. Business Registration Takes 1-6months
By Philip Antoh
The Institute for Liberty and Policy Innovation (ILAPI) has disclosed that many Ghanaian businesses struggle to progress from Micro to Small to Medium, or sometimes even face collapse early on due to the bottleneck methods used by regulatory bodies.
Research by ILAPI indicates that a businessman looking to enter the manufacturing sector in Ghana requires around 13 different certificates, including licenses and permits, while those in the ICT and tourism/hospitality sectors need about six and ten certificates, respectively.
According to ILAPI, these bottleneck regulatory methods hinder business growth, obstruct transitions, and ultimately stifle the ambitions of entrepreneurs, as those wishing to register businesses may wait from one to six months to receive their certificates, whereas in Rwanda, it only takes 12 hours to register a business.
During a high-level business dialogue organized by ILAPI, Nana Yaa Juntuah, a senior Presidential Staffer responsible for Energy, urged government agencies to implement programs and policies that would alleviate the burdens on businesses in the country.
Nana Yaa stated that the government of John Dramani Mahama is dedicated to eliminating the red tape and bottlenecks that hinder growth, allowing businesses to flourish. She emphasized that the government cannot achieve this alone if the regulators do not assist. Her concern is not just about the number of licenses required but whether these 13 licenses are truly necessary for approval. The key question is whether the answer is yes or no?
“Additionally, it can be 20 licenses. But what steps do I need to take to obtain these licenses? That is where the issue lies,” she remarked.
She criticized the use of intermediaries, commonly referred to as Goro Boys, noting that respondents indicated a preference for them due to their ability to expedite the process.
Nana Yaa urged regulatory bodies to be more visible to those in need of their services. “Certainly, governments will do everything possible to eliminate these obstacles. A nation relies on employment, taxes, and the economy revolves around businesses.
“We are calling on you to ensure that any businessman entering this country can conduct business smoothly, whether they are Ghanaian or not, as the government is very interested in business development.
On his side, the Executive Director of ILAPI, Peter Bismark Kwofie, mentioned that ILAPI’s Business Regulatory Dialogue serves as a platform to enhance communication between regulators, policymakers, and the private sector, aiming to make regulation in Ghana a facilitator of enterprise rather than a hindrance to opportunity.
Mr. Kwofie stated that the success of any economy is dependent on the quality of its regulatory environment; when regulations are clear, simple, predictable, and efficient, businesses flourish. However, when regulations become excessive, inconsistent, or costly, innovation diminishes, investment declines, and young people miss out on opportunities.
The Reality
He noted that a 10-month business regulatory study conducted between 2024 and 2025 found that it takes 7-10 years for a business to transition from micro to small, particularly in the ICT, Manufacturing, and Tourism sectors.
The study also indicated that Ghana’s business regulatory environment significantly hinders the progression of a typical Ghanaian business from micro to small, medium, and eventually to large enterprise.
Due to these obstacles, young people would take years to either borrow or save nearly $10,000. They would rather not invest this amount in a business in Ghana but instead choose to travel abroad through connections and the perilous Mediterranean Sea. Why? Because they fear losing about 30% of their capital to regulatory compliance.
The Path Forward
To create a truly supportive business environment, we need to make Regulatory Impact Assessment (RIA) a standard practice. RIA should no longer be optional; it must be a requirement before any new regulation is enacted. This will help avoid unnecessary rules and ensure that decisions are based on data.
We need to improve coordination among MDAs. Regulations will not be effective if agencies operate in isolation. Sharing information, creating unified systems, and fostering inter-agency collaboration are essential.