A new report by the World Bank’s Business Ready (B-Ready) 2024 assessment has revealed that Ghana faces significant challenges in setting up businesses compared to its regional peers in sub-Saharan Africa. The report highlights difficulties in market competition, business entry, and dispute resolution, positioning Ghana behind many neighboring economies.
Challenges in Business Registration and Digitalization
The report points out major inefficiencies in Ghana’s regulatory framework. The country lags in digitalizing intellectual property services and does not provide comprehensive business statistics, including gender-disaggregated data on firms. Additionally, Ghana lacks a fully electronic system for company registration and an electronic case management system for dispute resolution, further complicating the business environment.
Speaking at the report launch, Robert Taliercio O’Brien, the World Bank’s Division Director for Ghana, Liberia, and Sierra Leone, emphasized that Ghana’s business registration process is unnecessarily lengthy. “It takes 57 days to register a new domestic company in Ghana. In Rwanda, it only takes three days,” he stated, urging the government to simplify procedures and reduce delays.
Internet reliability was another concern highlighted in the report, with 48% of Ghanaian businesses experiencing monthly disruptions. In more efficient economies, such disruptions affect only 2% of firms.
Ghana’s Strengths: Labor Laws and Utility Services
Despite these challenges, Ghana performed well in labor regulations, utility services, and business insolvency. The country has implemented strong labor dispute resolution mechanisms and ensures transparency in electricity and water tariffs, connection requirements, and complaint handling processes.
Additionally, Ghana has developed an efficient electronic case management system for business liquidation and reorganization proceedings, providing businesses with clearer guidelines for financial restructuring.
Path Forward
While the report highlights areas that need urgent reform, it also acknowledges Ghana’s progress in key business support services. By addressing bureaucratic bottlenecks, improving digital infrastructure, and streamlining regulatory processes, Ghana could significantly enhance its business environment and attract more investors.
