24-hour economy success hinges on power cost – GNCCI CEO

Electricity tariffs have surged by over 28.2 percent cumulatively since January 2025, increasing production costs for the manufacturing sector.

This, according to industry experts, threatens the viability of government’s 24-hour economy initiative.

In an exclusive interview with Business and Financial Times (B&FT), the Chief Executive Officer of Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu-Aboagye, noted that elevated electricity tariffs continue to bite industry – eroding profit margins of local producers and rendering exports uncompetitive against regional peers.

Despite a marginal reduction in the recent window, Badu-Aboagye maintained that Ghanaian manufacturers are paying among the highest rates per kilowatt-hour globally.

He therefore urged government and the 24-hour economy secretariat to prioritise affordable energy as a non-negotiable for the country’s industrial development.

Public Utilities Regulatory Commission (PURC) data revealed that electricity tariffs hiked cumulatively by 28.2 percent since January 2025.

The first major upward tariff adjustments of 14.75 percent took effect in May 2025, followed by a 2.45 percent hike in July, 1.14 percent in October the same year and 9.86 percent for January 2026.

However, the second-quarter tariff review brought a modest reduction of 4.81 percent in electricity tariffs effective April 1.

Non-residential customers with 0–300 kWh usage will see tariffs falling from 180.76 GHp/kWh to 177.75 GHp/kWh.

Oil prices surge after Israeli strike on Iran’s South Pars gasfield

Industrial and Special Load Tariff customers will enjoy the steepest reduction, with high voltage users seeing a 15.43 percent cut and low voltage customers enjoying a 13.96 percent reduction.

While welcomed by industry, this marginal reduction is widely seen as insufficient to reverse the impact inflicted by earlier hikes.

Badu-Aboagye maintained that industrial consumers continue to bear the brunt of previous tariff hikes.

He said power costs in Ghana are still above the West African average of US$0.15. While acknowledging improvements in the reliability of power supply, he emphasised that reliability alone is insufficient without affordability.

“For manufacturing, electricity is key; very, very key. And now as I speak to you, the cost of electricity per kilowatt hour for Ghana is among the highest in the whole world,” Badu-Aboagye stated.

Even though the 24-hour economic policy has yet to move past the blueprint stage, the implementation bill has now been passed by parliament. However, business leaders remain sceptical – questioning viability of the policy which promises to unlock round-the-clock production through incentives including lower electricity tariffs for manufacturers operating night-shifts. Yet power costs still remain stubbornly high.

The GNCCI CEO emphasised that electricity cost is critical to the of the 24-hour economy’s success.

“Right from the start, if we don’t do something about power cost we cannot produce and sell at a competitive price. So, electricity is key for the success of this 24-hour economy. It is not negotiable,” he said.

He stressed that the 24-hour economy must transcend the narrow definition of extended working hours, ‘night-shifts’, pushing for a holistic strategy that links local production to regional markets.

He stressed that producing solely for 33 million consumers in Ghana is insufficient to drive industrial growth. “Our focus should be the larger market. It should be the AfCFTA market of 1.3 billion people. It should be the ECOWAS market of 300 million people. And that means we have to be competitive,” he noted.

The business leader argued that high power costs cascade through the economy, inflating logistics, raw material sourcing and ultimately consumer prices. Mr. Badu-Aboagye revealed that exorbitant production and transport costs have already compelled a major Ghanaian manufacturer’s relocation to Nigeria to serve the regional market.

“Cost of transportation is a significant factor. Locally, it is one of the reasons why food prices are up… because the roads are not good. There’s no real road connectivity,” he explained.

He therefore called for a coherent national strategy that synchronises energy policy with industrial goals, demanding a review of the 25 percent corporate tax and a further reduction in Value Added Tax (VAT), which despite recent adjustments, he said, remains higher than regional competitors.

For the 24-hour economy to succeed, Badu-Aboagye argued that it must be underpinned by deliberate investments in the agriculture value chain to secure local raw materials, improved connectivity and affordable energy.