The Ghana Union of Traders Association (GUTA) has criticised the recent utility tariff adjustment, expressing disappointment over what it describes as the lack of stakeholder consultation prior to the announcement.
According to the association, the business community was taken by surprise by the tariff increase despite recent improvements in key macroeconomic indicators, which it believes should have resulted in a reduction rather than an increase in utility costs.
Speaking on the matter, GUTA Vice President Joseph Paddy said traders only became aware of the tariff adjustment through public announcements, without any prior engagement by the relevant authorities.
“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.
He stressed that stakeholder engagement is essential in decision-making processes that directly affect the cost of doing business, particularly utility pricing.
“For good governance, you need stakeholder engagement and participation. So if you’re going to increase tariff, you need to engage,” he added.
Mr Paddy also questioned the basis for the tariff adjustment, arguing that the economic indicators cited by authorities have shown positive trends in recent months.
He noted that the cedi has remained relatively stable against the US dollar, contrasting current exchange rates with previous periods of sharp depreciation.
“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 GH¢11.25 or so, which is in a positive direction,” he said.
He recalled that the exchange rate had previously reached about GH¢17 to the dollar, describing current levels as a significant improvement.
Mr Paddy further cited declining interest rates as another indicator of improving economic conditions.
“And then the interest rate has dropped. Today, interest is moving around 12%. The exchange rate has also dropped,” he stated.
According to him, the prevailing economic conditions had led businesses to expect some relief in utility costs rather than additional financial burdens.
“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.