Ghana faced a decline in its overall trade ranking, falling from 3rd to 7th among 10 African countries evaluated in the latest Standard Bank Africa Trade Barometer (SB ATB) report.
The report shows that Ghana’s trade environment is grappling with mounting challenges, even as confidence within the business community shows a surprising lift.
This shift highlights emerging hurdles, particularly in government support for trade and infrastructure, which are critical for Ghana’s market competitiveness.
The 4th edition of the report indicates that local businesses perceive a dip in government support, primarily due to inflation, high taxes, and foreign exchange constraints.
The report also points to infrastructure constraints, notably in power and transportation, as ongoing barriers to business growth. While digital financial services are growing rapidly in Ghana, particularly for cross-border transactions, access to sufficient foreign currency liquidity remains a substantial barrier for traders.
Approximately 83% of surveyed businesses in Ghana cited limited foreign currency availability as a key concern, reflecting broader market strains amidst fluctuating currency values.
Despite recent challenges impacting its competitive positioning across Africa, Ghana’s business confidence index saw a significant boost, rising from 47 to 55. This increase reflects local optimism about potential economic growth and improved forecasts for 2024-2025.
The 10 countries covered by the Standard Bank Africa Trade Barometer are AfCFTA signatory nations, representing 66% of Africa’s gross domestic product (GDP) and 45% of the continent’s population.
Tanzania improved its ranking from 8th to 4th, Mozambique from 4th to 3rd, Nigeria from 6th to 5th, and Zambia from 9th to 8th.
Uganda fell from 7th to 9th and Kenya from 5th to 6th. Meanwhile, South Africa, Namibia, and Angola held steady in their rankings at 1st, 2nd, and 10th, respectively.
