1. DECONCENTRATION OF ECONOMIC ACTIVITIES FROM THE CENTRAL
BUSINESS DISTRICT OF KUMASI
A Special Study Submitted to the Department of Planning, Kwame Nkrumah University of
Science and Technology Kumasi, in Partial Fulfillment of the
Requirements for the Degree of Bachelor of Science in
Human Settlement Planning
By
ACHEAMPONG AKWASI
MAY, 2013

2. ii
DECLARATION
I hereby declare that this submission is my own work towards the Bachelor of Science in
Human Settlement Planning and that, to the best of my knowledge, it contains no material
previously published by another person nor material which has been approved for the award
of any other degree of the University, except where due acknowledgement has been made in
the text.
ACHEAMPONG AKWASI
(3288609) ……………………….. ……………………..
Student Name and ID No. Signature Date
Certified by
Dr. Justice K. Owusu-Ansah ……………………. ………………………
Supervisor: Signature Date
Dr. Dan K.B Inkoom …………………… ………....................
Head, Department of Planning Signature Date

3. iii
ACKNOWLEDGEMENTS
I would like to express my deepest gratitude to the Almighty God, for the strength, wisdom
and understanding into this research work. My deepest gratitude goes to my supervisor, Dr.
Justice K. Owusu-Ansah of the Department of Planning, KNUST for all the guidance and
constructive criticisms in making this study a success. I am appreciative for the kind
reception you gave me every time and enormous contribution to this work. God richly bless
you.
To my father and mother, Mr. and Mrs. Owoahene Acheampong, I say thank you for your
support in every department of my life. God richly bless you.
My sincere appreciation also goes to Mr. P.A. Anokye, Dr. Eric Oduro Ofori, Mr Eric Gaisie
all of the Department of Planning, KNUST for their immense help in this work. Profound
gratitude is also extended to all the Staff of the Department of Planning, Kwame Nkrumah
University of Science and Technology who have contributed to the development of my
though pattern and personality as a planner. I am forever grateful.
I also wish to thank all officers from the Metropolitan Planning Department, KMA, Town
and Country Planning Department, KMA, for your prepared and valuable information that
has fashioned the progress of this work. Their kind and technical inputs to the
accomplishment of this work cannot be ignored God richly bless you.

4. iv
ABSTRACT
The concept of spatial concentration of economic activities was long time disregarded but it
was brought to prominence in the early 1990‟s by Krugman (Karlsson, 2007). However, the
city of Kumasi which is the second largest next to Accra in Ghana can be regarded as a
functional region. This is due to the fact that, the CBD of Kumasi plays a major role in the
clustering of various types of economic activities, that is from producer service firms to retail
and whole sale trade. The low intra-regional transaction, transportation cost and access to
potential input and output market on the side of demand and supply of labour and resources
are some of the reasons traders are attracted to this functional region.
In spite of all the pull factors or forces behind the clustering of economic activities most
especially the informal economy (street vending) little or no effort has been done on
examining the reason for the concentration of the various clusters of economic activities in
the CBD of Kumasi. The street vendors mostly fall victim of been evicted; moreover they do
contribute in the generation and mobilization of revenue in the Assembly yet their spatial and
socio-economic needs have been marginalized. This in a way compels them to undertake
their daily operation at unauthorized spaces such as on: pedestrian walkway, street or road,
hazard prone areas and other public spaces; within the CBD of the Kumasi metropolis. This is
also a clear evidence of impassive urban planning system that fails to adequately cater for the
spatial and socio-economic needs of the various clusters of street vendors in the informal
sector.
The main aim of this research work is to identify feasible approach that can be adopted to
cater for the spatial needs of street vendors and incorporate them during the process of
economic deconcentration in order to maintain orderliness, convenience, safety and economic
vibrancy in the both the city centre and the periphery. In view of this, the study assessed the
forces behind the clustering of various street vendors in the CBD, examined the factors that
repel economic activities into the fringe and also identify the spatial problems and challenges
posed by the street traders in the city centre.

5. v
TABLE OF CONTENT
DECLARATION-----------------------------------------------------------------------------------------ii
ACKNOWLEDGEMENTS--------------------------------------------------------------------------- iii
ABSTRACT---------------------------------------------------------------------------------------------- iv
LIST OF TABLES-------------------------------------------------------------------------------------viii
LIST OF FIGURES ------------------------------------------------------------------------------------ ix
LIST OF PLATES--------------------------------------------------------------------------------------- x
LIST OF APPENDICES------------------------------------------------------------------------------ xi
CHAPTER ONE
OVERVIEW OF RESEARCH
1.1 Introduction----------------------------------------------------------------------------------------- 1
1.2 Problem Statement--------------------------------------------------------------------------------- 2
1.3 Research Questions-------------------------------------------------------------------------------- 3
1.4 Objectives of the Study --------------------------------------------------------------------------- 3
1.5 Justification of Study------------------------------------------------------------------------------ 4
1.6 The Scope of the study---------------------------------------------------------------------------- 4
1.7 Organization of Report---------------------------------------------------------------------------- 4
CHAPTER TWO
CONCENTRATION AND DE-CONCENTRATION OF ECONOMIC ACTIVITIES
2.1 Introduction----------------------------------------------------------------------------------------- 6
2.2 Clusters and Clustering of economic activities------------------------------------------------ 6
2.3 The Concept of Functional Regions as Home of clusters------------------------------------ 7
2.3.1The Logical Evolution and Growth of clusters ------------------------------------------- 8
2.3.2 Knowledge based clustering ---------------------------------------------------------------- 8
2.3.3Cluster policies -------------------------------------------------------------------------------- 9
2.3.4 Sustainability of clusters -------------------------------------------------------------------11
2.4 Global trend of Deconcentration ---------------------------------------------------------------12
2.4.1 Deconcentration in Great Britain----------------------------------------------------------13
2.4.2 Deconcentration in Netherlands-----------------------------------------------------------14
2.5 Street vendors as players in Economic Deconcentration.-----------------------------------16
2.6 The role of Policy makers in Economic Deconcentration -------------------------------17
2.7 Conceptual framework of the pecuniary externalities of non-innovative cluster of
economic activities in the „„Functional region‟‟ (CBD) OF Kumasi. ---------------------19
2.8 Summary of chapter ------------------------------------------------------------------------------19

6. vi
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction----------------------------------------------------------------------------------------21
3.2 Reconnaissance Field Survey -------------------------------------------------------------------21
3.3 Selection of study sites---------------------------------------------------------------------------21
3.4 Units of Observation -----------------------------------------------------------------------------22
3.5 Sampling Techniques ----------------------------------------------------------------------------23
3.5.1 Sampling Method and Selection of Study Sites-----------------------------------------23
3.6 Data Collection Method and Tools-------------------------------------------------------------24
3.6.1 Face to face interview-----------------------------------------------------------------------24
3.6.2 Structured questionnaire--------------------------------------------------------------------24
3.6.3 Physical survey ------------------------------------------------------------------------------25
3.7Analysis Techniques ------------------------------------------------------------------------------25
3.8 Data Requirement and Sources -----------------------------------------------------------------26
3.9 Limitation of Study-------------------------------------------------------------------------------27
3.10 Summary of Chapter----------------------------------------------------------------------------27
CHAPTER FOUR
THE PROFILE OF KUMASI METROPOLITAN AREA
4.1 Introduction----------------------------------------------------------------------------------------28
4.2 Historical Background ---------------------------------------------------------------------------28
4.3 Physical, socio-economic characteristics of Kumasi ----------------------------------------29
4.3.1 Location and Size----------------------------------------------------------------------------29
4.3.2Population Size and Growth Rates --------------------------------------------------------30
4.3.3 Spatial distribution of Kumasi-------------------------------------------------------------31
4.3.4 Spatial analysis-------------------------------------------------------------------------------31
4.4 Economic Characteristics------------------------------------------------------------------------31
4.5 The Background information on the Central Business District of Kumasi.--------------32
4.6 The Built Environment of Kumasi Metropolis -----------------------------------------------33
CHAPTER FIVE
THE SPATIAL CONCENTRATION OF STREET IN THE CENTRAL BUSINESS
DISTRICT OF KUMASI
5.1 Introduction----------------------------------------------------------------------------------------35
5.2 Background of Street vendors ------------------------------------------------------------------35
5.2.1 Age and Gender------------------------------------------------------------------------------35

7. vii
5.2.2. Levels of educational Attainment --------------------------------------------------------36
5.2.3 The type of goods sold in the various clusters ------------------------------------------37
5.3 Location Decision of Street vendors -----------------------------------------------------------39
5.4 Reasons for choice of Trading Location in the CBD. ---------------------------------------42
5.4.1 Locations closer to or along major road networks. -------------------------------------43
5.4.2 Locations within or closer to existing agglomerations of similar clusters.----------44
5.4.3 Location in close proximity to lorry parks, taxi ranks and market -------------------45
5.4.4 Nature of Tenure and Access to land by Street vendors -------------------------------45
5.5 The street vendors‟ view on economic deconcentration in the CBD of Kumasi --------46
5.6 Summary of Chapter -----------------------------------------------------------------------------47
CHAPTER SIX
SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION
6.1 Introduction----------------------------------------------------------------------------------------48
6.2 Summary of Key Findings-----------------------------------------------------------------------48
6.2.1 Employment generation capacity of the street vendors in the informal sector -----48
6.2.2 Age and Education Level of Operators---------------------------------------------------48
6.2.3 Rationale of Location Preference of street vendors ------------------------------------48
6.2.4 Nature of Tenure and Access to Land ----------------------------------------------------49
6.3 Key Issues concerning Economic Deconcentration of the CBD of Kumasi Metropolitan
Area -------------------------------------------------------------------------------------------------50
6.3.1 Factors which account for the concentration or clustering of economic activities
(street vendors) in the CBD of Kumasi. --------------------------------------------------50
6.3.2 Factors which repel Economic Activities from the CBD in to the fringe -----------50
6.3.3 Problems and challenges posed by street vendors in the CBD of Kumasi. ---------51
6.3.4 Problems and Challenges Metropolitan Assembly face in Deconcentrating the
CBD of Kumasi. -----------------------------------------------------------------------------51
6.3.5 Effects of the problem of Congestion Externality in Economic Deconcentration -52
6.4 Recommendation ---------------------------------------------------------------------------------52
6.4.1 Applicability of lessons learnt from the Deconcentration of Economic Activities in
the developed countries. --------------------------------------------------------------------52
6.4.2The Metropolitan Planning Unit, KMA---------------------------------------------------53
6.4.3 Town and Country Planning Department ------------------------------------------------55
6.5 Conclusion-----------------------------------------------------------------------------------------58
LIST OF REFERENCES -----------------------------------------------------------------------------62

