Ghana has made significant strides in enhancing its regulatory framework, achieving an impressive 66.99 percent score in the World Bank’s latest Business Climate Rankings (B-Ready). This accomplishment marks a crucial milestone in the country’s ongoing efforts to attract investment and improve the ease of doing business.
The B-Ready report evaluates the business climate across three major pillars: regulatory framework, public services, and operational efficiency. Ghana excelled in the regulatory framework pillar but showed mixed performance in other areas, scoring 54.42 percent in operational efficiency and 47.67 percent in public services.
In terms of market dynamics, Ghana scored 32.19 percent in market competition and 56.78 percent in international trade. The country achieved 40.99 percent in business entry, while utility services were a notable strong point, scoring 68.52 percent.
It’s worth noting that Ghana’s economic growth has been influenced by various factors, including the impact of Russia’s invasion of Ukraine, tight global financial conditions, and macroeconomic challenges. The country’s real GDP growth decelerated from 3.8 percent in 2022 to 2.9 percent in 2023.
However, the medium-term growth outlook is positive, with GDP growth projected to rise to 3.4 percent in 2024 and 4.3 percent in 2025. To achieve this growth, Ghana must enhance its competitiveness by easing infrastructure bottlenecks, accelerating agro-industrialization, and creating a policy framework for technology adoption and innovation.
The World Bank’s report emphasizes that economies do not need to be wealthy to create a favorable business environment. This is particularly relevant for Ghana, which has been working to strengthen its economy and attract investment.
Ghana’s structural transformation needs reinforcement, with productivity stagnating in services and rising slowly in industry and agriculture. To fast-track structural transformation, Ghana must invest in value-added activities, build resilience against global shocks, and enhance macroeconomic management and domestic resource mobilization.
The country’s economic outlook is clouded by several factors, including the impact of fiscal consolidation, limited access to finance and foreign exchange, and global macroeconomic shocks. However, prudent macroeconomic management policies could mitigate these risks.
Ghana’s progress in improving its regulatory framework is a step in the right direction, and continued efforts to enhance the business climate will be crucial for driving economic growth.
Ghana’s performance in the B-Ready rankings highlights the country’s potential for growth and development, and with sustained efforts, it can become an attractive destination for investment and business.
