The Institute for Liberty and Policy Innovation (ILAPI) has raised concerns about Ghana’s complex regulatory environment, saying, excessive bureaucracy is undermining the growth, formalisation and job-creation potential of micro, small and medium enterprises (MSMEs).

It said overlapping institutional mandates, excessive documentation, opaque procedures, inconsistent enforcement and prolonged registration and compliance timelines were imposing significant costs on businesses.

The concerns are contained in a 2026 ILAPI study based on a survey of 600 MSMEs operating in the manufacturing, information and communications technology (ICT), and tourism sectors between September 2024 and July 2025.

Mr Stephen Dansu, Senior Research and Policy Analyst at ILAPI, disclosed this at a press conference in Tema.

Mr Dansu indicated that according to the study, MSMEs accounted for about 92 per cent of businesses and contributed nearly 70 per cent to Gross Domestic Product (GDP), making the sector critical to Ghana’s economic transformation.

He said the regulatory burden discouraged formalisation, restricted business expansion, and diverted scarce capital from productive investment.

ILAPI said the situation was particularly damaging to micro and start-up businesses, which operated on limited capital and could not easily absorb the financial and administrative costs associated with multiple registrations, permits, licences and certifications.

The study found that the average cost of registering a business was GH¢1,030, while permits at the Metropolitan, Municipal and District Assemblies (MMDAs) cost an average of GH¢1,275 and licences averaged GH¢1,600.

The research revealed that some businesses reportedly paid as much as GH¢3,000 for licences.

The institute said the regulatory environment was therefore functioning as a barrier to the very businesses expected to generate employment, increase tax revenue, and support economic growth.

It recommended a comprehensive review of business regulations to eliminate duplication, harmonise permits, and introduce simpler compliance requirements for smaller enterprises.

ILAPI also proposed a unified digital platform through which businesses could apply for multiple licences and approvals rather than dealing separately with several regulatory institutions.