8. viii
LIST OF TABLES
Table 3.1 Cluster of Street Vendors interviewed-------------------------------------------------------23
Table 3.2: Economic Activity Types and Number of Street Vendors Interviewed -----------------24
Table 3.3: Outline of Institutions Interviewed and the Number of Institutional Research
Questionnaires Administered-------------------------------------------------------------------------------24
Table 3.4 Represents the summary of the Sources and data required for the study ----------------26
Table 5.1: Levels of Educational Attainment of Street vendors---------------------------------------36
Table 5.2: Cross -tabulation of Educational Attainment of Vendors and the Type of Informal
activity ---------------------------------------------------------------------------------------------------------37
Table 5.3: Nature of tenure of vendors at their various locations in the CBD of Kumasi ---------46

9. ix
LIST OF FIGURES
Figure 2.5 Diagrammatic Presentation of congestion effect in the CBD, Key Causes and
Effects. ---------------------------------------------------------------------------------------------------------19
Figure 3.1Administrative map of Kumasi Metropolitan area showing study sites -----------------22
Figure 4.1 A Map showing Kumasi in National and Regional Contex. --------------------------29
Figure 4.2 The Administrative map Kumasi Metropolitan Assembly--------------------------------30
Figure 5.1 Street vendors‟ choice of locating in the CBD of Kumasi --------------------------------41
Figure 5.2 the rationale behind of street vendors for locating in the CBD---------------------------42

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LIST OF PLATES
Plate 1a Cluster of Mobile Phone Vendors in Adum----------------------------------------------------38
Plate 1b Cluster of Bread Sellers in Kejetia --------------------------------------------------------------38
Plate 1c Cluster of Provision and Grocery vendors.-----------------------------------------------------39
Plate 1d Cluster of secondhand clothing vendors--------------------------------------------------------39
Plate 2a: shoes and sandal vendors along Zongo Road, Central Market. ----------------------------44
Plate 2b: Provision and grocery vendors Along the Okomfo Anokye Road.------------------------44

11. xi
LIST OF APPENDICES
Appendix 1: Street Vendors Survey ............................................................................................ 66
Appendix 2: Metropolitan Planning Unit, KMA.......................................................................... 69
Appendix 3: Town And Country Planning Department, KMA.................................................... 71
Appendix 4: National Board For Small Scale Industry ................................................................ 72
Appendix 5: Financial Service...................................................................................................... 73

12. 1
CHAPTER ONE
OVERVIEW OF RESEARCH
1.1 Introduction
The city of Kumasi is after Accra second largest in Ghana with a population of approximately
2million (G.S.S, 2010). With respect to its strategic location and socio-economic and political
dominance, Kumasi undoubtedly, has developed into a major commercial hub with all
principal routes connected to it.
Considering the population figure of 201,551 in 1960, it increased to 293,947 in 1970,
401,934 in 1984 and 1,170,270 in 2000 (G.S.S, 2000). This is reflective of the inter-censal
growth rate of 5.4%. In view of the national and regional growth rate of 3.4% and 2.7%
respectively, the population of Kumasi has been increasing at an increasing rate, due to an
increase migration or increase in live births; hence there is a tendency of increase in
economic activities. This unique growth of the population between 1984 and 2000 has made
Kumasi the most densely populated district in the Ashanti Region which accounts for nearly a
third of the region‟s population (KMA, 2010).
However, the attractiveness of Kumasi as a functional region has also resulted into the
clustering of various economic activities (street vending) most especially in the Central
Business District (CBD) of Kumasi. Even though statistics are hard to come by, the increase
in street vending can be seen on the streets being more populated than it was in the 90s. „The
perception of conflict between local authorities and street vendors is due to the way in which
the activity has been viewed at, as in an underground activity that undermines the healthy
function of the formal economy‟ (Mitullah,2003).
In reaction to the spatial concentration of informal economic activities, there exist about
eighteen neighbourhood market infrastructures in the periphery of the metropolis where street
vendors can trade in an orderly, safer and good environment. However, „those working in the
informal economy work in unregulated and unprotected environments that are not conducive
to business‟ (Mitullah, 2003). These are amongst the various problems the metropolis has
been facing. Some of these problems include; illegal activities, nonpayment of taxes, causing
vehicular and pedestrian congestion and sanitation related diseases such as cholera, crime
(pick-pocketing) and moving in the CBD of Kumasi is complete agony for shoppers and

13. 2
pedestrians. Moreover, despite the existence of these niegbourhood market infrastructures
and even the construction of new ones, street vendors keep trading from the street that is
along pedestrian walkway and large shops. Some of such infrastructure is the Krofrom
market, Adoato Adumanu community market located at periphery the CBD of Kumasi within
the surburb of Kumasi metroplis. Theses market will be used as a case in establishing ways of
deconcentrating informal economic activities from the CBD.
1.2 Problem Statement
It has in recent times been experiencing both human and vehicular traffic congestion,
particularly in the Central Business District (CBD). Due to the dominance of the distributive
trade in the city, the CBD and all the principal streets have been taken over by hawkers. The
erection of wooden structures including kiosks and metal containers along the streets and on
any available space is a common phenomenon that has engulfed the Metropolis and has
greatly blighted the beauty of the city
The City of Kumasi acts as a functional region which is a host several clusters of both formal
and informal economic activities. For this reason the City Authorities find it difficult to
bridge the gap between the existing situations and the normative that is controlling the spatial
concentration of informal economic activities in the CBD. This may be due to the fact that,
the forces behind the concentration of informal economic activities within the CBD have not
been critically assessed. Hence, any attempt to deconcentrate informal activities (street
vendors) often lead to the displacement of the (victims). This undesired situation is mostly
seen at the central market, Kejetia lorry station and also in Adum where the pedestrian walk
way is occupied by street vendors.
Furthermore, in Adum, cluster of economic activities with higher accessibility and a greater
comparative advantage tend to outbid traders who deal in wholesale or retail goods, street
vendors. This prevailing situation is mostly influenced by centrifugal forces which tend to
expel street vendors, due to market induce eviction. This in the long run compels the street
traders in occupying public spaces like: pedestrian walkway and spaces in front retail shops.
Also the formation or spatial concentration of informal clusters is linked with the organic
growth of the Kumasi central market which tends to attract related economic activities.

14. 3
Notwithstanding, policy measures are not geared towards addressing the problems which
evolve from the concentration of non-innovative clusters. This is evident in the developing
countries; where policy markers do not assess the impact of both positive and negative
externalities resulting from market failures. „Many of these disadvantages are likely to be
generic rather than sector-specific in that it is imposed by the large businesses located in the
functional region‟ (Beaudry and Breschi 2003). This is because; the externalities prevailing in
the producer service cluster may be different from the cluster of manufacturing or wholesale
industry and even street vending within the same „functional region‟ as in the case of Kumasi
Metropolis.
1.3 Research Questions
The study seeks to answer the following questions:
 What factors influence the concentration of economic activities (street vending) in the
CBD of Kumasi?
 What factors repel economic activities from the CBD into the fringe of Kumasi?
 What kind of problems or challenges can concentration of economic activities (street
vending) have on the convenience and functionality of the CBD of Kumasi?
 What recommendations can be developed to help in de-concentrating economic
activities from CBD of Kumasi?
1.4 Objectives of the Study
The main objective of this study is to identify the major spatial concentration of economic
activities and to de-concentrate them from the CBD of the Kumasi Metropolis. The specific
purposes of the Study include:
 To identify the factors that contributes to the clustering of informal economic
activities in the CBD of Kumasi.
 To ascertain the forces that repels economic activities from the CBD of Kumasi.
 To assess the problems and challenges posed by street vending in the CBD of Kumasi
 To identify policy measures in de-concentrating informal economic activities form the
CBD of Kumasi Metropolis.

15. 4
1.5 Justification of Study
The issue of de-concentrating economic activities in Kumasi is not peculiar to the Kumasi
Metropolitan Area but cuts across the entire country. This phenomenon has become a
national concern in that it influences the economic growth of the principal cities in Ghana. In
the area of academia, the outcome of the study will be functional in studies thereby adding up
to literature.
It will provide valuable source of information to promote Local Economic Development in
the formation of new clusters in the periphery of the metropolitan area to bring about prolong
development. In the process of declustering certain economic activities into neighbourhood
markets transportation cost of commuting to the CBD would be reduced and resources would
be channeled into the periphery.
1.6 The Scope of the study
Geographically, the study will be limited to Adum, Kejetia and the Kumasi Central Market in
the Subin sub metro of Kumasi Metropolitan Area, in the Ashanti region of Ghana. The CBD
of Kumasi is made up of Central Market, Adum, and Kejetia. Adum is made up of 75percent
stores, 15percent offices, and 10percent residential. Central Market on the other hand
constitutes 80percent tabletop stores and 20percent stores. The Kejetia lorry station also
comprises of 60percent commercial parking and commercial vehicles, 30 percent stores, 5
percent offices and 5percent residential, these are the categories of various land use inventory
in the CBD of Kumasi (KMA, 2006). There exist several economic activities in the Kumasi
metropolis that is producer service, retail and wholesale traders and the street vendors or
hawkers. For this reason, this research only focuses on street vendors or hawkers as one of
the three economic activities. These in the CBD of Kumasi street vendors or hawkers ranges
from shoe and second hand clothing vendors, bread sellers, mobile phone vendors and food
stuff vendors.
1.7 Organization of Report
This study is structured into six chapters. Chapter one deals with the introduction, statement
of the problem and research questions. Also included in this chapter are the objectives of the
study, research scope, and organization of chapters. Chapter two, the literature review is a
desk study of relevant data. Issues considered include definition of key concepts and

16. 5
conceptualization of the topic in terms of theories of clusters, clustering, functional regions
and global trend of deconcentration (developed countries). Previous literature identified
includes lessons that can be learnt from deconcentration policies.
It also includes land use planning response to economic activities. Chapter three embodies the
research methodology. It involves the study design, data requirement and sources, sampling
techniques and data collection and analysis on the various concerns relating to clustering of
economic activities and problems and challenges posed by traders in the CBD. Chapter four
focuses on the profile of the study area and chapter five includes the presentation of findings
using tables, pictures and charts where necessary. Chapter six provides the summary of
findings, implications for planning, recommendations and conclusion.

