Ghana has dropped twelve points in the World Bank’s latest ease of doing business rankings.
According to the latest report, Ghana ranked 120th, down from the 108th position last year.
Accordingly, the country placed 12th in sub Saharan Africa.
The ease of doing business report surveyed 190 economies across the globe.
The countries were ranked based on their strengths under ten categories.
These included; starting a business, dealing with construction permit, getting electricity, registering property, protecting minority investors and paying taxes.
The remaining categories are; enforcing contracts, getting credit, trading across borders and resolving insolvency.
Of the ten, Ghana performed well in assisting businesses to obtain credit.
The country ranked 55th out of the 190 economies surveyed.
In addition, Ghana performed creditably in protecting minority investors.
However, the country’s worst performances were recorded under; trading across borders, resolving insolvency as well as getting electricity.
While Ghana scored 158 points for trading across borders and resolving insolvency, it scored 136 points for getting electricity.
For instance, while it will cost a business 24.5 cents per kilowatt hour of electricity in Ghana, it will cost a business fifty percent less (12 cents) per kilowatt hour of electricity in neighbouring Ivory Coast.
Similarly, it costs businesses more to export and import domestically in Ghana than in Ivory Coast for instance.
It will cost 132 dollars in transport to export domestically in Cote d’Ivoire but a business would be required to spend 487 dollars on transport to export in Ghana.
In addition, domestic importers in Ghana spend as much as 480 dollars in transport while their counterparts in Cote d’Ivoire spend 206 dollars on transport.
GIPC reacts to ease of doing business report
In reaction to the latest ranking, the Ghana Investment Promotion Centre (GIPC) has stressed the need to facilitate the implementation of the new set of reforms currently being undertaken by government.
A statement released and signed by the CEO of the GIPC, Mr. Yofi Grant said,
“It is a strong reminder to all actors and agencies that the new set of reforms that have started in the 2017/2018 period, which Government expects will be accounted for in the next report, should be implemented effectively and with speed. This is necessary to ensure that their full effects are felt in the shortest possible time.”
Mr. Grant added, “While the details of the report shows that Ghana improved in all but 1 of the indicators, the fact that other countries improved at a rate higher than Ghana, left Ghana with a net drop on the 2016/2017 rankings.”
Meanwhile the GIPC maintains that ‘Ghana remains focused on its objective to become the most business friendly economy in Africa and will thus continue with investment climate reforms.’
By: Pius Amihere Eduku/citibusinessnews.com/Ghana