The Ghana Union of Traders Association (GUTA) has expressed concern that Ghana’s current utility tariff structure is undermining the country’s competitiveness within the African Continental Free Trade Area (AfCFTA).

According to GUTA, the persistent rise in electricity and water tariffs has significantly increased production and operational costs, pushing up prices of goods and services and discouraging both local and foreign investment.

Speaking at a press conference in Accra on Monday, October 6, GUTA President Dr. Joseph Obeng urged government to urgently review the recent tariff hikes to ease the burden on businesses and help restore Ghana’s trade competitiveness in the subregion.

“We all realise that we are participating in AfCFTA, yet Ghana is lagging behind. We are not competitive, and our goods cannot even compete with those from Togo. The reason is the high cost of doing business here, especially regarding utility tariffs. It has not helped us. The earlier we solve these issues, the better,” Dr. Obeng said.

He noted that the high cost of utilities continues to erode profit margins, force price increases, and threaten the survival of many small and medium-sized enterprises (SMEs).

GUTA is therefore urging government and regulatory bodies to collaborate with the private sector to design a fair and sustainable tariff framework that supports industrial growth and enhances Ghana’s participation in the AfCFTA market.

Meanwhile, the Ghana Food and Beverages Association (FABAG) has also appealed to President John Dramani Mahama to implement urgent reforms at the Electricity Company of Ghana (ECG).

FABAG Chairman John Awuni criticised the continuous increase in utility tariffs despite ECG’s recurring financial and operational challenges.

“There shouldn’t be any tariff increment. No amount of tariff increase can solve ECG’s problems. What is needed is reform—reform that will reduce technical and commercial losses to reasonable levels,” Mr. Awuni stated.

Both associations maintain that stabilising utility costs and improving efficiency in the power sector are essential to keeping Ghanaian businesses competitive and ensuring sustainable economic growth.