The informal goldmine: How undocumented immigrants build power in plain sight

Building on the earlier piece, “A menace worth high­lighting — Undocu­mented Foreigners,” published on May 20, 2025, this article exposes how undocumented immigrants in Gha­na leverage unregulated economic spaces to build wealth, gain legiti­macy, and ultimately erode national systems. These so-called “menial” trades are anything but harmless. They are powerful launch pads for wealth creation, identity laundering, and eventual systemic collapse.

This article stems from keen observation, not academic funding or institutional research. The goal is not mass deportation, but rather an urgent call to properly docu­ment all who reside and operate within Ghana’s borders. A criminal foreigner is far more elusive than a criminal indigene.

1. The Menial Economy

as a Trojan Horse

Undocumented immigrants often enter Ghana’s informal econ­omy through small trades. While these may appear insignificant, their untaxed, unregulated nature creates a parallel economy that bypasses all formal oversight:

● Untaxed operations deprive the state of vital revenue, giving illegal businesses an unfair edge.

● Unregulated spaces allow low standards, dangerous condi­tions, and environmental degrada­tion.

● Illegal occupations of space turn public and private lands into makeshift commercial zones.

Examples include:

● Vulcanizers on roadsides or bushy lots

● Okada (motorbike) riders without licenses or helmets

● Scrap dealers and phone repairers operating from gutters or abandoned buildings

● Security guards who use trusted positions to commit crime

These operators are often more driven than locals due to lack of support systems, making them more industrious—but also more disruptive.

2. Case Studies:

Exploiting Loopholes

Vulcanizers: Often found in unauthorized spaces, they operate without licenses, avoid taxes, and contribute to urban disorder. The lack of fixed locations makes regu­lation nearly impossible.

Okada riders: The business is highly profitable due to low opera­tional costs. Many use unregistered bikes or in some cases, stolen bikes, and flout safety rules. Their anonymity makes them ideal tools for crime. A personal observation in June 2025 witnessed about 20 reckless riders, a common sight reflecting lawlessness.

These two examples demon­strate the extent of the regulatory vacuum that is growing unchecked.

3. Regulatory Collapse

The informal economy’s growth reveals a deeper problem: Ghana’s regulatory systems are failing.

● Rule of law undermined: Laws are increasingly seen as op­tional.

● Public trust eroded: Law-abiding citizens feel disillu­sioned.

● Social friction increases: Health hazards, sanitation issues, and crime escalate in unregulated settlements.

A few symptoms:

● No central database for chassis numbers on motorbikes.

● Excessive noise from poorly maintained vehicles.

● Illegal use of abandoned properties for crime or business.

4. Infrastructure Exploitation

Undocumented individuals capi­talize on weak infrastructure:

● Illegal Land Use: Streets, medians, and parks become mar­kets or homes.

● Utility Theft: Tapping electricity or water without paying strains public services.

● No Address, No Tax: Lack of fixed addresses makes tax evasion easy and data collection impossible.

These practices widen the gap between the formal and informal economies.

5. What Needs to

Change: Bold Reforms

a. Enforce Ghana Card usage

● Make it mandatory for all informal workers and foreign business operators.

● Tie it to utility access and employment.

● Penalise employers and landlords who ignore it.

b. Tame Road Chaos

● Enforce licensing, registration, and insurance for all okadas and aboboyaas.

● Use QR codes on vehicles for easy police scanning.

● Ban non-Ghanaians from using temporary vehicle registra­tions.

● Restrict aboboyaa access to main roads.

● Confiscate non-compliant vehicles.

c. Enforce Land Use Laws

● Empower Assemblies to dismantle illegal setups.

● Conduct regular land audits.

● Levy strong fines for unauthorized land use.

d. Monitor Cargo

● Mandate pre-departure manifests for cargo trucks.

● Integrate customs and police into a single platform.

● Use technology for scan­ning at checkpoints.

6. Balance Enforcement

with Human Rights

● Free registration for des­titute foreigners: Track their data without criminalizing poverty.

● Biometric records: Cap­ture data at entry, regularization, and deportation stages.

● Regularisation pathways: Offer a legal path for well-behaved, long-term undocumented resi­dents.

● Hold enablers account­able: Fine or prosecute landlords and employers who facilitate illegal immigration.

A high-profile bust in Oyarifa in April 2025 revealed 219 foreign nationals engaged in cybercrime and trafficking. This proves the link between unchecked housing and crime.

Landlords must perform KYC checks via a central portal. Failure to do so should attract strict pen­alties.

Conclusion:

Time to Choose

Ghana is at a crossroads. The informal economy has become a thriving shadow state that escapes regulation, taxes, and control. We must now decide: Will we sanitize our systems and formalise our spaces, or let neglect become the national norm?

Every person must be accounted for. Every trade must be known. Every vehicle must be trace­able. This is a call to move from regulatory neglect to structured governance. Let the Ghana Card mean something. Let the police put their phones away and focus on the streets.

The time for soft talk has passed. The time to act decisively is now.

• BY ADADE CAN-TAMAKLOE