Trust in key public institutions in Ghana, including members of parliament and the courts, has significantly declined over the past decade, according to the latest Afrobarometer survey.
This erosion of trust poses potential risks for business confidence and investment, as strong institutions are crucial for creating a stable and predictable environment for economic activity.
The survey, conducted between August 5 and August 22, 2024, highlights growing public concern over governance and accountability, which could have broader implications for the business climate.
Among public institutions, the Ghana Armed Forces, religious leaders, traditional leaders, and non-governmental/civil society organizations remain the most trusted. However, trust in state institutions such as members of parliament, the courts, and the police has seen marginal declines since 2022 and significant drops since 2012.
Corruption remains a pervasive issue, with the police, the Presidency, tax officials, and members of parliament perceived as the most corrupt. 74% of Ghanaians believe corruption has increased over the past year, while only 26% feel confident they can report corruption without fear of retaliation, highlighting a troubling decline in public confidence in accountability mechanisms.
On the election front, 72% of Ghanaians oppose lowering the voting age from 18 to 16 years. Despite this, 60% of respondents viewed the 2020 elections as “completely free and fair” or “free and fair with minor problems.” Honesty (90%), character (88%), and campaign promises (59%) remain the key factors influencing voter choices.
When it comes to participation, 77% of Ghanaians reported voting in the 2020 election, but voter apathy is notable, particularly among demographics not affiliated with political parties.
Public perception of the government’s performance in fighting corruption has worsened significantly, with 74% of Ghanaians believing the government is handling it poorly as of 2024. Additionally, fear of retaliation for reporting corruption is alarmingly high, with 71% expressing concern in 2024, reflecting a persistent fear from previous years.
The decline in trust in public institutions and the rise in corruption pose serious risks for businesses in Ghana. When institutions like the courts and parliament lose credibility, it weakens the rule of law, making the business environment less predictable and stable.
Corruption, especially within key sectors like law enforcement and tax administration, increases operational costs and complicates business dealings. For investors, both local and international, this reduces confidence, as navigating an environment where decisions are influenced by unofficial payments erodes competitiveness.
For businesses, the lack of trust in reporting mechanisms, with 71% fearing retaliation for exposing corruption, further stifles reform and transparency, making it harder to advocate for fairness and accountability. If these trends continue, it could significantly hamper growth and discourage investment, making it imperative for businesses to push for stronger governance and institutional reforms.
