Emerging Market Advisory has called on Ghana to address foreign-exchange access and tax administration bottlenecks to convert investor interest into deeper and more sustained capital flows. The advisory firm emphasized the need for predictability in Value-Added Tax (VAT) refunds and Customs processes. This, according to them, will help create a more favorable investment climate in the country. Ghana has been working to improve its business environment and attract more foreign investment.
The call by Emerging Market Advisory comes as Ghana continues to work on strengthening its economy. Recently, the country has seen some positive developments, including a strengthening of business confidence. In September, Ghana's private sector experienced a recovery in business conditions, with output rising for the second month in a row. This trend is expected to continue, provided the right conditions are in place.
Improving foreign-exchange access will enable investors to repatriate their funds and profits more easily. This is a critical aspect of investing in any country, and Ghana must ensure that it has a reliable and efficient system in place. Additionally, the predictability of VAT refunds and Customs processes will help reduce the risk associated with investing in the country.
The investment climate in Ghana has been improving, with several initiatives underway to promote economic growth. One such initiative is the launch of the "BEYOND 20" anniversary campaign by the Ntiamoah Foundation. The campaign aims to mark two decades of improving lives through education, health, and community development. This and other initiatives demonstrate the country's commitment to creating a favorable environment for investment and growth.
The Bank of Ghana (BoG) is also taking steps to strengthen the financial sector. The BoG is preparing to introduce a liquidity coverage ratio (LCR) requirement for banks. This move is aimed at strengthening liquidity risk management and ensuring that lenders can withstand future financial shocks. A stable financial sector is critical for attracting and retaining investment.
Several companies have announced plans to expand their operations in Ghana. Advans Ghana Savings and Loans, for instance, is targeting a near-doubling of its customer base to 300,000 entrepreneurs by 2030. The company also aims to achieve a GH¢1.5 billion gross loan portfolio and GH¢1.2 billion in deposits. This expansion will help increase access to finance for small businesses and individuals.
Ghana's digital payment sector is also experiencing growth, with Sao Pay launching operations as a Dedicated Electronic Money Issuer (DEMI). The company aims to position Ghana as a key hub for its planned expansion across Africa and international payment corridors. Sao Pay's operations are expected to create around 5,000 jobs, contributing to the country's economic growth.
Key points
- Ghana must improve foreign-exchange access and tax administration to deepen investment flows.
- The country has seen a strengthening of business confidence, with output rising for the second month in a row.
- Several initiatives are underway to promote economic growth and improve the investment climate in Ghana.
