A recent survey by the Ghana Statistical Service (GSS) has revealed that a staggering 92.3% of businesses in Ghana operate informally, leaving only 7.7% within the formal sector.

0

The findings, captured in the 2024 Integrated Business Establishment Survey, highlight the challenges posed by the dominance of informal enterprises, particularly their lack of registration and financial records.

1

Government Statistician, Professor Samuel Kobina Anim, shed light on the issue, stating:

2

"Based on the total number of establishments that we counted, about 92.3% are in the informal sector. The definition of informal sector, chair, distinguished ladies and gentlemen, is that they are not registered and they do not keep any formal accounts. You cannot track them, you cannot follow through them, you cannot give them interventions.

3

"Our Registrar General’s Department doesn’t have information on them. Even if you have information on them, they do not have the capacity to keep any formal accounts. Chair, the striking message here is that in as much as we know the economy is informal, we have consolidated our informal position.”

4

The report also indicated that over 1.2 million new businesses were established between 2014 and 2024, though many struggle with low annual revenues.

5

In terms of sectoral distribution, 10.7% of privately owned businesses in the services sector are formal—over six percentage points higher than the industry and agriculture sectors.

6

Moreover, 55% of large and medium-sized privately owned enterprises operate formally, whereas a vast majority—over three-quarters—are in the services sector. Notably, businesses owned by non-Ghanaians have the highest proportion of formal establishments, accounting for 86.9%.

7

Regionally, Greater Accra tops the list for formal business operations, with 12.8% of privately owned businesses in the region being registered.

8