A survey conducted about Ghana's business environment and competitiveness in 2024, has shown that rising inflation in 2024, affected the affordability of labour.

The survey conducted by the UK-Ghana Chamber of Commerce (UKGCC) noted that for the first time, cost of telecoms and the regulatory framework appeared on the list of poorly rated business components.

This emphasised areas that require immediate government attention to enhance Ghana’s business environment.

The survey also identified taxation policy, cost of telecoms, government bureaucracy, and the regulatory framework as the top concerns for businesses in 2024.

"Despite challenges, businesses rated the availability of telecom facilities as the best-performing business component, though this rating declined from 36% in 2023 to 20% in 2024. Other positively rated components include the availability of power, labour, water, and logistics partners," parts of the report read.

It also noted that corruption remains a persistent issue, consistently appearing among the top five most declined components over the past four years.

"Tax policy and the cost of power also remain key concerns, highlighting the need for government engagement to develop sustainable solutions. Respondents identified advanced technology and telecom services as the most improved components since 2021. For the first time, the availability of quality infrastructure was included in the list of improvements, reflecting incremental progress," it said.

In terms of cost of doing business in Ghana, tax policy and macroeconomic challenges, including the weakening of the Ghana Cedi, were highlighted as key drivers of high operational costs, thereby increasing cost of doing business.

"Persistent exchange rate volatility continues to influence the pricing of domestic factors of production, the report highlighted.

Respondents identified domestic marketing, certifications, quality control, and labour as the most affordable business components over the past four years.

"However, rising inflation in 2024 has impacted the affordability of labour," it said.

The UK-Ghana Chamber of Commerce (UKGCC), a member-based trade association that promotes trade between the UK and Ghana, released the 6th edition of its annual Ghana Business Environment and Competitive Survey (BECS) Report for the year 2024.

725 businesses across Ghana comprising UKGCC member and non-member companies from 22 industries and ranging from small to large companies, participated in the survey.

Business components assessed included availability of telecom, power, labour, water, and logistics partners, taxation policy, cost of telecoms, government bureaucracy, regulatory framework, and government support of exports.

The Report reveals a mixed picture for Ghana’s business environment.

"While businesses express cautious optimism about future growth, particularly in technology adoption and market expansion, significant challenges remain," the release said.

SSD/EK

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