The Ghana Union of Traders Association (GUTA) has criticised the recent utility tariff adjustment, arguing that the decision was taken without adequate consultation with the business community despite signs of improving economic conditions.
Speaking on the matter, GUTA Vice President Joseph Paddy said traders were caught off guard by the announcement, revealing that they only became aware of the tariff increase through public reports.
“We slept one night, woke up in the morning, and we heard announcements that they’re going to increase tariff adjustments, and we’re like, why so when we were not engaged,” he said.
Mr. Paddy stressed that stakeholder consultation is a fundamental principle of good governance, particularly when decisions directly affect the cost of doing business.
“For good governance, you need stakeholder engagement and participation. So if you’re going to increase tariff, you need to engage,” he added.
He questioned the justification for the tariff increase, noting that the same economic indicators cited by the authorities point to improving macroeconomic conditions rather than a deteriorating economy.
“In the letter, all the proposals they put in place—the fluctuation of the cedi, about four issues they cited—we see they are all in a positive direction. If they are in a positive direction, then why do you want to increase utility tariffs?” he asked.
According to Mr. Paddy, Ghana has experienced sustained stability in the exchange rate over the past several months, with the cedi strengthening significantly against the US dollar.
“We have had stability of the cedi against the dollar for some time now, for over 15 to 16 months, which we think today, when I was taking dollars to cedi, is about ¢11.25 or so, which is in a positive direction,” he said.
He contrasted the current situation with previous periods when the cedi traded at around GH¢17 to the US dollar, describing the recent appreciation as evidence of improving economic fundamentals.
Mr. Paddy also pointed to declining interest rates as another indicator that the economy is stabilising.
“And then the interest rate has dropped. Today, interest is moving around 12%. The exchange rate has also dropped,” he noted.
He maintained that, given these positive developments, businesses had anticipated a reduction in utility charges rather than an increase.
“So, putting all these factors together, we were thinking that if there is going to be an announcement at all, it should be a reduction, not an increase,” he said.
GUTA’s concerns add to growing criticism from sections of the business community, which argue that they were not consulted before the tariff adjustment and believe the current economic environment does not warrant higher utility costs.
