The core of the issue lies in the slow pace of movement from unpaid household work to wage employment, a key metric within the STEG framework. The research, published in 2025, demonstrates a consistent failure of women, and to a lesser extent men, to transition from primarily contributing to domestic production to employment within formal market sectors. Data collected over the past decade shows only marginal shifts, with the vast majority of the population remaining engaged in activities – largely agricultural – that yield primarily subsistence outcomes. This translates into a dependency on primary commodity exports, vulnerability to fluctuating global prices, and an inability to generate the dynamic growth engines required for genuine structural transformation. The STEG project, designed to catalyze this shift through investments in education, infrastructure, and private sector development, has demonstrably fallen short of its stated goals.
Historical Context: Colonial Legacies and Persistent Patterns
Ghana’s economic evolution has been shaped by its colonial past. British control, primarily focused on cocoa production, fostered an economy reliant on single-crop exports and limited diversification. Following independence in 1957, successive governments continued this pattern, with cocoa remaining the dominant export and the economy heavily dependent on external demand. The legacy of this system, coupled with limited investment in diverse industries, has created a structural bottleneck. Furthermore, traditional social structures, deeply rooted in kinship and extended family obligations, have reinforced a system where women’s labour is primarily focused on household production – including food preparation, childcare, and textile manufacturing – rather than wage employment. “The colonial period established a foundation of extractive industries and a predominantly agricultural economy,” notes Dr. Evelyn Thompson, Senior Research Fellow at the Institute for Economic Affairs, in a 2024 report. “This has had a lasting effect on labor market dynamics, with a cultural expectation of women’s primary contribution being within the home.”
Key Stakeholders and Motivations
Several key actors contribute to this complex situation. The Ghanaian government, while committed to economic diversification, faces considerable constraints, including limited fiscal capacity and political challenges. The World Bank and IMF, as primary lenders and advisors, have historically favored policies promoting export-led growth, often prioritizing macroeconomic stability over industrial diversification. International cocoa buyers exert considerable influence over pricing and supply chains, further exacerbating the vulnerability of the Ghanaian economy. Within Ghana itself, powerful traditional chiefs and influential families retain considerable control over land and resources, hindering investment in new sectors. “The lack of broad-based ownership and participation in the economy, particularly among rural populations and marginalized groups, is a key impediment to structural transformation,” argues Professor Kwame Nkrumah, Head of Development Studies at the University of Ghana. “Political patronage and entrenched networks continue to shape investment decisions and limit opportunities for genuine economic progress.”
Recent Developments (Past Six Months – 2024-2025)
The past six months have witnessed continued challenges. Cocoa prices have remained volatile, placing immense pressure on Ghana’s export revenue. Government efforts to promote value-added processing of cocoa have faced significant obstacles, including inadequate infrastructure and bureaucratic hurdles. The 2025 STEG policy brief identifies a critical need for improved access to microfinance and technical training for small-scale entrepreneurs, yet implementation has been slow. Moreover, the rise in artisanal mining—often unregulated and environmentally damaging—represents a significant diversion of labor from more productive sectors. Data from the Ghana Statistical Service indicates a slight increase in migrant workers seeking opportunities in Nigeria and Côte d’Ivoire, driven by limited employment prospects within Ghana.
Future Impact & Insight (Short-Term – 6 Months; Long-Term – 5-10 Years)
Short-term (next 6 months), the situation is likely to remain precarious, with Ghana continuing to rely heavily on cocoa exports and vulnerable to external economic shocks. The potential for increased social unrest remains a significant concern, particularly if economic conditions worsen and unemployment rates rise. Long-term (5-10 years), if no significant policy interventions are implemented, Ghana risks becoming trapped in a low-growth, resource-dependent economy, furthering regional instability. The continued lack of diversification poses a threat to Ghana’s alliances with countries like China, who are increasingly prioritizing partnerships with nations demonstrating robust economic growth and diversified economies. A failure to address the labour transition issue could contribute to heightened competition for resources and, ultimately, exacerbate tensions within West Africa.
Call to Reflection
The Ghanaian experience serves as a critical case study for policymakers grappling with the challenges of structural transformation in developing economies. The persistent barriers to labour market diversification highlight the importance of considering not just economic growth targets, but also the social, cultural, and political dimensions of structural change. The data reveals a systemic failure to adequately address the needs and aspirations of the majority of Ghanaians, demanding a renewed commitment to inclusive growth and sustainable development. We must ask ourselves: what are the broader implications of these labor market dynamics for regional stability, and what strategies can be employed to foster a more equitable and resilient future?