Free Market Solutions to Streetism: Empowering Adult Street Hawkers in Ghana

Executive Summary

Streetism, characterized by the presence of vulnerable children and youth living and working on the streets, is a pressing social issue in Ghana. While often viewed as a problem of children, a large and growing population of young adults—including kayayes and street vendors—is trapped in this cycle of poverty, which perpetuates “second-generation streetism.” Existing non-governmental efforts are not enough to address this systemic issue.

This brief argues that a free-market approach is the most effective solution. By equipping adult street hawkers with financial literacy and business skills, and by creating a supportive economic environment, these individuals can transition from survivalist hawking into formal Micro, Small, and Medium Enterprises (MSMEs). This strategy is a sustainable way to reduce streetism at its root cause and foster long-term economic empowerment.

The Problem: The Vicious Cycle of Streetism

An estimated 61,492 children are on the streets of Accra alone, struggling to survive. A significant number of them are from the Northern Region of Ghana, highlighting the role of internal migration and financial instability in driving streetism. While some children hawk on the streets, a large population of young men and women do so out of necessity.

For these adults, street hawking is a means of survival, but it leaves them vulnerable to financial instability and exploitation. This is not just an individual problem; it creates a cycle where these street parents raise the next generation of street children. To truly break this cycle, we must address the root cause of poverty by empowering the adults who are trapped in it.

Analysis & Key Findings

Current efforts by non-governmental organizations and charities, while helpful, are insufficient to address the scale of the problem. A broader, systemic solution is required. This policy brief proposes that the solution lies not in charity but in empowerment through economic freedom.

• From Hawkers to Entrepreneurs: The primary finding is that a large number of street hawkers possess an entrepreneurial spirit. They are already engaging in trade, but they lack the necessary financial knowledge and systemic support to grow their operations. With the right tools, they can transition from informal survival to formal business ownership.
• The Link to Poverty: Research shows that child poverty is a major cause of streetism. By empowering adult hawkers to lift themselves out of poverty, we directly address the conditions that lead to children being on the streets.
• A Sustainable Solution: Unlike temporary aid, a free-market solution fosters self-sufficiency and economic resilience. It invests in human capital to generate sustainable livelihoods, thereby reducing the burden on both individuals and the state.

Policy Recommendations

The government, in collaboration with the private sector, should focus on the following to empower adult street hawkers and reduce streetism in Ghana:

1. Promote Economic Freedom: The government must develop a robust economic system that embraces the principles of free enterprise, free competition, and private property. By creating a stable and predictable economic environment, the state can encourage domestic capital development and raise the standard of living for the poor.
2. Lessen the Economic Burden on Small Businesses: To encourage private sector growth and formalize informal enterprises, the government should implement tax incentives and simplify business registration processes for small ventures. This will encourage more street hawkers to transition into registered MSMEs.
3. Implement Financial Literacy and Skills Training: The government and the private sector should collaborate to create targeted programs that equip vulnerable youth with essential financial literacy and business skills. These programs should provide practical knowledge on managing finances, accessing micro-credit, and leveraging technology to grow a business.

Conclusion

By promoting economic freedom and investing in the financial well-being of adult street hawkers, Ghana can effectively address the root causes of streetism. This approach offers a pragmatic, sustainable path to reducing the cycle of poverty by empowering individuals to become self-sufficient entrepreneurs.

Let us join forces to invest in a brighter, more prosperous future for Ghana, one where everyone has the opportunity to thrive.

References

• Afful, H. (2014). The increasing Case Of Street Children. www.gbcghana.com.
• SCEF. (2016). Streetism in Ghana – assessing the situation and moving forward! SCEF.
• Chance for Children. (2014). Census. (PDF). www.chance-for-children.org.
• Quarshie, E. (2014). Figure 2. Key causes of street children in Accra as Identified by Shopkeepers and School children. ResearchGate.
• Davis, J. (2008). Selling Wares on the Streets of Accra: A Case Study of Street Hawkers in Ghana’s Capital. Focus on Geography, 51(3), 32–36. https://doi.org/10.1111/j.1949-8535.2008.tb00231.x