Ghana Faces Utility Tariff Hikes Amid US Tariff Challenges

Ghana is currently grappling with two major economic pressures: rising utility tariffs and new U.S. trade barriers. The Public Utilities Regulatory Commission (PURC) has announced significant increases in electricity and water tariffs, which have drawn strong criticism from consumer advocates and business leaders who argue the timing is insensitive and burdensome for both households and companies. These tariff hikes aim to address utility sector debts and are expected to continue into 2025, forcing businesses to reconsider their operational costs and investment strategies. Simultaneously, the U.S. government’s imposition of a 10% tariff on key Ghanaian exports, including cocoa and aluminum, threatens to undermine the nation’s export competitiveness and the livelihoods of smallholder farmers and exporters. Experts are urging a collaborative national response that includes government, the private sector, and civil society to find new trade partners, leverage opportunities like the African Continental Free Trade Area (AfCFTA), and enhance the productivity of local enterprises. Together, these challenges highlight the need for strategic planning, policy adjustments, and regional cooperation to safeguard Ghana’s economic stability.