On the morning of January 3, 2025, thick plumes of smoke engulfed the Kantamanto market, one of Accra’s busiest commercial hubs. What began as a small fire the previous day quickly escalated into a devastating inferno, reducing vast sections of the market to ashes. For the thousands of traders who rely on Kantamanto for their livelihoods, the fire was not just a disaster—it was a stark reminder of the precariousness of life in Ghana’s informal sector, where insurance is a luxury few can afford.
A Market in Flames: The Kantamanto Tragedy
Kantamanto market, a bustling center for secondhand clothing, electronics, and assorted goods, is a lifeline for many in Accra. It is a place where dreams are built, one sale at a time. But on that fateful day, those dreams turned to ash. Firefighters arrived swiftly, but the flames spread too quickly to contain. The cause of the fire remains under investigation, but the impact is undeniable: hundreds of traders lost everything.
Georgina Nartey, a secondhand clothing seller, stood helpless as her stall and inventory were consumed by the flames. "I woke up this morning with hopes of making sales and supporting my family, but now I have nothing," she lamented. "Everything I had is gone. All my stock, all my money—everything."
Kwasi Ampah, an electronics trader, echoed her despair. "I was in my stall when I smelled smoke. Before I knew it, the fire had consumed everything. All my stock, including expensive electronics, was burned to the ground."
For traders like Georgina and Kwasi, the fire was more than a loss of goods—it was a loss of their livelihoods. With no insurance to fall back on, their futures are now uncertain.
The Insurance Gap: A Systemic Failure
The Kantamanto fire has exposed a critical issue in Ghana’s economy: the lack of insurance coverage for informal sector workers. According to the Ghana Statistical Service, the informal sector employs over 80% of the working population. Yet, only a fraction of these workers have access to formal insurance schemes.
A 2025 UNDP report reveals that approximately 70% of Ghanaians lack any form of insurance. For informal traders, the reasons are multifaceted. Many find insurance premiums unaffordable, while others are skeptical about the benefits. Limited awareness and distrust of insurance companies further exacerbate the problem.
"Insurance is a luxury, not a necessity for us," said Abena Amankwah, another trader whose stall was destroyed. "The premiums are too high, and we don’t see the value of paying into something we might never need. Now that it’s happened, I see the need, but it’s too late."
The Challenges of Insuring the Informal Sector
Ghana’s insurance industry faces significant challenges in extending coverage to the informal sector. Traditional insurance products are often designed for salaried workers or formal businesses, leaving informal traders underserved. High premiums, stringent requirements, and irregular income streams make it difficult for traders to access these products.
In recent years, some insurers have introduced micro-insurance products tailored to the informal sector. These policies offer lower premiums and flexible payment terms, but their adoption remains limited. Low awareness, logistical challenges, and lingering skepticism have hindered their success.
Seth Aklasi, President of the Ghana Insurers Association, highlighted the dilemma facing insurers. "Market fires have become rampant because they have become certainties. We can alternatively create a pool to support victims, but how do we fund such a system?"
Learning from Global Best Practices
Ghana can draw valuable lessons from countries that have successfully extended insurance coverage to informal sector workers. Kenya, for instance, has leveraged mobile technology to make insurance more accessible. India has developed affordable micro-insurance products, while South Africa has implemented public-private partnerships to improve outreach.
2. Leveraging mobile technology to simplify access and payments.
3.Encouraging public-private partnerships to subsidize premiums.
4. Simplifying claims processes to build trust.
5. Investing in financial literacy programs to increase awareness.
By adopting these strategies, Ghana can bridge the insurance gap and protect its informal sector workers from future disasters.
The Role of Government and Policymakers
The Kantamanto fire underscores the urgent need for policy interventions to address the insurance gap. The government has a critical role to play in creating an enabling environment for micro-insurance markets to thrive. Potential measures include:
-Encouraging insurers to develop products tailored to the informal sector.
- Establishing public-private partnerships to pool resources and reduce costs.
Without such interventions, informal sector workers will remain vulnerable to shocks, undermining their ability to contribute to the economy.
Rebuilding Kantamanto: A Community’s Resilience
In the aftermath of the fire, the traders of Kantamanto have shown remarkable resilience. Many are banding together to rebuild their stalls, supported by local NGOs and philanthropic organizations. However, their efforts are hampered by the lack of financial resources.
"We cannot give up," said Kwasi Ampah. "Kantamanto is more than just a market; it’s a community. And we are determined to stand together and rise from this."
A Call to Action: Protecting Ghana’s Informal Sector
The Kantamanto fire is a wake-up call for Ghana. It highlights the urgent need to address the insurance gap and protect the livelihoods of informal sector workers. By developing inclusive insurance products, improving financial literacy, and fostering collaboration between the government, insurers, and NGOs, Ghana can build a more resilient informal sector.
As Georgina Nartey aptly put it, "Insurance should not be something for only the rich or those in formal jobs. We all need protection." The time to act is now—before the next disaster strikes.
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