Ghana business confidence remained positive in the second quarter of 2026, with the Association of Ghana Industries’ (AGI) Business Confidence Index recording 108.7 despite rising operating costs, limited access to credit and pressure from imported goods.
The latest reading was slightly below the 109.5 recorded in the first quarter, but remained above the 100 point mark that signals optimism among businesses.
AGI attributed the resilience to improved macroeconomic stability and growing confidence in the government’s economic reform programme.
Businesses remain optimistic
The survey found that 42% of businesses recorded improved performance during the quarter, while 47% reported no change. Only 11% said their performance had deteriorated.
Expectations for the months ahead were even stronger. Some 72% of businesses anticipated improved performance, compared with 26% expecting conditions to remain unchanged and just 2% predicting a deterioration.
But optimism is being tested by stubborn costs.
High electricity costs emerged as the leading concern for businesses, cited by 19% of respondents.
Raw material costs followed at 14%, while multiple taxes accounted for 12%. Access to credit was cited by 11% and poor road infrastructure by 9%.
Electricity costs ranked as the top concern across manufacturing, services and construction, as well as among small, medium and large enterprises.
AGI said the pressure from electricity costs persisted throughout the quarter, with businesses yet to see immediate relief.
Imports squeeze local manufacturers
The association also warned that rising imports are eroding the market position of domestic producers.
AGI described the situation as an “unbridled influx of imports”, citing smuggling, tax evasion and import misdescription among practices hurting local industry.
The association said some goods are allegedly being classified as raw materials to benefit from a 5% concessionary duty rather than the applicable 20% rate.
The impact is visible in capacity utilisation. Ghana’s wheat flour industry, for instance, has an installed capacity of about 800,000 metric tonnes annually but is operating at only about 320,000 tonnes, representing 40% utilisation.
The sector’s utilisation has fallen from 57% in 2021 to 40% in 2024.
Credit and inflation remain risks
Access to finance remains another major constraint, despite increased lending to the private sector. AGI said the growth in credit has not yet translated into sufficient benefits for the real economy, with construction firms particularly affected.
Meanwhile, inflation reversed its earlier decline, rising from an average of 3.4% in the first quarter to 4.1% in the second quarter.
AGI linked part of the increase to external pressures, including the conflict in the Middle East.
Still, the association expects the business environment to remain broadly positive in the second half of 2026, provided macroeconomic stability continues.
The survey covered businesses across Ghana, with manufacturing and services each accounting for 47% of respondents and construction 6%. SMEs made up about 90% of the sample.
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