Tax relief, falling interest rates ease business costs – GNCCI CEO

Tax relief and falling interest rates are easing production costs, but businesses still face pressure, the Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI) said.

Mark Badu-Aboagye said conditions had improved compared with previous years. He described the 2026 budget as largely business-friendly, with tax measures offering relief to businesses and consumers.

Speaking on Joy News’ PM Express Business Edition on Thursday, he said: “Relatively, business has been good. Things are a bit better as compared to previous years.”

He pointed to lower borrowing costs as another source of relief.

“And of course we've seen interest rates coming down. So largely, the cost of production is relatively better.”

Mr Badu-Aboagye linked the improvement in inflation partly to restraint in business pricing. He said businesses had not been increasing prices excessively.

The host challenged that assessment, noting that consumers’ experiences could differ depending on what they bought.

Mr Badu-Aboagye acknowledged those differences but said the national average provided the basis for his assessment.

“No, so that's why we use the average. So the national average is 5.5 per cent.”

He said some regions recorded inflation above the national figure. On average, however, he considered conditions stable.

He said a stable exchange rate also contributed significantly to the inflation outcome, alongside production costs.

But he cautioned that the gains did not mean businesses had overcome their difficulties. Inflation for locally manufactured goods had edged up, signalling continued pressure on domestic producers.

“If you look at the numbers, the cost of locally manufactured goods, the inflation for it went up a bit, which should tell you that we are still not out of the woods yet.”

Mr Badu-Aboagye said further tariff relief, alongside the tax measures, could have lowered the cost of locally manufactured goods and pushed inflation lower.