Ghanaian businesses are still hopeful about the economy, but high electricity bills, expensive raw materials and competition from imported goods are putting pressure on them.

The latest Business Barometer from the Association of Ghana Industries (AGI) recorded a Business Confidence Index of 108.7 in the second quarter of 2026, down slightly from 109.5 in the first quarter.

The AGI said a score above 100 means businesses are still optimistic about their future, helped by improved economic conditions and confidence in the government’s economic reforms.

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However, 19% of businesses said high electricity costs were their biggest challenge. The high cost of raw materials followed at 14%, while multiple taxes accounted for 12%.

Access to credit was another major concern, with 11% of businesses identifying it as a challenge. Poor roads were also mentioned by 9% of respondents.

The AGI said local manufacturers are also struggling to compete with imported goods.

It blamed smuggling, tax evasion and the wrong declaration of imported goods for putting local businesses at a disadvantage.

The association said some imported goods are being declared as raw materials to pay a lower 5% import duty instead of the required 20%, while some goods enter the country through illegal routes.

This has affected production in some local industries. For example, Ghana’s wheat flour industry can produce about 800,000 tonnes a year but is currently producing only about 320,000 tonnes, meaning its factories are operating at just 40% of their capacity.

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The AGI also said access to loans remains difficult for many businesses, even though lending to the private sector has increased.

Construction companies, in particular, continue to face serious challenges in getting credit.

Inflation also increased during the quarter, rising from an average of 3.4% in the first quarter to 4.1% in the second quarter. The AGI linked part of the increase to the conflict in the Middle East.

Despite these challenges, businesses remain positive about the rest of the year. About 72% expect their performance to improve, while 26% expect no major change.

The AGI said keeping the economy stable will help businesses grow, but high electricity costs, access to credit and unfair competition from imports must be addressed.

DR/SA