatest flow of traffic and customers.  As a result, the volume of traffic, goods, traders, and customers from the market choke the main Konongo road, causing potentially hazardous road conditions.

Facilities and Conditions

Facilities such as toilets, drainage system, parking/loading bay, water source, organized refuse collection, electricity, and security are basic amenities that assist in the operation of a market area.  Table 2 below shows that neither the Konongo Market nor the Agogo Market has many of these facilities, and those that exist are not in good condition.  None of the markets have a water source or organized refuse collection.  The Konongo Market has a drainage system of poor condition, and electricity and security.  Conversely, the Agogo market has a toilet facility, a parking/loading bay, and security.

Volume and Origin of Goods Entering Markets

Table 3 displays the volume of goods entering the Konongo and Agogo markets on market day mornings.  As expected of a larger market, the goods entering the Konongo Market is greater than the Agogo Market in both quantity and variety.

Both markets receive a large quantity of produce such as plantains and tomatoes.  Significantly, a larger volume of yams (2200 tubers) and pineapples (600) enter the Konongo Market, while the Agogo Market receives much fewer (610 yams and 0 pineapples).  Conversely, the Agogo market receives significantly more maize (202 bags compared to 19.5 bags in Konongo).

Greater detail showing the origin of the goods entering the markets and their volume per origin can be found in tables 4 and 5.  Knowing the origin of the goods can provide insight into what transportation needs may be required for the market, as well as information for revenue collection points.

Volume and Destination of Goods Leaving Markets

Tables 6 shows the volume of goods leaving the markets, with more a detailed breakdown by destination for each of the Konongo and Agogo in table 7 and 8.

Traders

The following tables show the counts of traders selling each type of good.  The goods are categorized into seven different tables.  Note that the totals at the bottom of each table does not represent the total number of traders, as there may be double counting e.g. a trader who sells both eggs and flour is counted twice.

Poverty Profiling

To ensure overall development of the municipality, a context analysis was carried out based on the poverty profiling of the municipality into four poverty pockets as a result of their poverty characteristics/manifestations. The context analysis becomes crucial for planning purposes. This is because even though socio-economic infrastructure are concentrated in the southern part of the district, however there exist some communities in the south whose situation is not different from communities in the north. This analysis will help in the formulation of key programmes/strategies/interventions to curtail the cycle of disparity in development.

The context analysis of the district revealed that the municipality population is more concentrated in its southern part. The five urban towns (i.e. Agogo, Konongo, Odumasi, Patriensa and Domeabra) alone have a total population of 89,430 (62.8% of the Municipal total).  The twin towns, Konongo-Odumasi, have a population of 42,025. In terms of density, Agogo (31,838) is the most populated town followed by Konongo (30,108), Odumasi (11,917), Patriensa (5,707), Domeabra (5,162), and Juansa (4,698).  

Considering the trend, the municipality’s population is one of the major variables that determine the pattern of development and the levels of poverty in the municipality since majority of services and socio-economic infrastructure are concentrated in the south.

The overall population density of the municipality for 2006 is approximately 123 persons per sq. km based on projections from the 2000 census. Density tends to be high in the southern portion, and very sparse in the northern portion of the municipality. Some of the factors attributed to the density in the southern portion of the municipality include the presence of social services infrastructures (hospitals, technical institutions, banks etc.). The location of the municipal capital (Konongo) also attracts services to serve the peripheral communities, hence serving as a major commercial centre. Agogo which is an urban centre is however peculiar in itself because it is a major commercial centre within the NS/NW of the district.  Agogo is also unique because it is one of the early settlements for the Presbyterian Missionaries in whose trail they left behind a learning centre for health and education and has since served as a pull factor to attract population and services.

The northern sector beyond Agogo that falls within the Afram Plains serve as farmlands to the people of Agogo and its environs. However, the plains are can be inaccessible and coupled with the transient nature of the population makes development quite expensive. The north is characterized with a dispersed settlement pattern due to the low density of its population. The pressure on land is not as high as the case is in the south. Settlement pattern in the north also makes development quite expensive due to its dispersed nature, which makes distribution of infrastructure such as electricity, water, and educational facilities expensive. Likewise the temporary nature of settlement does not make long-term investment economically viable.

