The Ghana Union of Traders Association (GUTA) has warned that persistent increases in utility tariffs pose a critical threat to the government’s 24-hour economy initiative, calling the situation a crippling factor for local businesses struggling to remain competitive.
Speaking at a press conference on October 6, 2025, GUTA President Joseph Obeng stated that local businesses can only remain competitive if the economy and tax policies are favorable to traders. He emphasized that without urgent intervention, the ambitious economic transformation program risks failing before it gains traction.
The 24-hour economy policy was officially launched by President John Mahama on July 2, 2025, as a flagship initiative aimed at stimulating economic activity by encouraging businesses to operate around the clock or in multiple shifts to increase productivity and create jobs.
However, GUTA’s concerns center on the practical realities facing businesses attempting to implement extended operations. The association has raised concerns that Ghana’s current utility tariff regime is undermining the country’s competitiveness within the African Continental Free Trade Area (AfCFTA), with high electricity and water costs inflating production and operational expenses.
Obeng painted a stark picture of the challenges facing Ghanaian traders and manufacturers. He noted that the frequency of tariff adjustments has pushed many businesses to the brink, forcing them to either scale down production or pass costs on to consumers, neither of which supports economic growth or competitiveness.
The GUTA president emphasized that Ghana’s position within AfCFTA has been weakened by these high operational costs. He stated that Ghanaian goods struggle to compete even in neighboring markets like Togo, let alone across the broader regional trading bloc, primarily because of elevated utility charges that increase the cost of doing business.
Recent tariff adjustments have compounded the pressure on businesses. A 14.75% increase in electricity tariffs took effect on May 3, 2025, followed by a 2.45% rate adjustment approved by the Public Utilities Regulatory Commission (PURC) citing exchange rate pressures.
For businesses contemplating extended shifts to align with the 24-hour economy vision, these tariff increases present formidable obstacles. Many small and medium-sized enterprises already struggle to keep operations viable amid frequent tariff adjustments, rent increases, and rising fuel costs.
Some factory owners have indicated that electricity alone accounts for nearly 40% of their total operating expenses, making the prospect of round-the-clock operations financially prohibitive without significant subsidy or tariff relief. In an environment where power is both expensive and sometimes unreliable, implementing multiple shifts becomes extraordinarily challenging.
Three business associations have appealed to the President to intervene and stop the Public Utilities Regulatory Commission from approving any further tariff increases for utilities in the country. The petitioners argue that continued increases will make the 24-hour economy concept unworkable for most businesses.
Business groups including the Food and Beverages Association (FBA), GUTA, and Ghana Plastic Manufacturers’ Association have described the Electricity Company of Ghana (ECG) and Ghana Water Limited as “leaking baskets” plagued by waste and inefficiency, questioning why consumers should bear the cost of operational deficiencies through higher tariffs.
Obeng warned that without far-reaching interventions to address high and persistent utility tariffs, the 24-hour economy initiative will likely remain aspirational rather than practical. He suggested that the government must treat affordable energy as a non-negotiable foundation if the policy is to succeed.
The concerns extend beyond GUTA. Other business associations have identified high operational costs as the single biggest deterrent to investment and production in Ghana. The combination of expensive utilities, unpredictable tariff adjustments, and infrastructure challenges creates an environment where extended operations become economically unviable.
President Mahama noted at the policy launch that the 24-hour economy is not merely about extending working hours but represents a revolutionary approach to conducting businesses and economic operations. However, translating that vision into reality requires addressing the structural cost challenges that businesses face.
For Ghana to realize the promise of a 24-hour economy that creates jobs, boosts productivity, and transforms the country into a round-the-clock business hub, stakeholders agree that energy affordability must be prioritized. Without stable and affordable utilities, the ambitious policy risks remaining only on paper.
The government faces a delicate balancing act. Utility providers need revenue to maintain and expand infrastructure, yet businesses require affordable energy to remain competitive. Finding that balance will likely determine whether the 24-hour economy becomes a transformative success or an unrealized aspiration.
As GUTA and other business associations continue pressing for tariff relief, the broader question remains: can Ghana create an enabling environment for extended business operations while utility costs continue rising? The answer to that question will shape not just the 24-hour economy initiative but Ghana’s broader economic competitiveness in the years ahead.
Source: newsghana.com.gh
