Gender and Economic Growth Assessment for Ghana 2007
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International Finance Corporation and Ministry for Women and Children Affairs, Ghana Gender and Economic Growth Assessment for Ghana 2007 Survey implemented by Eagle Group Edited by Mary Agboli Gender and Economic Growth Assessment for Ghana 2007 A gender perspective on legal, institutional and administrative barriers to investment and economic growth in Ghana FOREWORD ii Foreword “…in the last six years, there have been key sectoral policies, programs and legislation initiated to pursue the agenda for women’s empowerment and gender equality. Among these were the establishment of MOWAC, adoption of the policy of gender mainstreaming by the government, free antenatal care, free delivery, Capitation Grant, School Feeding Program and free bus rides for school children, all of which have brought about increased enrolments, especially for girls. Others are the Human Trafficking Act (Act 694), which was passed in 2005, and the Domestic Violence Bill passed into law this year.” - Hon. Hajia Mahama, Minister of Women and Children’s Affairs (MOWAC)1 This report is the outcome of a Gender and Growth Assessment (GGA) study that was undertaken at the request of the Ministry of Women and Children’s Affairs (MOWAC), Ghana and was coordinated by the IFC’s Private Enterprise Partnership for Africa within the context of the Gender- Entrepreneurship Markets Initiative. The GGA is intended to help build on existing legal, institutional and policy structures, particularly the Ghana Poverty Reduction and Growth Strategy and also the Private Sector Development Strategy. The project involved three main tasks, namely, a collection of baseline data on the legal, institutional and administrative barriers to investment that have a gender dimension in Ghana; an enterprise survey of women- owned firms in Ghana; and collection of primary information through focus group discussions with representative female entrepreneurs and other key stakeholders in the country, including government officials, lawyers, and donor representatives. The report contains detailed technical analyses of information from survey respondents as well as interviews with selected women entrepreneurs, donors, advocacy groups, lawyers, and government officials. It presents key findings and a matrix of policy recommendations for enhancing gender considerations in economic activity, and in particular how to facilitate the economic role of women in Ghana. 1 Speech delivered at a seminar as part of activities marking the 2007 International Women’s Day and Ghana’s Golden Jubilee. ACKNOWLEDGEMENTS iii Acknowledgements The report was prepared with support from a team consisting of Julie Weeks, A. Waafas Ofosu-Amaah, Jozefina Cutura, Fiona MacCulloch, Frances Gadzekpo, Brigid Amoako, Enyonan Pamela Sosu, Mary Agboli, Max Vardon, Afua Brown-Eyeson and Johnson Asiama. The team was led by Mary Agboli. Additional inputs and support were provided by R. Mehra, Arunima Dhar, James Emery, Natalie Africa, Elizabeth Adu, Mark Blackden and Nana Yaa Omane-Peprah amongst others, to whom we are grateful. We also thank the interviewees who made time to give further insights during the legal and administrative assessment component of the project. In particular, Hon. Prof. J. Gyan Baffour, Deputy Minister of Finance and Economic Planning; Hon. Mr Joe Ghartey, Attorney General and Minister of Justice, Ms Katharine Adjei-Boadi Ministry of Women and Children Affairs; Ms Anna Bossman, Ag. Commissioner - CHRAJ; Mrs Dorcas Coker Appiah, Gender Center; Justice Margaret Insaidoo, Judge - Commercial Court, Accra; Mrs Jane Quaye, FIDA; Ms Gloria Ofori Boadu, Women’s Assistance and Business Association; Ms Lucia Quachey, Ghana Association of Women Enterpreneurs, among others. We also express our gratitude to the large number of women-owned firms that were surveyed. Also, the participants at the focus group discussions as well as the media training workshops also deserve special mention for the lively and interesting discussions and feedback obtained from our interactions. ACRONYMS iv Acronyms Acronym Clarification ADB Agricultural Development Bank AGOA Africa Growth and Opportunity Act APRM African Peer Review Mechanism BSD Banking Supervision Department, Bank of Ghana CBA Collective Bargaining Agreement CEDAW Convention on the Elimination of Discrimination Against Women CHRAJ Commission on Human Rights and Administrative Justice CLR Council for Law Reports CUs Credit Unions DANIDA Danish International Development Agency DOVVSU Domestic Violence Victim Support Unit ECOWAS Economic Commission of West African States EDIF Export Development and Investment Fund FIDA International Federation of Women Lawyers FNGOs Financial Non-Governmental Organizations GADS Gender and Agriculture Development Strategy GAWE Ghana Association of Women Entrepreneurs GCB Ghana Commercial Bank GEPC Ghana Export Promotion Council GDHS Ghana Demographic and Health Surveys GHAMFIN Ghana Microfinance Institutions