See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/259382176

INNOVATION AND STAGNATION AMONG GHANA'S TECHNICAL ARTISANS

Conference Paper · April 2013

CITATIONS READS
0 858

3 authors, including:

Anna Waldman-Brown George Yaw Obeng

Massachusetts Institute of Technology Kwame Nkrumah University Of Science and Technology
5 PUBLICATIONS   1 CITATION    46 PUBLICATIONS   236 CITATIONS   

SEE PROFILE SEE PROFILE

Some of the authors of this publication are also working on these related projects:

4) Design, construction and evaluation of performance of solar dryer View project

1) USAID Global Development Lab/MIT D-Lab/KNUST International Development Innovation Network (IDIN) Project (Dev. Project) View project

All content following this page was uploaded by George Yaw Obeng on 23 December 2013.

The user has requested enhancement of the downloaded file.

 INNOVATION AND STAGNATION
AMONG GHANA'S TECHNICAL ARTISANS

ANNA WALDMAN-BROWN

Intermediate Technology Transfer Unit, Technology Consultancy Centre

Kwame Nkrumah University of Science and Technology
Kumasi, Ghana
annawb@alum.mit.edu

GEORGE YAW OBENG

Technology Consultancy Centre

Kwame Nkrumah University of Science and Technology
Kumasi, Ghana
geo_yaw@yahoo.com

YAW ADU-GYAMFI

Kumasi Centre for Lifelong Learning

Kumasi, Ghana
yaw@kumasicenter.org

With over 100,000 technical artisans, auto-mechanics, and purveyors of related supplies, Suame Magazine
in Kumasi, Ghana is one of Africa’s largest informal engineering clusters. The cluster began around 1935 during
British colonization, and expanded rapidly under trade protectionist policies in the early 1980's. As unemployed
youth continue to seek apprenticeships under master mechanics, it is postulated that the Suame cluster could absorb
up to 10% of Ghana's junior high school dropouts annually. Technical artisans trained within the cluster repair and
perform alterations on vehicles throughout Ghana and other West African countries. Yet in spite of its achievements,
the cluster faces danger of "imminent collapse." As modern vehicles become increasingly computerized and Ghana
attempts to enforce stricter safety standards, the artisans are unable to keep up-to-date with technological trends;
training within the cluster is based on acquiring skills rather than developing knowledge. Despite artisans' continual
innovations in vehicle repair and manufacturing, these incremental improvements are insufficient compared to the
innovative leap required for Ghana's technical development. In this paper, we report on our fieldwork on innovation
and stagnation in a typical African cluster of small firms.
Our research identifies inhibitions to innovation and growth, as well as prospects offered by public and
non-governmental institutions. In this paper, we use exploratory and case study research methods to assess the
contribution of external influences to innovation and stagnation in Suame Magazine.
The study revealed that the most significant innovations among the technical artisans are a result of new
knowledge, which is acquired through institutional linkages and the entry of qualified artisans who were trained
outside the cluster. Given that the present decline in productivity is a result of external rather than endemic
influences, our analysis suggests that a sustained increase in knowledge-based linkages with public and non-
governmental institutions is necessary for the cluster's survival.
Improved collaboration would contribute significantly to employment and growth across the vehicle repair
and manufacturing sector. Yet without rapid, substantial advancement in the knowledge of Suame's artisans, the
cluster will continue to stagnate. Suame Magazine is the largest cluster for vehicle repair and manufacturing in
Africa, and maintains substantial international connections; its decline would have adverse ramifications for
neighbouring countries. As this is a typical West African cluster, our findings can be extrapolated throughout the
region.

Keywords: Technical artisans; innovation; skills development; stagnation; industrial clusters;

West Africa; LDC

1.
 1. Introduction

With over 100,000 technical artisans, auto-mechanics, and purveyors of related supplies, Suame
Magazine in Kumasi, Ghana is one of Africa’s largest industrial clusters. Yet as modern vehicles
become increasingly computerised, the artisans are unable to keep up-to-date with technological
trends. A 2007 survey found the top complaint among Suame artisans to be “lack of basic
knowledge and use of ICT [Information and Communication Technology] in industrial
operations” (Azongo, 2007).

The cluster began on the site of an old military magazine around 1935 during British
colonization, and the name magazine persisted even after the mechanics moved to a new location
(Dawson, 1988). Due to the national influence of the Suame cluster, the term magazine has
become synonymous with auto-repair throughout much of Ghana, where people do not take their
vehicles “to the shop” but rather “to the magazine.” The Suame cluster expanded rapidly under
trade protectionist policies in the early 1980's, then suffered under inexpensive foreign imports
of used vehicle components throughout the 1990’s. As unemployed youth continue to seek work
in the shops of Suame’s expert auto-mechanics, it is postulated that the cluster could absorb up to
10% of Ghana's junior high school dropouts annually (SMIDO, 2012).

The cluster is dominated by informal businesses, so it is difficult to find accurate statistics on

Suame Magazine; 78% of 60 businesses surveyed in 2010 were unregistered (likely in order to
avoid taxation), and 83% of the businesses surveyed did not keep records of daily businesses
(Alexander, Willcox, and Adu-Gyamfi, 2010). The core of the cluster houses over 12,000 shops
in an area of roughly .5 square kilometres, with a perimeter of 7 kilometres (Azongo, 2007 and
Obeng, 2002). The overflow population contains up to 100,000 additional manufacturers and
vehicle repairers, who work on similar trades in smaller clusters nearby (Adeya, 2008). Within
the core area, 6 out of every 10 buildings are constructed of temporary materials, primarily
wooden boards and iron sheets (Obeng, 2002). Typical features throughout the cluster include
abandoned vehicle carcasses, crowded one-lane dirt roads, engine oil spills, and scattered piles of
metal scraps and parts of vehicles. The average firm size is 5 workers and more developed
workshops have 7 to 10 people (Alexander et al., 2010).

