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

A direct hit to households: Higher utility bills will force many low- and middle-income Ghanaians to choose between lighting and food.
Greater energy poverty: Rural populations and women-led households will be disproportionately affected.
Inflationary surge: Food prices, transportation fares, and housing costs will spike as businesses pass on these utility cost increases.
Job losses and business closures: SMEs, cold stores, small restaurants already operating on thin margins say they won’t survive further cost pressures.
Threat to competitiveness: Rising production costs could make Ghanaian goods less competitive under AfCFTA, undermining industrial growth.

FABAG’s Demands

Tariff adjustments should be tied to clear efficiency improvements in the power sector
Expansion of lifeline tariffs for vulnerable households and targeted support for businesses in the food and beverage industry.
Urgent accountability from utility providers over system losses, poor metering, and collection inefficiencies.

Source: My News Ghana