Improving transparency and creating rules-based investment climate
Transparency, little bureaucracy and a rules-based framework are critical for fostering trust in any company environment.
Investors expect consistency, fairness and clarity; nevertheless, unnecessary paperwork, delays and uneven legislation can discourage investment and limit SME growth.
While Ghana has achieved advances such as digitising services and improving macroeconomic stability, considerable issues persist, particularly in business registration, licensing, tax administration and property acquisition.
Addressing these impediments is crucial for improving Ghana's ease of doing business rankings and promoting inclusive economic growth. This article investigates practical ways to improve the investment environment.
Digitisation and E-governance expansion
Expanding e-governance platforms is one of the most effective strategies to increase transparency and reduce red tape.
Digital solutions limit potential for manipulation, reduce human involvement in sensitive procedures and enable real-time access to data.
Expand platforms such as Ghana.gov to incorporate all business-related operations such as registrations, permits, tax filings, customs clearances and land registrations.
Create mobile-friendly systems to ensure accessibility for SMEs, particularly those in rural areas. Enforce timetables for online services, with automatic approvals when deadlines are missed.
Simplification of regulatory processes
Many Ghanaian businesses struggle to navigate complex regulatory systems requiring several permissions from various organisations.
The government must provide a one-stop shop for all corporate licensing and regulatory clearances, both physically and digitally.
Review and reduce regulatory requirements to avoid redundancy. This will lead to faster startup and expansion processes, cheaper administrative costs and a greater emphasis on core business activities rather than compliance requirements.
Strengthening transparency in public procurement Ghana's economy is heavily reliant on the public sector.
Making procurement processes more transparent can increase private sector participation while decreasing perceptions of favouritism.
The government must disclose all procurement opportunities, bids, and contract awards online in real time.
Enforce open tendering as the default mode of public procurement. Mandate independent audits of important governmental contracts and disclose the results.
This will result in more equitable competition for public contracts, increased trust in doing business with the public sector and encouragement for SMEs to participate in public procurement opportunities.
Enforcing predictable and rules-based legal systems
Investors require certainty that conflicts will be resolved fairly and expeditiously, based on clear laws rather than arbitrary choices.
The government must strengthen commercial courts' ability to handle business disputes quickly and impartially, encourage the use of alternative dispute resolution (ADR) mechanisms such as arbitration and mediation, and ensure that tax laws, labour regulations and investment codes are consistently applied across all businesses.
This will significantly reduce the risks connected with company conflicts, minimise legal expenses and time spent on litigation and enhance confidence in investing and expanding businesses.
Fighting corruption and promoting ethical governance
Corruption is a serious impediment to establishing a transparent and rules-based investment climate.
The government must empower and resource anti-corruption institutions such as the Commission on Human Rights and Administrative Justice (CHRAJ) and the Office of the Special Prosecutor, protect whistleblowers, promote corporate governance reforms, and impose strict penalties on public officials and businesses found guilty of corrupt practices.
This will contribute to a level playing field for all enterprises, improved company reputations and trust among customers and investors and lower hidden costs connected with informal payments.
Fostering institutional accountability
Institutions that assist company growth must be held accountable for providing effective services.
The government should provide specific Key Performance Indicators (KPIs) for regulatory authorities, including the Registrar General's Department, the Ghana Revenue Authority (GRA) and the Lands Commission.
The regular release of performance data and the introduction of customer service charters will allow firms to monitor service standards.
These initiatives will increase confidence, reduce annoyance when dealing with public institutions, speed up service delivery, reduce operational delays and promote a more inventive and entrepreneurial business climate.
Conclusion
Ghana has enormous potential to become Africa's leading investment destination, but bureaucratic inefficiencies, a lack of transparency, and regulatory inconsistencies remain significant barriers.
The government may make the business environment more friendly by implementing digital reforms, reducing rules, increasing procurement transparency and strengthening dispute resolution systems.
The Ghanaian government has already made commendable progress in these areas, but long-term and bold changes are required to transform Ghana into a true model of African commercial excellence.
A combined effort by policymakers, businesses, civil society and international partners will be critical in creating an environment in which every entrepreneur, investor and innovator can boldly state, "Ghana is open for business."
The writer is a Lecturer/SME Industry Coach, Coordinator (MBA Impact Entrepreneurship and Innovation), University of Professional Studies Accra.
ayiku.andrews@upsamail.edu.gh
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