17. 6
CHAPTER TWO
CONCENTRATION AND DE-CONCENTRATION OF ECONOMIC ACTIVITIES
2.1 Introduction
This chapter seeks to emphasize major findings of previous studies and to identify gaps in the
literature regarding concentration and deconcentration of economic activities. Moreover, it
provides relevant review on the dynamics of clustering of economic activities, the forces
behind clustering in a functional region, cluster policies and relevant case studies on subject
matter. The next section analyses deconcentration in developed countries. This is to help in
establishing the factors and players that can affect the deconcentration of economic activities
cluster in a functional region in developed and countries. The last section of this chapter
limits itself to the framework upon which the study would base on.
2.2 Clusters and Clustering of economic activities
There are several ways of defining clusters, depending on the orientation or angle from which
is looked at. However, „clusters are regarded as spatial concentration of competing,
collaborating and interdependencies amongst companies and institutions which are connected
by a structure of market and „non-market links‟ (UK DTI, 1998). This is a general definition
from the UK Department of Trade and Industry which throws more light on the need of a
strong sustainable cluster. From the above definition, cluster of economic activities can be
referred to as the continuous interaction, coordination, competition and mutual dependencies
amongst companies and institutions at a geographical point of concentration by „market‟ and
„non-market links‟.
Johansson and Karlsson, (2001) categorized external economies into „localization
economies‟, which is a „systems‟ phenomenon, which occurs when several firms, producing
similar products, are located in the same urban cluster. On the other hand, the second-type of
external economies of scale is „urbanization economies‟; this is also regarded as another type
of „systems‟ phenomenon, which occurs in large urban regions serving as a plat form for
many different and interacting clusters‟. Further, both the urbanization economies and
location economies is considered as forces driving the clustering of economic activities in
most „functional regions‟. These types of clusters are also evident in the CBD of Kumasi in
that it serve as a nodal point where all people and activities agglomerate from within (intra

18. 7
regional clustering) and outside (inter regional clustering) due to its strategic geographical
location and also the city of Kumasi is fast urbanizing with a growth rate of 5.4 % (GSS,
2000) due to this there is a high tendency for the formation of different clusters of economic
activities.
2.3 The Concept of Functional Regions as Home of clusters
„According to Johansson, (1998) as cited in Karlsson, 2007 the primary attribute of a
functional region is the integrated labour market, in which intra-regional commuting as well
as „intra-regional‟ job hunt and search for labour is much more concentrated than the „inter-
regional‟ counterparts‟. In this regard, the functional region at the intra regional level tends to
concentrate economic activities more than at the inter-regional level, considering mobility of
labour market and availability of facilities and services. Also, Johansson further described a
functional „urban region‟ as one which is distinguished by its clustering of activities and by
its intraregional transport infrastructure, eases a large mobility of people, goods, and inputs
within its communication boundaries.
Johansson, (1996) as cited from Karlsson, (2007) argued that, large accessibility within a
functional region is determined by the infrastructural base which also has the capacity of
providing high density in addition to low transaction costs among different clusters. The
positive externalities within the functional region has a multiplier effect, in that the rent that
would be derived from the internal „potential market‟ may serve as a source of revenue in
providing and maintaining the infrastructure within the functional region.
Nevertheless, most city centres in the world such as New York and London can be regarded
as functional regions, serving as a home of clusters of various economic activities. This is
because it provides the spatial platform for the concentration of producer services (banks,
insurance, legal firms, financial services). However this is not the case in developing
countries in that the city centre hosts several forms of economic activities; which range from
producer service firms to retail and wholesale activities and even distributive trading (street
vending). The CBD of Accra and Kumasi is not an exception to this phenomenon.

19. 8
2.3.1The Logical Evolution and Growth of clusters
Ohlin (1933) argued that, „the surfacing of clusters in a particular geographical area is
ascribed to the „conventional‟ estimation of location and clustering stress on the relative
sufficiency of resources trapped in a „functional region‟ ‟.Thus, much attention must be given
to how natural resources such as land and other resources like facilities and networks are
properly managed and planned within and outside functional regions. Also over concentration
of resources in a functional region as in the case of the CBD of Kumasi invariably may foster
the spatial concentration of different type of activity clusters. There exist two forms of
clusters in a functional region namely:
 innovative clusters(developed countries)
 non-innovative clusters(developing countries)
Moreover, „the clustering of economic activities result in comparatively externalities in the
short and medium term, a major part of the durable characteristics excluding natural
resources change gradually over time and are to a large extent created by investment and
relocation processes‟ (Karlsson,2007). These changes can also be attributed to the two forms
of externalities that prevail in spatial concentration of innovative and non innovative
economic activities; that is „negative externality‟ (congestion effect) exist in a non-innovative
cluster and „positive externality‟ (knowledge spillover) also evident in an innovative cluster
propelled by centripetal forces which also attract firms to cluster around each other within the
functional region.
2.3.2 Knowledge based clustering
Audretsch and Feldman (1996), categorically stated that, there is a tendency for knowledge
flows, including „knowledge spillovers‟ which are the basis for knowledge based clustering.
This is also due to the fact that knowledge within this kind of cluster is geographically
concentrated. Nevertheless, nearness to such knowledge based firms would or improve
interaction thereby increasing the rate of knowledge absorption.
„Proximity is obviously essential for knowledge flows, whether they are transaction-based,
transaction related or spillovers‟ (Karlsson & Johansson, 2006) for the following reasons:
 „„If price of „transaction-based‟ knowledge flows is considered distance-sensitive,
knowledge transactions inside a region are more encouraging than inter-regional

20. 9
knowledge transactions. Given this supposition, a nearness externality will exist,
which encourages knowledge buyers and suppliers to situate in the same region.
 If ordinary input purchases are considered distance sensitive, sellers and buyers of
inputs have an incentive to situate in the same region. As a result, transaction-related
knowledge flows will be determined by its nearness.
 Pure knowledge spillovers are normally assumed to take place as a part of extra-
market social interaction, which is considered distance-sensitive. Employees who
shift between firms, bringing knowledge with them as they move, also cause this type
of knowledge flow. Thus, proximity externalities will be associated with pure
knowledge spillovers‟‟.
However, depending on how one defines the knowledge base; it can be concluded that the
street trader also can be exposed to some level or amount of information about the prevailing
market condition. In view of this, there is a propensity of informal traders the market to also
operate in different activity cluster in the CBD of Kumasi.
With respect to proximity of sellers and buyers, Karlsson and Johansson, (2006) argued that,
„the inputs purchased in the same region or cluster provide an incentive‟. This is the more
reason why the traders in informal sector of the economy, mostly in the context of whole sale
retail traders and even street vendors in developing countries tends to agglomerate or
concentrate at a point sensitive to the supply of goods and services. This is an undeniable fact
in the central business district of Kumasi in that in Central market, Kejetia and parts of Adum
is well noted for bulk breaking hub of goods and services, this also give street traders access
to these goods for sale by immediate consumers.
2.3.3Cluster policies
Cluster policies are presently a sensitive topic for discussion at various level of decision
making. For this reason, „policy makers in many countries most especially in developed
countries at both the national and the regional level have come to the realization of
sustaining and creating clusters as the major option to be competitive and to be a winner in
the globalization race‟ (Maillat, 1998; Lagendijk and Cornford, 2000; Lundvall, 2002) as
cited in (Karlsson,2007).
This is not the situation in developing countries there is little or no awareness of cluster
formation in that clusters is considered by policy makers as a non-spatial random

21. 10
concentration of activities. Hence there is always the tendency of the formation of non-
innovative clusters at the „functional region‟ (city centres) as in the case of Accra and Kumasi
in Ghana.
However, „the expansion and formation of clusters in many countries at the national, as well
as at the regional and local level is the driver for economic vibrancy in major cities of the
world‟ Karlsson (2007). This is due to the fact that clusters serve as potential market base and
also provide the needed infrastructure base to sustain clusters.
Clusters contribute positively to real income levels in regions. This has imperative
implications for regional development polices. According to Karlsson and Stough (2002) „it
is not clear what the implications are and how cluster policies should be designed‟. They
further argued that, the type of regional cluster policy to apply depends on:
 „„Type of cluster(s),
 Actual degree of cluster formation in the region, and
 Information and knowledge about existing clusters and cluster policies possessed by
relevant political authorities‟‟.
In the ideal case, policy measures should be geared towards minimizing congestion effects in
non- innovative clusters and to foster positives externalities. Karlsson (2007) is of the view
that, „it is imperative to realize that externalities, which promote cluster formation is a sign of
what is called a market failure‟. He further, argued that in traditional economic „welfare
theory‟, the existence of „„market failures‟‟ has generally been taken as a motivation for
political interference. This market failure lead to inequality in the distribution of the resource
base within and even outsides a functional region, which in a way serve as a plat form for
informalities of economic activities attributed to congestion effect. These are some of the
contributing factors to the failure of any attempt to deconcentrate economic activities from
city centres in developing countries. This can also be linked to the underutilization of
neighbourhood markets established to support the economic activities in the city centres of
Ghana.
Even though, cluster policies may derive its financial support for implementation at the
national level, the regional and local needs must not be over looked. This can ensure positive
impact of clusters at the regional level and even at the local level hence the concept of

