Ghana is one of the fastest-growing economies in Africa, with a vibrant private sector and a conducive business environment. However, many entrepreneurs and investors face challenges when it comes to registering their businesses online, which is a crucial step for formalizing and operating a business legally.
According to the World Bank’s Doing Business 2020 report, Ghana ranks 118th out of 190 countries in terms of ease of starting a business, with an average of 14 days and six procedures required to register a business. This is significantly higher than the sub-Saharan Africa average of 9 days and 5.2 procedures.
According to the same report, countries with easier business registration processes tend to have higher levels of entrepreneurship and more formalized businesses. This can lead to increased economic growth and job creation.
Current Challenges of Ghana’s Online Registration System
One of the main obstacles to online business registration in Ghana is the lack of awareness and accessibility of the online portal of the Registrar General’s Department (RGD), which is responsible for registering all types of businesses in Ghana.
The RGD launched its online portal in 2017, with the aim of simplifying and streamlining the registration process, reducing costs and delays, and improving transparency and accountability.
However, many users are either unaware of the existence of the online portal or face difficulties in accessing and using it. Some of the common issues reported by users include:
- Lack of adequate information and guidance on how to use the online portal and fill out the required forms
- Technical glitches and errors that prevent users from completing or submitting their applications
- Lack of feedback and follow-up from the RGD on the status and progress of their applications
These issues not only discourage potential users from registering their businesses online, but also undermine their trust and confidence in the online system.
As a result, many users still prefer to register their businesses manually, which involves visiting the physical premises of the RGD, filling out paper forms, paying cash, and waiting for long periods.
Possible Solutions
To address these issues and improve the online business registration system in Ghana, some of the possible solutions include:
- Increasing public awareness and education on the benefits and procedures of online business registration through various media channels, such as radio, television, newspapers, social media, etc.
- Revamping and enhancing the user-friendliness and functionality of the online portal by providing clear instructions, FAQs, tutorials, and use of chatbots.
- Improving the reliability and security of the online portal by upgrading its infrastructure, software, and backup systems
- Reducing or waiving fees and charges for online registration to incentivize users to switch from manual to online registration.
- Providing timely and effective feedback and communication to users on their applications through email, SMS, and phone calls.
- Harmonizing and simplifying the requirements and processes between the RGD and other relevant agencies to avoid duplication and confusion.
By implementing these solutions, Ghana may overcome its issues with the digital registration of businesses and create a more efficient and convenient system that can boost its business climate and economic growth.
There have been plans to overhaul the system and debut a new system but there has no update from the local government so far.
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