Ghana has made notable progress in improving its regulatory framework, achieving a score of 66.99 percent in the World Bank’s latest Business Climate Rankings (B-Ready), released in October. This advancement represents a key milestone in the country’s ongoing efforts to attract investment and enhance 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, demonstrating its commitment to creating a conducive environment for businesses. However, while the regulatory framework score of 66.99 percent is commendable, the country showed mixed performance in other areas. In operational efficiency, Ghana scored 54.42 percent, indicating room for improvement in streamlining processes and enhancing productivity. The score for public services was even lower, at 47.67 percent, highlighting challenges in delivering quality services that support business operations.
The report also assessed Ghana’s broader market dynamics, which are crucial for understanding the overall business environment. In terms of market competition, Ghana scored 32.19 percent, reflecting the need for more competitive practices to foster innovation and attract investors. For international trade, the country earned a score of 56.78 percent, indicating a moderate level of engagement in global markets. This aspect is vital for economic growth, as increased trade can lead to greater investment opportunities and economic diversification.
When it comes to business entry, Ghana achieved a score of 40.99 percent, suggesting that the process of starting a business could be made more efficient and less cumbersome for entrepreneurs. Reducing bureaucratic hurdles and simplifying the registration process could significantly enhance the attractiveness of the country for new businesses. On a positive note, utility services emerged as a bright spot, scoring 68.52 percent. This score indicates that businesses in Ghana can access essential services, which is crucial for operational success.
Importantly, the report stressed that economies do not need to be wealthy to create a favourable business environment. This observation underscores the potential for Ghana to improve its business climate further by focusing on regulatory reforms, enhancing service delivery, and fostering competitive practices. The findings of the B-Ready report are particularly relevant as Ghana seeks to position itself as a leading destination for investment in the region.
The B-Ready report, which covers 50 economies globally, aligns with the World Bank’s goal of promoting private investment to drive economic growth. By evaluating various aspects of the business climate, the report provides valuable insights that can guide policymakers in identifying areas for improvement. As Ghana continues to implement reforms aimed at enhancing the business environment, it is crucial for stakeholders, including government agencies, businesses, and investors, to collaborate effectively.
To maintain the momentum gained in the regulatory framework, Ghana must prioritize addressing the challenges identified in the report. This includes focusing on improving operational efficiency and public services to create a more cohesive and supportive environment for businesses. Additionally, fostering competition in the market will not only enhance consumer choices but also encourage innovation and efficiency among businesses.
Investors and entrepreneurs looking at Ghana should find reassurance in the progress made so far, especially in the regulatory framework and utility services. However, the mixed performance in other areas highlights the need for continued engagement and investment in reforms. By actively addressing these challenges, Ghana can further strengthen its position as an attractive investment destination in West Africa.
In conclusion, Ghana’s 66.99 percent score in the regulatory framework is a significant achievement that reflects the country’s commitment to improving its business climate. While there are areas requiring attention, such as operational efficiency, public services, and market competition, the positive aspects identified in the report offer a solid foundation for further progress. As the government continues to implement reforms and engage with stakeholders, there is great potential for Ghana to enhance its business environment, attract more investment, and ultimately drive economic growth for the benefit of its citizens. The path ahead requires sustained effort, collaboration, and a clear vision to harness the opportunities that lie within Ghana’s evolving business landscape.
