In the latest Stanbic Bank Africa Trade Barometer (SB ATB) rankings, Ghana declined; highlighting growing trade challenges in the country.
Ghana slipped from 3rd place in May 2023 to 7th for August 2024, marking a significant drop from its near-top position in September 2022 and indicating deteriorating perceptions of trade-related factors such as border efficiency, infrastructure quality, access to finance and governance.
The report points to specific weaknesses, particularly in the quality of infrastructure and Customs processes, as key contributors to Ghana’s poor performance.
Also, the country’s infrastructure index fell from 46 in May 2023 to 41 in August 2024; reflecting declining perceptions of trade-related infrastructure like telecommunications, roads and power supply.
For instance, ongoing power supply issues and telecom disruptions have made trade logistics difficult. Businesses highlighted the weeks of internet disruptions due to damaged undersea cables as further complicating trade activities.
In terms of governance, however, businesses expressed dissatisfaction with government support for cross-border trade. The government support index dropped from 48 to 45, driven by concerns about high taxation and unclear Customs regulations.
Many businesses reported unexpected taxes and delays at border points, leading to higher costs and extended wait times. This growing frustration has prompted calls for more transparent policies and reduced tax burdens to facilitate smoother trade operations.
These notwithstanding, some positive developments and improvements were noted in the areas of import and export revenue growth, credit terms and business confidence.
Ghana’s business confidence index rose significantly to 55 in August 2024 from 47 in May 2023, indicating growing optimism among businesses.
This increase in confidence is partly attributed to government’s ongoing economic reforms and stabilisation efforts under the International Monetary Fund (IMF) programme, which aims to restructure debt and reform fiscal policies.
However, access to finance remains a critical issue for businesses in Ghana – particularly for small- and medium-sized enterprises (SMEs). The report highlights a decline in the access to credit index, falling from 39 in May 2023 to 37 in August 2024. High-interest rates, currently around 30 percent, have made traditional borrowing difficult for many businesses.
Although Ghana’s trade openness index decreased from 52 to 48 – indicating rising barriers to trade, there was a noted increase in the percentage of businesses importing inputs, particularly from Asia. Imports from China are expected to rise, bolstered by strengthened economic ties following recent cooperation agreements.
The Barometer highlights both persistent challenges and emerging opportunities within Ghana’s trade landscape.
