Lawyer, entrepreneur and founder of Ezel Fashion, Elsie Appau-Klu, has called for the establishment of a cosmetology council and the formalisation of Ghana’s beauty and wellness industry.

She believes this will unlock its full potential for youth employment, entrepreneurship, skills development and revenue generation.

She said the sector, which employs and serves millions of Ghanaians through activities ranging from hairdressing and barbering to makeup artistry, skincare and spa services, remains largely informal despite its growing economic importance.

Speaking at the Ghana Beauty and Wellness Report Workshop organised by Makeup Ghana at the West Africa Genetic Medicine Centre of the University of Ghana on September 3, Madam Appau-Klu said the industry must be recognised as an important contributor to Ghana’s economy rather than being viewed simply as a sector centred on glamour.

The workshop was held under the theme: “Formalising Beauty: Data, Policy and Growth for Ghana’s Wellness Economy.”

“The beauty and wellness industry is more than glamour. It is jobs, entrepreneurship, dignity and revenue. From the roadside braider in Kaneshie to the spa in Airport, this sector touches millions of Ghanaians daily. Yet, for too long, it has operated largely in the informal space,” she said.

Madam Appau-Klu, who is Technical Advisor to the Commissioner-General of the Ghana Revenue Authority (GRA), represented the Commissioner-General, Anthony Kwasi Sarpong, at the workshop.

She said formalisation should not be viewed merely as a mechanism for taxation, but rather as a pathway to growth and greater opportunities for businesses and practitioners.

She said the GRA is prepared to work with stakeholders in the sector to encourage business registration, improve tax education and develop a better understanding of the industry's size and contribution to employment and economic activity.

According to her, the GRA collects information on registered businesses through its Taxpayer Identification Number database, tax returns, turnover declarations and compliance records, although businesses in the sector are currently broadly classified under beauty and personal care.

She said more comprehensive and reliable sector data would enable policymakers and regulators to better understand the number of businesses operating in the industry, their turnover, employment contribution and the extent of informality.

Lack of defined regulatory framework

Madam Appau-Klu also raised concerns about the absence of a clearly defined professional regulatory framework for cosmetology and wellness practitioners.

She noted that while institutions such as the Food and Drugs Authority regulate products and local assemblies issue business permits, there was a need for stakeholders to intensify advocacy for a dedicated cosmetology council or professional regulatory body.

“Product standards are the responsibility of the FDA, while professional practice must also be properly regulated. If there is no dedicated cosmetology council or professional regulatory body, then our advocacy must rise for an appropriate regulatory framework,” she said.

She stressed that the GRA is ready to partner the beauty industry in a manner that supports rather than discourages small businesses.

According to her, small and informal businesses often face challenges with record-keeping, cash-based transactions, limited understanding of tax obligations and concerns about the complexity of compliance.

She said association-led tax education had proven particularly effective because it allowed public institutions to engage businesses through their own professional and trade groups.

“When we work through associations and communicate in ways businesses understand, registration and voluntary compliance improve. The key is to simplify the message, remove fear and meet taxpayers where they are,” she said.

Madam Appau-Klu called on the Ghana Beauty and Wellness Report to provide credible data on the sector's size, employment, turnover, levels of informality, and barriers to registration and compliance.

She said such evidence would help government institutions design policies and systems that reflect the realities of businesses in the industry.

“At GRA, our goal is not to tax businesses out of existence. Our goal is to bring them into the formal economy so they can access credit, contracts and opportunities for growth, while contributing fairly to national development,” she said.

She urged stakeholders to use the report as a foundation for stronger collaboration among industry players, government and regulators to build a beauty and wellness sector that is formalised, professionally recognised and capable of creating sustainable jobs for Ghana’s growing youth population.