International Certification Centre

20/09/2026

GHANA’S ECONOMY: WHY THE INDICATORS LOOK GOOD, BUT THE PEOPLE STILL FEEL POOR

Ghana’s economic indicators appear to be moving in the right direction. Inflation is declining, the cedi has become more stable, economic growth is improving, foreign reserves are strengthening, and progress has been made in restructuring the country’s debt.

On paper, these are encouraging signs. But when ordinary Ghanaians are asked about the economy, many give a completely different answer.

Food remains expensive. Rent is rising. Transport fares, school fees, electricity, healthcare and the cost of running a business continue to place pressure on households. Salaries have not increased enough to compensate for the loss of purchasing power experienced during the economic crisis.

Why is there such a wide gap between the economic indicators and the daily experiences of the people?

Falling inflation does not mean falling prices

This is one of the most misunderstood economic realities.

When inflation declines, it does not necessarily mean that prices are coming down. It simply means that prices are increasing at a slower rate.

If a bag of rice increased from GH₵300 to GH₵500 during the period of high inflation, lower inflation will not automatically return the price to GH₵300. It may only mean that the price will move from GH₵500 to GH₵520 instead of rising to GH₵600.

The rate of increase may have slowed, but the new price level remains high. According to the "International Monetary Fund’s explanation of inflation" (https://www.imf.org/en/publications/fandd/issues/series/back-to-basics/inflation), inflation measures how much more expensive a basket of goods and services has become over time.

This explains why government reports can show declining inflation while families continue to struggle at the market.

The cedi may be stable, but businesses still carry old costs

Currency stability is important because Ghana imports fuel, machinery, medicines, raw materials and many consumer products. A stable cedi can reduce uncertainty and prevent another rapid increase in prices.

However, businesses bought stock, equipment and raw materials when the exchange rate was much higher. Some borrowed money at very high interest rates to finance their operations. They may also be paying higher wages, utility bills, taxes and transport costs.

Consequently, many businesses cannot immediately reduce their prices simply because the cedi has strengthened. They must first recover previous losses and replace expensive stock.

Currency stability can stop the economic wound from becoming worse, but it does not heal the wound overnight.

Economic growth does not always create household prosperity

Gross domestic product can grow without significantly improving the lives of the majority.

Growth may be concentrated in mining, oil, telecommunications, banking or other capital-intensive sectors that do not employ large numbers of people. A country can therefore record impressive growth while unemployment, underemployment and informal work remain widespread.

What matters to an ordinary person is not only whether the economy is growing, but whether that growth is producing:

- Secure and well-paying jobs
- Profitable opportunities for small businesses
- Higher household incomes
- Affordable food and housing
- Better healthcare and education
- Reliable public services

Growth that does not create jobs or raise real incomes will remain a statistic that many citizens cannot feel.

Salaries have not recovered their purchasing power

During the period of high inflation, prices increased faster than the incomes of many workers.

Even when salaries were adjusted, the increases were often not enough to match the rising cost of food, rent, transportation and utilities. Many households survived by borrowing, reducing their savings or postponing important expenses.

Economic stabilisation does not automatically restore these lost incomes and savings. A worker may still be earning nearly the same salary while paying significantly more for basic necessities.

This is why people can hear that the economy is recovering and still feel financially worse off.

Interest rates remain a major burden

Small and medium-sized businesses are expected to create jobs, but many cannot access affordable financing.

When lending rates are high, businesses struggle to expand, purchase equipment or employ additional workers. Some pass their financing costs to consumers through higher prices, while others reduce operations or close completely.

A stable currency and lower inflation must eventually translate into lower borrowing costs. Otherwise, the recovery will remain disconnected from the businesses and entrepreneurs who drive employment.

