Managing Partner of advisory firm Konfidants, Michael Kottoh, has noted a steady recovery in business confidence under President John Dramani Mahama’s administration, following a prolonged period of economic turbulence.
Speaking during a special panel discussion on Channel One TV’s review of Mahama’s first 120 days in office on Wednesday, May 7, 2025, Mr. Kottoh reflected on the state of trade and business in Ghana.
He pointed out that past economic challenges, such as inflation, the domestic debt exchange programme, currency instability, and turmoil in the banking sector, had severely weakened investor sentiment beginning in 2022.
However, he observed that the current macroeconomic environment has shown signs of stability, which has begun to restore optimism among business owners and investors.
He stressed that business confidence is a crucial driver of economic activity, and without it, even positive macroeconomic indicators would be insufficient to stimulate growth.
“In the past 120 days, we have seen some macroeconomic stabilization, which is restoring a degree of business confidence. This is essential because without confidence, businesses are unlikely to invest, expand, or create jobs, even if broader economic indicators show signs of recovery,” Kottoh remarked.
Mr. Kottoh further acknowledged that while interest rates remain high, the downward trend is encouraging for the private sector.
“The rates are still high overall, but they are trending downwards. I think overall, that has injected some confidence into the industry. So, I think that is important,” he said.
“We can talk about all the macros, [but] if the macroeconomy situation is bad, and there’s no business confidence, industry is not going to invest. They are not going to employ, they are not going to create jobs. They’re not going to be able to pay taxes.”
He concluded by emphasizing that sustained macroeconomic stability is essential to creating a business environment conducive to investment, job creation, and long-term private sector growth.
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