Ghana’s lengthy and fragmented business registration process has created a thriving market for unofficial middlemen known locally as “goro boys”, with most entrepreneurs relying on them to obtain business certificates, permits and licences, according to a new study by the Institute for Liberty and Policy Innovation (ILAPI).
The report found that 84% of the 600 businesses surveyed used “goro boys” during the registration process, underscoring how bureaucratic bottlenecks have become embedded in the country’s regulatory system rather than isolated administrative shortcomings.
Rather than speeding up economic formalisation, the study argues, delays and overlapping approval procedures have encouraged businesses to pay unofficial intermediaries to navigate government institutions, increasing the overall cost of establishing and operating a business.
“From the study, it has been revealed that out of the 600 respondents, 84% of the respondents indicated they used ‘goro boys’, while only 16% did not involve ‘goro boys’ in the registration process. This denotes the increase in cost spent in the process of formalizing a business,” the report said.
The findings reveal a wide contrast between businesses that used intermediaries and those that attempted to complete registration independently.
Among firms that did not engage “goro boys”, the overwhelming majority waited more than six months to receive their business entry certificates, despite the official processing period being significantly shorter. In contrast, businesses that relied on intermediaries typically obtained certificates within one to three months.
“This attests to the fact that without the use of a middleman, the acquisition of a Business Certificate takes longer duration more than the stipulated 14 working days,” ILAPI said.
The report suggests that delays have effectively created financial incentives for unofficial facilitators, who promise faster approvals in exchange for additional payments.
According to the study, entrepreneurs spent an average of GH¢1,030 to obtain a business entry certificate, with registration costs ranging from GH¢60 to GH¢2,000. The report attributes much of the additional expense to the involvement of middlemen.
Permit acquisition at Metropolitan, Municipal, and District Assemblies averaged GH¢1,275, while licence costs averaged more than GH¢1,600, adding to the financial burden facing new businesses.
ILAPI argues that these unofficial costs disproportionately affect micro-enterprises, which often operate with limited working capital and cannot easily absorb administrative expenses before beginning operations.
“These costs are particularly burdensome for micro firms: with limited capital, they often cannot absorb high unofficial fees or associated informal payments,” the report noted.
The dependence on intermediaries also exposes broader weaknesses in the coordination of Ghana’s regulatory institutions.
Businesses frequently deal with multiple agencies, including the Office of the Registrar of Companies, Environmental Protection Agency, Food and Drugs Authority, Ghana Standards Authority, local assemblies and other sector regulators, each requiring separate documentation, inspections or approvals.
The study argues that this institutional fragmentation creates unnecessary complexity that middlemen have learned to exploit.
“The presence of such middlemen not only inflates the cost of compliance but also highlights the lack of transparency and inefficiency in the regulatory system,” the report concluded.
To curb reliance on intermediaries, the think tank proposes establishing a unified digital business registration platform that would integrate approvals from multiple agencies into a single online process.
It also recommends publishing real-time fee schedules, enabling applicants to track the status of applications electronically, allowing all payments to be made through government platforms and expanding downloadable forms and digital filing across regulatory institutions.
“Create an online ‘one-stop-shop’ for business registration and licensing that links all relevant agencies… This eliminates redundant paperwork and prevents middlemen (‘goro boys’) from profiting from delays,” ILAPI recommended.
Businesses could reduce start-up costs, improve transparency and redirect more capital towards productive activities by limiting reliance on “goro boys” and other unofficial intermediaries.
For policymakers, the report suggests that removing these informal channels will require more than enforcement; it will require simpler regulations, better integration among government agencies, and a business registration system that is predictable, transparent and fully digital.
