Urbanization, climate change, and labour productivity in Accra, Ghana

This study examines how climate variability affects labour productivity across municipalities in the Accra city region. We combine enterprise-level data from Ghana's Integrated Business and Establishment Survey (IBES I and II), climate data at the sub-city level from the Ghana Meteorological Agency, satellite and reanalysis data, and key informant interviews with representatives of enterprises, city authorities, and the National Disaster Management Organization (NADMO). The findings show that rainfall, which contributes substantially to vulnerability and risk in the city, significantly reduces labour productivity, while temperature has no statistically significant effect. This reflects the disruptive impacts of rainstorms and floods on firms and the growth of high-productivity sectors. These results highlight the critical importance of integrating climate resilience into urban planning strategies and economic development policies. Strengthening investment in adaptation and resilient infrastructure will be essential for building more livable, sustainable, and economically dynamic African cities. • The study examines how climate variability affects labor productivity across municipalities in Accra. • Rainfall contributes substantially to vulnerability and risk in Accra. • Rainfall significantly reduces labour productivity, while temperature has no statistically significant effect. • There is the need to prioritizie investments in flood defenses, resilient infrastructure, and SME adaptation support in Accra