Taxation system, corruption, others still impacting viability of businesses in Ghana – Report
The UK-Ghana Chamber of Commerce (UKGCC) has published its 2022 Ghana Business Environment and Competitive Survey Report.
The survey was conducted with over 300 companies, including small to large-sized firms across 16 industries, and it highlights that businesses have experienced improved business environment, yet remain challenged by corruption, Ghana’s taxation system, high land and power costs, and other economic obstacles.
According to the survey, the cost of gasoline continues to be the highest operating expense for businesses, followed by power, machinery, and technology, which puts a strain on their financial resources. However, respondents were optimistic about the low costs of hiring competent labor, marketing, quality control, and locally obtained raw materials.
To improve the ease of doing business, the report suggests that the government must support successful regulatory reforms, promote transparency and lower corruption, and ensure a stable macroeconomic environment. The report also calls for improved bureaucracy and quicker approvals to enhance the ease of doing business.
The report also highlighted the need for businesses to develop appropriate quality standards, expand their capital base, and position themselves for the African Continental Free Trade Area (AfCFTA) to increase competitiveness and optimize the full benefits of the AfCFTA.
While the report commended the government for improving the perception of cost of land, availability of logistics partners, and access to land, it noted that corruption remains a major challenge for businesses.
UKGCC Executive Council Chairman, Anthony Pile MBE, said the results showed cautious optimism for the future, and stakeholders should plan for risks and uncertainties, and build resilience to withstand any unanticipated shocks in 2023.
Vish Ashiagbor, Country Senior Partner of PwC, a UKGCC member company and consultants/advisors for the report, applauded the government for its efforts in improving the business environment but urged the government to prioritize reducing corruption, ensuring a stable macroeconomic environment, and promoting transparency to create a more favorable business environment.
