Frequent tariff hikes may compel more businesses to relocate - AGI

Accra, Ghana - The Association of Ghana Industries (AGI) has expressed grave concerns over the escalating cost of production in Ghana, warning that businesses may be forced to relocate to neighboring countries.

The alarm comes after the Public Utilities Regulatory Commission (PURC) announced a 3.02% increase in electricity tariffs and a 1.86% hike in water tariffs for the third quarter of 2024.

Speaking to Citi News, Tsonam Akpeloo, AGI's Greater Accra Regional Chairman, encouraged the government to consider yearly rate modifications rather than quarterly reviews.

He stated that this shift will enable firms to better plan and manage their operations as expenses rise.

“Most of the products that we have all known to be produced in Ghana, most of them are actually relocating. I am talking about the factory even though you still see the brands in our markets the reality is that the production is not happening here or they are minimizing production over time and you can’t fault them because the production conditions in the economy are really tough for all businesses.

“We in the industry are looking forward to having the government do something about the quarterly increment in utility prices. We feel that that approach is not helping the industry. At best we do plan annually,” he added

Source: Lead News Online