Financial and socioeconomic assessment of the impact of NGOs on small-scale agro-processing units in Ghana: a case study of Technoserve in the Ashanti Region

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TechnoServe is an international non-governmental organisation (NGO), founded in 1968 and started operating in Ghana since 1971. Its organisational mission is to help entrepreneurs in poor rural areas of the developing world to build businesses that can create income, opportunity and economic growth for their families, communities and countries thereby raising the general standard of living. The activities of TechnoServe (TNS) are widespread in the Ashanti Region. The types of enterprises supported by TNS include, among others, agricultural processing enterprises which are linked to the rural economy and have the potential to alleviate poverty. TechnoServe provided technical support, built capacity and helped its clients to access institutional loans by providing collateral security. This independent study set out to assess the level of impact made by TechnoServe on its clients in the Ashanti Region. The methodology adopted for the study combined quantitative, qualitative, and participatory methods within the broad framework of evaluation and impact assessment techniques. A control group was used to bring about the level of impact made by TechnoServe on her clients since there was no baseline data. The turnover of the processors rose significantly after TNS intervened from an average of Ø18.6m to an average of Ø39.75m, representing an increase of 114%. This is higher than that of their counterparts who did not benefit from TNS services; with an average from 01 2m to 019.31 m, representing an increase of 61% over the same period. There was also a significant increment in the level of machinery used for the processing activities of beneficiaries compared to their non-beneficiary counterparts. The average value of machinery of processors rose from 015 .3m following the intervention to 43.65m; representing an increase of 185%. The study revealed that the intervention of TechnoServe through capacity building and financing of agro-processors had positive impacts on small-scale businesses and on the lives of beneficiaries and their families in many ways. The areas with the most impact included improvement in the acquisition of business skills through capacity building and economic circumstances.
A thesis submitted to the Department of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the award of Master of Science degree, 2004