Analyst urges policy reforms to lower business costs
By Solomon Nartey Tetteh
Economic analyst Emmanuel Boateng has stressed the need for deliberate policies to reduce the cost of doing business in Ghana in order to encourage expansion and create more jobs.
Over the years, successive governments have introduced policies aimed at improving the business climate, including tax reliefs, infrastructure projects and SME financing initiatives.
However, many analysts argue that reforms have not gone far enough to tackle the fundamental obstacles that hinder competitiveness and job creation.
Speaking on the Business Breakfast Show on Zed 101.9FM, Mr Boateng outlined practical steps that government and stakeholders must prioritise to support businesses.
“If businesses spend less time and money on bureaucracies and overhead costs, they can channel resources into growth and expansion,” he said.
Mr Boateng also raised concerns about the impact of poor urban planning and traffic congestion on productivity.
“Why should I spend three hours in traffic when it should take two minutes? This is affecting labour and ultimately reducing the productivity of businesses,” he lamented.
The economic analyst further highlighted Ghana’s tax regime as another burden on enterprises, particularly small and medium-sized businesses, which form the backbone of job creation.
“Some sectors are heavily taxed, leaving little space for businesses to grow and expand. That is another critical area that needs attention,” he indicated.
Mr Boateng noted that the challenge has persisted for decades, with high interest rates making it nearly impossible for small and medium enterprises (SMEs) to secure funding.
“Access to finance is a major bottleneck. High interest rates make it almost impossible for SMEs to borrow and grow. If policies could create cheaper credit or alternative financing structures, more businesses would have the capacity to expand operations and hire more people,” he explained.
The economic analyst emphasised that unless these structural issues are addressed, the country will continue to struggle with unemployment and underutilised business potential.
Mr Boateng warned of dire consequences for Ghana if urgent steps are not taken to address rising youth unemployment.
He stressed that the country could, within the next five to ten years, face even higher rates of youth unemployment and underemployment.
