As economic volatility drives young Ghanaians away from higher education towards unsustainable quick-money schemes, the nation faces a crisis that threatens both individual futures and national development*
In the bustling markets of Accra and Kumasi, a troubling narrative unfolds daily. University graduates, clutching degrees that once promised prosperity, join the ranks of petty traders hawking imported goods from China. Within months, many of these ventures collapse, leaving educated youth trapped in cycles of underemployment and economic desperation. This phenomenon represents more than individual tragedy—it signals a fundamental breakdown in Ghana’s social contract between education and economic opportunity.
The statistics paint a stark picture. Recent figures show 4,565 persons with tertiary education facing unemployment, alongside 9,987 with secondary education, underscoring the complexities of Ghana’s labour market. These numbers represent not merely data points but human stories of aspiration transformed into disillusionment, of families’ investments in education yielding diminishing returns.
The Looming Educational Exodus
Across Ghana’s educational landscape, a silent exodus is underway. Young people increasingly view tertiary education with scepticism, questioning whether years of academic pursuit justify the financial burden when employment prospects remain dim. This shift represents a profound departure from traditional Ghanaian values that have long revered education as the surest path to social mobility.
The narrative has become painfully familiar: brilliant students abandon university courses midway through their programmes, lured by promises of immediate returns from trading ventures. Others complete their degrees only to discover that their qualifications fail to unlock doors to meaningful employment. The root cause lies in the mismatch between the supply of graduates from schools and the demand in the labour market, with fewer job openings relative to the vast number of students graduating from tertiary institutions.
This educational disillusionment extends beyond individual choice to become a national crisis. When a country’s brightest minds abandon formal education for short-term gains, the implications reverberate through every sector of society. The brain drain that traditionally saw Ghanaian talent migrate abroad has evolved into something more insidious—a brain waste occurring within the country’s own borders.
The Allure of Quick Money Schemes
The appeal of immediate gratification has never been more pronounced in Ghana’s economic landscape. Young people, witnessing the struggles of unemployed graduates, increasingly gravitate towards what appears to be more accessible wealth creation. The proliferation of social media success stories—often carefully curated to highlight gains while concealing losses—further fuels this trend.
Trading in imported goods from China has emerged as the preferred alternative to formal education. The relatively low barriers to entry, minimal capital requirements, and promise of quick returns create an illusion of easy wealth. However, the informal sector faces several challenges, including stockouts, limited access to capital and supply chain inefficiencies, factors that many aspiring entrepreneurs fail to fully comprehend before embarking on their ventures.
The psychological appeal of these schemes extends beyond mere financial considerations. In a society where educational achievement has traditionally been the primary marker of success, young people find in trading an alternative pathway to social validation. The immediate tangibility of profit, however modest, offers a stark contrast to the abstract promises of future employment that education provides.
Economic Volatility and Business Failures
Ghana’s economic challenges have created a particularly harsh environment for small-scale traders. The fiscal outturn for 2024 deteriorated, with primary and overall fiscal deficits exceeding targets at 3.7% and 7.7% of GDP, respectively, due to accumulating arrears and unbudgeted spending. This macroeconomic instability directly impacts small businesses, making them particularly vulnerable to market fluctuations.
The typical trajectory of a young Ghanaian entering the import trade follows a predictable pattern. Initial enthusiasm, often fuelled by borrowed capital or family savings, leads to modest early success. However, as market conditions deteriorate and competition intensifies, profit margins shrink. Currency fluctuations, import duties, and storage costs—factors rarely accounted for in initial business plans—quickly erode any early gains.
The situation is exacerbated by the quality of imported goods, particularly from China. Consumers, initially attracted by low prices, become increasingly discriminating as they encounter substandard products. This shift in consumer behaviour further undermines the sustainability of businesses built on cheap imports, creating a cycle where traders must constantly seek new products and markets to maintain viability.
The Descent into Underemployment
When trading ventures fail, young Ghanaians face limited options. Without formal qualifications or transferable skills, many find themselves accepting positions far below their potential capabilities. The phenomenon of educated individuals working in menial jobs—university graduates driving taxis, polytechnic certificate holders working as shop assistants—has become increasingly common.
This underemployment represents more than personal disappointment; it constitutes a massive waste of human capital. Skills and knowledge that could contribute to national development remain unutilised, while individuals struggle to maintain dignity in work that fails to utilise their abilities. The psychological impact extends beyond the individuals to their families and communities, who witness the apparent futility of educational investment.
Despite major investments by both public and private sectors, Ghana faces 12 per cent youth unemployment and more than 50 per cent general underemployment. These statistics reflect not merely economic challenges but a fundamental misalignment between educational outputs and economic needs.
The Skills Mismatch Crisis
At the heart of Ghana’s educational challenge lies a profound disconnect between what universities teach and what the economy requires. Traditional academic programmes, often modelled on colonial-era curricula, emphasise theoretical knowledge over practical skills. For this reason, the majority of graduates become job seekers, unemployed or employed beneath their educational status.
