Ghana is facing critical demographic transition that significantly shapes its economic future.
Since 1960 the country’s population has grown from 6.7 million to 24.2 million in 2010, and it is expected to increase to 50 million by 2050, and to 72 million by 2100. This population dynamics lead to a significant increase in the working-age population, which is expected to reach 16.3 million by 2040, a 51% increase from 2020.
More than 57% of the population is under 25 years old, creating a potential for a “demographic dividend” if young workers are integrated into the economy through quality job opportunities. However, this also poses a risk of insufficient job availability, which could lead to social tensions and even national security issues.
In this context, the development of entrepreneurship and support for micro, small, and medium enterprises (MSMEs) are becoming critical aspects of economic policy. Effective entrepreneurship promotes economic self-reliance, income generation, and comprehensive development.
Major obstacles to entrepreneurship include limited access to financing, insufficient technical skills, regulatory barriers, and underdeveloped infrastructure. Strategic policy interventions are needed to remove these barriers and unlock the potential for entrepreneurship during the demographic transition.
Based on the Global Entrepreneurship and Development Index (GEDI) data, Ghana shows some progress but still faces challenges in its entrepreneurial ecosystem. Comparisons with countries such as Côte d’Ivoire, Nigeria, and Kenya show that Ghana has high scores in areas of cultural support and opportunity perception, which contribute to a high level of entrepreneurial activity.
The study identified critical gaps in policy and provided recommendations for their elimination. For example, it is necessary to eliminate the duplication of roles among various government and non-governmental organizations, which leads to inefficiencies and overlaps in the implementation of entrepreneurship development initiatives.
The creation of an Economic Development Authority (EDA) is also proposed, which would separate economic planning from the Ministry of Finance and coordinate the development of policies and programs aimed at maximizing the demographic dividend in Ghana.
Conclusion for Kazakhstan
By analyzing the situation in Ghana, Kazakhstan can learn lessons about the importance of demographic changes for economic policy. Similar to Ghana, Kazakhstan faces the need to adapt its economy to changing demographics, especially considering the increase in the proportion of young people. Supporting entrepreneurship and developing MSMEs could be key tools for sustainable economic growth and integration of youth into the economy. It is important to formulate a policy that takes into account the specific conditions and needs of the youth, as well as measures to create new quality jobs. This will not only help Kazakhstan realize the potential of its population but also reduce social risks associated with unemployment and social dissatisfaction.
This analysis not only highlights current issues but also outlines paths for strategic changes that could radically improve Ghana’s economic environment, opening up new opportunities for the country’s younger generation, and providing valuable lessons for Kazakhstan in the field of entrepreneurial policy and demographic planning.
