Electricity Tariff Hike Threatens Ghana’s 24-Hour Economy

Ghanaian industry leaders warn that newly approved electricity tariff increases could jeopardize the government’s flagship 24-Hour Economy policy launched on July 2, 2025.

The Public Utilities Regulatory Commission (PURC) confirmed a 2.45% rate adjustment this week, citing exchange rate volatility, inflation, and rising fuel costs. Business representatives contend the timing exacerbates operational challenges for manufacturers and traders preparing for extended operating hours.

Tsonam Akpeloo, Accra Regional Chairman of the Association of Ghana Industries (AGI), stated the hike would significantly raise production costs under the round-the-clock model. “Extended operations mean higher consumption. A 2.5% increase could effectively double power expenses for night shifts,” Akpeloo explained. The Ghana Union of Traders Association (GUTA) echoed these concerns, with President Dr. Joseph Obeng confirming businesses would pass costs to consumers. Plastic manufacturers have already announced price hikes following recent tax adjustments, indicating broader inflationary pressures.

The criticism emerges as President John Mahama’s National Democratic Congress (NDC) administration implements its central economic initiative targeting manufacturing, healthcare, and retail sectors. Industry groups urge the government to reassess utility pricing impacts before expanding operational hours. The PURC maintains the adjustment reflects unavoidable macroeconomic pressures, including recent surges in global oil prices and currency fluctuations.

This development compounds existing fiscal challenges, including contentious energy levy increases taking effect July 16 and a $360 million World Bank facility approved days earlier. Business viability remains contingent on balancing extended-hour productivity against rising input costs under Ghana’s ongoing IMF-backed reforms.