Business climate still favourable

Ghana’s business climate according to a survey conducted by the Association of Ghana Industries (AGI) indicates that doing business in Ghana is still very favourable. This is inspite of the fact that although the general optimism of doing business in the country is still strong it is less than what it used to be in 2006.

The overall business climate index fell from 46 to 38 which also reiterates that though the business environment is positive it is not as positive as it was in 2006.

AGI President, Tony Oteng Gyasi who presented the results of the findings noted that few companies see 2007 as a much better year than 2006.

The report also observed that finance, banking, insurance and construction represent the best performances of all with the highest level of confidence although the high level of confidence registered during last year was not fully continued.

In addition, the national load shedding program was perceived by most of businesses and CEO’s interviewed as the foremost setback in doing business in all the sectors.

Mr. Oteng Gyasi however noted that though the energy crisis seems to be improving, the business environment is still not confident as it should be because of a lack of re-assurance from the government.

He therefore advised government to re-assure Ghanaians on the energy situation and make their plans known to the public so that the issue of energy will not be a problem anymore.

Mr. Oteng Gyasi also highlighted the need to build up confidence in the private sector since it is the engine of growth for Ghana.

Competition from imported goods and access to land was also identified as the other key challenges to Ghana’s business environment. The AGI President hoped the findings and results of the survey will serve as some guidelines to the 2008 budget.

Deputy Minister for Trade and Industry, Kwaku Agyemang Manu said the results and recommendations will be put to use in order to move the industry forward.

He also noted that in order to achieve accelerated growth and poverty reduction the private sector must be enhanced and make business requirements and procedures faster and easier. He added that his ministry has started implementing the trade sector support programme to facilitate the business environment.

Mr. Agyemnag Manu further observed that Ghana can only grow at a growth rate of 8% if commerce, industry and a lot more processing is witnessed from the agricultural sector.

By Samuel COLEMAN Samuel.coleman@dailyexpressonline.com