From Solidarity to Sustainability: Examining the Role of Self-Help Groups in Local Economic Development in Ghana’s Informal Settlements

This paper examines the role of self-help groups (SHGs) in advancing local economic development (LED) in Ghana’s informal settlements, using evidence from the Ghana federation of the urban poor/partners (GHAFUP). While SHGs have historically been associated with microfinance and savings, this study highlights their broader developmental contributions. Drawing on insights from forty-five (45) respondents, the findings reveal that SHGs foster social capital, promote skills development, create income-generating opportunities, and enhance economic empowerment, especially for women and marginalized groups. By situating SHGs within LED frameworks, the study underscores their potential as grassroots institutions that bridge community initiatives with broader development agendas. The paper concludes that SHGs are vital catalysts for inclusive, sustainable, and community-driven economic transformation.