Business confidence improves slightly

Business confidence in the Ghanaian economy has improved slightly for the third quarter of 2014, according to a study by the Association of Ghana Industries (AGI).

The AGI Business Barometer Index (BBI) attributed the improvement to the reversal of the recent Bank of Ghana regulations on foreign currency leading to some stability in the cedi.

The business confidence that hit 22.42 in the second quarter survey, has risen up to 42.0 in the current third quarter survey.

Mr Seth Twum-Akwaboah, Chief Executive Officer of the AGI, said inadequate power supply continued to be a major challenge that to the operations of industries.

The depreciation of the cedi and the exchange rate volatility, access to credit, multiplicity of taxes and the cost of credit are still of concern.

Mr Twum-Akwaboah said over 400 industries, majority of which are SMEs from all over the country, were sampled for the survey and that the barometer looked at  the current business mood as well as expectations for the future.

Commenting on the report, AGI president Mr James Asare-Adjei said the BBI had become one of the most closely-watched business climate surveys in Ghana and that “as business people, we feel obliged to know the state of our business climate to ensure that it is on a sound trajectory”.

He expressed happiness about the fact that government considered AGI recommendation and withdrew the foreign exchange rules in August, which impacted positively on the business environment.

The AGI president also asked government to do more in involving AGI in the IMF bailout discussions and negotiations to ensure maximum benefit for the entire country.

“AGI believes there is the need to partner government in the management of this economy,” Mr Asare-Adjei added.

Credit: GNA