Ghanaian businesses remained broadly confident in the second quarter, but high electricity and input costs, limited access to credit and growing competition from imports continue to weigh on companies and constrain the recovery of local industry, the Association of Ghana Industries (AGI) said.
The AGI’s Business Confidence Index eased to 108.7 in Q2 2026 from 109.5 in the first quarter, remaining above the 100-point mark that signals optimism. But the figures also expose the pressures facing firms, with 19% of businesses citing electricity costs as their biggest challenge, followed by raw materials at 14%, multiple taxes at 12%, access to credit at 11% and poor roads at 9%.
Electricity costs were the leading concern across manufacturing, services and construction, adding to pressure from expensive production inputs and limited financing. For businesses already operating on tight margins, the combination is making it harder to expand production or invest in new capacity.
Local manufacturers are also facing growing competition from imported goods, with the AGI raising concerns over smuggling, tax evasion and the misdescription of imports. The association said some goods are allegedly being classified as raw materials to benefit from a 5% concessionary duty instead of the applicable 20% rate, giving imported products an advantage over local producers.
The pressure is reflected in factory utilisation. Ghana’s wheat flour industry, which has an installed capacity of about 800,000 metric tonnes a year, is producing roughly 320,000 tonnes, leaving utilisation at about 40%. The sector’s utilisation has fallen from 57% in 2021 to 40% in 2024, according to the report, while washing powder production is operating at about 30% of capacity.
Businesses are also contending with renewed price pressures, with average inflation rising to 4.1% in Q2 from 3.4% in Q1, partly reflecting external pressures from the conflict in the Middle East.
Still, the survey suggests businesses have not lost faith in the outlook. Seventy-two percent expect their performance to improve in the second half of the year, compared with 26% who expect no change and just 2% who foresee a deterioration.
The results point to a business sector that remains optimistic about Ghana’s improving macroeconomic conditions, but is still waiting for that stability to translate into lower operating costs, easier access to finance and stronger conditions for local production.
Manufacturing and services each accounted for 47% of the survey sample, construction 6%, while SMEs made up about 90% of respondents.
