This article highlights key points from the fourth edition of the YAFO Institutes 2024 policy dialogue series focused on Ghana’s unemployment challenge and strategies to support entrepreneurs and retain talent for development. It was organized by YAFO Institute, an independent public research organization or think-tank with the core aim of promoting libertarian ideas and free enterprise research through public policy debate and advocacy for a prosperous society in Ghana on May 1, 2024. Here are the main takeaways:
Analysis and Insights
This dialogue covered a range of topics including, the growth of Ghana’s economy, its GDP (Gross Domestic Products- Things created in Ghana and sold outside the country) and GNP (Gross National Products- Things produced and patronized by Ghanaians) values, and how it can translate to employment and economic growth. The speaker and panel emphasized on the value of GDP to job creation, the generation of capital for startup business opportunities, and the educational system and its impact on unemployment.
- One of the key takeaways from this Dialogue is that both GDP and GNP have significant values and keep growing in both the private and public sectors but these values do not translate to economic growth, most importantly employment in the country as the population also keeps growing.
“If majority of GDP comes from GNP, then it is expected that the citizens of the country create better systems for Ghanaians to reduce unemployment, but citizens are more interested in saving their capital instead of investing it into the economy to reduce unemployment”
Dr. Amos Mensah
- Another key takeaway is as the population increases, natural resources are exploited and extracted at a rapid rate. These activities generate money but the money is not being used to create employment opportunities in the country in both private and public sectors to absorb unemployment among the youth. Rapid exploitation of natural resources generates money but doesn’t create enough employment opportunities, leading to a surplus of low-skilled labor.
“There is a mismatch between the quality of human resource, the availability of jobs and the country’s educational system”.
Dr. Amos Mensah
- There is also the Tertiary or bio-product where the skilled professionals do not use their skills to increase productivity to enable more employment creation because a productive organization will need more hands and skills as it grows.
“‘They use their skills and expertise to deplete figures, to steal, to bully and monopolize, and to show off”.
Dr. Amos Mensah
- Again, the economy is having a major structural challenge where the basic structures for entrepreneurs to grow and prosper are not in place. This results in the collapse of most businesses and tends to destroy the entrepreneurial spirit.
This is the biggest challenge for addressing unemployment and this has to do with the environment (structural and cultural) in which entrepreneurs and job creators find themselves. The link between infrastructural facilities like road, rails, water, schools, hospitals, etc. is critical in curbing the unemployment challenge.
‘This major structural challenges in terms of infrastructure, policy makers and agents that needs to interact with entrepreneurs to enhance their works rather becomes obstacles and destroys the entrepreneur spirit’.
Dr. Amos Mensah
‘Infrastructural facilities like good roads, portable drinking water, electricity or a stable source of power are instrumental to the growth of businesses but we do not have them. Our unemployment issues cannot change unless some of these things change’.
Mr. Precious Mondial
- Government interventions like NABCO and Planting for Food and Job were created to address unemployment but by design, implementation is poorly done. People only see and use these avenues for corruption and nepotism. Private-public partnerships are not working in the country because there are no professionals and expertise to handle and direct these partnerships.
‘Government institutions look mostly at what they are going to gain from these partnership’.
Kweku Asamoah Jnr
The Way Forward
In addressing the above challenges, the youth with innovative ideas must get access to capital and this is a big challenge. Incentives to provide access to finance should be made available by the government. With this, the citizens also need to change and renew their minds about these government incentives being free.
These incentives should be used to develop entrepreneurs who intend to make profits and pay back through taxes so that others will also have access and the cycle is not broken. In the light of taxes, these taxes should also be reasonable and not exploit the organization or entrepreneur as it leads to the collapse of these businesses.
There should also be a national development plan where there is an application for the determination of who is an entrepreneur or not. These institutions should be transparent and accountable to test and evaluate entrepreneurial ideas to receive incentives for startups and growth. These plans will also help in regional developments.
Opportunities for talent retention are not in place because quality is not considered in most organizations – public and private. People have to pay monies to secure jobs even when they qualify, this pushes people to leave the country and offer their services in places that will value their quality and talents. It leaves these organizations to employ the underqualified because they can pay those monies and this affects productivity.
Again, the nature of an environment will tell whether talents can be retained in the country. This goes on to ensure that infrastructure and social amenities must be put in place for talent retention. Positions based on political affiliation must also be trashed out as it breezes corruption and nepotism.
‘Inflation also affects talent retention as people want to have value for their monies’.
Kweku Asamoah Jnr
When it comes to youth empowerment, the educational system is not equipping the youth with the necessary training to survive in the current economy. The education system should be reformed to ensure the necessary passage of knowledge and skills. The education system should be more focused on the practical aspects to fit into the job markets.
Conclusion
This policy dialogue offered valuable insights and practical advice for curbing unemployment and retaining talent and skills in both the private and public sectors.
In my own opinion, both policymakers and civil servants need a renewal of mind toward the growth and prosperity of entrepreneurs in the country. We need to unlearn, relearn, and reform our educational system and also put in place the best environment for the growth and development of skills and businesses. Again, we mustn’t put people in positions because of political affiliates as this results in corruption, nepotism, lack of skills, and technical know-how for tasks to be performed. Doing this will also bring about transparency and accountability in implementing policies that will curb the increasing rate of unemployment in the country.
Click here to watch the recorded episode on our YouTube channel.
Article by
Josephine Boi-Doku
She is a graduate of the University of Ghana, Legon, with a B.A. Philosophy and Sociology. She is a policy scholar and passionate about positively impacting Ghanaian society with her studies.
