Ghana's new administration came into power in 2025, and as a company owner, I couldn't help but feel a renewed feeling of confidence.
The swearing-in of a new administration is often a watershed moment, but this one feels different.
There's a palpable electricity in the air, a collective expectation that this government would implement policies that will not only stabilize the economy but also create an atmosphere conducive to corporate growth.
As we wait for the 2025 budget, I'm thinking about what this new chapter means for my company and the Ghanaian economy. Here are my practical expectations, based on the realities of doing business in Ghana today.
Advertisement
Lower burden, higher growth
Let's start with taxes, a topic that many businesses owners dislike. Over time, the tax load on SMEs has become a serious concern.
High corporate taxes, coupled with complex filing processes, have made it difficult for businesses like mine to plan effectively.
This year, I'm looking for a budget that includes real tax reforms. For example, lowering corporate tax rates for SMEs would release much-needed funds for investments.
Consider what firms may achieve if they could reinvest some of their tax savings in expanding operations, recruiting additional employees, or even entering new markets.
Access to affordable credit
Access to inexpensive loans has remained a recurrent difficulty for Ghanaian firms. I recall a time when my business required a loan to expand manufacturing.
Despite a strong business strategy, the high loan rates and tight collateral requirements made it practically impossible to obtain the financing.
I ended up borrowing from friends and family, which, while useful, is not a long-term answer. In the 2025 budget, I anticipate that the government will priorities policies that make financing more accessible to SMEs.
Infrastructure development as the backbone of business
Ghana, like any other thriving economy, relies heavily on its infrastructure. As a business owner, I've seen personally how bad infrastructure can drive up operational expenses and stifle growth.
For example, moving goods from my warehouse to retail locations is frequently a hassle owing to terrible road conditions.
The frequent delays and vehicle maintenance costs reduce my profits and make it harder to compete with larger companies. I'm hoping for big infrastructure spending in the 2025 budget.
Support for local industries
Ghana has immense potential in sectors like agriculture, manufacturing, and renewable energy. However, local industries often struggle to compete with imported goods due to high production costs and limited support.
I remember a time when my business considered importing raw materials because it was cheaper than sourcing locally.
While this decision made financial sense at the time, I couldn’t help but feel that we were missing an opportunity to support local producers. In the 2025 budget, I expect the government to introduce policies that promote local production.
Maintaining stable exchange rates and controlling inflation
Currency volatility and high inflation rates have posed continuous hurdles for Ghanaian firms.
I recall a moment when the cedi's unexpected depreciation dramatically increased the cost of imported raw materials, forcing me to modify my rates and lose clients in the process.
This volatility makes it difficult for businesses to prepare successfully and erodes investor trust. In the 2025 budget, I expect the government to implement measures to stabilize the cedi and keep inflation under control.
Streamlined business regulations
Complicated regulatory systems can impede commercial operations. I recall spending hours attempting to renew a business license just to be told that I required extra paperwork that were not first specified.
Such inefficiencies are both frustrating and time-consuming. In the 2025 budget, I anticipate the government implementing reforms to expedite business registration, licensing, and compliance procedures.
For example, establishing a single web platform for all corporate transactions would save time and minimize bureaucracy.
Focus on renewable energy and sustainability
With the worldwide shift towards sustainability, I hope the 2025 budget includes incentives for businesses to use renewable energy and sustainable practices.
For example, tax breaks for businesses who invest in solar energy or other green technology would encourage more enterprises to go green.
Furthermore, supporting businesses that priorities environmental sustainability will place Ghana at the forefront of the global sustainability movement.
Conclusion
As a business owner, I am optimistic that the incoming government's 2025 budget will address these essential issues and establish an atmosphere conducive to economic growth.
The government can unlock Ghana's economic potential and prepare the route for long-term prosperity by focusing on tax changes, infrastructure development, loan access, and support for local industries.
Dr Andrews Ayiku, Lecturer/SME Industry Coach, Coordinator (MBA Impact Entrepreneurship and Innovation), University of Professional Studies Accra
ayiku.andrews@upsamail.edu.gh
IG: andy_ayiku
@AndrewsAyiku
F: Andyayiku