The Government of Ghana is set to introduce a series of new measures in the coming days aimed at tackling the growing challenge of corporate insolvency in the country.
As part of the initiative, the Office of the Registrar of Companies (ORC) will be empowered to facilitate connections between struggling businesses and financial institutions, offering support and potential pathways to recovery.
Deputy Attorney-General, Dr. Sram Sai, made the announcement while addressing business leaders and representatives from international financial institutions at a stakeholder forum held in Accra on October 8.
“For years, a combination of internal mismanagement and external economic pressures has pushed many Ghanaian businesses into insolvency,” Dr. Sai noted. “What we are seeking to do is to ensure that businesses that are insolvent are identified and given a chance to be revived and made viable. We also want to protect the interests of workers, so we are calling on all state institutions to support us in this fight,” he said.
Dr. Sai emphasized that the government had already laid the legal foundation through the passage of the Insolvency and Restructuring Act, 2020 (Act 1051), which provides a legal framework to support companies in distress.
The law is currently being implemented by the ORC, which has begun engaging stakeholders to determine the best strategies for rolling out its provisions.
Samma Peprah, Registrar of Companies, stressed the importance of creating public awareness around the Act.
“We want to create awareness for the Corporate Insolvency and Restructuring Act. It was passed in 2020, and we recently received the regulation needed to ensure the Act’s effectiveness. Right now, we are just focused on awareness creation,” she said.
While acknowledging that the business climate is challenging, Peprah urged proactive planning rather than panic.
“We are not saying the business environment is very bad, but we need to prepare ourselves for the worst. This Act is structured to raise awareness and encourage people to look at insolvency not only from the perspective of liquidation, but also restructuring—so that viable companies can be resuscitated,” she explained.
Peprah also highlighted the vulnerability of small-scale businesses and the need to extend awareness efforts beyond elite circles.
“Going forward, we want sensitisation not only among the elite. Whatever the company set-up, there’s a need to bring it down to the grassroots. That’s what’s lacking in our society. We want to create awareness so that smaller businesses can survive,” she added.
Other speakers at the forum echoed calls for stronger collaboration among regulatory bodies to ensure the successful implementation of the Act and to build a more resilient business environment in Ghana.