Instead of formal training, most artisans learn their trade through apprenticing themselves to
experienced workshop-owners, called “master craftsmen”; Iddrisu et al. (2009) report an average
apprenticeship duration of 4.6 years in the auto-mechanics sector, and nearly 3 years in the
metalworking sector. A World Bank study in 2001 indicates 74% of Suame artisans learned their
skill through apprenticeship (Adeya, 2008), and Iddrisu, Mano, and Sonobe (2009) estimate this
number at 90%. Adeya (2008) found that 69% of Suame artisans in their 2001 survey had no
formal education beyond primary school, and a later survey recorded that 58% of master
craftsmen had similar levels of education (Alexander et al., 2010). Adeya (2008) found that
fewer than 2% of all artisans have completed tertiary education, and manufacturing is likely the
most highly educated sector (Iddrisu et al., 2009). These low levels of formal education and the
lack of paper documentation among most firms support the observation that many Suame
artisans are illiterate.

2.
Perhaps as a result, there is a distinct lack of safety precautions throughout the cluster. Many
artisans unwittingly burn their trash in the vicinity of flammable substances; from January to
May of 2012, the Suame Fire Department reported four fires in the industrial cluster. Additional
hazards to artisans include the inhalation of toxic fumes while spray-painting vehicles without
proper masks, and the lack of eye-protection during welding. Kumah, Cobbina, and Duodu
(2011) surveyed 470 welders and 450 non-welders in Suame Magazine, and found that 84% of
welders (compared to under 10% of non-welders) had damaged conjunctivas as a result of the
extended exposure to radiation during their work.

The Suame artisans’ market consists of the government, private firms, and individuals, with
many workshops providing subcontracting services to other shops within the cluster. Technical
artisans trained within the cluster manufacture goods and perform vehicle repair and alterations
throughout Ghana and other West African countries (Obeng, 2002). Activities within Suame
Magazine are classifiable within the following sectors, some of which may overlap. Note that the
terms “artisans” and “craftsmen” (used interchangeably in this paper) do not include the
salespeople within Suame, who usually lack engineering expertise.
Table 1: Artisanal Activities Within Suame Magazine (Obeng, 2002 and Azongo, 2007)
Major Sectors Services Approx. %
of Artisans
Manufacturing, fabrication, and Use of machine tools and fabrication equipment to 20%
machining manufacture nuts and bolts, tools, food processers, cargo
frames, rotary pumps, agricultural implements, rubber-
cutting machines, playground equipment, iron fences, and
others
Vehicle repair and maintenance Primarily auto-mechanics, auto-body 60%
straightening/refurbishing, and welding; some upholstery,
electrical work, auto-body spraying, engine re-boring, truck
alterations, and others
Sales and business services Imported spare parts (for small vehicles, trucks, and 20%
construction equipment), locally-made tools and components,
scrap and new metal, agricultural equipment, tools, car
decorations, food and drinks, photocopying, type-setting,
internet services, barbering, and others

As demonstrated in Figure 1, the total population of the Suame cluster has continued to increase
as former apprentices set up new workshops and take on their own trainees.

3.
 Figure 1: Population Growth of Suame Magazine (Obeng, 2002 and Powell, 1994.)

Despite this growth, 92% of the 107 auto-mechanics interviewed in a 2012 survey agree that the
auto-mechanics industry in the cluster is “fast eroding” due to the onslaught of unfamiliar
computerized vehicles. In fact, up to 40% of commercial drivers in the Kumasi metropolis used
to be employed as auto-mechanics (SMIDO, 2012).

The manufacturing sector in Suame Magazine has proved to be more resilient. During the
economic downturn of the 1980’s-90’s, both Dawson (1988) and Powell (1995) report that many
of the workshops that survived were engaged in some aspect of manufacturing, as they had
access to upgraded technology and could change their wares to fit demand or compete with
foreign products. Foreign products have continued to proliferate in recent years, and Iddrisu et al.
(2009) found that Suame’s manufacturing workshops experienced more growth than those of
auto-mechanics from 2000 to 2004.
Table 2: Comparison of Growth from 2000 to 2004 (Iddrisu et al., 2009)
Auto-mechanics Manufacturers
Mean Growth -5.0% 1.9%
Median Growth -5.7% 0.6%

Although a small percentage of Suame’s manufacturing and sales activities bear no connection to
vehicles, there is a high level of intra-firm networking. Most of the non-vehicle-related products
manufactured in the cluster rely upon the same supply chains that service the vehicle repairers.
Corn mills can be made from scooter engines and recycled auto-body steel, and a popular
charcoal stove is built from an old hubcap. If the auto-mechanics sector were to collapse, the
manufacturing sector could not provide enough demand for new materials to keep the suppliers
in business. This collapse would have a catastrophic effect upon the region, leading to
unemployment and a corresponding increase in crime. Current Suame artisans were asked where
they would go if they were to lose their jobs; the majority would turn to commercial driving, but
4.7% would prefer to join an illegal gold-mining company and another 4.7% admitted that they
might become robbers (SMIDO, 2012).

4.
As our paper details, training within the Suame cluster is based on acquiring practical skills
rather than developing knowledge, and the level of endogenous knowledge is unsuitable for rapid
change and innovation. Despite artisans' continual innovations in vehicle repair and
manufacturing, their incremental improvements are insufficient compared to the innovative leap
required to keep pace with modern demands.

2. Definitions

Following Swann and Prevezer (1998) we define cluster as a large conglomeration of firms in
related industries, located in a specific region. Suame Magazine is primarily a cluster of auto-
mechanics, with some fabrication and manufacturing.

