You are here: HomeNews2006 09 26Article 111195

Business News of Tuesday, 26 September 2006

Source: GNA

Govt braces up to challenges in the informal sector

Accra Sept. 26, GNA - Government is bracing up the challenges posed by the informal sector in Ghana's development and would provide the needed support to boost its economic growth

"Government of Ghana will leave no stone unturned and will ensure that the required and needed support is given to the informal sector in Ghana to enable it to overcome the major bottlenecks preventing the growth of the sector, Mr Abubakar Saddique Boniface, Minister of Manpower Development, Youth and Employment said on Tuesday in Accra. The Minister was opening a five-day international conference on organizing workers in the informal sector, which is under the theme: =93Combining Our Efforts.=94 The participating countries include United Kingdom, Canada, India, Nigeria and Ghana.

The conference seeks to create a platform for actors in the informal economy; trade unions; researchers; Policy makers from Africa; Asia; Latin America and Europe to share experiences and to develop strategies and to build network for informal operators.

Mr Boniface said the informal sector was for some time now receiving attention from the Government, organized labour and researchers, which was indicative of the significant role it was playing in economic development.

The Minister said on the average the informal sector constituted about 70 per cent of most economies and, therefore, its role could not be under estimated and that there was an urgent need to focus attention on it.

He said in Ghana "current statistics indicated that 90 per cent of economic activities was in the informal sector and employed the greater part of the population engaged in agriculture, commerce, construction, music and entertainment".

Sometimes working conditions are oppressive and dangerous, whiles some engaged in child labour, and were either exploited and or had no social protection.

Mr Boniface said that was why Ghana passed the Labour Act 651 and had ratified 146 of the International Labour Organisations (ILO) Conventions.

Observance of labour rights in both the informal and formal economy largely depended on effective labour inspection systems that would ensure that the workers rights relating to wages, safety and health, environmental welfare were complied with, he said. "Government has recognized the lapses in labour inspection and is taking concrete steps to address the problems." Mr Kwasi Adu-Amankwah, Secretary-General of Ghana Trades Union Congress (TUC), in welcoming the participants, urged governments to design specific policies that would promote the activities of the informal sector.

He said the formal sector was not expanding fast enough to employ, excess labour which has led to unemployment and those engaged in the informal sector lacked social security, work in poor sanitary conditions and some street vendors faced constant threats from Municipal Authorities.

Mr Adu-Amankwah said though the Ghana TUC faced those challenges, it was committed to organizing and mobilizing those in the informal sector so as to "give a voice to the voiceless." 26 Sept. 06