GIZ Ghana and GEA partner to promote digital transformation in Ghana’s informal sector

The Ghana Enterprises Agency (GEA) and GIZ Ghana signed a memorandum of understanding (MoU) to empower Ghanaian businesses to leverage digital technologies to transform their economic situation.

The agreement to be executed through the Digital Transformation for Sustainable Development in Ghana (DTEG), implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH’ on behalf of The German Federal Ministry for Economic Cooperation and Development (BMZ).

The signing event, which was witnessed by officers and staff of the partner institutions, also represents a further demonstration of their joint organizational commitment to support digital transformation for sustainable development in Ghana.

Speaking at the ceremony, the Coordinator of GIZ Ghana’s Network for Inclusive Economic Development (NIED) Cluster, Mr. Gerald Guskowski, underscored the important role of Ghana’s informal sector and its contribution towards the nation’s economic fortunes.

He further observed that these efforts had been constrained by the relative inability of the informal sector entrepreneurs to leapfrog their business and economic fortunes through digital transformation.

“The informal sector, comprising a majority of businesses in Ghana, represents not just the majority but the lifeblood of the economy. However, the lack of digital resources often hampers their growth potential,” he noted.

He expressed optimism about the joint journey ahead with GEA, noting, the strategic role of the governmental agency in the success of past projects, thus: “GEA's strengths, including its nationwide network of business advisory centers, strong track record of supporting Ghanaian businesses, and deep understanding of the needs of informal and female micro-entrepreneurs, will be essential to the success of our collaboration.”

On her part, the Chief Executive Officer of the GEA, Madam Kosi Yankey-Ayeh, reiterated that as the apex body mandated to support micro, small, and medium enterprises (MSMEs) the Agency, was appropriately aligned towards the achievement of the sustainable development vision, and had placed digitalization, front and center in its operations.

Providing context and recounting the series of events that foregrounded the relevance of the "Digital Transformation for Sustainable Development in Ghana" project, Madam Kosi Yankey-Ayeh admitted, “I remember when COVID hit and the government of Ghana decided, we were going to support businesses, we designed a beautiful programme, and as we went along, we realized we had forgotten the informal sector, even though it formed a significant percentage of the national economy.”

She said, this oversight, coupled with the absence of an intervention that had an inclusive outlook, triggered engagements that had, amongst others, culminated in this new agreement with GIZ Ghana to collaborate in the execution of the Digital Transformation for Sustainable Development Project.

Madam Kosi Yankey-Ayeh indicated that through the GEAs network of decentralized business advisory centers spread throughout the country, her Agency was poised to support the informal sector gain access to knowledge, markets, and opportunities, and to reap the dividend of inclusivity access and shared prosperity.