The Food and Beverages Association of Ghana (FABAG) has warned that proposed upward adjustments in utility tariffs, especially electricity charges by the Electricity Company of Ghana (ECG), would cripple businesses, worsen inflation, and undermine the government’s flagship 24-hour economy policy.
In a statement signed by Chairman Rev. John Awuni, FABAG cautioned the Public Utilities Regulatory Commission (PURC) that further increases would “amount to a direct assault on households, jobs, and national competitiveness.”
According to the association, sales in the food and beverages sector have already declined by 70%, as restaurants, hotels, wholesalers, and retailers struggle with weak demand and rising costs fueled by the cedi’s depreciation.
“If the food and beverages sector is suffering, what is happening in the non-food sector?” FABAG asked, pointing to falling VAT returns as evidence of a collapsing market.
The group stressed that electricity and water form the backbone of production for bakeries, beverage bottlers, sachet water producers, and cold store operators.
Any increase in tariffs, it warned, would wipe out the thin margins of SMEs, leading to factory downsizing, closures of chop bars and cold stores, and mass layoffs.
“Tariff increases will hit Ghanaian families where it hurts most, their daily survival,” FABAG said.
For low- and middle-income households, already struggling to balance food and utility bills, higher charges would deepen energy poverty, especially among rural communities and women-led households.
FABAG further cautioned that the hike would ignite an inflationary wildfire, driving up the cost of bread, kenkey, beverages, and transport.
Cold chain operators and small restaurants would pass on costs to consumers, while transport fares would rise as fuel depots and garages adjust to higher electricity bills.
On the broader economy, FABAG said higher production costs risk making Ghanaian goods uncompetitive under the African Continental Free Trade Area (AfCFTA), encouraging imports and undermining initiatives like One District, One Factory (1D1F) and agro-processing.
“Instead of promoting value addition, tariff hikes will turn Ghana into a dumping ground for cheaper imports and reverse years of industrial progress,” the statement warned.
While noting that FABAG is not opposed to cost-reflective tariffs, the association called for performance-linked reforms. Utilities, it said, must first reduce system losses, improve collections, cut waste, and change staff attitudes before burdening consumers.
It urged PURC to expand lifeline tariffs for low-income households, design support measures for SMEs in the food and beverage sector, ensure transparency by publishing a full cost breakdown, including fuel, FX, and IPP charges and shield public services such as schools, hospitals, and water facilities from the impact of tariff hikes.
FABAG added that Ghanaians should not continue paying for inefficiencies. “A tariff increase without accountability is not reform but it is punishment.
“The PURC must put the people first by phasing adjustments, demanding efficiency, and protecting businesses,” it said.
