UKGCC Survey: Corruption, unfavorable tax system, major challenges facing UK businesses
The latest edition of the annual Ghana Business Environment and Competitive Survey Report, released by the UK-Ghana Chamber of Commerce (UKGCC), has revealed mixed results for the business community in Ghana.
Over 300 companies from 16 industries participated in the survey.
While the majority of businesses surveyed felt that the business environment in Ghana has improved compared to the previous year, they still face significant challenges, such as corruption, an unfavorable tax system, and high costs of land and power.
The cost of gasoline was listed as the highest operating expense, followed by the cost of power, machinery, and technology.
Despite these challenges, the survey results show that businesses in Ghana have several positive factors affecting their performance. Hiring competent labor was reported as one of the least expensive expenses for businesses, while local marketing costs, certification, and quality control charges were also considered low.
The survey also found that businesses are seeking reforms to improve the ease of doing business.
The top priorities for improvement include safety and security of investment, a reduction in corruption, and improved transparency. Businesses also emphasized the need for the government to support regulatory reform and maintain a stable macroeconomic environment, as well as the importance of improved bureaucracy and quicker approvals.
To be more competitive in the African Continental Free Trade Area (AfCFTA), businesses believe that they need to develop appropriate quality standards and expand their capital base.
Commenting on the report, Vish Ashiagbor, Country Senior Partner of PwC, a UKGCC member company and consultant/advisor for the report, praised the government for improvements in the cost of land and access to land, but expressed concern about the worsening problem of corruption and its impact on businesses.
The annual Business Climate Survey is conducted every year by the UKGCC to increase understanding of the opportunities and challenges that the Ghanaian market presents for UKGCC members and businesses, regardless of size, age, or sector. The survey serves as the foundation for the UKGCC’s advocacy work.
