By Laudia Anyorkor Nunoo, GNA
Tema, Nov. 09, GNA – Mr Peter Bismark Kwofie, Executive Director of the Institute for Liberty and Policy Innovation (ILAPI), has called for comprehensive reforms to Ghana’s business regulatory system to boost business operations.
He warned that excessive administrative requirements and compliance costs are hindering the growth of micro, small and medium-sized enterprises (MSMEs).
Speaking in an interview with the Ghana News Agency on the institute’s expectations for the 2027 Budget Statement and Economic Policy, he said adequate resources should be allocated to reforms that simplify business registration, eliminate duplicated permits, and reduce the time and cost involved in obtaining regulatory approvals.
Mr Kwofie cited findings from ILAPI’s 2026 research report, “When Rules Become Roadblocks”, which examined the impact of the regulatory environment on entrepreneurship, business formalisation, and enterprise growth.
The study found that 84 per cent of businesses relied on informal intermediaries, commonly known as “goro boys,” to navigate regulatory processes, while 57.3 per cent operated without valid licences.
It further revealed that 40.8 per cent of businesses waited more than one month to obtain business entry certificates, while manufacturing firms were required to secure more than 13 regulatory certificates, permits, and licences.
According to the report, 25 per cent of businesses spent between five and 10 per cent of their revenue on regulatory compliance, with some spending as much as 30 per cent.
Mr Kwofie said such administrative challenges contradicted national efforts to promote entrepreneurship, formalisation, and job creation.
He also referenced the Ghana Statistical Service’s 2024 Integrated Business Establishment Survey, which identified 2,644,363 business establishments nationwide. Of that number, micro-enterprises accounted for 90.4 per cent, while only 7.7 per cent were classified as formal businesses.
The executive director said the situation required urgent policy attention, as businesses expected to generate employment were struggling under complicated and costly compliance systems.
He proposed the establishment of a unified digital business registration and licensing platform, the elimination of duplicated permits, the publication of official fees and processing timelines, and the introduction of one-stop regulatory services for selected sectors.
Mr Kwofie also recommended joint inspections by regulatory institutions, simplified compliance requirements for start-ups and micro-enterprises, and periodic reviews of the economic costs associated with existing regulations.
He clarified that ILAPI was not advocating the removal of necessary regulations relating to consumer protection, environmental standards, worker safety, and property rights. Rather, he stressed that regulations should safeguard the public without unnecessarily restricting enterprise development.
ILAPI further urged the Government to set measurable targets for reducing registration delays, lowering compliance costs, and increasing the number of businesses transitioning from micro-enterprises to small and medium-sized enterprises.
GNA
Edited by Lydia Kukua Asamoah
Reporter: Laudia Anyorkor Nunoo
Email: [email protected]