We define Suame Magazine to be informal for three reasons:

(i) The majority of artisans have not registered their businesses.
(ii) The majority of artisans learned their trade through apprenticeships, not formal
schooling.
(iii) The majority of artisans have no connection to established firms, and many of the
repairs and alterations done on vehicles would not meet the standards of original
manufacturers.

For this paper, we will follow Bell’s (2009) definitions of technological capability:
(i) Production capability: the capability to carry on producing goods and services with
given product technology.
(ii) Innovation capability: the capability to create new configurations of technology, and
to implement changes and improvements to technologies already in use.

Bell (2009) separates technological capability into tangible and intangible components.
Table 3: Components of Technological Capabilities (taken from Bell 2009)
Tangible Assets Physical Capital
Knowledge Capital
Intangible Assets
Human Capital

We define stagnation within this context as the lack of innovation in a system. In Suame
Magazine, the present state of stagnation is evidenced by artisans’ inability to adapt to
technological progress outside the cluster.

This paper discusses two sources of knowledge obtained by Suame artisans:

(i) Endogenous knowledge comes from professional artisans working within the cluster.
(ii) Exogenous knowledge comes from institutions and individuals outside the cluster.
Although several of the initiatives discussed here are located within the physical cluster of
Suame Magazine, they were not initiated by professional Suame artisans and thus, for our
purposes, shall be considered exogenous.

5.
 3. Literature Review

There is considerable literature on cluster dynamics in the developing world. Basant (2002) and
Bell and Albu (1999) identify three sources of knowledge in industrial clusters:
Table 4: Sources of Knowledge (Bell, 2002 and Bell and Albu, 1999)
Endogenous Intra-firm sources
Internal training, experimentation, and improvement of existing technologies

Intra-cluster sources
Knowledge spillovers between firms, mobility of skilled labour, and networking
within the cluster

Exogenous Sources outside the cluster

External training and skill development, links to enterprises and institutions,
knowledge from clients or suppliers, visits or apprenticeships with other
clusters/firms

Much of the literature emphasizes the importance of deconstructing the components of

technology and technical innovation (Basant, 2002; Basant and Chandra, 2002; Bell and Albu,
1999, Schmitz, 2004). Bell and Albu (1999) state, “The analysis of change in a firm’s production
technology must encompass much more than just its machinery-embodied technology.” Basant
(2002) lays out a framework for industrial clusters: “There is ample evidence to suggest that
knowledge relating to the 3 Ps (products, processes, and practices) gets transferred to cluster
firms through a variety of mechanisms.”

This paper will focus on how machinery-embodied technologies impact these 3 Ps in both
manufacturing and vehicle repair. We build upon Basant’s (2002) distinctions:
(i) Product: the completed item (or repair-work) as sold to a customer
(ii) Process: the technique used by an individual artisan to make the product
(iii)Practice: the strategies and organizational mechanisms used within a firm

Basant (2002) argues that the nature and characteristics of knowledge flows within a given
industrial cluster depend upon the following dimensions, which are all inter-related:
(i) Internal characteristics of the cluster (capabilities, internal structure, linkages, etc.)
(ii) Types of external linkages of the cluster
(iii)External policy and economic environment faced by the cluster

Schmitz (2004) stresses that the upgrading of technical capabilities “requires continuous
investment by the local firms themselves in people, organization and equipment.” Since artisans
in the developing world may lack the resources and working capital required for this investment,
the impetus may need to come from outside the cluster. In their assessment of industrial
innovation in developing countries, Morrison et al. (2006) discover, “Technology and knowledge

6.
transmission – and their effectiveness - often appear as exogenous to the local firms involved.
That is, they would be either determined by the leader strategy (i.e. Global Value Chain
governance) or by other forces like for example clusters’ external economies and collective
efficiency.” For innovation to occur in such a cluster, any knowledge that is introduced must be
tailored to local needs; artisans must understand new concepts and machinery well enough to
fully appropriate these and develop their own technologies. These studies imply that a cluster
such as Suame Magazine would greatly benefit from external initiatives designed to upgrade
local production capabilities; in fact, our research indicates that Suame has thrived under such
programmes and will not survive without continued exogenous support.

4. Methodology

Our research identifies inhibitions to innovation and growth, as well as prospects offered by
public and non-governmental institutions and the introduction of new technologies. Suame
Magazine has a promising history of successful technological interventions through academic
partnerships, and we believe these achievements may be replicated with modern computerised
technology.

We use exploratory and case study research methods to assess the contribution of external
influences to innovation and stagnation among manufacturers and auto-mechanics in Suame
Magazine. Over the 80 years of this cluster’s existence, outside influences have played a crucial
role in upgrading the artisans’ technological capabilities and promoting innovation.

While this paper mainly relies upon secondary sources, its co-authors have about two decades of
combined experience working in Suame Magazine. Our data sets include recent surveys from the
Suame Magazine Industrial Development Organization (SMIDO), as well as research done by
the World Bank, the Kwame Nkrumah University of Science and Technology (KNUST), and
other academic institutions.

Our analysis builds upon frameworks for studying industrial clusters developed by Basant (2002)
and Bell (2009). We assess the impact of new technologies upon the artisans of Suame
Magazine, from both a historical and a contemporary perspective. Our goal is to develop
practical recommendations for upgrading the cluster’s innovation capabilities.

5. Results

Disincentives for endogenous innovation

Innovation is an inherently risky endeavour; Table 5 shows how artisans in the informal sector
do not experience the same rewards from innovative behaviour as their counterparts in
established firms.

