Civil Society Organizations in Ghana are pushing for a vibrant social enterprise sector with a robust policy and legal framework to promote an enabling environment.

STAR-Ghana Foundation is leading actions and processes to promote a well-regulated and supported social enterprise sector able to unlock partnerships and capital for inclusive sustainable development. As the world moves towards the Sustainable Development Goals by 2030 and yet faced with unfavourable socio-economic, environment and health challenges, Civil Society must consequently develop innovative ways including domestic resources mobilization to address these constraints. STAR-Ghana Foundation’s work in this sector has so far focused on convening dialogues to develop coordinated advocacy plans and supporting the work of a steering committee to lead the implementation of these advocacy actions.

Around the world, the social enterprise sector is making huge contributions to addressing these problems. However, in Ghana, the sector is not contributing as effectively as it should, to facilitate inclusive and sustainable development due to a number of factors including inadequate financing and the lack of a legal framework to promote an enabling environment for the social enterprise sub-sector to thrive.

In view of the above narrative, STAR-Ghana Foundation in partnership with Social Enterprise Ghana (SE Ghana) and other key stakeholders organised a convening to explore and deepen collaboration and joint actions among state and non-state actors towards creating an enabling environment to support SEs in Ghana.

The forum, organized under the theme: The State of Social Enterprise in Ghana: Challenges and Way forward in financing and creating an enabling environment’, provided a platform to update stakeholders on the state of Social Enterprise in Ghana, ongoing and planned actions to address challenges, share lessons and experiences and identified practical way forward to strengthen their collaborations for coordinated actions.

The Executive Director of Social Enterprise Ghana, Edwin Zu-Cudjoe presenting one of the two technical papers at the forum, noted that, social enterprise is a non-alienating sector contributing significantly to every aspect of societal development and human life. He further expressed concern about the lack of an enabling environment and a robust support system for the sector.

A consultant, Teiko Sabah, who also presented a technical paper, recognized the exponential growth in the social enterprises sector in the country. Teiko reiterated that lack of a comprehensive legal and policy framework to regulate the affairs of the sector after 20 years of growth is frustrating. She again noted that for the over 26,000 social enterprises in the country, only 44% of them have been able to access forms of non-returnable capital and only very few (9%) able to secure equity loans. Participants unanimously agreed that a clear-cut policy to regulate and best position the social enterprise sector was necessary.

A conducive policy they noted, will unlock private capital for the social enterprise ecosystem to become a major driver of innovation, increase productivity, increase incomes of the entrepreneurs, and improve livelihoods. Such a policy will also provide an administrative, institutional, and regulatory framework for good governance and development of the social enterprise sector in Ghana.

On financing, stakeholders cited amongst others inadequate funding sources, high cost of credit, unstable exchange rate between the cedi and major currencies and inadequate infrastructure (hard and soft) to support their operations as major challenges faced by social enterprises.

The participants agreed that a well structure social enterprise will create more jobs for the high unemployment rate which remains a stumbling block to sustainable development. Currently, Ghana’s unemployment rate is estimated as 4.6 per cent According to the Ghana Statistical Service (2020). Youth unemployment is estimated as 12% and underemployment as much as 50%. Ghana’s youth unemployment rates are among the highest in Africa. This is made worst by additional 110, 000 graduates added to the labour market annually, despite major investments by government and private sector.

In conclusion, The Executive Director of STAR-Ghana Foundation, Alhaji Amidu Ibrahim-Tanko was optimistic that the social enterprise sector if properly regulated will thrive to foster social inclusion and reduce poverty. 

“We must all be concerned about the state of our society and the environment. It is very necessary that we collaborate to find lasting solutions to these challenges threatening our existence. As a local Foundation, we will not relent in leading actions to push for an equal society, social inclusion and good governance for sustainable development”

Ibrahim-Tanko, focusing on the Foundation’s core mandate of promoting active citizenship for sustainable development, promised that STAR-Ghana will play its part in facilitating and strengthening an enabling environment and strengthened collaboration among stakeholders to address the issues raised at the forum.

A lead Advisor of the Foreign, Commonwealth & Development Office (FCDO), Clara Osei-Boateng also promised that FCDO will continue to support this course.

To take forward some key actions following the convening, the Foundation will further collaborate with Social Enterprise Ghana, the relevant state institutions, Development partners and the Civil Society organizations to further engage all actors to ensure that an enabling environment is created for the social enterprise sector to thrive.  

The forum had representatives from following key stakeholder institutions:

Foreign, Commonwealth and Development Office (FCDO)

Ministry of Finance

Ministry of Trade

The British Council

National Entrepreneurship Innovation Programme

Gimpa Centre for Impact Investing

Fund Managers

NORSAAC

RAINS

Peasant Farmers

Friends of the Nation

Social Enterprise Ghana and its Member Associations