Tariff Hikes Threaten Businesses, 24-Hour Economy — Food & Beverages Association Sounds Alarm
The Food and Beverages Association of Ghana (FABAG) has issued a stern warning that proposed increases in electricity tariffs by the Public Utilities Regulatory Commission (PURC) could cripple businesses and derail government efforts to establish a thriving 24-Hour Economy.
In a forceful statement, FABAG described the planned tariff hikes as “a recipe for disaster,” particularly for the food and beverage sector, which is already reeling from a 70% drop in sales. The group also pointed to the sharp depreciation of the cedi, arguing that it is amplifying business distress.
What FABAG Foresees
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A direct hit to households: Higher utility bills will force many low- and middle-income Ghanaians to choose between lighting and food.
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Greater energy poverty: Rural populations and women-led households will be disproportionately affected.
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Inflationary surge: Food prices, transportation fares, and housing costs will spike as businesses pass on these utility cost increases.
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Job losses and business closures: SMEs, cold stores, small restaurants already operating on thin margins say they won’t survive further cost pressures.
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Threat to competitiveness: Rising production costs could make Ghanaian goods less competitive under AfCFTA, undermining industrial growth.
FABAG’s Demands
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Tariff adjustments should be tied to clear efficiency improvements in the power sector
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Expansion of lifeline tariffs for vulnerable households and targeted support for businesses in the food and beverage industry.
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Urgent accountability from utility providers over system losses, poor metering, and collection inefficiencies.
Source: My News Ghana
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