More Than 40% Electricity Tariff Hikes to Pressure Businesses

The Association of Ghana Industries (AGI) has raised concerns over sharp increases in electricity costs facing businesses, warning that some companies have been subjected to tariff adjustments of more than 40 per cent.

Speaking at the AGI 2nd Quarter Business Barometer presentation and Corporate Forum on Thursday, August 13, 2026, AGI President, Kofi Nsiah-Poku, said the development was adding to the cost pressures confronting businesses despite recent improvements in Ghana’s macroeconomic conditions.

He said the Electricity Company of Ghana (ECG) had withdrawn a previously negotiated tariff arrangement that provided discounted end-user rates to some electricity bulk customers.

According to Mr Nsiah-Poku, the withdrawal had exposed affected companies to immediate upward tariff adjustments exceeding 40 per cent.

“The rising cost of electricity and water is a major setback,” he said.

He explained that the latest increases came on top of other tariff adjustments experienced by businesses earlier in the year, further raising operating costs and threatening the competitiveness of local industries.

The AGI President, however, acknowledged that the relatively stable exchange rate and declining inflation had improved businesses’ ability to forecast input costs and plan with greater certainty.

“That planning certainty is itself a form of value creation. It changes how businesses budget, price, and commit to expansion,” he said.

Mr Nsiah-Poku commended the government for progress made in moving the economy from a period of acute fiscal distress towards fiscal consolidation.

He also pointed to the high level of business confidence reflected in the AGI’s 2nd Quarter 2026 Business Barometer, saying it demonstrated continued confidence in the government’s economic stewardship and reform agenda.

He cautioned, however, that the gains recorded during the first half of the year could remain fragile if measures to consolidate them were not sustained.

Among the key risks identified by the AGI are the ongoing conflict in the Middle East, Ghana’s heavy dependence on gold, cocoa and oil exports, and rising utility costs.

Mr Nsiah-Poku also welcomed government’s decision not to seek a supplementary budget despite outperforming some of its targets.

He further commended the strengthening of Ghana’s foreign exchange reserves to approximately five months of import cover, describing the development as an important buffer for the economy.

The AGI President said the next priority should be to translate macroeconomic stability into structural transformation capable of supporting businesses and creating jobs.

“The task before us, government and businesses together, is to convert the macroeconomic stability into structural transformation,” he said.

He called for a more competitive industrial sector, increased formal employment and an economic growth path that is less dependent on the prices of a few commodities.

The AGI said it remains ready to work with the Ministry of Finance, the Bank of Ghana and government to ensure that gains from the 2026 Mid-Year Budget Review translate into an operating environment where Ghanaian businesses can invest, compete and grow with confidence.