Ghana must create approximately 300,000 new jobs every year to keep pace with the growing demand from its young population. This urgent requirement highlights a significant challenge in ensuring economic opportunities for the nation's youth.
The country's youth constitutes about 38% of Ghana's 35 million people. Many young Ghanaians are either entering or preparing to enter the workforce. However, they face substantial hurdles, including skills gaps, limited access to affordable capital, and weak market connections. These systemic barriers prevent talented young individuals from turning their innovative ideas into viable businesses and sustainable employment.
This situation fits into Ghana's broader economic narrative of needing to harness its demographic dividend. The government's focus on job creation and youth empowerment is critical for sustained economic growth. High borrowing costs, sometimes exceeding 40% annually for bank loans, further complicate entrepreneurial efforts. This financial constraint makes it difficult for young people to secure the necessary funds to start or expand businesses, even with promising ideas.
The source material highlights that youth skills development is not just about securing jobs but also about empowering young people to create jobs themselves. It emphasizes the need for practical skills that enable problem-solving, market adaptation, and enterprise building. This perspective aligns with calls from various development partners and institutions for a more holistic approach to youth employment.
The implications are clear: without deliberate interventions, Ghana risks underutilizing a significant portion of its human capital. Decision-makers must prioritize investments in both skills training and the supportive systems required for these skills to generate economic value. This includes addressing financial barriers and improving market linkages.
Consider Ayishetu Adam, a 30-year-old woman from Sagnarigu Kukuo. Despite holding a Higher National Diploma in Communication and Media Studies, she faced persistent job market exclusion. Her experience underscores that academic qualifications alone do not guarantee economic opportunity. Ayishetu's pathway changed after acquiring hands-on skills in producing soybean-based products through a livelihood skills training programme. This initiative was implemented by Kosmos Innovation Center with support from AGRA and the Mastercard Foundation.
Today, Ayishetu earns GHS 300 per day, with potential earnings reaching GHS 500 daily. This transformation demonstrates the power of practical, market-oriented skills combined with start-up resources. Her story also makes a compelling case for inclusive skills development, reaching those who face additional barriers.
Another example is Salifu Suale, a 30-year-old person with disability from Gushegu. He previously faced structural barriers in accessing mechanisation services for his soybean production. Support from the Kumasi Institute for Tropical Agriculture (KITA), Agri Invest, and AGRA connected him directly to private mechanisation service providers. This intervention allowed Salifu to fully utilize his three acres, expecting to obtain about 4 metric tons of soybeans valued at GHS 11,000.
Salifu's improved access to services avoided crop losses and enhanced the quality of his produce. His productivity and income stability significantly improved. He plans to use his agricultural income to expand his existing shop and become a mobile money agent. These individual successes highlight the critical need for targeted support systems.
These cases illustrate that harnessing Ghana's youth dividend requires designing opportunities for all young people. This includes those who face additional barriers, such as persons with disabilities, young women, and individuals in underserved communities. The lesson for governments, educational institutions, and the private sector is to invest in skills and the systems that allow those skills to create value. This comprehensive approach is essential for Ghana to achieve its job creation targets and foster widespread economic independence among its youth.