Navigating informality: interfacing land governance with the informal economy in Ghana’s secondary cities

Abstract

Sunyani is one of the fastest-growing urban areas in Ghana. Presently, the city is experiencing rapid growth that tests the balance between formal land governance and informal settlement practices. Sunyani’s informal land use arrangements shape the operations of the informal economy, yet they remain underexplored in governance frameworks. Using a qualitative case study approach, this research draws on data from 157 informal businesses and in-depth interviews with five knowledge-rich stakeholders, including municipal officials and trade union leaders. Findings reveal that customary land authorities and informal land markets play a pivotal role in urban expansion, often compensating for gaps in formal land administration. Most informal businesses operate in spaces acquired through informal arrangements, with limited awareness of land governance structures that regulate their activities. The study finds that informal arrangements both complement and challenge formal systems, leading to hybrid land governance outcomes. It recommends policy interventions, such as designated trading zones, participatory urban planning and flexible regulatory frameworks, to bridge the historical divide between the formal and informal sectors.