Productivity Ecosystems for Decent Work Ghana

Enterprise formalisation takes centre stage as a bottle-neck to productivity growth in Ghana

ILO to adapt Formalise Your Business tool for pilot in Ghana’s Textile sector

News | 15 October 2023
The validation workshop for the mapping exercise on enterprise formalization in Ghana took place in Accra last week with over 50 participants. The purpose was to gather and discuss information gathered to feed into the adaptation of the ILO training tool “Formalize Your Business” (FYB) implemented in Ghana as part of the Productivity Ecosystems for Decent Work programme.

Ghana’s economy is highly informal with 83 % of employment estimated to be informal. Implementing this tool in Ghana and in the framework of Productivity Ecosystems for Decent Work programme is key as informality is seen as a key bottleneck for productivity enhancement and achieving decent work by depriving entrepreneurs from resources such as access to finance and legal protection.

Key stakeholders gather to discuss the way forward for informal enterprises in Ghana at the Informality workshop on 12th October 2023 in Accra.

The focus of this exercise is initially on the textile and garment sector, to capture the specificities linked to enterprises that are active in that sector, with the FYB launch expected early 2024. A future roll out to other sectors and other relevant institutions is planned following the pilot.

The Productivity Ecosystems for Decent Work Ghana team were present with a large number of the stakeholders who were consulted during the mapping exercise. There were representatives from social partners, key government institutions for the formalisation process (Ghana Enterprises Agency (GEA), ORC (Office of the Registrar of Companies), SSNIT (Social Security and National Insurance Trust), GRA (Ghana Revenue Authority), GSA (Ghana Standards Authority), as well as representatives from the private sector, including sectoral associations (AGAM (Association of Ghana Apparel Manufacturers) and GNAGM (Ghana National Association of Garment Makers) among others. In addition, there were also representatives from MoTI (Ministry of Trade and Industry).

UNDP also attended the event, presenting the on-going work on the forthcoming National Human Development Report (NHDR), focusing on the value of work, and emphasizing the relevance of focusing on the informal sector.

Run by ILO consultant Dr. Justina Onumah, the mapping exercise included desk research and an extensive stakeholder consultation, predominantly in Accra and Kumasi area prior to the workshop.

The Productivity Ecosystems for Decent Work Programme addresses constraints to productivity growth and decent work at the policy, sector and enterprise level. It supports the structural transformation of economies and labour markets towards more and better jobs, higher productivity, and equitable distribution of productivity gains via social dialogue. Supported by governments, employers’ and workers’ organizations in the ILO Governing Body It is being piloted in South Africa, Ghana, and Viet Nam from 2022 to 2025 with US$ 9.2 Million from the government of Switzerland through its international development arm, SECO, and US$ 7.2 Million from the Norwegian government through the Norwegian Agency for Development Cooperation (NORAD).