BizTech: Hikes in utility tariffs a huge burden on the average Ghanaian

Ghanaians are saddled with harsh economic conditions as its economic challenges continue to worsen.

Water and electricity tariffs have seen a continuous increase in the last few months.

This has exacerbated the woes of the ordinary Ghanaian as the rippling effects show in other goods and services.

Speaking to a cross-section of Ghanaians on BizTech, they lamented the high costs and described how the situation has affected their living conditions.

A gentleman told GhanaWeb Business' Stella Dziedzorm Sogli that his electricity and water bill have more than doubled in the last few months.

He said, "I used to buy 100 cedis prepaid electricity and it lasts about a month because I don't even stay at home. But now it doesn't even last a week."

Touching on hikes in water supply, he said, "Our taps do not flow, but we pay bills every month. Life has become hard for us."

The former Deputy Minister of State, Abu Kasangbata has also voiced concerns about the government’s management of the economy, particularly its inability to reflect the economic realities in its policy decisions.

The current economic situation in Ghana, he argues, is marked by excruciating hardships for the population, who are struggling to meet basic needs.

"Increases in tariffs on essential services like water and electricity only exacerbate the suffering of Ghanaians, many of whom are already underpaid and overburdened," the former minister pointed out.

A key point of contention is the government’s decision to sign an agreement with the International Monetary Fund (IMF), which Kasangbata believes has contributed to the consistent increases in utility tariffs.

He suggests that the conditions set by the IMF, which include generating revenue through taxes and tariffs, are being imposed on the populace without consideration of their capacity to absorb these costs.

Kasangbata draws comparisons between the current government and the previous administration led by the National Democratic Congress (NDC), noting that while tariff adjustments did occur under the NDC, they were not as frequent or severe as they are now.

He argues that the current administration has lost focus and direction in managing the economy, and this has resulted in poorly timed and illogical policy decisions, such as the tariff hikes.

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