The rapid pace of technological change has further widened this gap. While global economies increasingly demand digital literacy, data analysis skills, and technological proficiency, many Ghanaian universities continue to focus on traditional subjects with limited practical application. This mismatch leaves graduates technically qualified but practically unprepared for modern work environments.
The entrepreneurial mindset essential for job creation in a developing economy receives insufficient attention in formal education. Students learn to be employees rather than employers, consumers of opportunities rather than creators. This educational philosophy, whilst suitable for economies with abundant formal employment, proves inadequate in Ghana’s context, where self-employment and entrepreneurship must drive economic growth.
Implications for National Development
The education crisis extends far beyond individual career prospects to threaten Ghana’s long-term development aspirations. A nation cannot achieve sustainable economic growth when its human capital development strategy fails to produce productive citizens. The current trend, if unchecked, will leave Ghana with an increasingly undereducated population ill-equipped to navigate the complexities of a modern economy.
The informal sector, whilst providing immediate livelihood solutions, cannot substitute for a robust formal economy built on skilled labour and innovation. Challenges to Ghana’s economy include high government debt, particularly energy sector debt, low revenue mobilisation, corruption, high youth unemployment, and inefficient state-owned enterprises. Addressing these challenges requires precisely the kind of skilled workforce that the current educational exodus undermines.
The brain waste phenomenon creates a vicious cycle. As educated individuals fail to find appropriate employment, confidence in education diminishes, leading to reduced investment in human capital development. This creates a downward spiral where educational institutions receive less support, standards decline, and graduates become even less prepared for economic participation.
Regional and Global Context
Ghana’s educational challenges, whilst unique in their specific manifestations, reflect broader trends across sub-Saharan Africa. Rapid population growth, limited economic diversification, and weak institutional capacity create similar pressures across the region. However, Ghana’s status as one of Africa’s more stable democracies means that its successes or failures in addressing these challenges will influence regional approaches to education and development.
The global economy’s increasing emphasis on knowledge-based industries makes educational excellence not merely desirable but essential for national competitiveness. Countries that fail to develop appropriate human capital risk marginalisation in the global economy, relegating themselves to providers of raw materials and low-skilled services.
Towards Sustainable Solutions
Addressing Ghana’s education crisis requires comprehensive reform encompassing curriculum development, economic policy, and social attitudes. Educational institutions must transform themselves from degree-granting factories to skill-development centres focused on practical competencies relevant to Ghana’s economic needs.
This transformation necessitates closer collaboration between educational institutions and industry. Internship programmes, industry-academic partnerships, and curriculum co-design can help bridge the gap between theoretical knowledge and practical application. Additionally, entrepreneurship education must become central to all academic programmes, equipping students with the skills necessary to create rather than merely seek employment.
Economic policy must also support graduate employment through targeted incentives for industries that can absorb skilled labour. Tax policies favouring knowledge-intensive industries, support for technology start-ups, and investment in digital infrastructure can create the economic ecosystem necessary to utilise educated human resources effectively.
The Role of Society and Culture
Cultural attitudes towards education must evolve to embrace practical skills alongside academic achievement. Society’s definition of success must expand beyond traditional white-collar employment to include entrepreneurship, technical skills, and creative industries. This cultural shift requires deliberate effort from educational leaders, policy makers, and community influencers.
Parents and families, who ultimately drive educational choices, need better information about labour market trends and career prospects. Career guidance programmes must move beyond theoretical discussions to provide realistic assessments of different educational and career pathways.
Conclusion: Reclaiming the Promise of Education
Ghana stands at a critical juncture. The current trajectory threatens to undermine decades of progress in human capital development whilst failing to address the economic challenges that created the crisis. However, this moment also presents an opportunity for fundamental reform that could position Ghana as a leader in African education and development.
The solution lies not in abandoning higher education but in transforming it to meet contemporary needs. This requires courage from educational leaders, vision from policy makers, and patience from society as reforms take effect. The alternative—a generation of underutilised human potential and diminished national capacity—is too grave to contemplate.
The young Ghanaians currently torn between education and immediate economic survival deserve better options. They deserve an educational system that prepares them for success in the modern economy and economic policies that create opportunities for their talents. Most importantly, they deserve a society that values their potential and invests in their future.
Ghana’s education paradox is not insurmountable, but addressing it requires acknowledging its complexity and committing to comprehensive solutions. The nation’s future depends on getting this balance right—ensuring that education remains a pathway to prosperity whilst economics provides the destination that makes the journey worthwhile.
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About the Author:
Dominic Senayah, an International Relations Researcher who dives deep into the realms of Trade, Migration, and Diplomacy. With a rich background in Business Development and Marketing Communications, I bring a unique perspective to my analysis of global issues. My goal is to enrich academic discussions and enhance public understanding of the intricate dynamics that shape international relations.