Removing Business Regulatory Barriers for Economic Prosperity in Ghana

Abstract

Micro, Small and Medium Enterprises (MSMEs) constitute a critical component of Ghana’s private sector and play a significant role in employment creation, economic growth and national development. However, their potential remains constrained by a complex and burdensome business regulatory environment characterised by bureaucratic delays, high compliance costs, institutional overlaps, limited digital accessibility and dependence on informal intermediaries. This study examines the regulatory barriers affecting MSMEs in Ghana and assesses their implications for business formalisation, growth, competitiveness and economic prosperity. The study draws on a nationwide survey of 600 MSMEs conducted between September 2024 and July 2025, covering the manufacturing, Information and Communication Technology (ICT), and tourism sectors.

The findings reveal significant inefficiencies within Ghana’s business registration and regulatory processes. A substantial proportion of businesses experienced lengthy delays in obtaining business entry certificates, while the average reported cost of business registration was approximately GH¢1,030.00. The average cost of obtaining a permit from Metropolitan, Municipal and District Assemblies (MMDAs) was approximately GH¢1,275.00, with licensing costs also imposing considerable financial burdens. The study further found widespread reliance on informal intermediaries, commonly referred to as “Goro Boys”, with 84% of respondents reporting having used them during the registration process. Regulatory fragmentation and overlapping institutional mandates further increase compliance costs and administrative burdens, while limited digital access to registration, licensing and fee information constrains transparency and efficiency. These barriers contribute to low rates of enterprise transition, with only 28.2% of micro-enterprises reported to have transitioned to medium-sized enterprises.

The study concludes that Ghana’s principal regulatory challenge is not the absence of regulatory institutions or digital capacity, but inadequate coordination, duplication of requirements and inefficient administrative processes. It recommends a unified digital business registration and licensing platform, decentralizing selected registration services, harmonizing and consolidating overlapping regulations, joint inspections, improved digital post-registration compliance, and greater transparency in regulatory costs and processing timelines. Implementing these reforms could reduce administrative burdens, encourage business formalisation and expansion, improve the operating environment for MSMEs, and support private-sector-led economic growth and employment creation in Ghana.