BY Daniel Bampoe
Recent increases in electricity and water tariffs are threatening to wipe out the modest economic gains Ghana has recorded under its ongoing macroeconomic recovery programme, according to Dennis Miracles Aboagye, Director of Communications for the Bawumia Campaign.
He argues that while key indicators such as inflation trends, fuel prices, and exchange rate stability have shown signs of improvement, the benefits are not being felt by ordinary Ghanaians due to rising utility costs and other services.
Speaking on The Big Issue, a weekend current affairs programme on Channel One TV on Saturday, January 24, Aboagye questioned claims by the ruling National Democratic Congress (NDC) administration that living conditions have improved.
He maintained that households and businesses continue to struggle as higher utility tariffs add to the already heavy cost-of-living burden.
Placing his comments within a broader economic context, Aboagye noted that Ghana has in recent months touted progress in macroeconomic management following a period of severe economic distress marked by high inflation, currency depreciation, and fiscal instability.
These challenges, which intensified in previous years, prompted austerity measures and reforms aimed at restoring confidence in the economy. However, he argued that the recent adjustment in utility tariffs has undermined these efforts at the consumer level.
According to him, economic variables such as fuel prices, inflation, the exchange rate, and utility tariffs are deeply interconnected and cannot be discussed in isolation.
He said increases in one area inevitably offset gains in another, making it difficult for households and small businesses to experience real relief.
He pointed specifically to the reported 28 per cent increase in utility tariffs by the current administration, describing it as a major setback to any gains being claimed by the government. In his view, the hike has effectively neutralised the positive effects of lower import costs and improved macroeconomic indicators.
To illustrate his point, Miracle Aboagye cited the example of a retail trade.
He explained that while an importer may reduce prices due to a stronger cedi or lower inflation, the retailer is unable to pass on those savings to consumers because of higher operational costs, particularly electricity bills.
A trader who previously paid GH₵10,000 in electricity, he said, may now be paying as much as GH₵12,000, erasing any margin gained from cheaper goods.
