A Business Environment and Competitiveness Survey (BECS) by UK-Ghana Chamber of Commerce (UKGCC) for 2024 revealed a mixed outlook among some businesses in Ghana regarding their preparedness for the African Continental Free Trade Area (AfCFTA).
According to the survey, which engaged 725 respondents from diverse sectors, 21 percent of businesses indicated they are unprepared and lack the capacity needed; 36 percent indicated they are unprepared but have the requisite capacity; while 32 percent claimed to be prepared and have the capacity but have not deployed it yet.
However, nine percent said they are already taking advantage of the AfCFTA while still building capacity alongside; and three percent has requisite capacity and is also already taking advantage of AfCFTA.
While many see the agreement as a gateway to a larger market and increased export opportunities, significant challenges persist. In spite of the optimism, some businesses reported limited understanding of the agreement’s requirements – and these knowledge gaps hinder their ability to fully exploit the trade agreement’s benefits.
Additionally, access to finance is a critical challenge, with SMEs citing lack of affordable credit as a major constraint to scaling operations and expanding into regional markets.
High operational costs – including energy, transportation and raw materials – further compound the difficulties faced by smaller businesses attempting to compete on a continental scale. Infrastructural gaps, particularly in transport and logistics, were also highlighted as critical barriers.
A recurring theme in the survey is a need for targetted capacity-building initiatives to support businesses in navigating AfCFTA requirements. Tailored support for SMEs, including access to affordable financing and advisory services, could significantly enhance their ability to leverage AfCFTA opportunities.
Findings further point to regulatory and infrastructural challenges as key impediments to AfCFTA-readiness, as respondents expressed concern about bureaucratic delays, inconsistent policies and a lack of transparency in regulatory frameworks.
Businesses are calling for more government support in safety and security of investment, low corruption, transparency, tax cuts, effective regulatory reform & quick approvals and effective bureaucracy that facilitates seamless intra-African trade.