Debt restructuring creates space, not instant prosperity

Ghana’s debt restructuring has reduced some immediate repayment pressure and helped restore a measure of confidence. Parliament approved a major debt-relief agreement with official creditors in 2025 as part of the country’s wider restructuring programme. "Reuters reported that the agreement provided debt-service relief and deferred some repayments" (https://www.reuters.com/world/africa/ghana-approves-28-billion-debt-relief-deal-with-creditor-nations-2025-06-25/).

However, debt relief does not immediately put money into people’s pockets. Government must still manage expenditure carefully, increase revenue and meet its obligations.

If economic adjustment comes through higher taxes, reduced public spending or increased utility charges, citizens may experience more pressure even while the national accounts improve.

Economic recovery is not equally distributed

The benefits of recovery often reach financial markets, large companies and asset owners before reaching workers, farmers and informal businesses.

Urban professionals with investments may benefit from currency stability and improved confidence. Meanwhile, a trader facing weak customer demand or a young graduate without a job may see little improvement.

The average economic figure can therefore hide significant differences among regions, income groups, industries and age groups.

The economy may be stabilising, but households are still recovering

Ghana’s improving indicators should not be dismissed. Lower inflation, a more stable currency, stronger reserves, debt restructuring and fiscal discipline are necessary foundations for recovery.

But economic stability is not the final destination. It is only the beginning.

The real test of economic progress is whether citizens can afford food, housing, healthcare and education; whether businesses can borrow at reasonable rates; whether young people can find meaningful employment; and whether workers’ incomes can support a dignified life.

Ghana must now move from macroeconomic stabilisation to household economic recovery.

This requires job-intensive growth, support for local production, affordable credit for small businesses, stronger competition to encourage price reductions, targeted assistance for vulnerable households and investments in agriculture, manufacturing and skills development.

An economy cannot be considered fully healthy simply because the numbers look good.

The economy becomes truly successful when the improvement in the statistics can also be felt in the markets, workplaces, businesses and homes of ordinary Ghanaians.

Good indicators may restore confidence, but better living conditions are what restore hope.

19/09/2026

Technology: A Tool for Business Growth or a Growing Problem for Small Businesses and Startups?

Technology has become one of the most powerful forces shaping modern business. It influences how companies communicate with customers, manage employees, market products, process payments, analyse information and compete across borders.

For companies with enough financial resources, technology is often a major driver of growth. They can invest in advanced software, artificial intelligence, automation, cybersecurity, cloud computing and digital marketing. These investments help them operate efficiently, reduce costs and reach larger markets.

For many small businesses and startups, however, technology can create a different experience. Instead of becoming an immediate solution, it can introduce high costs, technical difficulties, security risks and continuous pressure to upgrade.

This raises an important question: Is technology genuinely creating equal opportunities for businesses, or is it widening the gap between companies that can afford it and those that cannot?

How Technology Supports Business Growth

Technology gives businesses opportunities that would have been difficult or expensive to access in the past. A company can advertise its products worldwide, receive online payments, communicate with customers and manage operations without opening offices in every location.

Digital platforms have also reduced some traditional barriers to entering the market. A small business can create a social media page, build a website and begin selling products without renting a large physical shop.

Technology can help businesses grow in several important ways.

1. Access to Larger Markets

The internet allows businesses to move beyond their immediate communities. A company operating in Ghana, Nigeria, Kenya or another African country can market its products and services to customers in Europe, Asia and North America.

E-commerce platforms, social media and online payment systems have made international business more accessible. A startup can now attract customers from different countries without establishing physical branches in those markets.

2. Improved Efficiency

Technology helps businesses complete tasks faster and with fewer errors. Accounting software can generate financial reports, customer relationship systems can manage client information, and automated tools can respond to common customer enquiries.

When repetitive activities are automated, employees have more time to focus on customer service, innovation and business development.

3. Better Decision-Making

Businesses generate large amounts of information through sales, customer interactions, website visits and advertising campaigns. Technology enables companies to collect and analyse this information.

Business owners can identify which products are selling, which advertisements are producing results and which customers are most likely to make repeat purchases. Decisions can therefore be based on evidence rather than assumptions.

