Ghana’s Business Landscape: Struggles, Silver Linings, and the Path to Competitiveness
The UK-Ghana Chamber of Commerce (UKGCC) has released its 2024 Ghana Business Environment and Competitiveness Survey (BECS) Report, painting a complex picture of a nation balancing hope and hardship in its business environment. The findings, drawn from the insights of 725 businesses across 22 industries, underline a compelling narrative: Ghana stands at a crossroads, with its economic future hinging on bold policy decisions and public-private collaboration.
A Widening Gap Between Promise and Reality
While businesses express cautious optimism about growth opportunities, particularly in technology and market expansion, structural challenges remain deeply entrenched. Taxation policy, government bureaucracy, and the cost of telecoms emerged as key obstacles, dampening investor confidence. For the first time, the cost of telecoms and the regulatory framework appeared as poorly rated components, raising fresh concerns about the ease of doing business in Ghana.
The report also highlights enduring pain points such as corruption and exchange rate volatility, which have consistently hampered the country’s economic progress. Persistent inflationary pressures, coupled with the weakening Ghana Cedi, have eroded purchasing power and driven up operational costs. The business community’s call for immediate reforms is louder than ever.
A Glimmer of Progress Amid Persistent Woes
Not all the findings are bleak. Advanced technology and telecom services have shown marked improvement since 2021, underscoring Ghana’s potential as a technology hub in the region. Similarly, the availability of quality infrastructure—featured as an improved component for the first time—signals incremental progress.
The report identifies domestic marketing, certifications, and labor as relatively affordable components over the past four years. However, the rising cost of labor in 2024 underscores the impact of inflation, reminding businesses of the precarious balance between opportunity and challenge.
Manufacturing at a Crossroads
One of the most striking insights is the plight of Ghana’s manufacturing sector. High production costs, limited access to financing, and energy inefficiencies have stifled growth in what could otherwise be a cornerstone of the nation’s industrialization. Adjoba Kyiamah, Executive Director of UKGCC, notes that without comprehensive reforms to lower operational costs and incentivize energy-efficient technologies, the sector risks losing its potential as a driver of job creation and economic transformation.
The Cost of Inaction
Anthony Pile, MBE, Chairman of the UKGCC Executive Council, warns of the broader implications of an unstable business environment. “Creating a safe and secure environment is paramount for fostering business confidence. Strategic investments in community policing and infrastructure could significantly reduce crime and create a stable setting for businesses to thrive,” he said.
PwC Ghana, which prepared the report, echoed these sentiments, emphasizing the need for clear, consistent policies and a predictable taxation regime. Vish Ashiagbor, Country Senior Partner at PwC, cautioned against burdening the private sector further, advocating instead for innovative approaches to revenue mobilization.
The Path Forward
The survey provides a roadmap for addressing Ghana’s challenges. Key recommendations include:
- Tax Reforms: A sustainable tax regime that alleviates burdens on businesses and encourages compliance.
- Public-Private Partnerships: Collaboration to streamline regulations, combat corruption, and attract investment.
- Targeted Sectoral Investments: Supporting manufacturing, technology, and services through capacity building and infrastructure development.
- Enhanced Security: Community-focused initiatives to foster safer business environments.
The collective voices of business leaders in the survey are a clarion call for change. Ghana’s ability to address these concerns will not only define its economic trajectory but also shape its global competitiveness in the years to come.
A Nation at a Crossroads
Ghana’s 2024 BECS report is not merely a critique; it is a call to action. As the nation grapples with its macroeconomic realities, the need for strategic interventions has never been more pressing. Whether it can transform its challenges into opportunities depends on the courage and commitment of its policymakers, private sector leaders, and international partners.
The story of Ghana’s business environment is one of resilience, but resilience alone will not suffice. Bold steps must follow, for inaction carries the highest cost of all.
