Ghana’s fragmented regulatory system could erode its competitiveness for investment unless authorities streamline business registration and eliminate overlapping regulations, according to a new report that compares the country’s business environment with some of Africa’s top-performing economies.
The Institute for Liberty and Policy Innovation (ILAPI) said Ghana has made progress in digitising public services and improving the business environment but continues to lag countries such as Rwanda and Mauritius because of duplicated regulations, lengthy approval processes and poor coordination among regulatory institutions.
Drawing on the World Bank’s 2025 Business Ready (B-READY) assessment, the report concludes that Ghana’s biggest challenge is no longer institutional capacity but regulatory efficiency.
“The B-READY comparison table shows Ghana is not fundamentally weak on business regulation; rather, it is held back by three operational bottlenecks: duplicate regulations, business entry inefficiency, and operational inefficiency,” the report said.
According to ILAPI, Rwanda and Mauritius have established more predictable and coordinated regulatory systems, enabling businesses to complete registrations and obtain approvals faster than in Ghana.
The report ranks Rwanda among Africa’s strongest performers for business entry efficiency and operational effectiveness, while Mauritius continues to benefit from a stable legal and institutional framework. Ghana, by contrast, remains a mid-tier performer with bureaucracy and regulatory duplication weighing on private sector activity.
Although Ghana has introduced digital registration systems and maintains a relatively stable democratic environment, businesses still interact with numerous agencies before commencing operations.
Manufacturing firms, for instance, may require approvals from the Office of the Registrar of Companies, Food and Drugs Authority, Ghana Standards Authority, Environmental Protection Agency, Ghana National Fire Service and Metropolitan, Municipal and District Assemblies, among others. Many of these agencies perform similar inspections or require overlapping documentation.
ILAPI argues that this institutional fragmentation increases compliance costs without delivering corresponding improvements in regulatory oversight.
“The problem is coordination, not capability. Ghana’s B-READY position reflects institutional fragmentation more than institutional absence. Multiple agencies often demand similar permits, inspections, registrations, and fees for the same business activity. This raises compliance costs without increasing public safety or consumer protection,” the report stated.
The think tank warns that these inefficiencies could influence investment decisions, particularly as businesses compare regulatory environments across African markets.
“Both local and foreign investors would prioritise Ghana in doing business” if the country adopted a single business permit architecture that coordinates approvals and shares data across regulators, the report said.
To improve competitiveness, ILAPI recommends establishing a unified digital licensing platform linking all major regulatory agencies, harmonising duplicate permits and inspections, and introducing greater interoperability between government institutions.
The report also calls for sector-specific one-stop shops for manufacturing, ICT and tourism, arguing that a simpler regulatory framework would reduce compliance costs and accelerate business formation.
The report emphasizes that Ghana’s competitiveness is shaped by the quality of regulatory implementation, not just the breadth of policy reforms. As competition for foreign direct investment intensifies across Africa under the African Continental Free Trade Area, simplifying business regulation is central to narrowing the gap with regional leaders such as Rwanda and Mauritius.
