Building a thriving GBS ecosystem – A collective effort

Global Business Services (GBS) has become a significant driver of economic growth, job creation, and diversification. Building a successful GBS ecosystem needs a collective effort through diverse effective units and strategies like fostering collaboration, leveraging technologies, focusing on innovation, building strong external partnerships, adapting to changing environments, and more.

This fourth part of the ‘GBS focus series,’ put together by the Institute of ICT Professionals Ghana and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, explores the theme of collaboration for success, emphasizing the importance and power of public-private partnerships, and how these collaborations can improve outcomes to unlock Ghana’s GBS potential, and to drive long-term success.

Importance of public-private partnerships for GBS development

Public-private partnerships (PPPs) are essential for the development of GBS ecosystems. They enable collaboration between government entities, private companies, development partners and ecosystem players, facilitating the financing, building, and operation of crucial projects. Globally, PPPs have been instrumental in delivering infrastructure and services efficiently, leveraging private sector innovation and technology alongside public sector incentives (World Bank, 2021).

In Ghana, the GBS sector can benefit significantly from PPPs to boost job growth in the GBS sector, and contribute substantially to the economy (GIZ, 2023). The continuous support for GBS development across Africa underscores the potential of PPPs to enhance service delivery and operational efficiency, ultimately leading to improved economic outcomes

Role of educational institutions in developing a skilled GBS workforce

Educational institutions are pivotal in preparing a skilled workforce for the GBS sector. They can bridge the gap between academic training and industry requirements through partnerships with businesses. By offering vocational courses, internships, and practical learning opportunities, educational institutions can equip students with the necessary skills to thrive in the GBS landscape.

Statistics indicate that by 2025, about half of all workers will need to learn new skills, which could add approximately $11.5 trillion to global GDP by 2028 if the skills gap is closed. This highlights the urgent need for educational institutions to adapt their curricula to meet the evolving demands of the job market. In Ghana for instance, fostering collaborations between educational institutions or academia and industry can ensure that graduates are well-prepared to enter the workforce, attracting top talents, and driving innovation and efficiency. Thus, enhancing the overall competitiveness of industries.

Need for infrastructure investment and policy improvements

Investment in infrastructure is crucial for attracting GBS businesses. Globally, it is estimated that around $3.3 trillion annually is needed to support economic growth through infrastructure development (OECD, 2022). In Ghana, significant investment in physical assets such as roads and transport, telecommunications, and energy infrastructures are necessary to create a conducive environment for GBS operations.

Reliable and affordable energy supply for instance is vital for businesses. Investing in renewable energy sources and upgrading the existing power grid to ensure consistent power supply. Similarly, urban development needs a focus for well-planned urban areas with adequate housing, water, and sanitation facilities to attract and retain talents.

Policy improvements and implementing favourable fiscal policies are essential to streamline processes and reduce barriers for GBS operations. By creating a favorable regulatory framework, Ghana can enhance its attractiveness as a destination for GBS investments.

This includes simplifying business registration processes, providing tax incentives, ensuring a stable economic environment to foster growth in the sector, and strengthening institutions by enhancing the capacity of local governments and institutions to manage and implement infrastructure projects effectively.

Partnerships for goals:

Global partnerships have been instrumental in advancing economic development, particularly within the framework of the United Nations Sustainable Development Goals (SDGs). SDG 17, “Partnerships for the Goals,” emphasizes the importance of collaboration among governments, the private sector, civil society, and international organizations to achieve sustainability development outcomes.

The Ghanaian context:

Partnerships for goals, particularly under SDG 17, are critical for achieving sustainable development. Globally and in Ghana, these partnerships have driven significant progress in infrastructure, technology, education, and economic integration. By continuing to strengthen these collaborations, through leadership, countries can accelerate their development efforts and achieve the SDGs by 2030. Below are some general examples of how Ghana has benefited from partnerships:

 Partnerships for development projects: In Ghana, international partnerships have been pivotal in infrastructure development. For example, through collaborations with the World Bank and the African Development Bank (AfDB), Ghana has secured over $3.5 billion in funding for energy, transportation, and healthcare projects since 2015 (African Development Bank, 2023). PPPs in Ghana have also been instrumental in improving public services. The Ghana National Petroleum Corporation (GNPC) partnered with private companies to enhance oil and gas infrastructure, contributing significantly to the country’s GDP growth (GIPC, 2023).

Technology and education partnerships: Ghana has benefited from partnerships in the education sector, particularly through initiatives like the Ghana-India Kofi Annan Centre of Excellence in ICT. Such partnerships have provided training to over 20,000 students and professionals in ICT, boosting the country’s capacity in the tech industry (Ministry of Education, Ghana, 2023).

Collaboration between the government and international organizations has led to the expansion of e-governance services, with over 200 government services now available online, improving accessibility and efficiency (World Bank, 2023).

Investment in sustainable development: Ghana’s commitment to sustainable development through partnerships is evident in the implementation of the Sustainable Development Investment Partnership (SDIP). Through this initiative, Ghana has attracted over $500 million in investments for sustainable energy projects, contributing to the country’s goal of achieving universal access to electricity by 2030 (SDIP, 2023).

Partnerships for the growth of the GBS sector

It is evident that the growth of the sector can only come about by the collective effort of stakeholders. For example, within its mandate of the promotion of the job creation capacity of Ghanaian and European companies in Ghana, the Special Initiative ‘Decent Work for a Just Transition’ (Invest for Jobs), implemented by GIZ in Ghana and 7 other African countries has prioritized activities in the GBS sector. These activities have majorly been in supporting the capacity development of graduates to make them work-ready for global ITO and BPO roles. In addition, the project has facilitated the linkage with investor interest from the global GBS space.

Similarly, the formation of the Business Outsourcing Association of Ghana (BOSAG), is a step in the right direction to create a common voice for all new, existing and potential GBS companies. The industry body will serve as an advocate for the sector, as well as support the government in setting the required standards for talent, and other nuanced necessities for the growth of GBS in Ghana.

Furthermore, other strategic partnerships between the public and private sectors are essential. By collaborating on infrastructure development, talent development, and policy frameworks, these partnerships can address key challenges such as unreliable internet connectivity, limited office space, and the skills gap.

Although the role of the government is key, partnerships can facilitate investments in power infrastructure, commercial real estate, and education programs, creating a more conducive environment for GBS companies to operate and thrive. This collaborative approach will not only accelerate the sector’s growth but also ensure its sustainability and long-term success.

Conclusion

To fully realize Ghana’s potential in the GBS sector, a collective effort is required from all stakeholders, including government, private sector, and educational institutions. By fostering public-private partnerships, enhancing educational curricula, and investing in critical infrastructure and implementing supportive policies, Ghana can create an environment conducive to GBS growth, and can position itself as a leading hub for GBS in Africa. The collaboration of these entities will not only drive economic growth but also create sustainable job opportunities, contributing to the overall development of the nation. It is imperative that all stakeholders come together to build a thriving GBS ecosystem that leverages Ghana’s unique strengths and capabilities.

This article is written in cooperation with the Institute of ICT Professionals Ghana and the Special Initiative “Decent Work for a Just Transition”, an initiative of the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ.

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