4. Stronger Customer Experience

Customers increasingly expect convenience, speed and personalised service. Technology allows companies to provide online ordering, instant communication, digital payments, automated notifications and round-the-clock support.

Businesses that offer a smooth digital experience are often more likely to attract and retain customers.

5. Innovation and New Business Models

Technology has created businesses that would not have existed a few decades ago. Online learning platforms, financial technology companies, digital health services, ride-hailing applications and remote-working platforms are all examples.

Technology does not only improve existing businesses; it also makes entirely new products, services and industries possible.

Why Larger Companies Often Benefit More

Although technology creates opportunities for everyone, businesses do not enter the digital economy with equal resources.

Large companies can purchase reliable systems, employ qualified professionals and experiment with emerging technologies. If a digital project fails, they may have enough capital to correct the problem and try again.

They can also afford experienced software developers, cybersecurity specialists, data analysts and digital marketers. This gives them an advantage over smaller companies that may depend on one employee, an external contractor or the founder’s limited technical knowledge.

Large companies can negotiate favourable prices with technology providers because they purchase services in greater volumes. A small business, however, may pay standard subscription fees that consume a significant portion of its revenue.

Technology therefore becomes a growth multiplier for companies that already possess capital, skills and market influence.

The Technology Challenges Facing Small Businesses

For small businesses and startups, adopting technology can be both necessary and financially demanding. They may need digital tools to remain competitive, but the cost of those tools can threaten their survival.

1. High Cost of Digital Tools

Many business applications require monthly or annual subscriptions. A company may need separate systems for accounting, customer management, communication, marketing, website hosting, cybersecurity and online payments.

Each subscription may appear affordable individually, but the combined cost can become substantial. Foreign-currency pricing creates an additional burden for businesses operating in countries where the local currency is unstable.

A startup may therefore be forced to choose between investing in technology, hiring employees or financing marketing activities.

2. Limited Digital Skills

Purchasing technology does not guarantee that a business will use it successfully. Employees must understand how the system works and how it contributes to the organisation’s goals.

Many small businesses do not have dedicated information technology departments. The founder may be responsible for strategy, finance, sales, customer service and technology at the same time.

Without proper training, businesses may pay for systems they do not fully use. Technology then becomes an expense instead of a productive investment.

3. Cybersecurity Risks

Small businesses collect customer names, contact details, payment information and other sensitive data. This makes them potential targets for cybercrime.

Unfortunately, many startups lack strong security systems, regular data backups and trained cybersecurity personnel. A single attack can interrupt operations, damage customer trust and create serious financial losses.

Larger companies may have insurance, specialised security teams and recovery systems. A small business may not have the resources to recover from the same incident.

4. Unreliable Infrastructure

Technology depends on electricity, internet connectivity and reliable digital payment systems. In areas where these services are expensive or unstable, businesses cannot use technology effectively.

A company may purchase good software but still experience operational problems because employees cannot access it consistently. Infrastructure limitations therefore reduce the value of digital investment.

5. Dependence on Technology Platforms

Small businesses often rely heavily on social media networks, online marketplaces, search engines and payment providers. These platforms can change their prices, policies and algorithms without consulting the businesses that depend on them.

A company may build its customer base on a social media platform and suddenly experience a major reduction in visibility. Another business may lose access to its account because of an automated suspension.

When a business does not control the technology platform connecting it to customers, its growth remains vulnerable to decisions made by another company.

6. Pressure to Upgrade Continuously

Technology changes rapidly. Devices, software and digital marketing strategies can become outdated within a short period.

Small businesses are therefore under constant pressure to purchase new equipment, renew subscriptions, redesign websites and learn new platforms. The investment is not made once; it must often be repeated.

This continuous cycle can place significant pressure on a startup with limited and unpredictable revenue.

7. Competition with Better-Funded Companies

Technology allows small businesses to enter markets, but it also exposes them to stronger competitors.

