Participants at a workshop to discuss a survey report on the cost of doing business in Ghana on Friday questioned the terms of reference and source of the questionnaire used since it did not provide enough basis for conclusive analysis in the Ghanaian context.

They agreed with most of the findings but indicated that the survey failed to lay certain basis for arriving at some conclusions.

This includes stating what was the Ghanaian situation like in terms of the timeframe for acquiring a business license.

The survey, sponsored by the Ghana Investment Promotion Centre (GIPC), the Foreign Investment Advisory Services (FIAS) and the World Bank, was aimed at assessing any need or remaining weaknesses in the procedural and regulatory framework that impedes business start-up and their operations.

The participants comprising domestic and foreign investors raised questions on international comparison cost of doing business in Ghana, the basis for the analysis of some evaluations since there was no real quantification and qualification of the results.

Mr Alex Akwasi Bruks, a member of the FIAS Consulting team, in response said the questionnaire was a standard one designed to serve international purposes, which would be used for other countries.

There was therefore no significant modification as to which country they were being administered.

Explaining the basis for classifying companies in foreign and local categories, he said the International Monetary Fund (IMF) requirement of 10 per cent threshold as minimum requirement for foreign direct control was used.

Presenting the report, Mr Bruks said domestic companies ranked interest rates as the number one obstacle to operating business in the country.

This is followed by lack of access to long-term funding largely as a result of unfavourable banking regulations.

Difficulty in obtaining access to utilities such as electricity, water, and telecommunications was rated third.

Safety regulations, business licensing, inspections of all kinds and labour regulations were not viewed as posing any problems for businesses, he said.

Mr Bruks said foreign companies, however, ranked these problems in a different order.

They were more concerned with access to utility services and appeared to be more sensitive to governance issues such as unpredictability and complexity of laws and policies.

On tax administration, he said businesses considered the cumulative tax incidence too high.

The report said it appeared that the few visible and complying companies were saddled with corporate, municipal and special taxes while the informal private sector goes untaxed.

Mr Agyeman Manu, Deputy Minister of Finance and Economic Planning, said the studies were meant to provide a baseline information on the formal and informal cost of doing business in Ghana in order to provide the basis for measuring improvement over time and for comparing Ghana and other countries.

He said the changing global trends and the highly competitive nature of FDI required that GIPC be turned into a dynamic and effective agency to facilitate foreign and local investment and to promote local investment.

Mr Manu said government had put in place a steering committee having membership from relevant institutions to provide leadership and commitment to monitor the investment environment on an on-going basis.

Mr Kwasi Abeasi, GIPC Chief Executive said FDI had become very sophisticated and competitive.

He said the main attractions included the macro framework, good governance and cost of efficient business environment.