The Association of Ghana Industries (AGI) has expressed concern over escalating power costs, cautioning that a segment of the business community has been subjected to electricity tariff increases exceeding 40%.
Delivering an address at the AGI 2nd Quarter Business Barometer presentation and Corporate Forum on Thursday, August 13, 2026, AGI President Kofi Nsiah-Poku stated that the price increases are worsening operational costs for businesses, despite recent gains in the country’s broader economic environment.
He revealed that the Electricity Company of Ghana (ECG) revoked a prior negotiated agreement that offered concessionary rates to specific bulk power consumers.
According to him, the cancellation of the policy immediately exposed the impacted enterprises to tariff spikes above 40%.
“The rising cost of electricity and water is a major setback,” Kofi Nsiah-Poku said.
He noted that the surge comes on top of earlier utility price revisions implemented this year, further straining corporate operational budgets.
Conversely, the AGI President pointed out that lower inflation and a stabilized local currency have enhanced corporate planning, allowing firms to project input expenses with greater certainty.
“That planning certainty is itself a form of value creation. It changes how businesses budget, price, and commit to expansion,” he said.
Kofi Nsiah-Poku lauded state authorities for steering the nation from severe fiscal stress toward financial stability.
He referenced the elevated business confidence recorded in the AGI 2nd Quarter 2026 Business Barometer, describing it as proof of ongoing trust in the administration’s economic management and policy direction.
He nevertheless warned that the positive economic indicators achieved during the first half of the year could prove short-lived without sustained protective interventions.
The association cited key threat factors to economic stability, including the Middle East crisis, heavy reliance on primary exports like cocoa, oil, and gold, as well as rising utility tariffs.
The AGI leader praised the government’s decision to forego a supplementary budget despite exceeding certain performance benchmarks, while also welcoming the expansion of foreign exchange reserves to approximately five months of import cover.
Moving forward, Kofi Nsiah-Poku stressed the need to leverage improved economic indicators to drive structural reform, spur enterprise growth, and expand job opportunities.
“The task before us, government and businesses together, is to convert the macroeconomic stability into structural transformation,” he said.
He urged the creation of a more competitive industrial base, expanded formal sector employment, and an economic framework less vulnerable to global commodity price swings. The AGI affirmed its readiness to partner with the Ministry of Finance, the Central Bank, and state agencies to ensure the 2026 Mid-Year Budget Review yields a business climate conducive to sustainable investment, competitiveness, and growth.