The recent clearance of structures along the beachfront of Labadi Beach and La Palm Royal Beach hotels in Ghana has brought to the forefront a critical governance challenge. The exercise, carried out by corporate authorities, has generated mixed reactions, with some viewing it as necessary to protect important investments, while others see it as a disruption to the livelihoods of people who depended on the area.
At the heart of the issue are two important realities that deserve equal consideration: the obligation of the Social Security and National Insurance Trust (SSNIT) to safeguard investments entrusted to it by Ghanaian workers and pensioners, and the economic hardship experienced by members of the La community whose livelihoods have been affected. SSNIT's mandate is to protect and manage resources contributed by millions of Ghanaian workers during their productive years.
Assets such as Labadi Beach Hotel and La Palm Royal Beach Hotel are not merely commercial properties, but investments intended to generate returns that support pensions and provide long-term value for contributors. SSNIT, therefore, cannot afford to be indifferent when activities around such investments threaten their sustainability, attractiveness or operational efficiency. The Trust has a responsibility to take appropriate steps to address concerns affecting assets under its care.
However, there is another side of the issue that should not be overlooked. Behind every demolished structure is a human story – a trader supporting a family, a food vendor paying school fees or a young entrepreneur creating an income where formal opportunities may be limited. For many years, informal economic activities became part of the social and commercial environment around the beachfront.
The communication dimension of the development is particularly important, as people are often more willing to accept difficult decisions when they understand why those decisions are necessary and feel that they have been respected throughout the process. Reports suggesting that key local stakeholders, including the Member of Parliament for La Dadekotopon, Rita Naa Odoley Sowah, traditional leaders and sections of the community, may not have been adequately engaged before the exercise, raise important questions.
Effective stakeholder engagement allows concerns to be identified early, expectations to be managed and opportunities for collaboration to emerge. Many potentially contentious situations become less confrontational when communication begins early enough. Engagement must begin before action, and communication must form part of the planning process from the beginning, not just a final stage of a process.
The way forward should not be framed as a choice between protecting investments and protecting livelihoods. Ghanaian institutions should be capable of doing both. Practical support for those whose sources of income have been disrupted, such as relocation options, skills training, enterprise support programmes and collaboration with local authorities, could help cushion the impact on affected families.
Key points
- The clearance of structures along Labadi Beach and La Palm Royal Beach hotels highlights the need for balancing pension investments with community livelihoods.
- Effective stakeholder engagement is crucial in managing potentially contentious situations.
- Ghanaian institutions should strive to protect both investments and livelihoods.