7.
 Table 5: Comparison of Incentives for Innovation
Corporate Engineer: Informal Sector Artisan:
High reward/low risk for Innovation Low reward/high risk for Innovation

High level of competition: international scale
Compliance with changing regulations and
standards
Customer demands improvements in safety
and reliability
Legal protection for new intellectual property
Marketing arm to promote new technologies
Formal training involves theoretical
knowledge and practical skills; new ideas are
relatively easy to implement
Resources available for research and
development; high tolerance for failure
Reliable machinery and access to utilities;
experimentation is easy
Low level of competition: local/regional scale
Few enforced regulations for technology
Customer may be unaware of potential hazards
New ideas likely to be stolen/adapted by others
Unfamiliar products unlikely to be purchased
Informal training primarily involves practical
skills; new ideas require intensive research
before implementation
Resources only available for current work;
aversion to failure
Unreliable machinery and poor access to
utilities; experimentation is difficult

Since all regular vehicles in Ghana are imported, the majority of Suame artisans rely upon supply
from foreign manufacturers—who compete with other corporations on a global market and must
maintain a relatively high level of innovation capabilities. Although we found little incentive for
informal artisans to bolster their innovation capabilities, many of these artisans are now suddenly
in danger of falling too far behind modern technology.

Categorization of knowledge flows

Building upon Table 4, we identify the various sources of knowledge in Suame Magazine.

Table 6: Sources of Knowledge in Suame Magazine Industrial Cluster

Endogenous Intra-firm sources
(i) Learning-by-doing through apprenticeship to a master craftsman
(ii) Improvement of processes and practices derived from experimentation
(iii)Adaptation and improvement of existing technologies, through reverse
engineering of imported technology

Intra-cluster sources
(i) Collaborations between firms
(ii) Illicit copying of other firms’ ideas
(iii)Knowledge spillovers between users and producers of machinery
(iv) Mobility of skilled labour within cluster

8.
 Exogenous Sources outside the cluster
(i) Artisans with certificates or degrees from Ghana’s National Vocational
Training Institute (NVTI)
(ii) Artisans with certificates or degrees from private or foreign institutions
(iii) Artisans who apprenticed in firms outside the cluster
(iv) Training and skill development through aid initiatives
(a) Coordinated by SMIDO, NVTI, Ghana National Association of
Garages (GNAG), or other organization
(v) Visits to outside clusters and formal enterprises
(vi) Knowledge from customers and suppliers, including specific
manufacturing requests for new equipment
(vii) Technical development and training from KNUST’s Intermediate
Technology Transfer Unit (ITTU), located within Suame Magazine
(viii) ITTU’s apprenticeship programme for current KNUST students to
work with firms within Suame

McCormick (1998) identifies two types of labour in Suame Magazine: those who learned their
trade through apprenticeships in small firms, and those who apprenticed in larger firms or
attended technical training institutes. Without the second group of externally trained artisans,
McCormick does not believe that Suame firms could compete favourably with imports.

Due to the limited formal education of Suame artisans, most artisans have low levels of both
basic and technical literacy. Suame’s master craftsmen rarely educate their apprentices through
formal classroom work or printed material of any form; instead, these students acquire their
skills through learning-by-doing. Few firms have access to computers, and master craftsmen
seldom use formal administrative procedures. Except in the manufacturing sector, where some
masters employ working drawings to educate their apprentices, there is no written record of work
procedures or methods (Obeng, 2002). In SMIDO’s survey of master craftsmen, the average
business age was 14 years (Alexander et al., 2010). Most of these masters indicated that they had
never participated in formal training nor attended any workshops to upgrade their skills; this
meant they were teaching their current apprentices techniques that were likely over a decade old
(Alexander et al., 2010).

Considering the disincentives for local innovation, our research indicates that endogenous
knowledge is insufficient to maintain competitiveness within Suame Magazine. Given the radical
shift from mechanized to computerised technology, and the present lack of both basic and ICT
literacy within the cluster, we conclude that external sources must play a major role in upgrading
Suame’s production and innovation capabilities.

9.
Technological stages of Suame Magazine

1. Basic tools stage: solely vehicle-repair

From its inception, Suame Magazine has relied upon both knowledge and physical technologies
from outside the cluster. In the early 1930’s, British colonists sent a few Ghanaians to Europe to
study vehicle repair out of frustration with the lack of trained auto-mechanics in Africa. Upon
their return, these mechanics set up workshops in Kumasi and proceeded to train some of their
sons and other male relatives in their trade. Despite the steady growth of the Suame cluster after
Ghana’s independence—as Ghanaians began to acquire personal cars from abroad—the site
remained a modest collection of workshops until the mid-1970's. A series of political failures
forced Ghana's formal sector economy into decline, and vehicle owners were forced to employ
local artisans for repairs. Given the lack of Ghanaian knowledge, many auto-mechanics who
came to Suame during this period had trained in the European-dominated formal sector of
Ghana. As imports to Ghana became too costly, Europeans shut down their local factories and
ceased to buy foreign auto-parts. Ghana's currency halved in value during 1978 and suffered an
additional 73% inflation the following year.

With the scarcity of imported goods, auto-mechanics strengthened their ties to formal sector
motor agencies—and created an effective monopoly on auto-parts, since all Ghanaian vehicles
began life overseas. Naturally, salesmen ensured that their family and friends in the informal
sector got the first choice of goods. As the auto-mechanics of the formal sector lacked these
insider connections to spare parts, many had to close down their own workshops and send
vehicle owners to the informal workshops for servicing. But neither artisans nor customers could
afford to purchase new parts from abroad, so importers turned to used machinery— which often
amounted to auto-parts that wealthier countries sold as scrap. Necessity led to innovation, and
entrepreneurial artisans replaced imported components with their own inventions. Mechanics
also undertook more intensive repairs, from unwinding and cleaning the wire coils inside motors
to grinding down engine shafts to fit in a different brand of automobile (Powell, 1986).

