Ghana Country Profile

Snapshot of the Ghana Country Profile

The level of corruption in the private sector is perceived to have decreased in recent years, and several sources claim that corruption in Ghana is not as severe as in other countries in the region. However, many companies still cite that they encounter corruption and demands for bribes when operating in Ghana.

Positive developments in relation to corruption and investments:

• The country is politically stable, anti-corruption has been on the political agenda for many years, and the legal framework for addressing corruption is generally well established.
• Ghana has showed great commitment to attracting foreign investments by improving the regulatory environment for the private sector in a number of areas, such as administrative procedures for starting a company, paying taxes and trading across borders. However, some sources still cite inefficient government bureaucracy as a problematic factor for doing business.
• Due to a comprehensive public procurement framework, corruption has reportedly been significantly reduced. Still, however, a large number of companies expect to give gifts to secure a government contract.

Risk of corruption:

• The police are considered one of the most corrupt institutions in Ghana, and companies should be aware of the potential for encountering demands for bribes from the police when dealing with court matters and vehicle registration as well as the transportation of goods.
• Reportedly, companies cannot expect complete transparency in locally funded contracts, which are continuously pointed to as 'hot spots' for corruption.
• The visibility of state administration in rural areas is still limited, and companies can thus be subjected to local regulations and corruption when operating in rural areas.
• Insecurity resulting from traditional land ownership structures and the complex and sometimes corrupt legal system are cited as obstacles for investment. Land ownership is based on traditional laws, which creates a high level of insecurity for investors and restricts access to finance, since land is generally not accepted as bankable security.
• Ghana's traditional court system and British-based 'modern law' legal systems exist in parallel, creating insecurity, and sometimes making contract enforcement difficult. For that reason, many companies choose to settle such cases out of court, usually with the assistance of a lawyer.