Business Breakfast: “Ghana’s Business Climate after the Elections”
- March 28, 2025
- Posted by:
- Category: Advocacy and Representation
GNBCC together with other European business chambers, AHK, CCI France Ghana, Eurocham, and GBBC hosted a breakfast meeting for the members at the Kempinski hotel this week with the theme “Post election business climate in Ghana, insights and opportunities.”
Our guest speakers were Simon Madjie, the CEO of the Ghana Investment Promotion Center and Vish Ashiagbor, senior partner at Price Waterhouse Coopers.
We gained valuable insights in the current economic outlook, the new government initiatives, as well as the expectations of the business community through a survey conducted by PWC and the interaction between the European business community and the speakers during the session.
In conclusion, businesses are cautiously optimistic and expect an improved business climate based on the new government initiatives and the positive mindset. Mr.Simon Madjie gave clear signals that the GIPC will do everything within their power to ensure existing businesses have good reasons to stay in Ghana as well as attract new foreign direct investment. GIPC promised to actively link potential projects to interested investors.
We aim to animate a continued and open dialogue with GIPC and the Ministry of Trade and Industry to motivate initiatives that will improve the business climate and ensure we create an enabling environment for businesses to thrive.
A summary of the presentation on the post-election business climate in Ghana:
As the country transitions into a new political cycle, businesses are closely monitoring economic reforms, investment policies, and market conditions.
The NDC promised the economic reset of Ghana: “resetting the economy and creating prosperity for all entails creating an enabling environment: low interest rates, a stable Ghana cedi and low inflation, for businesses to create jobs and foster inclusive economic growth and development.”
Under this economic reset, there was a promise to abolish some taxes and also roll out initiatives like the 24-hour economy for example that would need significant funding.
Post elections: the Dialogue and the Budget
The government hosted a two-day national economic dialogue with various experts from the private sector, CSO’s and academia on the economy’s way forward. The conclusions were to:
- Prioritise efforts to restore macroeconomic stability and regain confidence in the economy
- Aggressively pursue inclusive and sustainable growth for economic transformation
- Promote private sector-led growth to unlock the full potential of businesses
- Innovatively address the infrastructure deficit to advance economic transformation
- Implement structural and policy reforms, especially in key sectors for growth
- Promote good governance, accountability and relentlessly eliminate corruption
Macro economic factors
Ghana’s GDP growth was 5.7% in 2024, powered by high gold prices. The forecast for 2025 has been moderated to 4%. Services has been the main driver of economic growth. However, most of real GDP growth in 2024 was fueled by the industry sector, especially, mining. Both industry and agriculture sectors are being positioned as growth poles for the medium-term
Inflation fell sharply in 2023. In 2024, it fell more slowly and missed the period-end target of 15%. By end of 2024 the inflation rate was 23.8%. T-Bill rates remain high, but Govt. aims to force it down to crowd-in the private sector. Also, deficit/GDP ratio is to be brought within program targets to 3.1% in 2025.
BOG has kept MPR high as a check on inflation. Lending rates have also remained high and contributed to an NPLs spike (21.8% in Dec. 2024). The Ghana cedi lost some ground early in 2025, but seems to be enjoying some stability now and his hovering around 15.5 GHS for the USD and 16.2 GHS for the Euro.
The macro economic targets for 2025:
- Inflation 11.9%
- GDP growth: 4%
- International reserves: > 3 months import cover
The budget includes some major tax and revenue initiatives like abolishing the E-Levy, review and simplify the VAT system and raise the GSL from 1% to 3% for mining companies. This has attracted fierce opposition from the mining companies.
Key transformation and growth initiatives include the 24 hour economy policy, the US$ 10 billion “Big Push” for infrastructure and the establishment of the Ghana Gold Board with a budget of US$ 279 m.
The opinion of business leaders
Based on a survey by PWC, the main concerns of business leaders are tax policy, red tape, telecom tools and regulations. In addition, the weak domestic currency and high inflation result in high input costs for businesses.
CEO’s are very optimistic on the business climate post election compared to the mindset 12 months earlier. Concerns over inflation and macro-economic volatility however remain.
Majority of respondents expected the 2025 budget to outline clear interventions to stabilise and strengthen the Ghana cedi, reduce public debt, and lower interest and inflation rates, as well as the unemployment rate.
The formal sector also wants the informal businesses to contribute more to the tax revenue.
Business Outlook
Overall, PWC is cautiously optimistic about 2025. Despite the upward revisions to global economy growth rates, inflationary pressures remain with major economic blocs on the brink of trade wars. Such inflation might be imported into the domestic economy and make it difficult to achieve both fiscal and monetary policy objectives. Barring that, Govt seems to have an ambitious plan to quickly return the economy to a path of stability and business-led growth. We hope it can leverage the goodwill it has to carry business along in achieving this.