While the formal sector factories and auto-mechanic workshops shut their doors, vehicle-owners
relied increasingly upon informal artisans to keep their cars on the road and the population of
Suame Magazine exploded. From 1979 to 1984, membership in the Suame Mechanicals
Association grew from 27,000 to 40,000 (Powell, 1986). In 1980, the government launched a
major initiative to repair all state-owned vehicles and Suame Magazine took on the bulk of this
project. Artisans designed and built wooden beds for cocoa-bean transport trucks, and hammered
out new bodies for official cars and buses. Dozens of auto-mechanic communities sprouted up
across the country as the trade became more profitable.

2. Machining tools stage: introduction of manufacturing

From 1971 to 1979, 42% of apprentices in Suame Magazine went on to self-employment, and
another 21% remained in their masters’ workshops as professional craftsmen. Yet between 1985
and 1990, only one apprentice in 400 (0.25%) succeeded in becoming self-employed due to
Ghana’s financial restructuring (Powell, 1994). Before the introduction of the nation-wide
Economic Recovery Act in 1983, most of the Suame firms were engaged in vehicle repair and

10.
 minor alterations. Under this programme, Ghana relaxed import tariffs and opened her doors to
international trade-- which brought about a major decline of national industry and a sudden
collapse of the informal sector. Local, small-scale industries could not compete with the flood of
cheap foreign goods; low-cost vehicles and lightly-used spare parts diminished the need for
extensive repairs. Around the same time, a number of artisans who had relied upon vehicle
owners in the Kumasi lumber business lost their jobs when Kumasi ran out of trees to harvest.

A team of engineering professors from KNUST had anticipated these challenges; they had been
working since the 1970s to provide Suame artisans with modern technologies and bring a more
reliable source of revenue to the cluster. In 1980, KNUST erected the Intermediate Technology
Transfer Unit (ITTU) in the heart of Suame Magazine, to provide both technology-based and
knowledge-based support and encourage a shift toward manufacturing. The ITTU was a concrete
three-story building, with a large front lawn, well-kept classrooms, and a wood-and-
metalworking shop equipped to make almost anything. Surrounded by small and cluttered
artisans’ shacks, the ITTU is immediately recognizable as a different breed of workshop.

Today, the ITTU is best known among Suame artisans for selling some of the first electric
machining tools to artisans on hire-purchase terms, and for training apprentices and leading
workshops to introduce new methods and technologies. The ITTU introduced a machining tool
called the capstan lathe, which was ten times faster and more reliable than the centre lathes that
were currently in operation. In the 1970s, the Canadian-based volunteer agency Cuso
International sent an automobile technician to the ITTU to train artisans in modern auto-repair
techniques. The ITTU continues to host an exchange programme for KNUST engineering
students to gain practical experience by apprenticing themselves to Suame artisans for several
months. The ITTU facilitated the growth of Suame Magazine’s innovation capabilities by
introducing new technologies, as discussed in Table 7.
Table 7: Impact of New Technologies on Suame Magazine from 1970’s to Present (Powell, 1986)

Technology Knowledge Volume Product Impact Process Practices

Introduced Introduced Introduced Impact Impact
Metal fabrication Manufacture ~100 machine Enabled customized Introduce Locally-made
tools (lathe, drill- agricultural tools manufacturing of manufacturing, equipment
press, milling processing tools, auto-parts and enable precision available,
machine, etc) engine re-boring, machines, enhanced work introduce
customized gears, safety of repairs by businesses
etc. providing appropriate
vehicle parts
Small-scale iron Making of ITTU offered Enabled customized Introduce Locally-made
foundries and nuts/bolts, tools, workshops; manufacturing of manufacturing, equipment
aluminium- millstones, etc currently over auto-parts and improve available,
spinning 100 small- machines, enhanced compatibility of introduce scrap-
scale foundries safety of vehicle repair tools metal and foundry
in Kumasi repairs businesses
Record-keeping Basic accounting Dozens of Improved customer Facilitate Enable artisans to
skills, literacy workshops for relations and business grow their
interested advertising transactions businesses
artisans

11.
Due in large part to the efforts of the ITTU, the stock of machine tools in Suame Magazine grew
from 6 in 1971 to more than 150 in 1986 (Powell, 1986). By working with the government and
establishing a precedent for the importation of used equipment, the ITTU also helped pave the
way for unaffiliated artisans within Suame to import their own machining tools.

While the direct effects of ITTU have been limited to a small group of firms within Suame, the
introduction of new manufacturing technologies provided many of Suame’s vehicle-repairers
with specialized equipment that would not have otherwise been available (McCormick, 1998).
The local production of steel bolts and nuts, as well as gear and chain sprocket wheels, ushered
in a new era of vehicle repair (Obeng, 2002). With their new machining technology, the ITTU
designed and demonstrated manufacturing processes for products such as palm-oil extractors,
soap boiling tanks, corn-mills, carpenters’ benches, donkey-carts, and agricultural tools—and
Suame artisans quickly appropriated many of these ideas (Powell, 1990). By introducing
equipment that could be used for the local manufacturing and processing of raw materials, the
ITTU’s activities helped stimulate the nation’s economy and produced a rippling effect of new
manufacturing industries (Powell, 1990). For example, the introduction of small-scale foundry
technology provided new jobs for foundry-workers, dealers in scrap iron (to be melted down in
the furnace), and manufacturers of corn-mills who can buy large volumes of locally made iron
grinding mills instead of costly imported versions.

After a decade of ITTU operations, the Ministry of Trade and Industry concluded that, as the
programme had provided such benefit to Ghana, KNUST should establish a similar workshop
and training facility in each region of the country.

