High cost of utility tariffs has rendered businesses non-competitive – Mahama

Former President John Dramani Mahama has reiterated his comment to the effect that Ghana is at a crossroads.

He said never in the recent history of Ghana have the people experienced such high levels of hardship and economic decline occasioned by poor economic policies leading to high indebtedness to the point that the government has defaulted in the payment of both domestic and external debts.

Speaking during a meeting with members of the Association of Ghana Industries (AGI) on Tuesday April 2, he said “We are all witnesses to the draconian Domestic Debt Exchange Programme and its effects on domestic investors including businesses. The government
is yet to secure a deal with our external creditors following the suspension of payment of
external debts. Meanwhile, our economy remains in a very precarious state where both
businesses and Ghanaians are reeling under severe economic hardships as a result of high cost of living and doing business.”

The flagbearer of the National Democratic Congress (NDC) further stated that the industry’s concerns about multiplicity of taxes are legitimate.

“It is obvious the government has failed to deliver on the promise by the Vice President, Alhaji Mahamadu Bawumia to move the economy from taxation to production. On the contrary, businesses are now saddled with multiplicity of high taxes thereby increasing their costs and driving some out of business. The high rate of depreciation of the cedi is yet another challenge that businesses have to contend with.

“Aside the high cost of utility tariffs which has rendered businesses non-competitive, the government’s poor investment and management of the power sector has also resulted in the recent load shedding of electric power.”