Dignified Trade: Removing Barriers for Informal Sector Workers (DTRBISW)

This project seeks to enhance human dignity and economic freedom in Ghana by actively advocating for public policy reforms that reduce the systemic barriers faced by informal sector workers.

About the Dignified Trade: Removing Barriers for Informal Sector Workers ( DTRBISW) Project

This project seeks to enhance human dignity and economic freedom in Ghana by actively advocating for public policy reforms that reduce the systemic barriers faced by informal sector workers. Currently, restrictive regulations, complex formalization processes, and limited legal protections hinder the growth and security of millions of Ghanaians operating in the informal economy. Our initiative will conduct targeted research, engage with policymakers, and mobilize public awareness campaigns to champion policies that simplify business registration, reduce regulatory burdens, improve access to formal financial services, and strengthen property rights for informal entrepreneurs. Ultimately, we aim to create a more inclusive and predictable regulatory environment that empowers informal workers to transition, grow, and contribute formally, thereby securing their livelihoods, fostering self-sufficiency, and affirming their inherent dignity.

Policy Influence

The initiative, “Dignified Trade: Reducing Barriers for Informal Sector Workers,” targets specific provisions within Ghana’s Companies Act, 2019 (Act 992) and the Local Government Act, 2016 (Act 936).

The Companies Act (Act 992)

The Companies Act (Act 992): This Act governs business registration and formalization. Currently, the process is often complex, expensive, and time-consuming. This complexity creates a major barrier for many, preventing them from gaining legal recognition for their businesses. Without formal status, they struggle to access bank loans for growth, lack legal protection in disputes, and often operate in fear of being seen as "illegal." This uncertainty keeps them vulnerable, limiting their potential and the dignity of a recognized enterprise.

Local Government Act (Act 936) & District Assembly By-laws

This Act empowers local authorities to create rules and charge various fees for operating permits, market stalls, and other services. However, these by-laws can be unclear, fees may seem arbitrary, and enforcement is often inconsistent. For informal traders, this means unpredictable daily or weekly levies and multiple permits, making it incredibly difficult to plan and manage finances. This uncertainty erodes their meager profits and diminishes the dignity they deserve as legitimate contributors to the local economy.