Networks, distance, and trust: Telecommunications Development and changing trading practices in Ghana

SummaryGhana liberalized its telecommunications sector in 1995. This article examines the impact of the phenomenal growth in access to cell phones on informal traders’ business practices. The study demonstrates how these “telecommunication pioneers” have changed their mode of operation to reduce both transportation and transaction costs. It is argued that traders with access to tools for more efficient communication over long distances provide better services and create a higher profit potential than others. It is further argued that adoption of new technology enhances trust building in trade networks, thus facilitating a higher number of transactions in an uncertain economic environment.