Network GLR Ghana Law Reports GLSS Ghana Living Standards Survey GPRS Ghana Growth and Poverty Reduction Strategy ACRONYMS v Acronym Clarification ICA Investment Climate Assessment JICA Japanese International Cooperation Agency LAP Land Administration Project M&E Monitoring and Evaluation MASLOC Micro and Small Loans Center MCA Millennium Challenge Account MFU Microfinance Unit (MOFEP) MIX Microfinance Information Exchange MOFEP Ministry of Finance and Economic Planning MOJ Ministry of Justice MOTI Ministry of Trade and Industry MOWAC Ministry of Women and Children’s Affairs NBSSI National Board for Small-Scale Industries NEPAD New Partnership for Africa’s Development NIB National Investment Bank PNDCL Provisional National Defense Council Law SESTRAC Self-Employed Skills and Leadership Training Center SME Small and Medium Enterprise SSNIT Social Security and National Insurance Trust UNIDO United Nations Industrial Development Organization WABA Women’s Assistance and Business Association WDF Women’s Development Fund WHO World Health Organization WILDAF Women in Law and Development in Africa TABLE OF CONTENTS vi Table of Contents Foreword ii Acknowledgements iii List of Acronyms iv Table of Contents vi Executive Summary viii Matrix of Recommendations xv 1. OVERVIEW OF THE LEGAL AND INSTITUTIONAL FRAMEWORK 1 1.1 The Institutional Framework for Gender Advocacy in Ghana 1 1.2 The Legal Framework 2 1.2.1 Ghana’s Plural Legal Systems 3 1.2.2 Gender Equality and the Constitution 4 1.2.3 Education Improves the Status of Women 6 1.2.4 Women’s Work in the Labor Act 6 1.3 How Does the Overall Framework Impact on Gender Issues Currently? 7 1.3.1 Starting and Closing a Business 8 1.3.2 Closing a Business 1O 1.3.3 Taxation 1O 1.3.4 Access to Land and Property 12 1.3.5 Access to Finance 13 1.3.6 Micro Credit 14 1.3.7 Formal Financing 15 1.3.8 Asset Leasing 16 1.3.9 Access to Justice 17 1.3.10 Access to International Trade 19 1.4 Gender Issues in Ongoing Government Economic Programs 20 1.4.1 Trade and Private Sector-led Strategy 20 1.4.2 The Private Sector Development Strategy (PSDS) 21 1.4.3 The Growth and Poverty Reduction Strategy (GPRS) 21 1.4.4 The Millennium Challenge Initiative 22 1.4.5 Gender Equality as one of the Millennium Development Goals 22 2. GENDER EQUITY, ECONOMIC GROWTH AND DEVELOPMENT 24 2.1 What is the Link between Gender Equality and Economic Growth? 24 2.2 What is the Link between Gender Equality and Economic Development? 27 2.3 To what Extent are Ghanaian Women involved in Economic Activity? 28 2.4 How does Ghana’s Gender Equity compare with Peers? 29 2.5 Women’s Economic Participation in Ghana 32 2.5.1 Women in Household Agriculture 32 2.5.2 Women and Household Non-farm Activity 32 2.5.3 Women in Industrial Activity 34 TABLE OF CONTENTS vii 3. SURVEY OF WOMEN-OWNED FIRMS - CONSTRAINTS TO ENTERPRISE OPERATIONS AND GROWTH 37 3.1 Survey of Women-owned Businesses 37 3.2 Nature of Business, Size, Turnover and Employment 37 4. SURVEY RESULTS - BUSINESS ENTRY, AND ACCESS TO LAND AND PROPERTY 41 4.1 Business Entry 41 4.2 Access to Land and Property 41 5. SURVEY RESULTS - ACCESS TO FINANCE, TAXES AND PERMITS AND ACCESS TO JUSTICE 44 5.1 Access to Finance 44 5.2 Taxes and Permits 45 5.3 Access to Justice 46 6. SURVEY RESULTS - INTERNATIONAL TRADE, INFORMALITY AND SPECIFIC GENDER-RELATED DIFFICULTIES 48 6.1 International Trade 48 6.2 Informality 49 6.3 Gender-related Experience 49 7. SURVEY RESULTS - KEY OBSTACLES TO BUSINESS GROWTH 51 7.1 Factors identified as Key Obstacles to Business Growth 51 7.2 Business Improvement Options for Women-owned Firms 52 7.3 What were the Preferred Government Support/Mechanisms? 53 7.4 Conclusion 54 Annex A: Legal Assessment 55 Annex B: Empirical Analysis 69 Annex C: List of Interviewees for Legal Assessment 74 Annex D: International Women’s Rights, Conventions and Treaties Ratified 76 Annex E: Funding Facilities for SMEs in Ghana 79 Annex F: References 81 EXECUTIVE SUMMARY viii Executive Summary “…Government should involve women entrepreneurs in policy making so that women can propose what is functional for them. Land administration issues should be addressed to make it easily accessible.” - Francesca Opoku, Office Essentials, Voices of Women Entrepreneurs in Ghana. This study presents an assessment of the role of gender in economic growth in Ghana with emphasis on constraints to enterprise operations, investment and growth among women- owned firms. Anecdotal evidence suggests that women own up to a third of businesses in Africa, and that this represents a significant source for scaling up economic growth in such countries. In Ghana, women make up about 50.1 percent of the entire labor force and are mostly involved in micro enterprises and the retail trade. An estimated growth model with gender-related human capital accumulation shows that releasing the potential of women to achieve gender parity in economic activity could add as much as 2.5-3 percent to Ghana’s current aggregate output (see Annex C). In other words, a potential one-half increase in current growth rates.