80% of Ghanaian economy controlled by informal sector

Eighty per cent of Ghana’s economy is controlled by the informal sector, an economic expert has noted, according to a report by the GNA.

According to Dr. Nii Moi Thompson who is also the representative of the International Labour Organisation (ILO) 90% of people working in the formal or private sector are women.

Dr Thompson said the ILO had been supporting the expansion of the private sector because of its importance to the economy. He therefore, urged Ghanaians to be time conscious, quoting the adage that “time is money”.

The informal or private sector as opposed to state-owned enterprises has been noted as an integral part of the Ghanaian economy, but it appears government simply pays lip service to its development.

While it is considered the “engine of growth” it has received very little attention, it is literally left to fend for itself in a chaotic situation. Indeed, only the fittest in the informal sector have survived.

Some of the known challenges that face the informal sector in Ghana are regulatory barriers, inability to access credit, lack of sufficient and relevant information for business decision and lack of competent human resources.

The problem of dumping is also a big challenge leading to the collapse, particularly of the country’s textile industry.

By Emmanuel K. Dogbevi