Corruption, which was the topmost poorly rated component in 2022 continues to be the component that requires the most attention this year, the UK Ghana Chamber of Commerce (UKGCC) 2023 Ghana Business Environment and Competitiveness Survey Report has disclosed.

In 2023, the number of respondents that perceived corruption as a bane to business operations in Ghana were 75% compared with 56% in 2022.

The respondents also believed that government support with marketing internationally is essential and may be necessary to improve the benefits of the Africa Continental Free Trade Agreement (AfCFTA) to local businesses.

The survey also pointed out that the availability of telecom facilities appears to be the best-rated business component over the years and 2023 is no different.

Respondents list the availability of labour, water and power as having been good throughout the year. Labour costs also appear to be good for businesses this year.

The report stated that “it is good to note that the availability of telecom facilities, water and power have consistently been rated positively for the last three years”.

Cost of capital rate as most declined business component

Unlike 2022, the business component that was rated as most declined was the cost of capital – which was the fifth rated then.

Good quality infrastructure, a stable political system and access to capital were also rated as having declined over the past five years in Ghana. It appears corruption had also declined over the period despite it not being the worst decline according to respondents.

Nonetheless, the availability of advanced technology and telecom facilities seem to have improved the most over the last five years. Like 2021, the availability of power supply and training facilities are listed as having improved the most over the last five years.

39% of respondents also believe the tax policy of the country has improved over the same period which is a good step for easing the pressures on businesses.

Cost of land most expensive business cost

Cost of fuel was previously the most expensive business cost.

However, respondents this year suggested that the cost of land exceeds fuel costs.

Cost of power, machinery and the cost of capital continue to be a part of the top five most expensive business costs.

Cost of labour, raw materials most affordable business costs

Cost of general labour and locally sourced raw materials appear to have reduced from the respondents’ perspectives.

Cost of skilled labour, domestic marketing costs and cost of certifications and quality control remain among the most affordable business costs.

Over the past three surveys conducted, the report said it seems similar costs have been classified as being affordable giving some credibility to responses received.

Over 690 businesses, including UK Ghana Chamber of Commerce members and non-member companies from 16 industries, ranging from small to large companies, participated in the survey.

Majority of respondents this year had a turnover of below $0.5 million while companies with revenues of over $10 million were least represented. In 2022, most respondents were from companies with revenue figures between $0.5 million and $1 million.