Collins Sefa Ghana’s food and beverage industry has raised strong concerns that planned electricity tariff increases could cripple businesses and derail the government’s flagship 24-hour economy initiative.
The Food and Beverages Association of Ghana (FABAG) described the Public Utilities Regulatory Commission’s (PURC) proposed tariff adjustments as “catastrophic” for an industry already facing sharp sales declines of up to 70 percent, worsened by currency depreciation and rising costs of raw materials.
In 2025 alone, Ghana has recorded two major electricity hikes – 14.75 percent in May and an additional 2.45 percent in July – leaving businesses anxious about their survival and ability to retain workers.
FABAG argues that the timing is particularly damaging, since the 24-hour economy, launched in July by President John Dramani Mahama, depends heavily on affordable electricity to sustain round-the-clock manufacturing and service operations.
“Higher tariffs run counter to government’s own goal of driving continuous business operations and job creation,” the association warned.
SMEs Most at Risk
Small and medium enterprises (SMEs) – already struggling with thin profit margins – are seen as the most vulnerable. Many are expected to face tough choices between cutting staff or shutting down entirely. Cold storage operators, restaurants, and food processors, whose operations rely heavily on electricity for refrigeration, cooking, and packaging, could be hardest hit.
National Impact
The 24-hour economy initiative, backed by $300 million in government seed funding and expected to draw nearly $2 billion in private investment, aims to boost growth across agriculture, manufacturing, and logistics. However, rising production costs may discourage businesses from running extended shifts – undermining both job creation and Ghana’s competitiveness under the African Continental Free Trade Area (AfCFTA).
The PURC has defended its tariff adjustments, citing exchange rate volatility, inflation, fuel cost fluctuations, and outstanding revenue obligations of nearly GH¢976 million.
Call for Relief Measures
Business groups, however, insist that utility companies must address inefficiencies such as transmission losses and poor revenue collection before passing costs onto consumers. FABAG has also urged government to expand lifeline tariff protections and introduce business relief measures to prevent mass closures.
The Bigger Picture
The standoff highlights a difficult policy dilemma: while Ghana must strengthen its power sector to ensure reliability, steep tariffs risk choking private sector competitiveness – especially at a time when government is betting on the 24-hour economy to drive jobs, industrialization, and export growth.
