Some of Ghana’s leading business associations have joined forces to tell the government that “enough is enough” with the persistent utility tariff hikes in the country.
These business associations include the Food and Beverages Association of Ghana (FABAG). The Ghana Union of Traders Association (GUTA) and others. The associations condemn the persistent increases in utility tariffs, warning that such hikes are deepening business distress and undermining Ghana’s industrial and trade competitiveness.
In a press conference to voice out their concerns, Chairman of FABAG, Rev. John Awuni, described the repeated upward adjustments in tariffs as futile, saying they fail to address the inefficiencies within the utility sector that continue to drain resources.
He cannot fathom why the Electricity Company of Ghana (Ghana) and the Ghana Water Company Limited (GWCL) continue to report yearly losses due to inefficiencies, corruption and other factors, yet the government thinks increasing tariffs periodically will salvage the situation.
Rev. John Awuni says without addressing the foundational and the structural issues of the utility companies, hiking utility tariffs to the detriment of businesses and Ghanaians is not the solution.
“A company that never makes profit, how can tariffs ever solve its problems? Every increase in tariff is like pouring water into a basket, and that’s the position of industry that no matter the amount of tariffs that is increased, it will continue to be like we are pouring water into the basket,” chairman of FABAG, Rev. John Awuni lamented.
Echoing similar sentiments, President of GUTA, Dr. Joseph Obeng, warned that the rising cost of electricity and water is crippling local industries and making Ghana uncompetitive under the African Continental Free Trade Area (AfCFTA).
He emphasized that high utility tariffs are driving production costs up, preventing local manufacturers from competing even with their closest neighbors.
Joseph Obeng further revealed that Ghanaian goods cannot even be sold in Togo, let alone beyond other member states due to the high cost of doing business, especially regarding utility charges.
He further warned that the government’s 24-hour economy initiative could collapse if the situation is not urgently addressed.
“We don’t have to continue to increase and increase while businesses suffer the way we are suffering. It does not make us competitive at all. We all realize that we are doing the African Continental Free Trade Area. Ghana is lagging behind. We are not competitive. Our goods cannot even be sold in Togo,” the President of GUTA indicated.
He continued that, “It doesn’t go beyond the other member states. Why? because of the high cost of doing business here, especially regarding utility charges. It does not help us, and we should note that earlier we knew and dissected these issues and put them in a proper context. We are not going to industrialize, or the 24-hour economy that we want to propagate, will just be a mess.”
Both leaders, including others, stressed that persistent tariff hikes, in the absence of efficiency improvements, will only worsen the economic burden on businesses already struggling under high taxes, inflation, and exchange rate volatility.
The outcry from FABAG and GUTA reflects growing frustration among industry players who feel trapped between rising input costs and declining consumer purchasing power.
