Over 90% of Ghana’s businesses remain informal despite sector growth – GSS

Ghana’s business sector has expanded significantly over the past decade, but employment creation has not kept pace, with only 7.7% of businesses operating formally, Government Statistician Dr Alhassan Iddrisu has disclosed.

Speaking at the launch of the maiden edition of Ghana in Numbers 2025 in Accra, Dr Iddrisu said the findings highlight persistent challenges in business formalisation and the sector’s capacity to generate jobs.

Data from the publication show that Ghana had 2.64 million businesses in 2024, of which only 7.7% were classified as formal.

Micro enterprises accounted for 9 in 10 businesses, underscoring the dominance of small-scale operations in Ghana’s business landscape.

“Establishments nearly tripled between 2014 and 2024, while the people working in them doubled,” Dr Iddrisu said.

 

He noted that the figures show businesses are growing in number faster than employment opportunities, raising questions about the sector’s ability to create jobs at a pace that matches its expansion.

Although Ghana’s unemployment rate declined from 14.6% in 2023 to 12.8% in 2025, Dr Iddrisu said more than 70% of jobs remained informal.

The findings highlight the need for measures to support business formalisation and improve the quality and sustainability of employment.

Informal cross-border trade worth GH¢38.4bn

The report also highlights the scale of informal cross-border trade, much of which has remained outside conventional trade statistics.

According to Dr Iddrisu, Ghana’s first survey of informal cross-border trade recorded GH¢38.4 billion worth of goods traded informally with Togo, Burkina Faso and Côte d’Ivoire.

He said the value was equivalent to 1.4 times the previously recorded trade flows with the 3 neighbouring countries, pointing to significant commercial activity that had not been adequately captured in official records.

Ghana also recorded a goods trade surplus of GH¢148.3 billion in 2025, with exports exceeding imports.

Publication seeks to strengthen evidence-based decisions

 

Beyond business and trade, Ghana in Numbers 2025 brings together statistics on population, social development, governance, the environment and the Sustainable Development Goals in a single publication.

Dr Iddrisu said the publication was designed to provide a common evidence base for policymakers, businesses and other stakeholders to guide decision-making.

“When we have our cabinets, parliaments, boardrooms, and newsrooms working from the same figures, the debate moves from whose figures are right to what do we do about them,” he said.

The publication is also supported by a web portal that provides district-level data, interactive maps and downloadable statistics.

Dr Iddrisu said the ultimate objective was to ensure that statistics inform decisions and deliver measurable development outcomes.

“A statistic changes nothing until someone acts on it,” he said.

Source: Joy Business News