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Business News Fri, 25 Oct 2019

Ghana slips 4 places in latest World Bank Ease of Doing Business report

Ghana went down by four places to 118 in the latest World Bank Ease of Doing Business ranking.

The country dropped from 114 in 2019 to 118 in 2020, for the World Bank’s flagship publication on the ease of doing business in 190 economies.

According to the World Bank, Ghana’s decline was influenced by paying taxes that has become more complicated and more costly by converting a portion of the recoverable Value Added Tax into two new levies – the Ghana Education Trust Fund and the National Health Insurance Levy.

Ghana’s highest score was recorded in the area of “Starting a Business in Ghana” which it recorded 85 points out of 100, however it was ranked 116 out of 190 economies around the world.

The development shows other economies might have done very well in this “pillar” and Ghana’s performance was still not enough to impact the overall rankings.

The country’s best ranking was in the “Area of Protecting Minority Investors” which it was ranked 72, but with a score of 60”.

In all the 12 areas assessed by the World Bank, Ghana recorded an improvement with its score, except for paying taxes, which it came down by 10.8 points and was ranked 152 out of 190 countries with a score of 56.0.

In the area of “Resolving Insolvency” Ghana was ranked 165 with a score of 25.4, for this pillar too, Ghana went up in its score from 2019.

What is the World Bank 2020 Ease of Doing Business?

Doing Business 2020 is a World Bank Group flagship publication, and it is the 17th in a series of annual studies measuring the regulations that enhance business activity and those that constrain it.

Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 190 economies—from Afghanistan to Zimbabwe—and over time.

Doing Business 2020 continues to show a steady convergence between developing and developed economies, especially in the area of business incorporation.

Should Ghana be worried by these results?

This is the third global rankings in the last three months in which the country has slipped.

First, it was the World Economic Forum Global Competitiveness Report, which Ghana dropped by five places to 111.

Source: www.ghanaweb.com