About 64% of Ghanaian working population in financial distress – Study

The current economic crisis and its associated impact in Ghana has a significant portion of the working population representing about 64 percent in financial distress.

According to highlights of an annual report dubbed; Old Mutual Financial Services Monitor (OMFSM), it revealed that financially distressed Ghanaians were higher among the lower income group (72%) and those in the informal sector representing (68%).

“Regarding dependents, about 4 in 10 Ghanaians find themselves in the "sandwich generation," financially supporting both children and adult dependents. This is in line with the average Africa percentage of 44%,” the study added.

In terms of economic confidence, the survey revealed that less than 1 in 5 consumers express confidence in the country's economy.

“This low level of confidence is reflected across the surveyed countries in Africa, namely SA, Namibia, and Kenya,” the OMFSM survey explained.

When it came to financial priority, income security was identified as the top priority for most Ghanaians (as well as across the surveyed countries in Africa).

It further showed that with regards to income, 44% sampled in the survey indicated that they rely on a single source of income, while about 1 in 4 (24%) are PolyJobbers – side-hustling, freelancing, and doing after hours work in addition to their regular job.

It noted that these PolyJobbers are more prevalent among those earning GH¢3000 or more (37%).

“Through further encouraging and supporting entrepreneurship, we expect this percentage may grow as we have seen among younger consumers in South Africa, helping to address the youth unemployment issue in Ghana,” the report said.

Key findings from the study, which was presented by Vuyokazi Mabude, Group Head of Old Mutual Limited, Knowledge & Insights at a breakfast meeting in Accra on November 22 provided invaluable insights which focused on a key cohort in society.

These include employed Ghanaians, who account for about 60% of the Ghanaian population aged 25 to 59 years and earning an income of GH¢1,000 or more who reside in urban and peri urban areas.

The report comes at a time of economic uncertainty with many Ghanaians are reeling from the impact of the economic crisis which has forced Ghana to seek financial assistance from the IMF.

MA/NOQ

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