22. 11
decentralization in full operation. Also geographical transaction costs are partly determined
by the infrastructure and transport policies, which in many countries are determined at the
national level.
Due to the unplanned and organic expansion of certain cluster of economic activities;
Venables (2001) argued that, existing clusters are incapable of driving a local or region‟s
growth which calls for raising questions about new clusters and therefore the potential for
structural change in a region through cluster substitution‟. Despite the basic welfare
arguments for cluster policies Venables categorically stated that, there is still the underlying
problem that the relevant authorities often lack necessary information and knowledge about:
 „„The character of the cluster benefits,
 What the exact causes of the cluster benefits are,
 Which clusters that generate particularly strong cluster benefits,
 What actually constitutes the coordination problem, and
 The role of intra- and interregional market potentials for clusters‟‟.
The emergence or evolution of the Kumasi Central Market is an evidence of an unplanned
and organic expansion of several clusters within the CBD. Due to the vibrancy of the central
market there has been informality in the spatial concentration of different clusters of
economic activities which results in negative externality (congestion effect) in the CBD of
Kumasi.
2.3.4 Sustainability of clusters
With respect to cluster specific developments, Nelson and Winter (1982) from the
evolutionary point of view, considered clusters specializing in „inferior‟ and „„non preferred
technologies‟‟ in that there is a likelihood of increasing opportunistic behavior to reduce the
„agglomeration economies‟ or increase „congestion cost‟, hence making the location in a
functional region less advantageous and non attractive.
According to (Porter,1990, Karlsson, Johansson, and Stough 2005) „the following threats
results in deconcentration when marginalized :
 „„Cyclical disturbance
 Fundamental technological changes, technological discontinuities in products or
process technology

23. 12
 Fundamental demand changes
 Cluster competition effects due to reduce geographic transaction cost
 Changes in industrial and economic policies such as: tariffs, other trade regulations‟‟.
In order to ensure a successful economic deconcentration process, the above factors must be
taken into consideration to discourage traders. This would go a long way to deter traders from
undertaking their economic activities within the functional region; and foster trading at the
periphery of city centres thereby reducing or minimizing the congestion effect which is as a
result of non- innovative cluster formation as in the case of the CBD of Kumasi.
2.4 Global trend of Deconcentration
This part of the study appreciates the ongoing phenomenon of deconcentration and its
applicability in the western world or developed countries. This section also assesses how
deconcentration has been done in the functional regions of the developed countries; in order
to understand the dynamics of the phenomenon.
Notwithstanding, the term „deconcentration of economic activities is regarded as the
movement of economic activities (industry, retail, services) from the centre to the urban
fringe or the relative decline of employment in the centre versus the periphery. The latter can
result not just a movement from the centre to the fringe but from particular growths in the
urban boundary or in-movement to the peripheral area from outside the region‟ (SELMA,
2001). The SELMA definition of economic deconcentration uses the terms „urban fringe‟ and
„periphery‟ in order to depict the destination of the moving facilities.
According to Hite (1998) „urban fringe‟ can be defined as: „the boundary in space where the
returns to land from traditional and customary land urban uses are roughly equal to the
returns from traditional and customary rural land uses‟. He further argued that in theory such
a boundary should always exist, though its exact location on the ground may not be easily
fixed. The word „periphery‟ covers, according to Brückner (1998): „all areas or locations
inside localities that are not situated inside an existing or intended shopping area or in a
directly adjacent area‟

24. 13
2.4.1 Deconcentration in Great Britain
Preceding the World War II in Great Britain, there was an establishment of an orderly ranked
retail system, such as in Germany and in the Netherlands. The focal point of retail planning
was to preserve the status quo in retailing. According to Davies, the „restrictive‟ planning
policy changed at the end of the 1970s, when some supermarket companies became very
dominant and began to penetrate the planning restriction of the local authorities, hence
leading to the emergence of the first „peripheral‟ establishments emerged‟ (Davies, 1995)
In 1988 a new Policy Planning Guidance Note (PPG 6) „Planning Policy Guidance Nr. 6: led
to the issuance of „Town Centres and Retail Development‟. It resolved that the government
would not identify locations for retail development and that major retail developments had no
place at „„Greenfield‟‟ sites and were not generally acceptable in open countryside.
Moreover, retail development at fringes was granted only when city centres did not provide
sufficient facilities.
Howard categorically stated that, „there was additional large food stores which met a large
customer demand and that large retail warehouses would relieve pressure on town centres‟
(Howard, 1995). This type of policy is to ensure that measures are put in place to make
judicious use of land due to its fixity in supply; and also encourage specialized market centres
to assess both consumer and sellers need, so as to release the city centre off chaos and
pressure on facilities.
Also in 1992, the Conservative Government was re-elected but its policies differed from the
policies before. In 1993 the Policy Planning Guidance (PPG) 6 was replaced by a different
PPG in which the government strengthened the peripheral development. It contains the
government‟s purpose to sustain and enhance the vitality and viability of town centre and to
ensure the availability of a wide range of shopping opportunities for everyone. The previous
focus on encouraging competition shifted to the benefits of clustering retail development
aiming at facilitating comparison and competition.
According to Howard,(1995), „the policy guidelines laid much emphasis on sustainable
development, expressed worry about the increasing private vehicle movements and
encouraged the location of shopping facilities where they could be reached by a range of
means of public transport. In practice this meant the location in or next to existing city

25. 14
centres‟. For this reason, „the local authorities were required to take into consideration the
revitalisation of the town centre retail structures, the reduction of the volume of traffic and
ecological damage when making their development plans‟ (DV, 1998). However, in the
process of economic deconcentration a holistic analysis must be done, encompassing all the
various thematic areas of social, economic and environment.
The establishment of large retail stores at peripheral locations continued. This led to another
revision of the PPG in 1996. According to Koehler (2005), „locations in the town centre take
priority over edge-of-centre locations. He further said that, locations outside of these areas
(periphery) may only be included if they have good transport connections and if sites in the
precedence areas are not available or economically unsound‟. However, „the local authorities
have to account for the decrease in congestion in their development plans when they allocate
areas‟ (DV, 1998). This stand to reason that, whatever policy geared toward economic
deconctration there should be an appraisal on the impact of social, economic and
environmental sector so as to ensure successful implementation.
Notwithstanding , there is the need to consider policies underpinning any de-concentration of
economic activities, in that there are key reasons for firms not displacing high order office
functions away from a point of concentration of economic activities. This may be due to the
positive externalities (interaction and interdependencies) associated with the firms within the
cluster. Displacement of certain economic activities out of the cluster should not necessitate
the destruction of the whole cluster but to harmonize it. Hence, emergence of new clusters
also forms part in creating platforms to ensure competition in the labour market as well as
improving relationship among various firms within a point of concentration of economic
activities. It also creates an opportunity of improving on the state of new clusters. These
policy or development control measures must be put in place so as to carry out de-
concentration exercise successfully. This is due to the fact that, the needed spatial
requirement for future expansion of existing clusters within or outside a „functional region‟
should not be overlooked.
2.4.2 Deconcentration in Netherlands
Planners abroad regard Dutch planning ideas as strict policy between the separation of rural
and urban areas. After World War II, the Dutch retail policy aimed first at establishing and

26. 15
second strengthening and maintaining a „„functional-hierarchic‟‟ shop system. The planning
principle at that time was motivated by Christaller‟s Central Place Theory. This theory
purport to explain the minimum number of people or „threshold‟ required to be served a
facility within a maximum distance. The main aim of this policy was to ensure the supply of
convenience goods (especially food) at walking distance from the consumers‟ place of
residence. For non-daily goods the consumer had to go to a centre of higher order.
Koehler (2005), „there were three to four levels of facilities, which was informed by the size
of the town. He further explained that, town centre at highest level has the largest surface as
well as the most specialised range of goods with a relative small range of daily goods and a
higher amount of special products. However, levels below the town center are the centres of
a quarter, the centres of a district and the shopping centre at neighbourhood level‟. „On the
verge of the early seventies, large-scale retail settlements started developing outside the
„traditional‟ shopping areas‟ (Boekema et al., 2000).
What motivated this development was the increasing consumers‟ mobility enabling the
consumers to reach locations along motorways and on the outskirts. Both the government and
individuals reacted with harsh criticism.
Kok argued that, „they feared among other things escalating environmental pollution due to a
higher volume of traffic, a „social‟ selection and discrimination in that only people who could
afford a car could reach the locations, people who could not afford a car could be at a
disadvantage, which is also an environmental blight‟ (Kok, 1995).
In 1973, the government introduced the Policy of Peripheral Retailing Establishments in
order to protect the existing system of shops. This protective policy aimed at inhibiting the
settlement of retail at the periphery. Exceptions were flammable and explosive goods as well
as goods, which take up a lot of space (cars, boats, caravans) and building materials. Also
Boekema argued that, the policy inhibited the dynamics in the retail sector in that: „„the
market economy hardly had a chance to manifest itself. Instead „dynamic‟ was considered as
scaling-up and the development of new shopping formulae‟‟ (Boekema et al., 2000). Always
the knowledge base on characteristics of the market conditions must be noted to meet the
needs of both sellers and buyers.

