Ghana’s economic growth continues to be heavily reliant on the mining and oil sectors, raising concerns about the country’s slow structural transformation and limited job creation. Experts have warned that this overdependence is hindering the broader economic development necessary for long-term growth.
At the launch of the Productivity, Employment and Growth Report in Accra on February 24, 2025, Government Statistician Prof. Samuel Kobina Annim highlighted the need for Ghana to reassess how labour and capital are utilised across all sectors. He pointed out that while productivity has increased over the past three decades, much of this growth has been driven by extractive industries, which significantly contribute to GDP but offer limited employment opportunities.
“The data shows that while productivity has increased, much of this progress is confined to the mining sector, which does not generate enough employment opportunities,” Prof. Annim stated. He emphasised that to achieve a substantial increase in GDP, from GH₵48.2 billion to GH₵96.4 billion, the country must rethink its approach to combining labour and capital efficiently across all industries.
Prof. Annim further explained that productivity is not solely about output per worker but about how labour and capital can work together to create more value. He urged for regular reporting on productivity to assist policymakers in understanding its relationship with earnings and sectoral performance.
The report from the Ghana Statistical Service (GSS) revealed that labour productivity in the country has surged by 240 percent since 1991, surpassing the average for lower-middle-income countries. However, this increase in productivity has not been accompanied by broad structural transformation. Growth remains concentrated in a few capital-intensive sectors, particularly mining, while other sectors such as manufacturing, commercial agriculture, and utilities, which are crucial for industrialisation, have grown at a slower pace.
Labour economist Prof. William Baah-Boateng from the University of Ghana emphasised that while Ghana has maintained economic growth, it has not yet achieved the necessary transformation to create a diverse and dynamic economy. He pointed out that 80 percent of the workforce remains in the informal sector, and wages have not kept pace with productivity, further complicating the issue.
According to the report, productivity in manufacturing increased by 14 percent between 2013 and 2022, yet employment in the sector grew by only 2.5 percent. Similarly, the mining and quarrying sector, which saw the highest productivity growth, did not generate any net job gains.
Prof. Baah-Boateng added that the dominance of informal employment is a key issue, as it limits workers’ ability to benefit from increased productivity. He urged policymakers to focus on enhancing labour mobility, moving workers from low-productivity sectors such as household agriculture and informal services into industries with higher wages and better job prospects.
The experts’ recommendations highlight the urgent need for Ghana to diversify its economy, reduce its dependency on mining, and foster job creation in sectors that can drive long-term growth and development.