Business Ready 2024 Report: Ghana scores highest in Labor, Utility Services, and Business Insolvency, but…

Ghana remains one of Africa’s most stable democracies, attributed to its multi-party democratic system and largely peaceful transitions of power. This stability has positioned the country as a promising environment for economic growth.

At the Ghana Business Ready 2024 Report Dissemination event held in Accra, the World Bank Group, in collaboration with the Government of Ghana, presented a report highlighting Ghana’s performance in key economic indicators. The report revealed that Ghana scores highest in Labor, Utility Services, and Business Insolvency.

According to the report, Ghana has implemented good practices in labor dispute resolution, offers transparent information on utility services (including connection requirements, tariffs, and complaint mechanisms), and has introduced electronic case management systems for liquidation and reorganization proceedings.

However, Ghana scores lowest in Market Competition, Business Entry, and Dispute Resolution. The report identified gaps in the digitalization of intellectual property services, the absence of general and sex-disaggregated firm statistics, and inefficiencies in the judicial system as key challenges affecting these areas.

Government’s Commitment to Business Reforms

Delivering remarks at the event, the Minister for Trade, Agribusiness, and Industry, Hon. Elizabeth Ofosu-Adjare, called for stronger business reforms to enhance economic growth. She reiterated the government’s commitment to fostering a more business-friendly environment to significantly reduce unemployment in the country.

“Our government is implementing ambitious plans to strengthen manufacturing, expand agribusiness, and improve access to international markets. However, success depends on strong regulations and efficient institutions,” she stated.

She further emphasized that her ministry is actively implementing the Business Regulatory Reform (BRR) Program, which aims to eliminate barriers hindering business growth and ensure a more efficient regulatory framework. She also expressed gratitude to the World Bank for its continuous support through the Ghana Economic Transformation Project.

Call for Improved Access to Long-Term Financing

The Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum-Akwaboah, highlighted the pressing need for improved access to long-term financing for businesses.

“While businesses can secure short-term loans from banks for working capital, accessing medium to long-term financing remains a significant challenge. These funds are crucial for industry expansion,” he explained.

He concluded by urging Small and Medium Enterprises (SMEs) to enhance their management and governance structures to improve their chances of securing financing. He also encouraged the adoption of technology to improve financial transparency and record-keeping, making it easier for financial institutions to assess business viability for loans.

By Madjid Diallo || GhanaNewsOnline