27. 16
In 1993 the government introduced the concentrated large-scale retail establishments so as
supplement the already existing Peripheral Retailing Establishments policy. Solitaire large-
scale retail businesses were allowed outside existing shopping areas at designated locations at
13 city nodes. The national government no longer limited the branches, but the communities
were responsible for introducing further limitations. „The only condition was a minimum
gross floor space of 1500 m²‟ (Boekema et al., 2000). On the other hand, in practice there was
no space at the concentrated large scale retail establishments GDV-locations given to
branches with convenience goods. „This strict retail planning excluded among other things
supermarkets from peripheral sites‟ (Davelaar et al., 2001; Boekema et al., 2000).
2.5 Street vendors as players in Economic Deconcentration.
According to ILO in 1995, „estimates had shown that small and Micro Enterprises account
for 59 per cent of Sub-Saharan Africa‟s urban labour force‟ as cite in (Ondiege, 1995).
Estimates indicate that in the developing countries 40 to 80 per cent of the urban workforce is
in the informal workforce. Street vendors are the most visible among this workforce,
although their activities, working conditions, relations with authorities, policies and
regulations relating to their operations among others are not well researched and documented.
Street trading undoubtedly is one of the economic activities that sustain a significant
percentage of rural and urban dwellers, especially within the developing countries. Mitullah,
categorically stated that, „the activity falls among the Small and Micro Enterprises (SME)
that form the main thrust for economic development in developing countries‟ (Mitullah,
2004).
In Africa, the sector has operated outside the mainstream economic development, and falls
within the informal economic activities. In spite of the difficult economic situation that has
faced Africa with reduced external aid and increasing levels of poverty, many countries have
began considering the sector as one of the ways of promoting the private sector‟s contribution
to both growth and equity objectives of development.
Street traders have a stake role in the process of economic deconcentration, hence
collaborative and consultative efforts must be employed as an approach of reducing the
formation of non-innovative clusters from a „functional region‟. However, serious focus on
street vendors begun with the Bellagio International Declaration of Street Vendors which

28. 17
called for national policies for street vendors, and follow up actions by individual vendors,
vendors associations, city governments and international organizations‟ (Mitullah,2004).
Furthermore, The Bellagio Declaration identified six common problems of street traders
around the world, namely:
 „„Lack of legal status and right to vend,
 Lack of space or poor location,
 Restriction on licensing, and cost of regulation,
 Prevalence of harassment and bribes, confiscation and evictions of street vendors,
 Lack of services and infrastructure and
 Lack of representation or voice‟‟.
2.6 The role of Policy makers in Economic Deconcentration
Policy makers as one of the players exert influence on the establishments of peripheral outlets
by giving special guidelines, restrictions or agreements, as in the case of Netherland. They
have to fulfill two conflicting main goals. „First they have to support the economic dynamic
of free competition and to ensure sector growth and change.
Secondly, they have to take care of maintaining the shopping function of the inner city and to
aspire to sustainable and well regulated settlement development‟. (DV, 1998; Gorter et al.,
2003).
In other words, on the one hand „deregulation is needed for the retail sector in order to remain
competitive at national and international level and to ensure flexibility in business strategies
and the combining of goods. Alternatively, „regulation is necessary to avoid the economic
and if possible social collapse of the city centre‟ (Gorter et al., 2003; DV, 1998).One of the
dilemmas provoked by these two opposing attempts emerges from the establishments of large
retail stores at fringes.
This case in Netherlands can also be adopted and localised to suit our Ghanaian setting of
deconcentrating economic activites from city centres to peripheral areas. The approach could
be giving the neighbourhood markets in the periphery a new phase. Firstly, the policy
framework guiding the establishment of satellite markets must be reviewed, to suit the current
market conditions. This can only be done by establishing a very good consultative structure
in addressing the needs of traders. This would help get rid of non-specializtion of market

29. 18
centres; thereby centres not performing conflicting functions in the supply of goods and
services. This will also go a long way to solve some of the congestion effects that exist in the
city centres.
Notwithstanding, space must also be created for the market economy without doing harm to
the already existing economic activities. There is also a need to handle existing policies and
guidelines of economic deconcentration; so as to find solutions neither to damage nor inhibit
the positive effects of the phenomenon.

30. 19
2.7 Conceptual framework of the pecuniary externalities of non-innovative cluster of
economic activities in the ‘‘Functional region’’ (CBD) OF Kumasi.
Figure 2.5 Diagrammatic Presentation of congestion effect in the CBD, Key Causes and
Effects.
Source: Author‟s own construct.
2.8 Summary of chapter
Clustering and declustering have been a worldwide phenomenon most especially in the
developed countries. Clustering is considered as the driver of economic vibrancy as seen in
the global cities like New York City, London and Tokyo, as a result of the „„agglomeration‟‟
CAUSES
Influence of governmental or
political institutions
Influx of population in CBD
Improvement of infrastructure in
a functional region (CBD)
Unauthorized physical
development, street vending
High cost of land resources
Changes in land uses
Increase in the demand for land
EFFECTS
Formation of non-innovative
clusters
CONGESTION EFFECT

31. 20
of innovative firms. This serves as a platform of maximizing positives externalities among
firms in a functional region. It is also viewed in the developing countries as a congestion
effect due to the inability to minimize the negative externalities associated with it.
Deconcentration of economic activities is regarded as „„the movement of economic activities
(industry, retail, services) from the centre to the „urban fringe‟ or the relative decline of
employment in the centre versus the periphery‟‟ (SELMA, 2001). Several propositions have
purported to explain deconcentration of economic activities, on the contrary pragmatic
verification of forces behind economic deconcentration is limited. This is due to the fact that
the formation of clusters have been conceived as a non-spatial concentration, hence „there is
still much confusion concerning the proper „„conceptualization‟‟ of a cluster‟ (Ellison &
Glaeser, 1997).
Lessons that can be learnt from deconcentration in the developed countries are as follows:
 The existence of a policy framework to guide and control economic deconcentration
process.
 The preservation and continuity of the retailing policy irrespective of the change in
governance
 The provision of redevelopment of infrastructure at the fringes when city centres did
not provide the needed or sufficient facilities.
 Meeting the large customer demands by providing large food stores at the periphery
to relieve the pressure on the city centres. This is to ensure judicious use of land due
to its fixity in supply and also encouraged specialized market centres to assess both
customer and producers need.
 Creating awareness among local authorities in the establishment and management of
the various neighbourhood markets. This is also to ensure the revitiliastion of retailing
activities in the periphery as stated in their development plans.
 Finally the establishment of satellite or neighbourhood markets must be based on the
principle of central place theory. This should be done by taking into consideration the
threshold population required to sustain the market infrastructure provided at the local
level; thereby ensuring functionality of the facilities and services provided at the local
level.
Having examined the concept of concentration and deconcentration and the objectives of the
study being identified, the chapter afterwards describes the approaches to be used to
undertake the research.

32. 21
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter brings to bear the description and analysis of specific research methods and
techniques used for the study. It also encompasses the suitable data collection procedures and
the tools used for analyzing the data. The research work began with a review of relevant
literature, to help bring to bear the various theoretical concepts of spatial concentration and
declustering of economic activities in cities of the world. It focused on the forces behind the
clustering of firms in functional regions and factors which repel firms from moving to fringes
of CBD. This was done as they pertain to different parts of the world. It also looked at some
theoretical models and concepts formulated to deal with pecuniary externalities (congestion
effect) which emerge from the negative impact of clustering of certain economic activities.
Practical field information from multiple sources were collected and evaluated to support the
findings as they applicable in Ghana and the study areas in particular. These were gathered
through interview guides and questionnaires.
3.2 Reconnaissance Field Survey
The research work commenced with a prelude fieldwork which encompassed; discussion
with city authorities; observations; and meetings with the street vendors. There was a meeting
with the city authorities, particularly from the Town and Country Planning Department of the
K.M.A. the reason was to obtain the required data needed for the research work. The
documents obtained were maps of Kumasi, in terms of its spatial development, and the extent
of the CBD of Kumasi over the years. Reconnaissance survey was conducted to get actual
information on the concentration of street vendors in the CBD of Kumasi. This was done with
respect to the features of the study areas. Furthermore, meetings with the street vendors were
geared towards creating an enabling environment for the smooth interview and survey.
3.3 Selection of study sites
It was observed that street trading activities occurred in three spatial patterns: in a cluster
around the large shops in Adum, west of the Central Business District, in linear arrangement

33. 22
along pedestrian circulation paths and in pocket areas where relatively larger spaces are
available, such as open spaces often in Kumasi Central Market and Kejetia lorry station at
north and east of the CBD respectively. In all these areas, basic characteristics of street
vending were recorded. These included the location, type of goods sold, type of structure
used in vending and whether the vendors operated in a particular locations or moved from
one location to the other. In view of this three sites were considered for the preliminary
survey, which include:
 Adum(Osei Tutu I BLVD)
 Kumasi Central Market(Afia Kobi Ampem and Zongo Street)
 Kejetia Area(Okomfo Anokye Street)
Figure 3.1Administrative map of Kumasi Metropolitan area showing study sites
Source: Town and Country Planning Department, 2010 and Author‟s construct.
3.4 Units of Observation
The units of analysis for the research include the following:
1. Traders (street vendors)
2. Department Planning Unit, Kumasi Metropolitan Assembly
3. Town and Country Planning Department, KMA
4. National Board for Small Scale Industry
5. Multi Credit Financial Services

34. 23
3.5 Sampling Techniques
3.5.1 Sampling Method and Selection of Study Sites
The study adopted both non-probability and probability sampling. The non-probability
sampling made use of purposive sampling, to make sure that every street vendor had the
equal chance of been selected. Due to this, specific units were selected for the study informed
by unique attributes. The interviews with the street traders were preceded by a reconnaissance
survey to have an overview of the nature of street trading in Kumasi CBD and all the major
streets. In confirming the responses from the institutional survey, street vendors within the
study sites were interviewed. The study utilized the cluster and random sampling technique;
this was applied in the sense that the economic activities were in different clusters thereby
ensuring a representation of each cluster of activity.
In view of this, a sample of seventy (75) street vendors was drawn out of estimated number of
traders on a particular day. The interviews with the street traders were conducted on the
streets in March 2013, while they were working, and included both men and women. In the
study, fourty five (45) sedentary vendors and thirty (30) footloose vendors were sampled. All
institutions were selected purposively based on their potential of providing the needed
information required for the study.
Probability sampling, specifically, random sampling was used to select individual
respondents from the three spatial concentrations of economic activities in the CBD of
Kumasi.
Table 3.1 Cluster of Street Vendors interviewed
CLUSTER LOCATION NUMBER OF TRADERS OR VENDORS
Osei Tutu I Street 20
Kejetia Area 20
Afia Kobi Ampem Road 20
Zongo Road 15
Total 75
With respect to the locations above comprise several activity types. The table below
illustrates the number of street vendors interviewed in each of the activity types identified.

