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  • AGI Business Climate Survey 2007
  • AGI Business Climate Survey 2006

AGI BCS 2007 Sponsors
HIGHLGHTS OF THE AGI BUSINESS CLIMATE SURVEY 2007:
Business Climate

  • The business climate in Ghana is very favourable.
  • Finance, Banking and Insurance and Construction show the best performances of all sectors and the highest levels of confidence.
  • However, the high level of confidence registered in October 2006 could not be fully sustained.
  • It can be assumed that the duration of the energy crisis has weighed down the business confidence and expectations.

AGI

Challenges to Business

  • The National Load Shedding Program (NLSP) is still perceived as the most serious challenge by all sectors.
  • In the Manufacturing Sector Competition from Imported Goods, Cost of Credit and Access to Credit are taking the Ranks 2, 3 and 4.
  • In the Service Sector Access to Land, Bureaucracy and Corruption are taking the Ranks 2, 3 and 4.

BCS 2007 RANKINGS

About the Sample

  • 451 CEOs were interviewed in August 2007.
  • Interviews were conducted in the Greater-Accra, Ashanti / Brong-Ahafo, Volta, Central, Northern and Western Regions.
  • All Industrial Sectors, Trade, Tourism and Service Sectors are included in this survey.
  • The Manufacturing Sector accounted for 69% of the sample and Services for 18%.
  • The share of small companies made up for more than 2/3 of the sample.

bcs 2007 sectors

About the Survey

  • Eight private businesses sponsored the BCS 2007 and demonstrated their willingness to contribute to a better business environment in Ghana.
  • The AGI BCS 2007 was again supported by GTZ Ghana through a Public Private Partnership Agreement and Technical Assistance.
  • About 300 interviews were conducted in cooperation with RANDOM HOUSE GHANA LTD.
  • Results were presented to the public on 18th September, in Accra, on 25th September in Takoradi and on 28th September 2007 in Kumasi.
  • The presentation can be downloaded here:
    .pdf

    AGI BUSINESS CLIMATE SURVEY REPORT 2007
    .pdf

Business community in Ghana is optimistic.

The presentation of the results was a milestone in the public-private dialogue in Ghana. The event was attended by the Minister for Trade and Industry, the Dep. Minister of Finance Economic Planning and other high-ranking representatives of the Government of Ghana. Private-sector organizations and the development partner community were well represented. The event was covered comprehensively in the print media and even obtained a front-page lead article in the most influential newspaper of Ghana. Furthermore, the new Country Economic Memorandum of the Government of Ghana and World Bank makes reference to the AGI Business Climate Survey.

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Business Confidence
Interviewed CEO of AGI member companies were asked to rate their current (2006) and expected (2007) sales performance and to project employment and investment trends.
On average respondents rate their current business performance to be above “fair”.
  • Big companies rate their current performance significantly better than medium and small companies.
  • Big, medium and small companies are showing very equal levels of confidence for the year 2007.
  • They expect a strong increase in sales performance over the next 12 months.
  • They also project a considerable increase of employment.
  • Vis-à-vis the current year a steep increase of investments is projected.

(ECOWAS) Export Confidence
They were also asked to rate the current and expected export performance to ECOWAS and other export markets.

  • Almost 50% of the interviewed companies are exporting to ECOWAS countries.
  • Out of this group, 39% of CEOs rated their current export to ECOWAS countries as below fair.
  • They however displayed strong optimism and expect a strong increase of exports for the year 2007.
  • Only 32% of the interviewed companies export to Non- ECOWAS markets.
  • Out of this group 58% were not satisfied with current performance but expect a strong improvement for 2007
Ranking 2007

results of the survey show clearly that top priority should be given to the generation and distribution of good quality power supply. The high cost of credit must be addressed, to make the desired growth rates achievable.

75% of interviewed CEO rated The National Load Shedding Program 2006 as a serious challenge to doing business in Ghana.

Cost of Credit was ranked as the second severe constraint.
Competition from imported goods and Quality of Power supply is ranked at third and fourth place.

Other important factors are Bureaucracy and Access to Credit.

42% of the respondents said that competition from imported goods is a major problem, because these are cheaper than locally manufactured.

37% said imported goods are even cheaper than their production cost.

SAMPLE CHARACTERISTICS
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More Sample Characteristics
Respondents were mainly from the manufacturing sector.  The Service sector contributed about 20%.
Accra/Tema Region contributed 77%, Ashanti & BA 18% and Central & Western Region 5% of respondents.
About 85% of interviewed companies are fully privately owned.

74% are companies are 100% locally owned and 17% are Joint Ventures.

Acknowledgement: The AGI BCS 2006 was supported by the “Deutsche Gesellschaft für Technische Zusammenarbeit” (GTZ) under a Public-Private-Partnership Agreement. Know-how was made available through the GTZ project “Advisory Services for the Private Sector (SADC)”, Johannesburg, South Africa. The National Council of AGI expresses sincere gratitude for this support.

> Report Summary of AGI Business Climate Survey 2006 (.pdf)

> Presentation on the AGI Business Climate Survey 2006 (.ppt)