The high cost of credit and raw materials, together with stiff competition from cheap imports were the main challenges businesses encountered in their operations during the first quarter of this year. The Association of Ghana Industries, AGI, made the observation in its Businesses Barometer report, a periodic survey of the opinions of business executives on their perception of the business environment. AGI President, Nana Owusu Afari, speaking to the findings, said the drop in inflation was the only positive thing – in all the business indicators - that happened to businesses in the period. He said the findings notwithstanding, “the overall confidence in the business environment is good.” Nana Afari said businesses wished things were better than they are. Inflationary figures for the year have seen a seven percentage point drop and interest rates are continuing their downward trend. But this has failed to make any significant impact on the cost of credit, much to the chagrin of businesses. Expressing concern at the development, Nana Afari, said if the issue of high cost of credit was not addressed appropriately, many businesses, particularly in the manufacturing sector, would be permanently crippled. Poor electricity supply and high taxes were also identified as challenges militating against the expansion of businesses. Play the attached audio for excerpts of Nana Owusu Afari's submissions. Story by Malik Abass Daabu/Myjoyonline.com/Ghana