Private Sector Compelled to Engage in Corruption by Public Sector Failures, Says Development Economist
Development Economist, Nicholas Issaka Gbana, has pointed out systemic failures within Ghana’s public institutions as the root cause of entrenched corruption, absolving the private sector of blame for participating in corrupt practices.
Speaking during the NorvanReports X Space Discussion themed, “State of Corruption in Ghana: Why the Needle Isn’t Moving – What Ghana’s Anti-Corruption Architecture is Getting Wrong”, organised in partnership with the Ghana Anti-Corruption Coalition (GACC) and the Hewlett Foundation, Mr Gbana remarked that private sector actors are often compelled to engage in corrupt activities due to institutional inefficiencies and a lack of transparency within the public sector.
“It’s not as if private sector people just go out to corrupt public officials. It’s the system – it’s just the name of the game. If you don’t ‘play ball’, you’re out,” he stated bluntly.
Mr Gbana, who shared his own experience as a private consultant, explained that businesses often have no choice but to engage in unethical practices in order to survive, especially when livelihoods and staff welfare are at stake.
“You realise that without playing ball, your business is going to collapse. At that point, it’s not just about you. You have employees, you have staff, and you have no choice but to do what it takes to get your business up and running,” he lamented.
He further asserted that the current anti-corruption architecture has created a high-cost environment for doing business, with investment prospects stifled due to cumbersome regulatory procedures that often require inducements to expedite.
“You can’t do anything in this country without some sort of permit or registration. Whether it’s land acquisition or simple administrative procedures, you’re expected to make under-the-table payments. That discourages both local and foreign investors,” he said.
Mr Gbana revealed that he has personally encountered foreign investors who have pulled out of Ghana due to corrupt demands from public officials, resulting in a loss of potential capital inflows and jobs.
He also criticised the silence of major private sector associations such as the Association of Ghana Industries (AGI) and the Ghana Union of Traders Associations (GUTA) on corruption, suggesting that fear of victimisation has muzzled their voices.
“Have you ever heard AGI or GUTA publicly speak on corruption in the public sector? No. Everyone is afraid that if they speak up, they’ll be targeted. So, it’s unrealistic to expect the business community to carry this fight. That responsibility, unfortunately, falls on civil society,” he stressed.
His remarks come on the back of the 2024 State of Corruption Report by the GACC, which described Ghana’s anti-corruption efforts as stagnant. The report, covering January to December 2024, concludes that the country has failed to make meaningful progress in combating corruption, and warns of the adverse implications for democratic governance and investor confidence.
The report urges stakeholders to renew their commitment to fighting corruption, emphasising that continued inaction will erode public trust and economic stability.
