The Current State of the Ghanaian Business Landscape: A Recap of Recent News and Developments
Ghana has been a beacon of hope in Africa with a relatively stable political and economic climate. The world knows Ghana for its cocoa exports, gold reserves, and more recently, its emerging oil industry. However, the Ghanaian business landscape has not been without challenges, especially with the COVID-19 pandemic and its associated impact on businesses.
The government of Ghana has made some significant moves recently that impact the country’s business environment. One of the most significant developments is the establishment of the Ghana Enterprises Agency; the agency will be in charge of providing support to various businesses across the country. This development is expected to foster a micro, small, and medium-sized enterprise sector that will, in turn, generate jobs and spur economic growth.
Another notable development in the Ghanaian business landscape is the government’s tax policy reform. The reform aims to create a more business-friendly environment by providing tax incentives to businesses that invest in the country. Additionally, the government rolled out a digitalisation project that aims to modernise the tax administration system and provide more efficiency in the tax collection process.
The banking sector in Ghana has not been without its challenges in recent times. In 2019, a bank crisis swept through the country, resulting in the collapse of several banks. The Bank of Ghana responded by increasing its supervision of banks and restructuring the industry to weed out those that were poorly managed. Recently, the Bank of Ghana also took steps to raise minimum capital requirements for banks to improve the resilience of the industry.
The Ghanaian business landscape has had to grapple with COVID-19, which has significantly impacted the economy. Businesses that rely on foreign trade have been hit the hardest due to travel restrictions and a slowdown in global trade. The government, in response, has provided support to micro, small, and medium-sized enterprises affected by the pandemic through the Ghana CARES program. The program aims to save jobs and support businesses with funding and tax incentives, among other measures.
The Ghanaian business landscape is showing signs of resilience as the country aims to build on its growth potential. The establishment of the Ghana Enterprises Agency, tax policy reform, digitalisation project, and banking sector restructure are all positive steps in the right direction. Besides, the government’s efforts to support businesses affected by COVID-19 through the Ghana CARES program show its commitment to fostering a vibrant and sustainable business landscape.
In conclusion, the Ghanaian business landscape has had its ups and downs, but recent developments show that the country is moving in the right direction. The establishment of the Ghana Enterprises Agency, tax policy reform, digitalisation project, and the banking sector restructure are all positive moves that show the government’s commitment to creating a business-friendly environment. While the effects of COVID-19 are still being felt, the government’s efforts to support businesses through the Ghana CARES program are a welcome move that goes a long way in supporting the country’s economic recovery.
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