The Institute of Statistical, Social, and Economic Research (ISSER) has cast a positive light on Ghana’s service sector, projecting a robust three percent growth in the fiscal year 2024.
This forecast surpasses ISSER’s 2023 expectations of 1.8 percent, and it further anticipates that the sector’s momentum will continue in 2025 with a projected growth of five percent. In its 2022 State of the Ghanaian Economy report, ISSER highlighted the service sector’s resilience in the face of the country’s current economic challenges.
Professor Peter Quartey, Director of ISSER, stated, “In all, the services sector is expected to gain significant benefits with the sealing of the IMF deal. The sector is expected to continue to show resilience and serve as a backbone to overall economic growth.”
One of the key factors underpinning this optimism is the positive outcome expected from the government’s initiatives in Information and Communication Technology (ICT). The ISSER boss acknowledged that these initiatives, such as the “Girls in ICT for SHS on Cyber Security and Data Privacy,” are empowering young Ghanaians to engage in e-commerce, understand cyber security, and explore artificial intelligence.
The long-term vision of these programs is to equip beneficiaries to capitalize on emerging opportunities in the digital space, foster interest in Science, Technology, Engineering, and Mathematics (STEM), and cultivate entrepreneurship.
The incorporation of ICT initiatives into the service sector is pivotal, as it paves the way for an inclusive and technology-driven economy. As more Ghanaians embrace digital skills, the service sector stands to benefit from the increased demand for tech-related services, creating a strong foundation for growth.
Furthermore, the government’s intentions to regulate the exodus of nurses through a pact with the United Kingdom (UK) government is anticipated to have a positive impact on the service sector. The shortage of healthcare professionals in Ghana has been a long-standing issue, and the government’s efforts to address this concern can help boost the overall health and social services component of the service sector.
Significant Driver of Growth In The Service Sector
Another significant driver of growth in the service sector, according to Prof. Quartey is the implementation of the US$3 billion International Monetary Fund (IMF) loan-support program.
The IMF program is expected to instil confidence in investors, leading to a ripple effect across various sectors of the economy, including domestic tourism. The service sector, which encompasses tourism-related activities, will likely see increased demand as a result.
The optimism surrounding the growth of Ghana’s service sector in 2024 and beyond is well-founded. The service sector is a crucial pillar of the economy, contributing significantly to GDP and providing employment opportunities for many Ghanaians. The anticipated growth in this sector is indicative of the country’s evolving economic landscape, with a strong focus on technology, healthcare, and tourism.
It is important to note that the service sector’s resilience is not solely attributed to government initiatives. The proactive approach of both public and private sector stakeholders, as well as the adaptability and innovation demonstrated by Ghana’s workforce, play a crucial role in ensuring the sector’s growth.
Additionally, the global economic landscape is evolving rapidly, and emerging opportunities in areas like e-commerce, FinTech, and healthcare services have the potential to significantly impact the service sector. Ghana’s favorable business environment and a growing middle-class population make it an attractive market for both local and foreign service providers.
As the service sector continues to expand, there will be a growing need for skilled professionals in various fields, from technology and healthcare to hospitality and finance. This presents an opportunity for education and training institutions to develop programs that cater to the specific needs of the service sector, further enhancing its growth potential.
While, Ghana’s service sector is poised for substantial growth in the coming years, with the right policies, investments, and a workforce ready to embrace innovation, the service sector can continue to be a vital driver of Ghana’s economic growth and development.
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