Chief Executive Officer of Coconut Grove Regency Hotel, Mr Ralph Ayitey.
The National Treasurer of the Association of Ghana Industries (AGI), who’s also the Chief Executive Officer (CEO) of Coconut Grove Regency Hotel, Mr Ralph Ayitey, has called on the government to deliberately set out targeted interventions to formalize the operations of Ghana’s informal sector.
Speaking at the launch of the 2025 Integrated Business Establishment Survey (IBES) report by the Ghana Statistical Service, Mr Ralph Ayitey said Ghana’s informal sector, which accounts for approximately 92% of all commercial enterprises and employs about 65.3% of the active labour force, is in dire need of targeted interventions to formalize its operations.
He emphasised that the informal sector’s significant contribution to Ghana’s economy, estimated at around 35.6% of the country’s GDP, is often underestimated due to a lack of reliable data.
He’s thus of the view that the IBES report, which aims to bridge this data gap, providing valuable insights into both the formal and informal sectors, is in the right direction, and commended the Ghana Statistical Service for the initiative, which was supported by AGI.
“It should therefore give us an idea of the number of businesses outside the tax net,” Ayitey stated. “There should be targeted interventions to help formalize the operations of the informal sector, since a growing informal sector will not inure to the benefit of our fiscal policies.”
To address the challenges faced by the informal sector, Mr Ayitey recommended a multi-sectoral approach, involving the Ministry of Food and Agriculture, Trade, Agribusiness and Industry, and the Ministry of Tourism. He also suggested that the Statistical Service consider developing bankable proposals to support agri-businesses and other informal sector enterprises.
“I wish to recommend that with the Statistical Service being the tip of the tip, let’s start developing bankable proposals to Ghanaians to follow through,” Ayitey said. “This must involve the Ministry of Food and Agric, Trade, Agribusiness and Industry, and the Ministry of Tourism as well.”
Mr Ayitey stressed the need to make doing business in the formal sector more attractive and accessible to informal sector operators. This could involve simplifying the process of formalization, reducing costs, and providing incentives for businesses to register and comply with tax laws.
“If there is enough motivation for informal sector businesses to formalize their operations, I believe tax revenue mobilization will be a lot easier for our tax authorities,” Ayitey noted. “It pays to operate a well-structured business, but from a practical perspective, I believe a lot more ought to be done in terms of the ease and cost of doing business in the formal sector to serve as a motivation to those outside the formal sector to formalize.”
By formalizing the operations of the informal sector, Mr Ayitey believes Ghana can increase tax revenue, improve economic productivity, and create more jobs. “Let us increase public dialogue to explore some of our data needs as a country to help in determining what is acceptable from a national standpoint.”
Ghana’s Poultry Industry
He particularly highlighted the potential of Ghana’s poultry sector and yet the enormous challenges it faces.
Ghana’s poultry sector has been facing significant challenges in recent years, with imports of frozen chicken dominating the market. According to Mr Ralph Ayitey, Ghana consumes around 600,000 heads of imported chicken per day.
“This is a staggering number, and it’s a clear indication that our local poultry industry is struggling to meet demand,” Ayitey said. “We need to ask ourselves why we are importing so much chicken when we have the potential to produce it locally.”
He emphasised that Ghana has the potential to become self-sufficient in poultry production, but this requires a concerted effort from stakeholders, including the government, farmers, and industry players.
“We need to support our local farmers and provide them with the necessary resources and incentives to increase production,” Ayitey stressed. “We also need to address the issue of high production costs, which makes it difficult for our farmers to compete with imported chicken.”
Ayitey suggested that the government consider introducing policies to protect the local poultry industry, such as tariffs on imported chicken or incentives for local farmers to increase production.
“We need to make eating local chicken fashionable again,” Ayitey said. “We need to promote our local poultry industry and encourage Ghanaians to support our farmers by buying local chicken. This will not only help to reduce our reliance on imported chicken but also create jobs and stimulate economic growth.”
Ayitey also highlighted the potential for poultry farming to contribute significantly to Ghana’s economy. “An acre of land can be used to build a 6-storey poultry farm, which can be more economically profitable than an 8-storey apartment block,” he noted. “We need to think outside the box and explore innovative ways to support our local industries.”
By supporting the local poultry industry, Ghana can reduce its reliance on imported chicken, create jobs, and stimulate economic growth. As Ayitey concluded, “Let us work together to promote our local poultry industry and make Ghana self-sufficient in chicken production. We owe it to ourselves, our farmers, and our economy.”
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
