According to the Africa Trade Barometer (ATB) report by Standard Bank Africa, optimism among Ghanaian businesses is still low and appears to be significantly lower than it was six months ago.
According to the report, the high cost of goods and the perception of a struggling economy tied to the weak Ghanaian cedi are the key causes of this fall.
Moreover, there is a substantially weaker impression of government support for commerce.
The survey claims that as a result of the country’s economic performance, business confidence among Ghanaian enterprises has significantly decreased.
“Over the past six months, Ghanaian firms have shown a downward trend in business confidence, driven mainly by the corporate segment. Business confidence is driven by perceptions of the economy, with firms who believe that the economy is stable being more optimistic, while those who perceive the economy to be in a poor state are less optimistic,” the report said.
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Meanwhile, Ghana’s currency, in the second half of 2022, declined significantly, making it the worst-performing worldwide.
While the sectoral strength in oil and gas does not necessarily translate into benefits for its other sectors, businesses are potentially looking forward to an IMF bail-out scheduled for 2023, bringing with it stability and economic discipline.
However, the report also indicates that there is slight optimism about future prospects for exporting among Ghanaian firms, but Ghanaian firms have become less-optimistic about future prospects for importing.
The perception of government support of trade is significantly lower among Ghanaian firms, and high import/export tax rates contribute to the belief that foreign trading is difficult, part of the report reads.
In view of this, firms are expecting the government to provide some relief on business tax, and lower customs duties. Additionally, access to credit has become tougher for firms in Ghana, which is a stumbling block to stimulating the local economy.
The Africa Trade Barometer report is aimed at providing a source of reliable data and insights on African markets and economies for businesses and entrepreneurs as well as businesspeople, students, governments, NGOs, and investors considering the continent.
The objective of the Standard Bank Africa Trade Barometer is to provide dynamic and insightful understanding of trade in Africa.