3. Computerised technology stage: potential for advanced manufacturing and repair

As computer technology becomes increasingly pervasive worldwide, Suame Magazine is falling
behind in terms of standard business practices, manufacturing capabilities, and the repair of
computerised vehicles (Alexander et al., 2010). The government of Ghana places a national tax
on the importation of any vehicle that is older than 10 years, so Suame artisans are now forced to
repair computerised vehicles and work with modern electronic components. Yet to the artisans of
Suame Magazine, modern ICT represents a quantum leap from their current technological
capabilities.

As inexpensive, foreign goods continue to flood the market, and Ghana introduces new safety
regulations for both vehicles and food processing, Suame artisans are discovering that their level
of technology is no longer competitive. Many Suame artisans also aspire to compete on a global
market, which would require a much higher degree of technological capabilities (Obeng 2002).
Just as the introduction of lathes, drill-presses, and other machinery into Suame increased both
process efficiency and product quality, the introduction of computerised technology has the
potential to radically upgrade artisans’ capabilities.

Today’s ICT tools enable an unprecedented level of precision for small-scale manufacturing and
repair-work, and can also facilitate global communication and information collection. As
mentioned previously, Suame artisans identify their lack of ICT knowledge as the primary

12.
 challenge to their livelihood today. In Adeya’s (2003) survey, 87% of Suame artisans surveyed
were interested in receiving ICT training, and 81% were willing to pay an unspecified amount.
As late as 2007, only 2% of the master craftsmen interviewed had email addresses (Azongo,
2007). Table 8 demonstrates the potential for modern technology.
Table 8: Expected Impact of Computerised Technologies on Suame Magazine
Technology Knowledge Volume Product Process Impact Practices Impact
required required for Impact
impact
Basic Computers Literacy, High (ideally Enable use of Enable use of Facilitate
(for use in design, numeracy, one per computerised computerised recordkeeping,
manufacture, or computer skills workshop) technology, access technology, access to research, and sharing
business practices) to information information of information
Computerised Literacy, Low (a few Enable safe and Simplify Minimize required
Vehicle Diagnostic computer skills, workshops can comprehensive troubleshooting of auto-mechanical
Tools familiarity with provide repair of modern vehicles expertise
(to trouble-shoot programmes diagnostics for vehicles
modern vehicles) all mechanics)
CNC Tools Literacy, Moderate Increase precision Increase efficiency Facilitate improved
(upgrade known numeracy, (replace of products and and reliability of manufacturing
technology: lathes, computer skills, existing safety of vehicles machining tools
routers, etc) engineering antiquated
background machines)
Digital Fabrication Literacy, Very low Upgrade potential Enable rapid- Facilitate a new level
Tools numeracy, (few workshops for manufacturing prototyping of of manufacturing and
(new technology: 3-D computer skills, can produce innovation and product-creation,
printers, circuit-board engineering wide variety of production of attract educated
makers, etc) background, customized customized moulds engineers/inventors to
advanced software devices) for casting the cluster

Basic computers and vehicle diagnostic tools have been introduced to a handful of Suame
artisans, although more computers and additional training will be necessary before these
interventions have a demonstrable impact. There is very little modern fabrication equipment in
use; most machining tools in Suame are several decades old and have no digital components.

The cost of digital fabrication is dropping rapidly, allowing individuals access to precision
manufacturing tools that were hitherto only available to full-scale factories. Today, a Suame
artisan could purchase a 3D printer for US$500-US$3000 to quickly create precise objects of
various sizes from melted plastic, for customizing moulds in metal casting or designing
prototypes for new inventions. Small CNC milling machines are available for US$500, and many
can etch customized circuit-boards for use with electronic components. These technologies have
not yet been introduced to Suame Magazine, but they have the potential to automate tedious
tasks and drastically improve manufacturing capabilities. A corn-mill with an inexpensive
electronic sensor, for example, could alert the user of problems such as overloading or the
wearing-out of machinery.

13.
In 1996, the ITTU offered a computer course to Suame artisans at KNUST; they taught
computer-aided drawing and followed-up with more general computer training. In 1997, the
ITTU and later the KNUST School of Engineering attempted to bring a full-scale CNC machine
into Suame Magazine for demonstration and training purposes, but this project has not yet been
completed.

In 2006, a government consultant and the chairman of the cluster’s Dynamic Spare Parts Dealers
Association initiated the Suame Magazine Industrial Development Organization (SMIDO) to
interface with external institutions and introduce ICT to the artisans. SMIDO trained dozens of
artisans in ICT skills, but interest waned when artisans were unable to afford their own
computers after graduating from SMIDO’s courses. Their comprehensive training programme
combined ICT, literacy, business support, and engineering skills. SMIDO is collaborating with a
Danish aid organization to bring digital diagnostic equipment into Suame Magazine, although
most of its current efforts are devoted to constructing workshops outside the cluster to provide
Suame auto-mechanics with modern facilities.

Our research indicates that these efforts to introduce computerised tools have been insufficient;
additional exogenous interventions will be necessary if Suame artisans are to innovate and regain
their former competitiveness.

Necessity of improved working environment

In the 1970’s, the introduction of machining tools required minimal additional infrastructure:
only several dozen workshops needed access to electrical power. In order to accommodate
computerised technology, however, Suame artisans will need to upgrade their workshops to
provide the following:

(i) Reliable electrical grid (for personal computers), or centralized charging station (for
laptops)
(ii) Reliable electricity for workshops with modern equipment
(a) Digital machining tools are more sensitive to voltage fluctuations
(iii)Dust-free environment to protect delicate machinery
(iv) Air conditioning may be necessary to prolong the life of computers and digital
machines
(v) Affordable importation taxes and supply chains for modern equipment
(a) Availability of spare parts for broken machines

Necessity of improved quality controls

For Suame artisans to play a more significant role in Ghana’s industrialization, they must
improve the quality of their wares. Yet they generally lack the requisite technical knowledge, and
there is little incentive for them to change their methods without outside intervention.