35. 24
Table 1Table 3.2: Economic Activity Types and Number of Street Vendors Interviewed
Economic Activity Type Number of Vendors Interviewed
Mobile phone and Shoe Vendors 20
Clothing, and bag Vendors 15
Bread sellers and groceries 20
Provision and Food Stuff Vendors 20
Total 75
Table 3.3: Outline of Institutions Interviewed and the Number of Institutional Research
Questionnaires Administered
Institutions Number of Research Questionnaires to
be Administered
Town and Country Planning Department, KMA 1
Department of Planning Unit, KMA 1
National Board for Small Scale Industry 1
Multi Credit Financial Services 1
Total 4
3.6 Data Collection Method and Tools
A mixture of interview questionnaires and face to face interviews was used to enquire of
primary data. Questionnaire was however administered alongside with face to face interviews
as a major means of data collection to supplement explanations and further information.
3.6.1 Face to face interview
Imperative subject of interest that were stressed on from the reconnaissance survey were
investigated through interviews. The city officials, as well as non- officials of the study sites,
and heads of the selected institutions were interviewed to understand the reality of issues on
the ground that emerged from the reconnaissance survey.
3.6.2 Structured questionnaire
Structured institutional and street vendor questionnaires were used for the data collection
from the various selected institutions and traders within the study sites.

36. 25
3.6.3 Physical survey
In order to get the spatial attributes of the study sites, observations were made in gaining
insight of how theory of concentration of economic activities informs reality on the ground
within the CBD of Kumasi. A visit to the sites was to find out the evidence of the spatial
concentration of cluster. In order to evaluate the primary data, both the qualitative and
quantitative methods were used, but there was a stress on the qualitative method. This is
because; qualitative actually provides descriptive measure in assessing the ongoing
phenomenon.
3.7Analysis Techniques
The study used both qualitative and quantitative tools to present and analyze the data
gathered. Various models were used to establish relationships and trends. Descriptive
Statistics were used to analyse quantitative data with the use of Statistical Package for Social
Scientist (SPSS). The researcher employed the use of maps, tables, graphs, charts and
diagrams to present the gathered data. Analytical tools such as Cross –tabulation and
measures of central tendencies were used to determine trends and averages.

37. 26
3.8 Data Requirement and Sources
Table 2Tables 3.4 Represents the summary of the Sources and data required for the
study
No. Data Required Source Data Collection Tool
1 -Demographic characteristics
-Employment status
-Income status
-Accessibilty to socio-
economic facilities and services
-KMA Development
Planning Department
-Metropolitan Roads
Department of KMA
Face to Face interview
Desk study
2 -Availability of space for
traders to operate.
-KMA, Town and
Country Planning
Department
- Metropolitan Roads
Department of KMA
Observation and
Questionnaires
-Potential market demand of
goods and services
-Motivation to live and work in
the city
Street traders or hawkers Interview and Questionnaires
3 -Managing street traders
expectation
-Understanding the dynamics
of spatial concentration of
economic activities
Street traders or hawkers Interview and Questionnaires
4 -Integration of informal
economy into spatial policy
plans.
-Collaboration between
stakeholders
-KMA, Development
Planning Department and
KMA, Town and Country
Planning Department
-Street traders or hawkers
Interview and Questionnaires
Source: Author‟s Construct, 2013

38. 27
3.9 Limitation of Study
There was difficulty in obtaining sample frames of the traders in informal economic (street
traders). Most especially those in the footloose category are mobile in their operation and
hence cannot be counted easily as in the case of most traders in Kejetia. However, the task
force of the Assembly was embarking on decongestion exercise during the process of data
collection. Hence there was difficulty in reaching street traders. Also the willingness on the
part of the respondents to cooperate in the process of interview was also a big challenge since
there is an impression of them been evicted by the city authorities. In view of this, every
trader was sensitizing about the importance of the study. There was lack of reliable and up-to-
date data on the informal sector (street vendors) among institutions and agencies under the
Kumasi Metropolitan Assembly. In view of this, most of the research findings depended on
primary data collected on operators.
3.10 Summary of Chapter
This chapter of the study has shown the systematic approach in conducting the research, to
give an understanding of the extent of concentration of informal economic activities in the
CBD of Kumasi. The next chapter brings to bear the logical evolution of the economic
activities in the CBD of Kumasi. This would help throw more light on how the CBD of
Kumasi has grown over the years and the prospect of the concentration of economic activities
of the informal sector.

39. 28
CHAPTER FOUR
THE PROFILE OF KUMASI METROPOLITAN AREA
4.1 Introduction
This chapter seeks to bring to bear the profile of the Kumasi Metropolitan Area. The profile
describes the social, economic, cultural, geo-physical and environmental characteristics of
Kumasi. It further outlines the implications of these characteristics on the spatial distribution
of socio-economic infrastructure such as market centers within the metropolitan area. Figure
4.2 is the map of Kumasi with divisions into the ten sub-metros.
4.2 Historical Background
The city of Kumasi was established in the 1680‟s by “Otumfour” Osei Tutu I to serve as the
capital of the Asante State. Due to its strategic location and political supremacy, Kumasi
developed into an economic vibrant centre which influenced the convergence of major trade
routes in Ghana on its landscape. On the other hand, it came under the authority of the British
rule in 1890. As time went by, the city saw an expansion and growth in terms of land area,
population size, social life and economic activity, hence making it second city to Accra in
terms of its well planned and designed layout and fusion of greenery into the built
environment made it gained the great compliment the “Garden City of West Africa”.
With respect to the three communities of Adum, Krobo and Bompata, it has ecolved in a
concentric form to cover an area of approximately ten (10) kilometers in radius. The direction
of growth was originally along the principal routes due to the accessibility they presented
informing a radial pattern of development. It includes about 90 suburbs, many of which were
engrossed into it as a result of the process of development and spatial expansion. Due to
administrative purposes the metropolitan area has been further sub divided into ten sub-
metros.

40. 29
4.3 Physical, socio-economic characteristics of Kumasi
4.3.1 Location and Size
Kumasi is located in the moist semi-deciduous forest (transitional forest zone) and is about
270km north of the national capital, Accra. It is between latitude 6.35˚N – 6.40˚N of the
Equator and longitude 1.30˚E– 1.35˚E of the Greenwich meridian, a distance from the ground
which ranges between 250 – 300 metres above sea level with an area of about 254 square
kilometres. Kumasi is bounded to the north by Kwabre District, to the east by Ejisu Juabeng
District, to the west by Atwima Nwabiagya District and to the south by Bosomtwe-Atwima
Kwanwoma District. The average minimum temperature is about 21.5˚C and a maximum
average temperature of about 30.7˚C. The metropolis enjoys a double maxima rainfall regime
thus 214.3mm in June and 165.2mm in September. The distinctive centrality of the city as a
navigational route for a 35 point from all parts of the country makes it a unique place for
many to migrate to
Figure 4.1 A Map showing Kumasi in National and Regional Contex.
Source: Town and Country Planning Department, 2008

41. 30
Figure 4.2 The Administrative map Kumasi Metropolitan Assembly
Source: Town and Country Planning Department, 2010 and Authors construct.
4.3.2Population Size and Growth Rates
Kumasi is the second populous district in Ghana after the national capital, Accra. It recorded
a figure of 1,170,270 during the 2000 Population Census. It has been projected to have a
population of 2,022,919, by the end of 2010, based on a growth rate of 5.47 per cent per
annum. Kumasi has engrossed such a large population partly due to its administrative
function as the regional capital, and also the most vibrant commercial centres in the region
having the largest open market centre in West Africa (Kumasi Central Market) and Adum.
Also the unique centrality of Kumasi as a nodal city with major principal routes connecting it
to other parts of the country and also the fact that it is an educational centre with two state
universities, private universities, a polytechnic, two teacher training colleges, senior high
schools and a host of basic schools.
A high population growth has severe environmental consequences if it is not moved along the
pace of proper and technological advancement in the area of infrastructure and service
provision.
The rapid population growth or population explosion would result in overcrowding and
pressure on existing socio-economic resources such as market centers coupled with illegal
activities, organic growth as a result of poor structures, informal vendors occupying right of

