Rising electricity tariffs are becoming one of the biggest threats to the growth of Ghana’s manufacturing sector, a business expert has warned.
Mrs Nora Bannerman, an Exporter and Chief Executive Officer of Sleek Garments Limited, said the high cost of power was gradually reducing the competitiveness of local manufacturers and making it more difficult for companies to expand production.
She explained that energy costs now account for a significant portion of production expenses for many manufacturing firms, particularly those involved in food processing and light manufacturing.
“When power tariffs continue to rise, manufacturers are forced to increase prices, and once prices go up, the products struggle to compete with imports,” she said.
Mrs Bannerman noted that the situation was affecting not only large companies but also small and medium-sized manufacturers who depend heavily on electricity for production.
She stressed that Ghana’s industrialisation agenda could not succeed without affordable and reliable power, especially at a time when the country was trying to expand local production and reduce imports.
According to her, linking energy policy directly to industrial growth was critical if the country wanted to build a strong manufacturing base.
She said policymakers needed to consider how power pricing decisions affected production costs, employment and the long-term competitiveness of local industries.
Mrs Bannerman added that if electricity tariffs continued to rise without targeted support for manufacturers, many businesses could struggle to survive in the coming years.
She urged government to develop a more balanced energy pricing system that supported industrial growth while ensuring sustainability in the power sector.
Mrs Bannerman said affordable energy remained one of the most important factors in attracting investment into manufacturing and expanding the country’s industrial base.
