IFC urges stronger business environment

… as World Bank B-Ready report highlights challenges

The International Finance Corporation (IFC) has highlighted the need for a business-friendly environment to foster sustainable economic growth, highlighting the private sector’s critical role in driving progress.

Speaking at the B-READY report’s launch, Kyle Kelhofer, Senior Country Manager-IFC, underscored the importance of a stable regulatory framework and enhanced market access in supporting businesses of all sizes.

He noted that while Ghana’s business environment has strengths, including labour quality and location competitiveness, procedural inefficiencies remain a significant challenge.

“Whether you are an SME, a scaling enterprise or a large corporation, a stable economic environment with strong legal and regulatory frameworks is essential for success,” Mr.  Kelhofer said.

He stressed that improving regulatory processes and enhancing operational efficiency could unlock greater economic transformation.

The B-READY report, which assesses business readiness and investment climates, aligns with government’s recent National Economic Dialogue.

The report highlighted three key areas for fostering a more competitive economy: economic stability, meeting international standards and improving access to finance and markets.

The IFC’s Senior Manager pointed out the private sector’s role in sustainable development, tracing origins of the IFC to World Bank efforts to rebuild post-war economies.

Established in 1956, the IFC was designed to engage directly with the private sector to drive job creation and economic growth. Over the past decade, the IFC has provided more than US$200billion in financing globally, with US$40billion disbursed in the past year alone.

“Our goal is to mobilise private sector investment efficiently and effectively to create jobs and drive economic progress,” he said.

The report also pointed to taxation and investment incentives as areas requiring policy clarity and improved coordination.

Mr. Kelhofer stated that the efficiency of tax policies, rather than just the rates themselves, plays a crucial role in fostering a conducive business environment.

“Coordination and clarity in these processes are essential for a thriving business environment,” he added.

Market access was another priority outlined during the discussions. Kelhofer stressed the need for businesses to meet international standards to access global markets and expand their operations.

This, he argued, is vital for improving Ghana’s competitiveness on the international stage.

The B-READY report further identified procedural inefficiencies as a barrier to business growth. Streamlining these processes, Kelhofer suggested, would allow Ghana to capitalise on its existing advantages and accelerate economic progress.

The IFC’s engagement with policymakers, investors and entrepreneurs is expected to continue, focusing on fostering innovation and enhancing the business climate. Kelhofer reaffirmed the organisation’s commitment in working collaboratively to drive sustainable growth.

“By collaborating, coordinating and acting on today’s recommendations, we can create an environment that drives sustainable growth for years to come,” he said.

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