14.
For example, Adedamola (2009) reports that Suame artisans frequently perform unsafe
alterations on flatbed trucks. They can be a third higher than the maximum legal height, which
raises the centre of gravity and can lead to vehicles tipping over while negotiating bends or
sliding backwards uphill. These same trucks may be up to ten feet longer and considerably
heavier than regulation, and many have had illegal modifications to leaf springs and other
structural vehicular components. Through a series of personal interviews, Adedamola (2009)
concludes, "mechanics at [Suame] Magazine do not see any connection between the modification
they carry out and safety. They relate modification exclusively to vehicle performance.”

Without a full investigation of a truck's make and model, it is often impossible to know the
weight and length limit, and even the few Suame artisans who are literate rarely keep records.
Thus, the impetus for change rests upon the government or other regulatory authority; if vehicle
owners demand safer trucks, Suame artisans will figure out how to comply.

Suame’s manufacturing sector suffers from a similar lack of enforced regulations, especially in
regard to food-processing equipment. Several Suame foundries manufacture iron grinding plates
for use in corn-mills, but most foundry-workers have little knowledge of metallurgy. As a result,
Suame-made plates can wear out 3-10 times faster than foreign imports, and thus shed iron
filings intro the milled corn; one day’s worth of corn meal may contain up to 5 times more iron
than is recommended for daily consumption, and this excess is hazardous to the body’s
metabolism (Kwofie, Andrews, and Mensah, 2011).

Nonetheless, one of the other ITTUs proved in the early 1990s that corn-mill grinding plates can
be made to international standards in small-scale crucible furnaces, given the correct
metallurgical composition. The foundries at Suame mostly use cupola furnaces in which the iron
composition cannot be controlled, leading to poor-quality products. Given proper training and
access to funding for improving their foundries, Suame artisans could easily produce safer and
more durable grinding mills. This upgrading of facilities would require collaboration with
metallurgists at KNUST or another academic institution.

6. Discussion

Our research indicates that the artisans of Suame Magazine require continued external support to
facilitate innovation. The influx of craftsmen with advanced education has remained relatively
small in the Suame cluster, and formal-sector firms have had limited involvement with artisans.
This meant that outside interventions were necessary to keep Suame Magazine up-to-date with
modern technology. Given the success of the ITTU’s programme to upgrade machining
capabilities, we hypothesise that a similar strategy would work to introduce computerised
technology.

In the 1980s, the ITTU’s sale of a few dozen machine tools to Suame artisans led to a rippling
effect throughout the cluster. The introduction of digital tools for both manufacturing and auto-
diagnostics would have a similarly broad impact, and these tools are comparable in price to the

15.
machining equipment imported by ITTU. One capable craftsman with a modern CNC machine
or a 3D printer can provide improved manufacturing services and specialized components for
hundreds of artisans; similarly, a technically literate artisan with a computer and an auto-
diagnostic tool can assist hundreds of Suame mechanics. (The computer in a modern vehicle is a
small box, which can be easily removed and carried to another workshop for diagnosis.)

In Figure 2, we use a simplified qualitative graph to demonstrate the discontinuity of innovation

within the cluster, and the necessity of exogenous interventions.

Required for Global

Competitiveness
Technological Capabilities

Computeriz Future Suame

ed Tools Capabilities
(with intervention)
Computerised Future Suame
Tools Capabilities
(without
intervention)
Machining Tools
introduced by KNUST
Basic Tools

1930 1970 2013 Time

Figure 2: Discontinuity of Technological Capabilities in Suame Magazine

Technological progress is path-dependent, so any discontinuity in innovation capabilities leads to

a much greater discontinuity in technological capability. We estimate that innovation in formal
sector firms follows an exponential trend, based on the cumulative improvement of technological
capabilities combined with new discoveries. Within the informal sector, artisans have less
incentive for innovation and their education is based on practical skills rather than knowledge;
thus, innovation becomes a more linear function of continuous, incremental improvement upon
established practices.

7. Conclusion and Recommendations

Despite the lack of concrete data surrounding the cluster, the number of studies done in Suame
Magazine far exceeds the number of recent practical programmes introduced to help the artisans.
With improved support, engineering facilities, and training programmes on quality management
and production control, the Suame cluster could dominate a substantial portion of the West

16.
African market. Suame Magazine could supply jobs and professional training to thousands of
Ghanaians throughout the country on an annual basis.

Although few Suame artisans have formal connections outside the cluster, the sustainability of
Suame Magazine depends on these artisans’ abilities to adapt to changes that are increasingly
affected by global trends. The cluster needs a comprehensive programme to upgrade its
innovation capabilities. We recommend a replication of the ITTU’s historical successes, using
modern production units to demonstrate computerised machines such as CNC tools and auto-
diagnostics so artisans can learn the use of these new technologies. This will require a
multilateral approach: informal artisans must cooperate with the private sector, the government,
nongovernmental and social organizations, and academia.

There is potential for new businesses to provide Suame artisans with training and equipment.
The ITTU’s most successful projects were those that quickly turned a profit, such as the
fabrication of bolts and nuts and the sale of new machinery on hire-purchase terms (Powell,
1995). Educated entrepreneurs could set up workshops to provide auto-diagnostic services or
train auto-mechanics in modern techniques, engineers can improve agricultural processing
equipment by adding low-cost sensors, and importers can advertise machines like 3D printers to
wealthier workshop owners. Despite the myriad business opportunities for professional engineers
within the cluster, those with formal education tend to look down upon Suame Magazine. This
can be remedied by improving education about the informal sector, and expanding exchange
programmes to bring students into industrial clusters.

