Region: Western Africa Regional Economic Communities (REC): CEN-SAD · ECOWAS

→ View IIAG Country Statistics

(To be linked)

• CEN-SAD
• ECOWAS

Ghana’s informal economy constitutes a significant portion of employment:

• Estimated 70%–80% of total employment
• Particularly dominant in:
  • Trade
  • Agriculture
  • Services

The informal sector plays a central role in:

• Urban livelihoods
• Youth employment
• Small enterprise activity

Ghana operates a mixed legal system, combining:

• Common law
• Statutory law
• Customary law

Ghana has been a member of the International Labour Organization (ILO) since 1957.

The country actively participates in the Decent Work Agenda, including national strategies focused on:

• Employment creation
• Social protection expansion
• Labour rights enforcement

The core legal framework is:

Labour Act, 2003 (Act 651) → Labour Act, 2003

This Act:

• Regulates employment relationships
• Establishes minimum labour standards
• Provides for dispute resolution mechanisms

Ghana has also developed a National Social Protection Strategy (2013):

→ National Social Protection Strategy

Key features:

• Expansion of social protection coverage
• Targeting vulnerable and informal workers
• Integration of poverty reduction and labour policy

Ghana demonstrates a relatively developed regulatory framework, combining:

• Labour legislation
• Sector-specific regulation
• Social protection policy

However:

• Informality remains widespread
• Enforcement challenges persist

Labour Act, 2003 (Act 651) → Labour Act

Labour (Domestic Workers) Regulations, 2020 (L.I. 2408) → Domestic Workers Regulations

Key features:

• Formal recognition of domestic workers
• Regulation of:
  • Working conditions
  • Wages
  • Rest periods
• Extension of labour protections to a traditionally informal sector

This represents a strong formalisation approach.

Local Government Act, 1993 (Act 462) → Local Government Act

Key features:

• Municipal regulation of trading spaces
• Licensing requirements
• Urban governance oversight

Reality:

• Street vending widely practiced
• Enforcement varies across municipalities

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Labour Act, 2003 (Act 651) → Labour Act

National Social Protection Strategy (2013) → Social Protection Strategy

Key features:

• Application of general labour standards to agricultural workers
• Social protection inclusion strategies

Challenges:

• Informality in rural labour markets
• Limited enforcement in dispersed settings

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Ghana’s position within ECOWAS facilitates:

• Regional trade mobility
• Informal cross-border trading networks

However:

• Regulation remains limited
• Informal trade persists outside formal customs frameworks

• IIAG – Ghana: https://iiag.online/locations/gh.html
• Labour Act, 2003: https://www.gipc.gov.gh/wp-content/uploads/2023/05/LABOUR-ACT-2003-ACT-651.pdf
• Labour (Domestic Workers) Regulations, 2020: https://natlex.ilo.org/dyn/natlex2/natlex2/files/download/111530/GHA111530%20Eng.pdf
• Local Government Act, 1993: https://faolex.fao.org/docs/pdf/gha91927.pdf
• National Social Protection Strategy (2013): https://www.mogcsp.gov.gh/mdocs-posts/Ghana-national-social-protection-policy