The Growth and Poverty Reduction Strategy (GPRS II) the Private Sector Competitiveness
Household Income

The distribution of income is unequal . The Gini-coefficient which shows the disparities in income levels calculated using income is 0.23 (The Gini-coefficient was calculated using expenditure as a proxy since it is often very difficult to income figures). This indicates that incomes in the district are concentrated in the hands of a few of the residents of the district. 

The Lorenz curve in Figure 2.3 shows that 18% of people earn only 8% of total incomes with 55% of people in the district earning 28% of incomes  whilst the upper 27% of residents earn 52% of the total  incomes. 

Levels of Poverty

According to the growth and poverty reduction strategy policy frame-work 2006-2009, the over all poverty index is 38. It is 35 in the urban areas, while the rural areas have 39 as poverty index. The also ranks 6th in terms of well being in the region.  Calculations from the Lorenz curve put income disparity at 0.38 or 38%. This indicates that poverty levels  are high and further steps should be taken to reduce current poverty levels .

Employment

About 80% of the total active labour force is engaged in economic activities whilst the remaining 20% are unemployed. Majority of the working population are in the agricultural sector which is practiced at subsistence level. Hence the income level of the work force is low. Agriculture employs about 58% of the total labour force. 

The commercial sector is also improving and engaging about 21.5% of the population with the service sector trailing behind with about 11%. One of the least sectors is the industrial sector employing about 9.5% of the active working population. The sector is dominated mainly by small scale industrialists comprising carpenters, weavers and mechanics.      

About 97% of the entrepreneurs finance their businesses from own sources. This constitutes a serious setback to expansion of the enterprises. Entrepreneurs also face the problem of transportation of produce to market centres especially furniture which tends to be bulky and thus difficult to handle.

Finances and Budgeting

Section 10 of the Local Government system Act (ACT 462) places on the MAs the responsibility of mobilising resources for its developmental activities. The following therefore is the analysis of the financial status over the 3-year period.

Revenue

Sources of Abuakwa South revenues are classified under internal sources (i.e. revenues generated by the Assembly from within) and external sources (i.e. those revenues coming from governmental/donor sources). Internal sources of revenue include rates and receipts (basic rate, property rate), lands (share of stool lands, sale of buildings permits and mining), fees and fines (courts fines, market tolls, lorry park, artisans, marriage/divorce etc), licenses (local breweries, lotteries, millers, traders/bakers, kiosks, restaurants, etc).

Rent (assembly houses, market stalls), interests on investments. External sources revenue includes those mainly from grants-in-aid (ceded revenue, DACF etc). Since 2000, the revenue has been increasing as indicated in Table 2.6. Over the years, grants have constituted the bulk of the district’s revenue followed by lands.

Expenditure

The expenditure is also classified under recurrent and capital expenditure. Recurrent expenditure comprises personal emoluments (salaries and wages, overtime allowance, GPRTU commission, revenue collectors commission, S.S contributions) , transport and traveling (night allowance, vehicle maintenance.

Travel and Transport for administration and Assemblymen etc), maintenance, repairs and renewals (maintenance of office buildings, tools and equipment, fix/furniture, etc), general expenses (training workshops, office expenses, bank charges, contingency, funeral/donations etc). Capital expenditures include rehabilitation and/or construction works on health, education, government bungalows, purchasing of vehicles. Table 2.7 shows the district’s expenditure pattern since 2000.

Summary of Revenue and Expenditure

The district’s Revenue and Expenditure for the period 2000 to 2005 according to projected and achievements. Whilst the budgeted and actual revenues have been increasing since 2000, there was a decline in the expenditure of the district from 2004 and 2005 due to the separation of Atiwa District. It however then increased again in 2005. However, it is important to note that the actual expenditure pattern of the district falls short of the projected expenditure and this gives evidence of high level of expenditure control by the DA.

DANIDA funds are the largest source of income to the district contributing as much as 20.5%. This is followed by DACF contributing 22%, with others contributing 21%. Internally Generated Funds (IGF) contributions consist of  17.8%. The CBRDP contributes 14% while the European Union (EU ) contribution is 9%. The SIF is rather low in relation to the other sources of funds. 