The private sector can support industrial clusters and likely minimize their own costs by making
an effort to purchase wares from local artisans. In some cases, this may require a longer-term
partnership in order to upgrade artisans’ facilities and improve product quality.

In spite of Suame Magazine’s significant contributions to Ghana’s economy, its social and
productive potentials have historically been disregarded in national development policies
(Obeng, 2002). The lack of government support is a major barrier for Suame Magazine, although
the failure of most Suame artisans to register their businesses (and the corresponding lack of tax
revenue) may lead officials to disregard the cluster’s potential. Adeya (2008) outlines possible
roles for the government: encouragement of training centres and programmes, subsidisation of
new equipment, provision of adequate infrastructure, and resolution of issues regarding land
tenure to enable the establishment of permanent structures. Nongovernmental organizations can
also facilitate interactions between all stakeholders and help upgrade technological capabilities.

In addition to supporting existing programmes such as the ITTU, academics can develop
improved methods and standards for manufactured goods and vehicle repair, as well as provide
research on how the cluster operates in order to optimize interventions.

Adeya (2008) and Alexander et al. (2010) conclude that the Suame artisans need a well-
organized umbrella association to advocate for its members, lobby for better services, and
facilitate external interventions. Despite the existence of two workers’ associations, the number

17.
of trade-specific organisations within the cluster has continued to grow as a result of
dissatisfaction with existing associations. Yet Adeya (2008) claims that these groups focus on
“social welfare issues and are rarely concerned with supply-side matters, markets, and
technology.” Recent years have seen declining participation in these groups, and a full 67% of
business owners in SMIDO’s survey (Alexander et al., 2010) were not part of any business
association.

The challenges and dynamics of operation within Suame Magazine are typical of many clusters
throughout Africa and the developing world. Informal artisans comprise Africa's largest and
fastest-growing workforce, and the backbone of its current manufacturing capabilities. As
computerised technologies become cheaper and more prevalent, artisans who work in clusters
like Suame will require more training and assistance—and formal-sector institutions will
likewise benefit from building national infrastructure in informal repair and manufacturing. Yet
before these clusters can play the role they deserve, Africa must narrow the divide between those
who study engineering and those who rebuild the continent's engines.

Acknowledgements

We wish to thank Dr. John Powell for his contributions and support, and Mr. Hormenoo
Crossman for facilitating our research. Author Anna Waldman-Brown wishes to thank the U.S.
Fulbright Scholar Commission, whose grant enabled her to live in Ghana and pursue this
investigation.

18.
 References

Adedamola, A (2009). A Study of the Local Design Modifications on Imported Heavy Vehicles in Ghana.
Published masters dissertation, Kwame Nkrumah University of Science and Technology, College of
Engineering.
Adeya, CN (2003). Sources of Training in African Clusters and Awareness of ICTs: a study of Kenya and
Ghana. UN University, Institute for New Technologies, Netherlands.
Adeya, CN (2008). The Suame Manufacturing Cluster in Ghana. In D. Z. Zeng (Ed.), Knowledge,
Technology, and Cluster-Based Growth: Africa, pp. 15-24. Washington, DC: The International Bank
for Reconstruction and Development / The World Bank.
Alexander, R, M Willcox, and Y Adu-Gyamfi (2010). Cluster Development in Suame Magazine. In Proc.
3rd Continental Conference of the Pan-African Competitiveness Forum. Elmina, Ghana.
Basant, R (2002). Knowledge flows and industrial clusters: an analytical review of literature. East-West
Center Working Papers, Economics Series, No. 40. Hawaii: East-West Center.
Bell, M (2009). Innovation Capabilities and Directions of Development. STEPS Working Paper 33.
Brighton: STEPS Centre.
Brown-Acquaye, H (2002). The Suame Magazine. In M. Savage & P. Naidoo (Eds.), Popularisation of
science and technology education: Some case studies from Africa, pp. 55-62. London, UK:
Commonwealth Secretariat.
Dawson, J (1988). Small Scale Industry in Ghana: A case of Kumasi. Report presented to ESCOR-ODA.
London, UK.
Iddrisu, A, Y Mano, and T Sonobe (2009). Entrepreneurial Skills and Industrial Development: The Case
of a Car Repair and Metalworking Cluster in Ghana. Policy Research Working Paper Series 5755.
The World Bank.
Kumah, DB, F Cobbina, and DJ Duodu (2011). Radiation-Related eye diseases among welders of Suame
'Magazine' in the Kumasi Metropolis. KNUST Journal of Science and Technology, 31(1), 37-43.
Kwofie, S, A Andrews, and E Mensah (2011). The quality of locally-manufactured corn-mill grinding
plates. KNUST Journal of Science and Technology, 31(1), 152-159.
McCormick, D. (1998). Enterprise clusters in Africa: on the way to industrialisation? IDS.
Obeng, G (2002). Kumasi Suame Magazine – A Background Paper. Technology Consultancy Centre,
KNUST. Kumasi, Ghana.
Powell, J (1981). Strategy for the development of informal industries in Ghana. Journal of Environmental
Planning and Management, 23(1), 33-36.
Powell, J (1994). Growth and Employment Generation in Informal Sector Engineering Industries in
Ghana. Unpublished. London, UK.
Powell, J (1995). The Survival of the Fitter. Warwickshire, UK: Intermediate Technology Publications.
Schmitz (2004); Swann, GMP, and M Pervezer (1998); Romijn (1999); Bell and Albu (1999) as quoted in
Basant (2002).
Azongo, NA (2007). SMIDO industrial development policy blueprint. Kumasi, Ghana: Suame Magazine
Industrial Development Organization.
SMIDO (2012). Towards a new industrial village. Kumasi, Ghana: Suame Magazine Industrial
Development Organization.

19.

View publication stats