Former Western Regional Minister and Member of Parliament for Takoradi, Kwabena Okyere Darko-Mensah, has called for sweeping reforms to the country’s regulatory architecture, arguing that decentralising licensing and permit approval processes could significantly improve the business environment for entrepreneurs.
He said this will unlock the full potential of Micro, Small and Medium Enterprises (MSMEs).
Speaking on the floor of Parliament, Mr. Darko-Mensah noted that even though MSMEs remain the backbone of the national economy they continue to face crippling bureaucratic hurdles that undermine productivity, investment and job creation.
MSMEs account for more than 90 percent of businesses, contribute an estimated 70 percent of the country’s Gross Domestic Product (GDP), and employ nearly 80 percent of the workforce. They are widely regarded as the engine of inclusive economic growth, supporting livelihoods across agriculture, manufacturing, commerce, services and agro-processing.
Despite their enormous contribution, the Takoradi MP observed that many of these enterprises are struggling, not only because of limited access to finance but also because of cumbersome regulatory processes that make it difficult to establish, expand and sustain businesses.
According to him, while government continues to encourage local production and value addition, many small businesses lack the capital needed to purchase produce directly from farmers at the farm gate, weakening local supply chains and slowing the growth of agro-processing industries.
However, he argued that access to finance is only part of the challenge.
Mr. Darko-Mensah pointed to what he described as excessive bureaucracy within regulatory institutions, saying entrepreneurs are often required to obtain multiple permits from different agencies, each carrying out separate inspections and enforcement actions that disrupt business operations.
“Today one agency locks your shop, tomorrow another agency comes to lock it again. The energy required simply to stay in business becomes exhausting for small and medium enterprises,” he told Parliament.
He cited the Food and Drugs Authority (FDA) as an example, claiming that some manufacturers wait for more than a year to obtain the licences required to begin production, while applicants seeking licences for small-scale mining may wait as long as three years before receiving approval.
“These administrative delays discourage entrepreneurship, slow industrial growth and deny businesses the opportunity to create jobs and contribute meaningfully to the economy”.
The former Regional Minister therefore called for the decentralisation of regulatory agencies, arguing that district offices should be empowered to process applications, issue licences and conduct inspections without waiting for approvals from Accra.
He questioned why entrepreneurs in districts such as Wassa Akropong should have to depend on decisions made in the capital when professionally qualified officers are already stationed in the districts.
“The officers in the districts attended the same universities, passed the same professional examinations and possess the same competencies as their colleagues in Accra. The capacity already exists. What is lacking is the authority to act.”
Mr. Darko-Mensah also advocated the full digitalisation of regulatory services through online applications, electronic payments and digital certification to reduce delays, improve efficiency and eliminate unnecessary bureaucracy.
“Ghana’s highly centralised administrative system has become a major obstacle to private sector development and warned that unless decision-making authority is brought closer to businesses, the country risks limiting the growth of the very enterprises that drive employment and economic transformation.”
Drawing lessons from international best practices, he cited China as an example of a country where local authorities exercise significant autonomy in managing economic and industrial zones, enabling businesses to receive quicker approvals and operate more efficiently.
“Ghana must embrace a similar decentralised approach if we are serious about accelerating industrialisation, promoting local manufacturing, strengthening value chains and creating sustainable employment opportunities.”
By Eric Yaw Adjei