42. 31
way (pedestrian access) of the market centre and high rate of waste generation, as in the case
of Kumasi Central Market. When such a high population is projected there is the need for
planning to ensure the provision of new infrastructure and maintenance of existing ones to
avoid them from deteriorating as a result of excessive pressure.
4.3.3 Spatial distribution of Kumasi
The population of the Central Business District comprising Adum, and its extension that is,
Asafo and Ashtown continue to reduce over the years. According to the census reports, Adum
recorded 12,991 in 1970, 9,693 in 1984 and 8,016 in 2000. This is anticipated to further fall.
On the other hand areas such as Ayigya, Dichemso and Tarkwa Maakro, which were small
communities in 1960 and 1970, have grown into densely populated residential areas with
20,000 – 40,000 people. Areas comprising the CBD therefore continue to reduce in terms of
human numbers whereas the population in the new developing areas increases. This is
accounted for by the mere reason that residential accommodations in the former are being
converted into commercial use.
4.3.4 Spatial analysis
The present physical structure of Kumasi Metropolis could be described as circular or
concentric in nature, encouraging development in all directions. All major roads converge at
Kejetia, which is the city centre. Settlement growth is towards all directions from the city
centre. The city‟s current growth rate of 5.47 per cent, which is higher than the regional and
national rates stems from its vibrant commercial activities. This phenomenon of high growth
rate of the city‟s population has led to a situation where settlements are growing rapidly and
in all directions. Major growth directions are towards the major roads. The high rate of
migration has also led to the emergence of slums. Urban planning is to manage the spatial
organisation of cities for effective land use. Urban infrastructure can therefore be categorised
into five major sectors; namely, Transportation, Housing, Water and Sanitation, Electricity
supply and Telecommunication. The urban form of a city and distribution pattern of land use
affects air quality and its health impact.
4.4 Economic Characteristics
Kumasi is regarded as a trade and cultural hub of Ghana. There is a day time population of
2,300,000 people (KMA 2010) attributed to the high rate of migration. The city is noted for

43. 32
wholesaling and breaking of bulk that is retailing as a major economic activity embarked
upon. Economic activities accounts for 71 per cent; industry is 24 per cent and agriculture is
5 per cent. The categorization of major economic activity includes:
 Central Market (The largest open air market in the ECOWAS Sub-region).
 Adum Shopping Centre (Described as the Heart Beat of Commerce).
 Suame and Asafo Magazines.
 Kaase/Asokwa Industrial Area and Sokoban Timber Products Market.
The city estimates that 60 percent of local value added comes from the services sector, 30
percent from industry and 10 percent from agricultural activities. Most of the service sector is
made up of commercial activities, such as retail and wholesale trading, all facilitated by the
city‟s central location for both Ghanaian and West African merchants. There are also about
twenty eight (28) satellite or neighbourhood markets in the metropolis (Ghana
Districts,2008). The Kumasi Central Market, Asafo Market, and Bantama Market, as well as
the Kejetia Lorry Park, are among the main centers of commercial and related activities in the
city. Most of the city‟s industrial activities involve small- to medium-scale manufacturers of
footwear, cosmetics, soap, plastics and metal products.
4.5 The Background information on the Central Business District of Kumasi.
The CBD of Kumasi is made up of Central market, Adum Township and Kejetia. The
Kumasi Central Market is referred to as the single largest traditional market in West Africa. It
is also made up of 80 percent table top stores and 20 percent stores; this is a clear evidence of
how the market has grown organically since its establishment in 1925. The daily trading
populations is estimated at 15,000- 20,000.
There are over 10,000 stores and stalls fully occupied by traders dealing in every conceivable
product. Seventy percent (70%) of the traders are female and sixty-five (65%) are Asante, the
dominant ethnic group in Kumasi (Clark, 1994).
Also Kumasi Central Market is the largest of all Ghanaian markets. It is the most strategically
located both in the city‟s center and in the geographical center of the country. It is serviced by
paved roads linked to major cities. Kejetia is made up of 60 percent commercial vehicle
parking facilities, 30 percent stores, 5 percent offices and 5 percent residential. The higher
percentage of space allocated for the commercial vehicle parking facility is to help improve

44. 33
the interaction between the activities of the central market and other land uses, and also as a
destination point for traders across other parts of the country. This brings to bear the course in
day-time population. The vibrant economic activities attract people travel from across the
country to trade in Kumasi. This situation eventually results in the influx of the city
population putting pressure on existing facilities hence emanating into congestion in the city.
The medium- to large-scale firms are to be found mostly in breweries, textiles,
pharmaceuticals, as well as logging and sawmilling. Coca-Cola Company and Guinness
Ghana Ltd. are among the largest firms in the city. It is estimated, however, that 50 percent of
industrial employment is in the wood and wood related industries. Agriculture activities
occurs mostly on the periphery of the city, involving maize, cassava, plantain, cocoyam, and
vegetables, along with industrial crops like palm nuts and sugar cane. These are used mostly
by small-scale mills.
4.6 The Built Environment of Kumasi Metropolis
The enactment of the Town and Country Planning Ordinance, Cap 84, marked the beginning
of orderly development of Kumasi in 1945. The Plan earmarked Kumasi as the “Garden City
of West Africa” and affirmed the city among other regional capitals as a statutory planning
area. This and other planning schemes (the Kumasi Outline Planning Scheme implemented
from 1963 to 1988) required in broad conditions to provide the framework for socio-
economic, physical, infrastructural and environmental development of the city.
It is anticipated that 48 per cent, 46 per cent and 6 per cent of the metropolis are urban, peri-
urban and rural respectively (KMA Development Plan, 2006), influencing rapid growth of
population and activities at point of concentration (urbanization).
With respect to types the city has been classified into high-income area, government area,
indigenous areas and tenement area (Adarkwa and Post -Eds, 2001).The high rate of
population growth together with the high migration rate has exceeded the rate of
infrastructure development and service provision. Most of the facilities have gone beyond
their carrying capacities. Lands in the newly developing suburbs have not been serviced;
hence, estate development precedes the provision of water, telephone facilities and electricity.

45. 34
It is anticipated that about 24% of all residential structures are incomplete (KMA
Development Plan, 2006).
The Kumasi metropolis has over the years is characterized by both human and vehicular
traffic congestion, particularly in the Central Business District (CBD). Due to the ascendancy
of the distributive trade in the city‟s economy, the CBD and all the major streets have been
taken over by hawkers or street vendors. The emergence of wooden structures including
kiosks and metal containers along the streets and on any existing space is a common sight has
blighted the city; hence, losing its aesthetic value. The issue of congestion in the CBD has
become a major challenge on the part of city authorities thereby making it sensitive subject or
phenomenon for discussion. For this reason there is a need to find feasible and new ways to
solve or minimize the issue of congestion in a holistic manner by bringing all stakeholders on
board. This would go a long way to solve the problem rather than displacing it.

46. 35
CHAPTER FIVE
THE SPATIAL CONCENTRATION OF STREET IN THE CENTRAL BUSINESS
DISTRICT OF KUMASI
5.1 Introduction
This chapter seeks to present the analysis of the various clusters of street vendors based on
field data collected on respondents within the CBD of Kumasi Metropolis. The issues that
have been looked at include the background of respondents; description and operational
characteristics of cluster of street vendors ; income levels of vendors and their tax
contributions, vendors‟ location decisions and access to infrastructure as well as their
operational challenges/problems in the functional region (CBD).
Collection of data was done in four different groups of street vendors namely: mobile phone
vendors, bread sellers and grocery vendors, food stuff and provision vendors and sandals and
clothing vendors, all in three spatial concentrations; Adum, Kejetia, and Kumasi Central
Market. Basically, the analysis has been presented at two levels. Firstly, a holistic analysis
where all respondents have been considered as a single unit of analysis has been made.
Secondly, for distinctiveness and detailed analysis, issues have been analysed on cluster
basis, in which case, the various clusters have been isolated and discussed as part but
interdependent units.
5.2 Background of Street vendors
Under this section, respondents‟ age and gender, household size, level of educational
attainment have been analysed. These are expected to serve as reference points and general
setting for analysis of consequent issues in this chapter.
5.2.1 Age and Gender
The average age of the surveyed traders was 26 years. The majority 42percent were aged
between 30to 45years. The remaining of the traders were aged between 20 to 29years
representing 33percent and 25percent of the traders were aged 15to 19 years. The sample size
had more female than male traders, with 59percent being female and 41percent male. It can
easily be inferred, from the above, that street vending activities of the informal sector, apart
from serving as an avenue for job opportunities for a considerable proportion of the youth in

47. 36
the Kumasi Metropolis. It also provides the source of revenue for the households of the same
proportion of people engaged in it.
5.2.2. Levels of educational Attainment
From the survey four categories of vendors as far as their levels of educational attainment are
considered. It consists of vendors who have never been to school, and vendors who have
obtained education up to the primary, Junior High School (JHS) and Technical/vocational
levels respectively.
Table 5.1: Levels of Educational Attainment of Street vendors
Level of educational attainment Frequency Percentage
Never been to school 36 48
Primary 14 19
JHS 10 13
SHS 15 20
TOTAL 75 100
Source: Field Survey, 2013.
From the above table it can be inferred that the educational level of street vendors is generally
low. Due to this, vendors are lack the managerial and operational skills of book keeping in
their daily activities. Notwithstanding, the data above indicates that a considerable section of
the street vendors have obtain formal education only to the Junior High School level and
Senior High School both representing 33precent. Hence it can be deduced from the data that
the decision to either further education or enter this sub-sector of the informal sector is made
immediately after basic level of education. Also the involvement in this venture is due to the
fact that it does not require any sophisticated level of expertise.
Additionally, the survey demonstrated a linkage between the educational attainments of
operators and the type of informal activity in which they are engaged. The cross-tabulation
has been shown in the table below;

48. 37
Table 5.2: Cross -tabulation of Educational Attainment of Vendors and the Type of
Informal activity
Type Of Activity
Educational
status food stuff /
cooked food
shoes and
second hand
clothing mobile phones
bread and
groceries Total
Never 14 9 3 10 36
Primary 1 4 3 6 14
JHS 1 3 5 1 10
SHS/Voc 1 3 9 2 15
Total 17 19 20 19 75
Source: Field Survey, 2013.
It can be inferred from the cross-tabulation above that, the number of operators who have
never been to school is high among those engaged in foodstuff and cooked food. Out of the
17 foodstuffs and cooked food interviewed, 14 of them, representing 82 percent have never
been to school. This is explained by the fact that foodstuff and cooked food traders among the
other activity types is characterised by the predominance of such an activity informed by the
location of the Central market where the sample of food stuff traders were gathered.
5.2.3 The type of goods sold in the various clusters
The street vendors in the CBD of Kumasi can be categorized into sedentary and the foot
loose. The sedentary type is normally stationary, located in front of large shops or on a
pedestrian walk way. They mostly engaged in the sale of food stuffs, bread, mobile phones,
sandals and shoes. The foot loose type of street vending as the name implies is mobile in its
operation and are mostly engaged in the sale of secondhand clothing, handkerchiefs and
toiletries. Their mode of movement by footloose vendors is mostly by „„in hand‟,‟ push carts
or locally made trucks and on head.
The survey revealed that sedentary type of street vendors in each of the clusters identified are
able to interact with each other due to the positive externalities of agglomeration. There is
high accessibility to market supply input, information spillover of the market output on the
demand side. This was evident in the cluster of bread sellers, food stuffs and also in the
cluster of mobile phone vendors. The spatial concentration of these clusters is in Central