Access to formal health facilities is constrained by cost of service, poor nature of roads to the facility and further translated into cost of transportation. Access to education facilities is constrained by poor nature of roads and lack of logistics such as teaching aids and materials.

Vegetation and occupational distribution are other factors underlining population densities in the southern and northern portion of the municipality. The southern and northern sectors have two distinct vegetation covers, whilst the southern sector still maintain its’ semi-decidous forest, the northern portion has degenerated into the wooded savannah due to rampant bush fires, and poor farming practices. In terms of occupational characteristics, the people in the north and majority in the south are predominantly farmers.

The farmers in the north are mostly settlers of the northern descents and other migrants from the Volta Region who are into production of commercial food crops such as yams, maize, rice, cow pea and groundnuts.  Average farm sizes tend to be larger than that of the southern portion. The northern portion of the municipality is endowed with forest reserves, which serve as a source of income to private timber companies and traditional authorities in the municipal assembly as well as some individuals. These reserves provide timber, foodstuffs, and raw materials for industrial and domestic use.

The southern portion has average farm sizes of half an acre, and farms produce are on subsistence basis, mostly producing cash crops and food crops such as cocoa, plaintain, cassava and vegetables.

However, notwithstanding the opportunities and constraints in the north and south of the Municipality, the two areas have a lot of agricultural potentials that needs to be opened up to attract investment in agriculture and to strengthen the development of the district. Therefore, appropriate pro-poor programmes will be designed to facilitate the rapid development of these areas.

Scalogram

A scalogram was produced identifying the services available in each of the major communities within the Municipality. To determine if there were gaps in provision, these facilities were weighted based on the frequency that they were found within the Municipality (weighted centrality). For example, day cares were given a low weighted centrality due to the high number that are found within the Municipality. On the other hand, Senior Secondary Schools received a high weighted centrality due to the few that are found within the Municipality. In turn, the population of each community was compared to their total centrality score (sum of weighted centrality of each facility that exists within the community

presents a comparison between the population of each community and the centrality score. There appears to be a relationship between the two variables; as population rises so does the centrality score. This suggests that facilities are being spread relatively equitably through the Municipality. The one exception appears to be in the case of Konongo as its total centrality score is much higher than other communities, even after considering its population. This could be because of its status as the Municipal capital (with Odumase) it has many facilities that other communities would not normally have.

Agriculture, the mainstay of the local economy produces food crops, cereals as well as vegetables such as tomatoes, and garden eggs. Cash crops such as cocoa, oil palm, sheanut and oranges are extensively grown in the municipality. Here, rich soil, well supplied organic matter and nutrients combine with favourable weather conditions all year round to produce well above average yields.

Extensive production of tomatoes and palm nuts in the Agogo and Afram Plains are raw materials that can support any tomato or oil palm processing industries. The weather is particularly suitable for snail and mushroom farming.

Livestock is mainly kept on free range basis with cattle and poultry kept for commercial purposes. Investors can therefore take advantage of the enabling environment in the animal husbandry sector. Gold deposits stretch across from Konongo Odumasi area to Juansa, with a minor strip from Kyekyebiase area to Pekyerekye.

Another deposit is at Wioso. The gold deposit at Wioso is yet to be exploited but the Obenimase deposit is being mined through the open cast method. With the current rate of exploitation, the gold deposits in the municipality could last for another 20 years before ask.

POCC

Potential and Opportunities, Constraints and Challenges (POCC)

This chapter examines the Potentials, Opportunities, Constraints and Challenges (POCC) in respect of the GPRS II themes.

The Potentials are the resources within the reach of the Assembly which could be harnessed to enhance developments in the Municipality.

The Opportunities are other external factors that the Municipality can take advantage of in enhancing the pace of development.

The Constraints are weaknesses from within which impede development for which steps have to be taken internally to address them.

