By: Kekeli K. Blamey
Ghana has slipped to 7th place in the latest Stanbic Bank Africa Trade Barometer (SB ATB) rankings, down from 3rd in May 2023.
This significant drop highlights deteriorating perceptions of trade-related factors such as border efficiency, infrastructure quality, access to finance, and governance.
According to the report, Ghana’s infrastructure index fell from 46 to 41, reflecting declining perceptions of trade-related infrastructure like telecommunications, roads, and power supply. Businesses have expressed frustration with high taxation, unclear Customs regulations, unexpected taxes, and delays at border points.
“The ongoing power supply issues and telecom disruptions have complicated trade logistics, impacting business operations,” the report states.
Despite these challenges, Ghana’s business confidence index rose to 55 in August 2024 from 47 in May 2023, attributed to government economic reforms and IMF stabilization efforts.
However, access to finance remains a critical issue, with high-interest rates making traditional borrowing difficult.
The country’s trade openness index decreased, indicating rising barriers to trade. Nonetheless, imports from Asia, particularly China, are expected to rise due to strengthened economic ties.
Additionally, 80% of surveyed businesses anticipate increased export volumes.
The IMF’s $3 billion Extended Credit Facility program aims to support fiscal consolidation and economic reforms.
Inflation, currently at 22.1%, is projected to decline gradually.
Ghana’s trade landscape faces persistent challenges, but emerging opportunities offer hope.
Urgent attention is needed to address infrastructure quality, access to finance, and government support.
Ongoing economic reforms and enhanced international trade relations are critical drivers for reversing the decline and improving Ghana’s trade performance.
