The Ghana National Chamber of Commerce and Industry (GNCCI) aims to reduce the proportion of energy costs in business operations to about 20%. This effort seeks to improve industrial competitiveness, lower production expenses, and support Ghana’s manufacturing growth.
This initiative responds to high electricity tariffs, which currently represent between 30% and 40% of operating costs for many Ghanaian firms. Manufacturers are particularly affected by these elevated costs. These figures are significantly higher than those in competing industrial economies.
This fits into Ghana's broader economic narrative of struggling to maintain competitive production costs. High energy costs undermine efforts to boost local manufacturing and export capabilities. The challenge affects Ghana's ambitions within the African Continental Free Trade Area (AfCFTA).
Mark Badu-Aboagye, Chief Executive Officer of GNCCI, explained the disparity. He stated, “In a typical case, the cost per kilowatt hour in Ghana is about 18 cents, while competitors such as China and other industrialised economies are doing less than five cents.” This widening cost gap makes local production expensive, eroding profit margins.
The GNCCI's medium-term goal is to achieve this 20% target through energy efficiency improvements, adopting renewable energy, and expanding access to alternative financing. The newly launched Energy and Climate Desk will provide services such as energy audits, technical advice, and capacity-building programmes. It will also help businesses secure financing for renewable energy investments, especially solar systems.
This development has significant implications for Ghana’s industrial future. Lower energy costs could unlock broader economic gains. These gains include increased profitability, business expansion, and job creation. Decisions by policymakers on energy pricing will directly influence the success of these initiatives.
Industry players will closely watch the effectiveness of the new Energy and Climate Desk. Its ability to provide tangible support for businesses will determine the pace of renewable energy adoption. The initiative also aligns with Ghana’s long-term climate ambition of achieving net-zero emissions by 2070.
Raymond Ahiadorme, Component Manager for Sustainable Energy for Climate Protection at GIZ, emphasized this. He said improved energy efficiency and greater renewable energy adoption support Ghana's climate goals. Without cheaper and more reliable energy, local firms will struggle to compete. This makes energy a central issue in Ghana’s business competitiveness debate.
The GNCCI's target shows a recognition that energy prices are a defining constraint on Ghanaian businesses. The success of Ghana's industrial growth ambitions depends on businesses producing at competitive costs. This extends beyond tax incentives or trade access.