The Challenges are external constraints hampering development, which needs to be overcome. The POCC analysis under the GPRS II

List of Prioritised Issues

Through the prioritisation criteria and POCC analysis, a list of prioritised issues was determined. It should be noted that some of the issues/problems raised by the communities were not incorporated in the list. Table 2.3.1 lists the issues/problems that were not considered a priority and the basis for the decision.  However, these problems/issues may be considered in the future should additional funds become available. Alternatively, some problems/issues were not raised by the communities that the Municipal Assembly considers to be a priority. They include low generation of internal funds and low participation of women in the workforce. The following is the list of prioritised issues:

Private Sector Competitiveness

1.    High rate of unemployment

2.    High levels of post harvest loss

3.    Low levels of business and agricultural production

4.    Low commercial activity

5.    Poor road network

6.    Inadequate electrical coverage

7.    Inadequate postal service

8.    Congestion at lorry parks

9.    Low generation of internal funds

Human Resource Development

1.    Poor drainage system

2.    Inadequate toilet facilities

3.    Improper disposal of solid waste

4.    Inadequate source of water

5.    High incidence of disease

6.    Inadequate pupil-teacher contact hours

7.    Inadequate educational infrastructure

8.    Low participation of women in the workforce

Good Governance and Civic Responsibility

1.    High rate of crime

2.    Low level of participation in social functions

 Assembly Finance

Based on section 10 of the Local Government Act, 1993 (ACT 462) District Assemblies are charged with the responsibility of mobilizing resources for its development activities. The following is the municipality’s financial status over the last 4-year period (2002-2005).

Revenue Sources

Revenue sources available to the AACMA are classified under Internal Sources and External sources. The Internal source of revenue available to the assembly is known as Internal Generated Revenue (IGF) also known as Locally Generated Revenue (LGR). Internal sources of revenue include rates and receipts (basic rate, property rate), lands (share of stool lands, sale of building permits and mining), fees and fines (court fines, market tolls, lorry park, artisans, marriage/divorce etc.),  Licenses (local breweries, lotteries, millers etc.), and rent (market stalls etc.). External sources of revenue include those from grants-in-aid (ceded revenue, DACF etc.).

Revenue Performance

The performance of the Assembly in LGR during the period under review (2002-2005) have been encouraging. However the LGR only meets recurrent expenditure of the Assembly. Development projects are largely funded from the District Assemblies Common Fund (DACF) and other interventions in form of grants. The performance of the Assembly in LGR and grants is presented in Table 1.2.9:

Analysis show that between 2002 and 2005 the Assembly recorded a significant growth in its LGR from ¢667,587,008 in 2002 to ¢1,447,639,083 in 2005 representing a growth of 217%. There are a lot of revenue potentials particularly in the area of Property Rate, Business Operation Fees, Plot Registration, and Building Permits which are yet to be fully tapped.

Despite the growth in the LGR of the assembly, there are still some problems besetting it if not addressed could affect its performance in the years to come. They include:

    absence of reliable data on economic activities;

    lack of adequate valuation list on properties;

    inadequate revenue staff;

    multiplicity of taxes confronting rate payers;

    low morale among revenue collectors;

    limited number of building inspectors to ensure registration of plots and acquirement building permits.

Interventions

There were a lot of interventions in the Municipality which provide funds for the development of basic infrastructure and other services in the district. There was the European Union Micro Projects, Village Infrastructure Project (VIP), World Bank Urban Projects, Social Investment Fund (SIF), HIPC Fund and DFID. However, SIF, VIP and Urban V projects ended December 2004.

Expenditure Trend

An analysis of expenditure trend shows that the Assembly spent around 84.6% of its LGR on recurrent expenditure in 2005. The capacity of the Assembly to commit its LGR to development expenditure is thus limited. The Assembly is attempting to make available at least 30% of its LGR for development expenditure for the Plan period.

Financial Institutions

There are two main banks accessible for financial transaction and lending purposes these are;  Ghana Commercial Bank, which has branches at Konongo and Agogo and A rural bank, which is located at Juansa and has branches (agencies) at Agogo, Odumasi and Konongo.

 

 

 

 

 

Date Created : 11/17/2017 5:38:14 AM