The UK-Ghana Chamber of Commerce (UKGCC) has released the 4th edition of its yearly Ghana Business Environment and Competitive Survey Report for the year 2022.
Over of 300 companies from 16 industries, ranging from small to large companies, participated in the survey.
The review results show that most businesses see the business environment in 2022 to have improved on over of 2021. However, they keep on being kept down by challenges like corruption, Ghana's taxation system, the price of land and power, and present extra economic obstacles.
Businesses continue to list the cost of gasoline as their highest operating expense; followed by cost of power, cost of machinery, and cost of technology. These factors, it was shown, strain their already limited finance resources.
These regardless, businesses highlighted several factors positively affecting their performance in Ghana.
According to the respondents, recruiting competent labour has been among the least expensive their companies have at any point needed to manage. Local marketing cost, certification and quality control charges, as well as cost of locally obtained raw materials, are additionally seen as being low. These indication have shown consistency in their ranking of lower costs of doing business in Ghana over earlier year's survey report.
To improve the ease of doing business, respondents suggested a few changes. Top of the list is safety and security of investment, follow by lower corruption and improved transparency. It was observed that for business to proper over time, the government should support successful regulatory change and assurance a stable macroeconomic environment. Respondents were also of the view that improved bureaucracy and faster approvals would promote ease of business.
With respect to the African Continental Free Trade Area (AfCFTA), sample businesses believe that the development of appropriate quality standards, and the expansion of their capital base, are the two most important step they need to take to increase their competitiveness and enhance the full benefits of the AfCFTA.
Anthony Heap MBE, UKGCC Executive Council Chairman, noticed that "regardless of the current circumstance , there is a encouraging, yet cautious optimism for the future.
"It is, in this way, important for all business environment stakeholders, particularly Government policymakers, and businesses to make plan for the risk and uncertainties and build the versatility to endure any unforeseen shocks in 2023".
Commenting on the report, Vish Ashiagbor, Country Senior Partner of PwC, a UKGCC member company and consultants/advisor for the report, commended the government for improving the perception of cost of land, availability of logistic partner, and admittance to land from the 2021 survey results. He, in any case, lamented the worsening issue of corruption and its unfavorable impact on businesses.
"This year, larger part of the respondents voted corruption to be the most worrisome business component regardless of the government drive to throw out corruption. Seeing that a few upgrades were recorded last year, the regulatory structure, availability of power and legal system have all declined.
"In PwC Ghana's view these setback are well within Government's compass to improve, and ought to, consequently, remain high on the plans of backing groups like business chambers", he added.
About the Survey
The yearly Business Environment Survey was first launched in 2019 and has been directed consistently from that point forward. The main reason for the survey is to increase the understanding of opportunity and challenges that the Ghanaian market presents for UKGCC members and businesses generally, whether large or small, new or old, and across all sector.
The survey gives a platform to businesses to give key feedback on the health, confidence, intentions, and issues of businesses in Ghana and consequently, serves in as the foundation for the UKGCC's advocacy work.
The 2022 edition gives a far reaching analysis of several important signs of the current businesses environment, as seen by businesses, offering an data-driven take a look at the patterns shaping the business scene.