In Ghana, the informal sector contributes greatly to the economic development of the country. As compared to the formal sector, it is characterized by more than 50% of the country’s working population.
Following recent commentaries on the contributions of the informal sector, Financial Analyst, Mr. Daniel Anim, has called on government to pay more attention to the Sector especially during the COVID-19 era.
According to him, the informal sector is very critical to national development and overlooking it will be injurious to the national economy.
He suggested that government should make efforts to formalize the informal sector rather than concerntrating more on receiving taxes from them.
Government should not focus on mobilizing resources from the informal sector in the form of taxation but should come up with policies that will ensure the formalization of the informal sector”
He also advised government to device mechanisms to collect adequate data on the informal sector which will inform decisions in planning development modules and taxation strategies.
“As a Government if you are not focusing on how to grow the informal sector, building giants in the sector and not collecting accurate data to inform your planning, then you will crash”
80 percent of the Ghanaian workforce is employed in the informal sector. The sector is characterized by underemployment, bad working conditions, uncertain work relationships and low wages.
The majority of people are living with high income insecurity.
Paa Kweku Eshun Talksafrica.com