Three major business associations have warned that inefficiency and mismanagement at the Electricity Company of Ghana (ECG), coupled with its proposed 225% tariff hike, could severely hinder private sector growth and undermine Ghana’s industrial ambitions.
The Food and Beverages Association of Ghana (FABAG), the Plastic Manufacturers Association of Ghana, and the Ghana Union of Traders Association (GUTA) have jointly called on President John Dramani Mahama to initiate sweeping reforms at ECG within 30 days, arguing that the company’s operations have become a drain on national productivity.
Speaking at a press briefing in Accra, FABAG Chairman, Rev. John Awuni, said ECG’s record of losses and inefficiencies makes its tariff proposal unjustifiable, adding that no vibrant private sector can thrive under such conditions.
READ: ECG’s 225% tariff proposal threatens 24-hour economy agenda — Industry groups warn
“There will also never be any meaningful private sector growth without massive restructuring of the ECG and the Ghana Water Company,” he said.
“It is very, very disheartening to find that a business entity that has no competitor in the country can continue to say that they are making losses, and they regulate the PURC buys into it.”
Rev. Awuni noted that ECG’s inefficiencies—cited in multiple Auditor-General’s reports with commercial losses exceeding 40%—pose a direct threat to the government’s flagship 24-hour economy initiative, warning that higher tariffs could force many local manufacturers and traders out of business.
He urged the government to establish a presidential task force to drive reforms, insisting that affordable and reliable power remains the foundation for industrial expansion and job creation.
Source: Starrfm.com.gh
