Only 7.7% of Ghanaian Businesses Operate Formally – GSS

ACCRA, Ghana — About 92 per cent of businesses in Ghana operate in the informal sector, highlighting the challenge of formalising the country’s predominantly small-scale business economy despite significant growth in the number of establishments over the past decade.

The figures were disclosed by Government Statistician Dr Alhassan Iddrisu during the launch of the Ghana in Numbers 2025 publication by the Ghana Statistical Service (GSS) in Accra on October 29, 2026.

According to the Service’s first Integrated Business Establishment Survey (IBES-1), Ghana recorded approximately 2.64 million business establishments in 2024. Only 7.7 per cent were classified as formal, leaving the overwhelming majority operating informally.

The findings point to a business environment dominated by micro-enterprises, which account for about nine out of every 10 establishments nationwide.

Business growth outpaces employment expansion

Although the number of business establishments nearly tripled between 2014 and 2024, the number of people working in them doubled over the same period, according to the Government Statistician.

The difference raises questions about the capacity of business expansion to generate enough jobs and provide sustainable livelihoods for Ghana’s growing workforce.

The report comes amid continuing concerns about youth unemployment and the availability of productive employment opportunities. Dr Iddrisu noted that more than seven out of every 10 jobs in Ghana remain informal, while young people continue to face significant barriers to entering the labour market.

Informality presents challenges for businesses and policymakers

The predominance of informal businesses can make it more difficult for authorities to identify enterprises, assess their activities and design support programmes that meet their needs.

Businesses operating outside formal registration and record-keeping systems may also face difficulties accessing certain forms of financing, business development support and opportunities to expand into larger markets.

A policy brief published by the International Growth Centre in February 2026 identified widespread informality as a persistent challenge in Ghana, examining approaches such as simplified registration procedures, fee waivers and information workshops to encourage businesses to formalise.

However, moving businesses into the formal sector requires more than registration alone. Measures that reduce administrative burdens and make formalisation worthwhile for small enterprises could help encourage participation.

Informal trade remains economically significant

The GSS findings also shed light on commercial activities that are not fully captured by conventional trade statistics.

According to the newly reported figures, informal cross-border trade involving Ghana and neighbouring Togo, Burkina Faso and Côte d’Ivoire was valued at GH¢38.4 billion.

The figure highlights the scale of economic activity taking place through informal trading channels and the importance of improving data collection to support economic planning.

Call for evidence-based business support

The Ghana in Numbers 2025 publication and its accompanying online portal are intended to provide national and district-level statistics to help policymakers, investors and other stakeholders make informed decisions.

The latest business figures underline the need to connect enterprise growth with improved productivity, job creation and stronger opportunities for small businesses to expand.

For Ghana, the challenge is not simply to increase the number of businesses but to help more of them develop sustainable operations, create decent employment and contribute more effectively to the formal economy.