Looking at the shaky and unstable nature of Ghana’s investment environment, more than half of respondents surveyed by the UK-Ghana Chamber of Commerce (UKGCC) expect the government to assure them of the safety of their investments in Ghana.
With the current economic hardships being faced in the country, this expectation cannot be overemphasized.
According to the Annual UK- Ghana Business Environment and Competitive Survey, the top three expectations of respondents which are Safety and Security of Investment, Low Corruption and Transparency and Effective Regulatory Reform have not changed since 2021 despite the increase in respondent numbers, a signal of its importance.
Ghana was ranked first in West Africa for Trade & Investment Risk, with a moderate score of 52.3 out of 100 and an improving globally competitive position, ranking in 83rd out of 201 markets globally.
Despite this rank, the survey revealed that the worsening economic situation is a worry to investors who require security of their investment in the country.
Again, respondents suggested the regulatory environment had improved with regards to time spent to deal with regulatory requirements. Despite the gains, there is still more work to be done by the government to meet business expectations.
Decline In Total Household Expenditure
UKGCC Survey also revealed that total household spending in Ghana reduced by a high margin of 11.09% in 2022.
This, the research noted could be a result of inflationary hikes experienced in the country.
“The imposition of a 1.5% electronic levy (E-Levy) and the weakening of the currency in 2022 affected the total spending. A decline in disposable income in 2022 also affected total spending.”
UKGCC Ghana Business Environment and Competitive Survey
However, the number of households increased in 2022 amidst the high cost of living.
According to the survey, the number of households is expected to continue increasing beyond 2025, with the disposable income per household expected to rise to $3,901 in 2024, an increase from 2023 projected levels.
“Despite a reduction in disposable income in 2022, the number of households is expected to rise to 8.5 million. 2025 is projected to rise to 9.4 million.”
UKGCC Ghana Business Environment and Competitive Survey
Ghana’s Population To Surpass 50million
UKGCC’s survey also pointed out that Ghana’s population is expected to keep rising surpassing 50 million by 2050, while the urban and rural trends is expected to continue with 73% of the population anticipated to be living in urban areas, up from 60% expected in 2025.
The population currently stands at 32.7 million and is expected to rise to 34.4 million by 2025 whereas currently, 57% and 43% of the population live in rural and urban areas, respectively.
The rural and urban populations is projected to increase. Over the last five years, the population growth rate in the rural areas declined by 1%.
The survey was conducted among member companies of the UK–Ghana Chamber of Commerce and other companies.
It was taken by 306 respondents, an increase from the 47 businesses that participated in the prior survey of 2021. Respondents represented 16 industries and ranged from small to large companies.
Unlike the prior survey, majority of respondents were from the western region with 25% being from the Greater Accra region a significant reduction from 91% previously.
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