A local startup may find itself competing with multinational companies that have larger advertising budgets, better technology and recognised brands. Digital platforms place businesses in the same marketplace without giving them the same resources.

Technology may open the door, but it does not guarantee an equal chance of winning.

Technology Is Not the Real Problem

Technology itself is neither the enemy of small businesses nor a guaranteed solution. The real challenge is unequal access to affordable tools, relevant skills, reliable infrastructure and business financing.

A sophisticated system will not help a company if it does not solve an actual business problem. Small businesses sometimes adopt technology because competitors are using it or because it is currently popular.

This can lead to unnecessary expenditure.

Before purchasing a digital tool, a business should ask:

- What specific problem will this technology solve?
- Will it increase revenue, reduce costs or improve customer service?
- Can employees use it properly?
- Are there affordable alternatives?
- Can the business maintain the system over time?
- How will success be measured?

Technology should support the company’s strategy. It should not replace clear thinking, customer understanding or sound financial management.

How Small Businesses Can Use Technology Wisely

Small businesses do not need to purchase every new digital tool. They need to select technology according to their most important needs.

A company should begin with essential systems that protect revenue, improve productivity and strengthen customer relationships. It can introduce additional tools as the business grows.

Cloud-based platforms may reduce the need for expensive infrastructure. Free plans and affordable software can also help startups test solutions before making long-term commitments.

Training is equally important. A simple system used correctly may create more value than an expensive platform that employees do not understand.

Small businesses should also avoid depending entirely on one digital channel. A company that receives most of its customers through social media should still develop its own website, email database and direct customer relationships.

Most importantly, entrepreneurs should evaluate technology based on return on investment. The question should not be, “Is this tool popular?” It should be, “What measurable value will this tool create for the business?”

The Role of Governments and Financial Institutions

If small businesses are expected to drive employment and economic development, they must receive support to participate effectively in the digital economy.

Governments can assist by improving internet and electricity infrastructure, supporting digital-skills training and creating policies that encourage affordable technology services.

Tax incentives could help small businesses purchase approved digital tools and cybersecurity services. Public institutions could also establish technology centres where entrepreneurs receive training, technical assistance and access to shared resources.

Banks and financial institutions should develop financing products that help small businesses invest in digital transformation. Traditional lending models may not always suit technology startups, particularly when their value is based on intellectual property, software or user growth rather than physical assets.

Universities and training institutions also have a role to play. They can provide practical digital-business education that prepares entrepreneurs to select, manage and evaluate technology.

Technology companies must also design products with small businesses in mind. Flexible pricing, local-currency payment options, simplified systems and accessible customer support would allow more enterprises to adopt technology successfully.

Closing the Digital Business Gap

The future of business will become increasingly digital. Companies that fail to adopt relevant technology may struggle to compete, but forcing small businesses to bear the full cost of digital transformation could deepen economic inequality.

The objective should not be to protect businesses from technology. It should be to ensure that technology is affordable, understandable and useful to businesses of every size.

Large companies will continue to benefit from their financial strength. However, small businesses can also compete when they combine creativity, customer knowledge, agility and carefully selected digital tools.

A startup may not have the budget to implement the most advanced system, but it can use simple technology to improve one important area at a time. Sustainable digital transformation does not always begin with a large investment. It begins with identifying the right problem and selecting an appropriate solution.

Conclusion

Technology is undoubtedly a powerful tool for business growth. It helps companies expand into new markets, improve efficiency, understand customers and create innovative products.

However, it can also become a serious burden for small businesses and startups when the costs are high, skills are limited and infrastructure is unreliable.

The issue is therefore not whether businesses should use technology. The real issue is how to make technology work for them.

Technology should not become a privilege reserved for companies with large budgets. It should be a bridge that allows entrepreneurs to develop ideas, reach customers, create employment and contribute to economic growth.

When access to technology becomes more inclusive, small businesses will not merely survive the digital economy—they will help shape its future.

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