42K Ghanaians Lost Their Jobs During Lockdown - John Kumah

The member of parliament for Ejisu constituency in the Ashanti region Lawyer John Ampontuah Kumah has disclosed to parliament that, a Survey conducted by the Ghana Statistical Service in collaboration with the United Nations Development Programme (UNDP) and the World Bank in November 2020 indicated that about 42,000 employees lost their jobs during the partial lockdown of the Greater Accra region and Greater Kumasi alone

According to the MP, a similar survey conducted by the Innovation for Poverty Action (IPA) in December 2020 revealed that thirty-four percent (34%) of young people between the ages of 18-24 in Ghana had lost their source of livelihoods as a result of the pandemic. 

The first timer in Ghana's 8th parliament made this researched statement on the floor of the House on 2nd February 2021.

He said numerous interventions by the government, especially the coronavirus Alleviation Programme with support from the private sector most of the jobs that were in the lockdown have been addressed. 

"We must not relent on the need to create more jobs and to establish the appropriate environment for businesses to be created and to survive. To achieve this, we must chart a new path on job creation in Ghana built on the back of the private sector". 

Mr. Kumah noted that it is the hope and aspirations of every graduate to work in the public sector because of the job security it offers and the opportunity to serve the country. In as much as this aspiration is noble and must be encouraged, my plea to the teeming youth of this country who for one reason or the other cannot find jobs in the public sector to look to the private sector or venture to create businesses. 

With that being said, the speaker of parliament said, though admittedly some of these young individuals want to venture into small businesses, the lack of funds to help them start up their businesses or keep these businesses running is a huge problem that needs mentioning. I am of the view that we as a country must do more to create an enabling environment for our entrepreneurs to get easy access to funding their businesses. 

One of the means to achieve that is through crowdfunding the peaker in simple terms, crowdfunding is when businesses or individuals raise funds from a  large number of people to finance a new business venture or to expand operations. in some instances, individuals get to owe equity in the business they invest in. 

Crowdfunding is an advanced form of the very good old “Susu” we know. As individuals from one community, we Sometimes join our resources to start a business. However, this time around thanks to technology, we benefit from the generosity and goodwill of people we don’t even know. One famous crowdfunding project is that of Zack Brown, a young boy in the United States of America who went seeking $10 on a crowdfunding platform to make a bowl of potato salad. 

The Ejisu lawmaker further explained that his crowdfunding project quickly went viral, delivering him $55,49 2 from 6,911 backers Just this one example shows the kind of impact crowdfunding can do for the private sector should we decide to institutionalize it in Ghana. 

He revealed that, in recent times, I have seen the method being used in Ghana, predominantly on social media and particularly on Facebook to solicit funds for the sick and needy. I am of the strong conviction that if we are to tap into such means of raising capital for our entrepreneurs and small business owners, the problem of lack of capital that small business owners are always faced with will be greatly reduced. Ghana's leading position in terms of adopting digital finance and mobile money in Sub Saharan Africa provides the country with a better chance at succeeding in crowdfunding 

"Mr. Speaker, as I speak, there is no law in Ghana backing crowdfunding The absence of this means that the private sector is handicapped when it comes to looking for financial investment. The Securities and Exchange Commission (SEC) is now formulating a framework plan to formally introduce crowdfunding into Ghana. We must impress on them to expedite the process and bring before  the house a good framework that allows the Ghanaian businessman or businesswoman to tap into this scheme that has helped entrepreneurs and businesses  across the globe raise the needed capital to create jobs for the unemployed in the society" he stressed

The private sector can help close the unemployment deficit in Ghana and we can support them if we pass legislation on Crowdfunding to protect businesses and individuals who want to invest through crowdfunding means. 

Besides another potent way to reduce unemployment is to tap into the 1.3 billion consumer market presented by the African Continental Free Trade Area (AfCFTA). Increasingly, the Ghanaian market looks saturated with lots of consumable products on the offering. What the AfCFTA does that most small business owners know very little about is, it allows them to export their products and services to other parts of the continent where they can generate more revenue which will help in expanding their businesses and subsequently contribute to creating more jobs With the coming into force of this compact, I entreat small business owners to consider venturing into other parts of the continent.

Lawyer John Kumah told the house that, on his part as a Member of Parliament, he is championing the creation of what he called “Ejisu Club 100” a project which seeks to create 100 entrepreneurs in Ejisu in the next four years.

He said he is confident that this will go a long way to create jobs for his constituents.

Addressing the House, he provided that, President Nana Addo Dankwa Akufo Addo in 2018 described the youth unemployment situation he inherited in his first term as a threat to our national security. 

As of 2016, the Ghana Labour Force Survey reported that more than 1.2 million Ghanaians were unemployed. Creating jobs for the Ghanaian Youth was therefore a big-ticket item in the first term of President Nana Addo Dankwa Akufo Addo. Job creation for Ghanaian youth was and stylish critical d called for policy measures aimed at solving them. The government, therefore, rolled out several measures to close the youth unemployment gap in Ghana. 

He asserted that one of these interventions was the National Entrepreneurship and Innovations Programme (NEIP). NEIP as we know itis on record to have trained 45,000 beneficiaries on how they can be business owners; 10,000 of them received funding up to the tune of GHC 100,000. 

Also Most importantly, NEIP through Private sector collaborations created 100,000 jobs, as same can be verified from the website, www.neip.gov.gh. 

The legislature told the speaker who was presiding over the house that, he wants to take the opportunity to advise beneficiaries of government loans to remain disciplined and honest on their repayment obligations in order to ensure the sustenance of such laudable interventions from the government. Other interventions instituted by Government to reduce Youth Unemployment are NABCO, Planting for Food and Jobs, One District One Factory The Youth Employment Programme, Youth in Afforestation, and various interventions by the National Youth Authority. 

The ravaging nature of the Coronavirus pandemic with its corresponding negative impact on the Jobo market can’t be lost on us. A lot of countries have reported job losses as a result of the global pandemic. in Ghana, it is no different. The pandemic has forced most Ghanaian businesses to lay off some of their workers in response to the adverse economic impact of the virus.

EK Ansah/ Parliament Correspondent