Findings from the UK Ghana Chamber of Commerce (UKGCC) 2023 Ghana Business Environment and Competitiveness Survey indicates that significant majority of firms in Ghana, amounting to 72%, have expressed their perception that the nation’s business environment falls behind its global counterparts,
The report indicated that a notable 72% of firms believed that Ghana’s business environment witnessed a decline in 2023, in contrast to the 47% who expressed a similar sentiment in 2022.
Additionally, there is a widespread perception that other countries in the sub-region are navigating the aftermath of COVID-19, the Russian-Ukraine war, and the resulting supply chain disruptions more effectively than Ghana.
Furthermore, an overwhelming 75% of the respondents continued to view corruption as an ongoing obstacle to business operations, despite a decline in corruption trends compared to 2022.
It was also observed that the cost of labor, both unskilled and skilled, remains affordable for most businesses.
Moreover, the government’s support for international trade and the presence of high-quality transport infrastructure – two crucial components for the country’s economic partnership and international trade and investment objectives – were ranked second and third, respectively, on the list of least favorable business components.
The survey also analyzed the business components that have witnessed the most significant deterioration over the years, along with identifying the most expensive business costs.
A third of respondents flagged cost of capital as the most deteriorated business component over the last five years, with cost of land being the most expensive business cost.
Over a third of respondents reported though that they are not exploiting the opportunity platform inherent in the African Continental Free Trade Area (AfCFTA) despite having the requisite capacity.
Respondents suggested reforms such as the government’s lowering of perceptions of corruption and improving transparency, as well as assuring the safety and security of investments, tax cuts, accessible infrastructure, and government incentives would promote ease of doing business in Ghana.
Regarding favourable business components assessed, the respondents favourably highlighted the availability of telecom facilities as one of the advantageous aspects of the Ghanaian business environment. It was the perception that telecom facilities and advanced technology have persistently seen the greatest improvements. It was also perceived that cost of labour—unskilled and skilled—remains affordable to most businesses that participated in the 2023 survey.
Report presents clear roadmap for action – UKGCC
Anthony Pile MBE, UKGCC Executive Council Chairman, remarked that “this report presents a clear roadmap for action. Lowering corruption, prioritising infrastructure upgrades, addressing regulatory burdens, and investing in skills development are not just numbers on a page – they are the keys to unlocking a brighter future for Ghanaian businesses”.
He urged “the government to embrace these reforms and work hand-in-hand with the private sector to build a competitive and prosperous nation.”
Commenting on the report, Vish Ashiagbor, Country Senior Partner of PwC, a UKGCC Platinum member company and consultants/advisors for the report, noted that “Ghana is in a difficult place. Over the past three years, our economy has been buffeted by events, some of which are external and beyond the control of Government and businesses alike—COVID-19, global financial crisis, and the Russian-Ukraine war which spawned global supply chain hiccups that amplified the economic and business difficulties already triggered by the global financial crisis.
There is no doubt that Government is aware of the role that business plays in its quest to bring about socio-economic development. Indeed, the introduction of the Mutual Prosperity Dialogue is testament to this awareness and acknowledgement. We hope that, in the spirit of transparency, this report is considered objectively by Government, and working with UKGCC, considers what interventions can be implemented in the medium-to-long term to help improve the business environment.”
Over 690 businesses, including UK Ghana Chamber of Commerce members and non-member companies from 16 industries, ranging from small to large companies, participated in the survey.
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