Financial Inflows/Projections

Analysis Of The Assembly’s Potentials, Constraints, Opportunities And Challenges, And Potential Priorities the MTDP11/ GPRS11 of the Abuakwa South Municipal outlined a number of development problems, potentials and constraints for which proposals to address them were made to stimulate the development. Given the changing economic dimensions over the years, it is important for the Abuakwa South Municipal Assembly to review the proposals made in that respect and identify current opportunities and potentialities which should be mobilised for the district’s development; as well as constraints and Challenges that should be minimised through specific interventions.

This section outlines the Potentials, Constraints, Opportunities, and Challenges in relation to the thematic areas and indicates the ensuing development problems of the municipality.

This analysis assesses capabilities of production, service delivery, institutional linkages, financing and economic co-operation that will stimulate economic growth. The analysis capabilities was based on the procedures and processes of consensus at a stakeholder workshop and authenticated at public hearings at the communities.

Development Constraints and Challenges

A study of the Abuakwa South  Municipal reveals that there are some factors that militated against the development of the but since the rest of the country cannot develop without a corresponding development, such constraints and challenges have to be analysed for appropriate remedies to be found to them.
 
Constraints are the weaknesses (disadvantages and bottlenecks), which act against the development. They are internal factors, which occur at present. The district has to eliminate the constraints as far as possible to facilitate its development. Challenges are negative unfavorable external factors, which are beyond  control. As they adversely affect the district, they must be eliminated and overcome. The purpose of analyzing Challenges is to look for ways of lessening their negative impact by tables counterbalancing actions.

The following are the constraints and Challenges facing the assembly:
Inadequate Productive Capacity

The productive capacity particularly for agriculture and industry is inadequate. This is partly attributable to low level of Private Sector Participation in these sectors of the district’s economy. Other important constraints include: the purchasing power of the people. The effect is that commercial activities especially for buying and selling are low. This further affects capacity to provide own capital to expand businesses and farms.

Agriculture and industry respectively rely on traditional methods of farming and indigenous technology culminating in production at subsistence level. This is explained by the fact that prices of modern and efficient farm inputs and equipment are expensive hence; farmers and industrialists are unable to acquire these inputs and equipment for their businesses.

This sector is also affected by low incentive packages for staff within the agricultural and industrial sectors. The implication is that extension services to these sectors are usually not adequate.
   
Poor Marketing

Inadequacy of major marketing centres for selling agricultural products and the poor arrangement for marketing SSI products has been a barrier to economic growth and development. This does not only limit their ability to obtain inputs in commercial quantities but also their responsiveness to customers demand in other places.
   
Inadequate Credit facilities

The need for credit facilities is important for the development of both agricultural and industrial sector. Credits are not readily available for expansion of farms and businesses. The provisions made by the National Poverty Reduction Programme (NPRP) and the Village Infrastructure Project (VIP) have not improved the situation to any remarkable degree.
   
Low Income Levels

The assembly’s income levels are generally low and this significantly affects  the purchasing power of the people. The effect is that commercial activities especially for buying and selling are low. This further affects capacity to provide own capital to expand businesses and POCC  analysis

Analysis Of The Municipality’s Potentials, Constraints, Opportunities And Challenges, And It’s Potential Priorities the MTDP11/ GPRS11 of the Abuakwa South Municipal outlined a number of development problems, potentials and constraints for which proposals to address them were made to stimulate the development. Given the changing economic dimensions over the years, it is important for the Abuakwa South Municipal to review the proposals made in that respect and identify current opportunities and potentialities which should be mobilised for the development; as well as constraints and Challenges that should be minimised through specific interventions.

This section outlines the Potentials, Constraints, Opportunities, and Challenges of the district in relation to the thematic areas and indicates the ensuing development problems of the district.

This analysis assesses the capabilities of production, service delivery, institutional linkages, financing and economic co-operation that will stimulate economic growth. The analysis of the capabilities was based on the procedures and processes of consensus at a stakeholder workshop and authenticated at public hearings at the communities.

Development Constraints and Challenges

A study of the Abuakwa South Municipal reveals that there are some factors that militated against the development  since the rest of the country cannot develop without a corresponding development , such constraints and challenges have to be analysed for appropriate remedies to be found to them.
 
Constraints are the weaknesses (disadvantages and bottlenecks), which act against the development . They are internal factors, which occur at present. Challenges are negative unfavorable external factors, which are beyond the control . As they adversely affect they must be eliminated and overcome. The purpose of analyzing Challenges is to look for ways of lessening their negative impact by tables counterbalancing actions.