Ghanaian business leaders are warning that a 2.45% increase in electricity tariffs could undermine the government’s planned rollout of its 24-hour economy policy, citing rising operational costs and growing pressure on manufacturers and traders.
The Public Utilities Regulatory Commission (PURC) announced the adjustment earlier this week, attributing the hike to exchange rate volatility, inflation, rising fuel prices, and increased operating costs.
But industry associations say the timing could not be worse. According to Accra Regional Chairman of the Association of Ghana Industries (AGI), Tsonam Akpeloo, the increase poses a serious challenge for companies expected to operate extended hours under the new policy.
“If you’re talking about a 24-hour economy, you’re asking industry to work beyond the usual eight hours and continue through the night. That means higher electricity consumption. The cost of power will increase, possibly doubling what we’ve previously paid,” Akpeloo said. “A 2.5% increase under normal production is one thing, but with extended hours, the actual cost impact will be far greater.”
The Ghana Union of Traders Association (GUTA) voiced similar concerns, warning that rising electricity costs will inevitably be passed on to consumers. GUTA President Dr. Joseph Obeng said businesses are left with little room to absorb new expenses.
“This time, we won’t just keep talking. For instance, plastic manufacturers have had their taxes raised to 7% and they’ve already announced price increases. That’s what we’re going to see more of,” he said. “This is a cost issue, if operational costs go up, product prices will also go up. It’s that simple.”
Both AGI and GUTA have urged the government to reassess the broader economic impact of utility hikes, especially as it prepares to implement a policy meant to drive job creation and economic growth.
The 24-hour economy initiative, a flagship of the opposition National Democratic Congress (NDC), is set to launch today, July 2. The programme targets key sectors including manufacturing, healthcare, transportation and retail, with the goal of expanding employment and boosting productivity through continuous operations.
