Starting and running a business in Ghana remains a tough challenge, with the country ranking among the lowest in sub-Saharan Africa in terms of business readiness. The latest World Bank Business Ready (B-Ready) 2024 report highlights major obstacles, including weak market competition, complex business entry processes, and ineffective dispute resolution mechanisms.
The report paints a concerning picture for entrepreneurs and investors, suggesting that Ghana’s business environment is less competitive compared to other African nations. These challenges continue to hinder economic growth and discourage investment, raising concerns about the country’s ability to attract and sustain businesses.
The findings revealed gaps in the digitalization of intellectual property services, the absence of sex-disaggregated firm statistics, and delays in the modernization of the judicial system which contributed to Ghana’s struggles in improving its business environment.
One of the report’s key findings was the lack of a fully digitalized company registration system in Ghana. Unlike some of its regional counterparts, the country does not have an electronic case management system that allows businesses to file complaints or register cases online, slowing down dispute resolution.
Speaking at the launch of the report, Robert Taliercio O’Brien, the World Bank’s Division Director for Ghana, Liberia, and Sierra Leone, emphasized how time-consuming the business registration process in Ghana is.
He said it takes 57 days to register a new domestic company in Ghana. “In Rwanda, it only takes 3 days,” he added, urging policymakers to streamline procedures to ensure private sector growth.
Another concern raised was the high frequency of internet disruptions, which affect nearly 48% of firms in Ghana each month, compared to just 2% in more efficient economies. Reliable internet access is critical for businesses, especially as the digital economy expands.
Despite these challenges, the B-Ready report acknowledged Ghana’s strong performance in labor policies, utility services, and business insolvency frameworks.
The report highlighted that Ghana has effective labor dispute resolution mechanisms and offers transparent information on electricity and water services, including connection requirements, tariffs, and complaint handling.
Also, it said Ghana has electronic case management systems for liquidation and reorganization proceedings, making business closures and insolvency processes more structured and predictable.
While Ghana has made progress in some areas, the lengthy and bureaucratic procedures for starting a business continue to hinder investment and economic growth.
The World Bank urged authorities to improve digital reforms, improve internet reliability, and simplify business registration processes to make Ghana more competitive in the global business landscape.
