The service sector; the driver of Ghana’s Economy. Contributions of the Service Sector to Ghana’s Economic Growth ECONOMY OF GHANA.

Overview  Introduction  Challenges faced by the service sector.  Key intervention that has gone into the sector.  Contributions of the service sector to Ghana’s economic growth  Conclusion.

INTRODUCTION  What is economic growth?  Indicators of economic growth include  Rate of savings  Natural resource endowment  Human capital  Political stability and  Technological advancement

 The sub-sectors of the service sector icludes; Trade, repair of vehicle and household goods Hotels ad restaurants Real estates, professional and administrative activities Public administration and social security Health and social work Social and personal service activities Information and communication Education Financial and insurance activities Transport and storage

Challenges of the service sector Unavailability and high cost of capital Negative attitude towards work Poor quality of service Difficulty in accessing tax. Lack of expertise.

Key interventions that have gone into the sector 1.Formulation of the new banking law. 2.Privatization of state own enterprises like SG-SSB, Ghana Airways and Ghana Telecom. 3.Establishment of regulatory body, the national communication authority. 4.The introduction of the metro mass transport fleet to some urban areas to ease traffic. 5.The national health insurance scheme. 6.The school feeding programme.

CONTRIBUTIONS TO GDP  Currently the largest contributor to GDP.  Witnessed successive rise in GDP contribution from 27% during to 30% during and now 50.6% as at 2013.

Revenue generation Statistics show that 25% of company profit find their way into government coffers, The hospitality industry promotes tourism and it is relevant to mention that tourism in 2010 contributed USD1.8B to government. Income tax as well is a major source of government revenue.

Creation of employment The service sector account for about 47% f the total Ghanaian labor force. Direct employment from tourism rose from about 19,000 in 1996 to 52,742 in In 2010, the hospitality subsector through tourism created 290,000 jobs. In 2012 also, available statistics indicates that the information and communication sector created 1.5million jobs including self-employment.

Facilitates the work of other sectors  The service sector serves as a medium through which other sector of the economy.  Serves as a market for finished goods of the other sector.  Source of labor for other sector.  Serves as a financial market for other sectors.  Provides a media of advertising and promoting goods and services of other sectors.

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