49. 38
Market (Food stuff), Kejetia (bread sellers, provision an groceries), Adum (mobile phone
svendors).
On the other hand, there was no much interaction among the footloose type of vending due
to their mobile and non-stationary nature and evidence of non- random spatial concentration.
For this reason there is low level of interaction among the vendors in this category, hence
high level of congestion effect is also evident in their operation. They also move along
pedestrian walk way.
Plate 1a Cluster of Mobile Phone Vendors in Adum
Plate 1b Cluster of Bread Sellers in Kejetia

50. 39
Plate 1c Cluster of Provision and Grocery vendors.
Plate 1d Cluster of secondhand clothing vendors
Source: Survey on Street Vendors; CBD of Kumasi Metropolis, 2013.
5.3 Location Decision of Street vendors
According to the survey, 91 percent of the street vendors do stay at the peripheral area of
Kumasi such as: Bomso, Banatama, Krofrom, Ayigya, Boukrom, and so on; whereas 9
percent also stay in the city centre of Kumasi. The higher 91pecent of vendors been a

51. 40
significant number moving from the fringe in to the city centre is motivated by several factors
which is to be discussed.
Moreover, people engage in street vending for different reasons, out of the total sample of 75
street vendors which includes vendors in Adum, Kejetia and Cental Market, figure 5.1 below
reveals that the majority (61percent) engage in street vending because they easily access
customers due to the high volume of movement of people within the CBD. On the other hand,
31percent sell in the streets because of the lack of suitable attractive sites. Hence it is suitable
acquire space within the CBD where there are no formal application procedures which help
them save from incurring cost and suitable site for trading. While the remaining 8percent due
to non-availability of enough capital to sell sufficient goods in the market.
Moreover, these findings are in agreement with De soto„s argument that, the informal sector
grows because traders try to avoid the cost of formality in terms of strict rules and regulation,
taxes, time and effort involved in complying with formal state procedures (De Soto 1989).
From the fig 5.1 it can be realized that street vendors in the CBD of Kumasi, as rational
sellers tend to make economically sensitive decisions as to where to locate within the city
centre so as to obtain maximum satisfaction from their choices. In an attempt to maximize the
resources within the functional region (CBD) they tend to impede pedestrian and vehicular
movement by locating at unauthorized places in the CBD. On the other hand, the concept of
clustering of the various street vendors in each cluster also serves as incentives, thereby
enhancing continuous competition, collaboration and interdependencies of other street
vendors in each cluster.

52. 41
Figure 5.1 Street vendors’ choice of locating in the CBD of Kumasi
Source: Field Survey, 2013.
The street vendors were also asked if they would be willing to locate to functional market,
where they can operate within or outside the CBD of Kumasi. The findings revealed that 76%
of the respondents were willing to locate to functional market, where there exist suitable and
attractive customers. However 24pecent were not willing to move due to the readily market
or customers available and accessibility to market inputs on the supply side, since also 67
percent of the respondents obtain their goods within the CBD.
This means that customers usually buy their items from the streets hence they would not be
able to make substantial profit if they had to trade from the market. Moreover, spaces with
high flow of human and vehicular traffic are considered as conducive by the street vendors as
they offer them easy access to their customers, once again resulting into a positive externality
of increase market base output on the side of demand.
These findings reverberates with the findings by Morales and Cross (2007: 15) in that, „where
street markets are discouraged or repressed, vendors most often invade (illegally or
informally) the space in which to gain access to their clients‟.
This prevailing market conditions account for the reason why several satellite markets have
been constructed to ease congestion on the Central Market but some of them are underutilized
or not patronized hence the CBD is constantly characterized by uncontrolled spatial
concentration of street vending. On the other hand, they could only move if government
61
8
31
0
10
20
30
40
50
60
70
attraction of
customers
availability of access
road
lack of suitable
attractive sites
Location decision of Street vendors in
the CBD
Percent

53. 42
would build more markets within the CBD, however, this is not possible for the reason that
most of the land has been taken up by other developments. These findings show how the
Kumasi Planning Authorities zonal policies do not take into consideration the needs of street
venders but rather leave the land use capacity to be determined by the forces of demand and
supply. The approach to planning also encourages unplanned and uncontrolled clusters.
5.4 Reasons for choice of Trading Location in the CBD.
Traders have different reasons for choice of trading location. Below is Fig 5.2, which shows
that street vendors sell from the streets due to easy access to customers and nonpayment of
rentals. It is realized that, street vendors do not see order and security and having a clean
environment as motivating enough for them to trade from formal market infrastructure. They
consider access to customers and non payment of taxes as imperative, thus they choose to
remain in the streets. Furthermore, they are focused on meeting their immediate needs and
issues of sanitation and security become secondary. Thus, having easy access to customers
enables the vendors to make more money in the streets, thereby having more competitive
advantage over the formal market traders.
Figure 5.2 The Rationale behind of Street Vendors for locating in the CBD
Source: Field Survey, 2013.
The choice by vendors to locate their activities at specific areas in the CBD of Kumasi
Metropolis is influenced by a number of factors. These factors, although are general among
the various street vendors, they provide certain advantages that are peculiar to the traders in
25
55
20
0
10
20
30
40
50
60
availability of trading
space
accessibilty to
market threshold
non payment of
rentals
Rationale for location in the CBD by
Street vendors
Percent

54. 43
each cluster of activity. These factors and how they influence the various enterprises have
been discussed below;
5.4.1 Locations closer to or along major road networks.
 Within the CBD of Kumasi Metropolis, it was observed that all the vendors
interviewed were located along the Okomfo Anokye and Osei Tutu Road, Afia
Kobi Ampem arterial Road and Zongo road. Actually, these road corridors
harbour the largest concentrations of street vendors.
 To the food stuff vendors and bread sellers, mobile phone vendors and
secondhand clothing and shoe vendors, these areas were considered appropriate
because;
 Such locations offer strategic advantages for close proximity of different potential
market both on demand and supply of output and inputs respectively. As in the
case of vendors located along the Afia Kobi Ampem and Zongo road who deals in
foodstuffs and grocery. This is exhibited to attract adequate patronage by both
pedestrians and motorist that ply the roads.
 They are relatively closer to the sources of bulky goods. Such goods include
secondhand clothings and shoes all located in the central market along the
railways area within the CBD.
 On the part of mobile phone vendors and dealers in accessories, who deal in
similar goods and services, such co-locations within the CBD are the best;
The Afia Kobi Ampem arterial road and Zongo road by their hierarchy are plied by high
volumes of all forms of vehicular traffic and therefore provide adequate number of customers
needed to consume the services they provide.

55. 44
Plate 2a: shoes and sandal vendors along Zongo Road, Central Market.
Plate 2b: Provision and grocery vendors Along the Okomfo Anokye Road.
Source: Survey on street vendors; Kumasi Metropolitan Assembly, 2010.
5.4.2 Locations within or closer to existing agglomerations of similar clusters.
Due to the complementary nature of the services that these vendors provide, they are often
found in groups of the same or similar activity types. During the survey, it was observed that
operators such as Food stuffs and bread sellers, provision and grocery, mobile phones and
accessories, sandals and second hand clothing were either located on the same premises in

56. 45
clusters or in few distances away from each other. About 61 percent of the vendors were
reported having been attracted to their locations because they identified existing enterprises
that their activities could thrive on and the vice versa.
5.4.3 Location in close proximity to lorry parks, taxi ranks and market
Since these vendors depend on other activities to survive, locations such as those closer to
existing transport infrastructure such as lorry terminals and taxi ranks are also preferred by
operators. This was the case for clusters of provision and grocery, foods stuff and bread
sellers that were interviewed at Kejetia. There exist a number of clusters which include the
bread sellers, groceries and provisions they do occupy pedestrian walk way under the
management of Fredko LD limited. Hence these vendors had been attracted by the strategic
location of the bus terminal. Similarly, some street vendors were found located in close
proximity to the central market due to the source of material for trade.
5.4.4 Nature of Tenure and Access to land by Street vendors
With respect to urban economics principle, such urban lands yield economic rent, hence
must be put to the best and highest use. One therefore would identify easily that these street
vendors are engaged in an unfavorable competition with these high biding land uses. These
forces of demand and supply(market induce eviction) in the market sometimes make it
impossible for vendors who do not have enough money to bid higher rents being charged by
land owners to acquire suitable land to locate their activities.
Consequently, these vendors who have not been provided with properly allocated sites by the
metropolitan authority end up encroaching on public space or right of way marginalised
spaces and places considered dangerous and unauthorised for any form of human activity
with the view of settling on such premises temporarily. This was actually the case for all the
areas within the CBD of Kumasi Metropolis where the various types of street vending
activities are located.
It was gathered that whereas as some of the vendors located at the Kejetia Lorry terminal
belong to Fredko Ld limited and the others at these same locations are located infront of large
retail shops in Adum and Central Market. The cluster of street vendors within these areas was
interviewed.
These vendors in effect cannot and do not acquire permit of occupation from the
Metropolitan Assembly. In fact, it was revealed that over 99 percent of the operators did not