Businesses express confidence in economy for second quarter

Forty-six percent of Ghanaian Businesses expressed confidence in the economy for the second quarter of 2017, this is according to the AGI business barometer report.

The report which surveys about 461 businesses in the country indicates that more businesses have high expectations in the next quarter.

Addressing the media, AGI president, James Asare Adjei, therefore commended government for its efforts in stabilizing the economy to enhance business confidence.

Out of the result, high cost of electricity tariffs, cost of credit and access to credit are the topmost challenges of businesses.

The high cost of electricity continues to render industry uncompetitive even though business confidence continues to rise from 103.8 to 109.2 in the second quarter of the year.

This is attributed to government’s effort towards ensuring macroeconomic stability in the first half of the year.

“AGI reiterate its commitment to work with the Ministry of Energy to dealing with tariff issues” AGI President, James Asare Adjei said.

However, 12 percent of businesses think the economy did not help businesses in the second quarter.

“Average lending rates are still high despite drop in policy rate” he added. Calling on government to ensure that policy rate reduction at the bank of Ghana is aligned with the lending rates.

Mr. Asare Adjei also pressed on government to expedite action on easing port clearance procedures under the single window system and in line with best practices.

Meanwhile the AGI, described as laudable the plan by government to seed 51 percent of the concessionary arrangement for local participation in the energy sector and believes it will go a long way in resolving the cost of power for industry.

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