Professor Godfred A. Bokpin, Economist and Professor of Finance at UGBS and IMANI Senior Fellow in his opening remarks at the 5th IMANI-GIZ Reform Dialogue on Business Registration, Regulation, Property Rights and their impact on Ghana’s Business Climate said, it is often the case that, policymakers in Ghana are cited for using regulation as a hammer to treat every business-related issue as a nail instead of packaging regulation as an enabler to support business growth.
According to him, although Ghana was one of the first countries among her peers to ratify the African Continental Free Trade Area (AfCFTA) agreement, there are still issues regarding its ability to create the right business climate and guarantee private leadership.
He noted that Ghana is not counted among the top five African countries when it comes to dealing effectively with challenges to business registration, regulation and creating the much needed enabling environment. “It is often the case that, policymakers in Ghana are cited for using regulation as a hammer to treat every business-related issue as a nail instead of packaging regulation as an enabler to support business growth.”
Prof. Bokpin believes that Ghana’s hosting of the AfCFTA Secretariat is meaningless unless it is linked to the general improvement of the business environment that guarantees private-sector leadership. Such leadership is needed most today, given the adverse distributional effect of the COVID-19 pandemic where risk has become riskier.
It is recommended that, the same urgency with which Ghana signed and ratified the AfCFTA agreement should be applied to creating the enabling environment to support the private sector which anchors the job creation-capacity of the economy.
To this end, the country must come clear on what constitutes enabling business environment with clear trackable benchmarks for duty bearers. For instance, what level of interest rate and maturity tenure constitute enabling business environment for the private sector in Ghana?
Watch Prof. Bokpin’s remarks here.