Ghanaian business groups are calling on the government to halt further increases in electricity and water tariffs, warning that rising utility costs are inflating production expenses, eroding profits, and undermining the country’s competitiveness in regional trade.
The Ghana Food and Beverages Association (FABAG) stressed that structural reforms at the Electricity Company of Ghana (ECG) are essential, rather than simply raising tariffs. FABAG Chairman John Awuni said the rising cost of electricity is taking a heavy toll on businesses and households.
“There shouldn’t be any tariff increment. No amount of tariff increment can solve the problems of ECG. There must be a reform, and that reform is aimed at reducing the technical and commercial losses to reasonable standards,” he stated.
Similarly, the Ghana Union of Traders Association (GUTA) expressed concern that high electricity and water costs are undermining Ghana’s competitiveness under the African Continental Free Trade Area (AfCFTA).
GUTA President Dr. Joseph Obeng noted that inflated utility costs are forcing price increases, reducing profit margins, and discouraging both local and foreign investment. “We are participating in AfCFTA, yet Ghana is lagging behind. Our goods cannot even compete with those from Togo,” he said.
Both associations urged the government and regulatory authorities to engage with the business community to develop fair and sustainable utility tariffs while implementing reforms that improve efficiency and reduce losses at ECG.
Such measures, they argue, are critical to supporting industrial growth, protecting consumers, and ensuring Ghanaian businesses can compete regionally and internationally.
The calls for action come amid growing concerns that persistent utility cost increases threaten the survival of small and medium enterprises, inflate the prices of goods and services, and weigh heavily on Ghana’s economic competitiveness in a rapidly integrating African market.
