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A section of the business community says the current energy crisis is having a serious negative impact on productivity and has urged the government to be truthful about the state of affairs.

According to them, the current energy situation was crippling businesses and creating unemployment — a twin situation that could lead to a national disaster. 

The President of GUTA, Mr George Kwaku Ofori, told the Daily Graphic in an interview last  Friday that the situation would compel business operators to lay off many workers.

“The energy situation has actually hit us hard. Many businesses are spending more money on energy now, so how do we sustain jobs and even expand?” he wondered.

“It is not an ideal situation. It is actually making the cost of production very high and production very low,” he added.

The Chief Executive Officer of the Ghana Chamber of Commerce, Mr Mark Badu Aboagye, shared a similar sentiment. 

“A number of manufacturing companies are either shutting down a line or two or shutting down their entire operations because of the energy crisis. We are in tough times.”

“The barbershops, seamstresses, hairdressers and cold stores are the hardest hit because they cannot afford to buy generators. Even if they do, the price of fuel is high,” Mr Aboagye said. 

Worsening crisis
Over the past months, the energy crisis has worsened with the Electricity Company of Ghana (ECG) constantly reviewing its load-shedding programme to reflect the downward trend in power supply.

Mr Ofori said the energy crisis was having a serious negative effect on businesses, citing operators in the frozen fish and meat business as some of the worst affected.

He urged the government to let Ghanaians know the reality on the ground and give meaning to the assertion that the private sector was the engine of growth.

For his part, Mr Aboagye said it was time for a major stakeholders forum to discuss the exact problem confronting the energy sector in order to find sustainable measures to deal with it.

The production chain
Mr Ofori said the production chain involved manufacturing, warehousing, wholesale and retail, adding that in terms of commerce, there was a graduation process from a hawker, potter, trader, retailer and wholesaler.

He said in that regard, any negative impact on manufacturing would also affect the other players in the production chain.

“So although we are retailers, our concern should also be on the manufacturing sector as well,” he said.

To deal with the energy challenge confronting industries, Mr Aboagye said alternatively, the country could have industrial zones well demarcated so that it could provide enough energy for industries.

He said the present circumstance would drive away investors because no business could make reasonable profit with the current situation. 

“Investors could come when the environment is friendly and they are assured of reliable electricity and water supply,” he said. 

Made-in-Ghana goods
Mr Ofori recalled President John Mahama’s call on Ghanaians to patronise made-in-Ghana goods but said with the current energy situation, the desire to promote locally manufactured goods would not be achieved.

He said if the government had taken advantage of the windfall in oil prices to reduce the price of oil at the pump and tariffs for local manufacturing industries, it would have helped promote the production of made-in-Ghana goods and made them more competitive.

According to Mr Ofori, the cost of water, energy and labour in the Asian, European Union and American markets was cheaper compared to Ghana and that undermined the competitiveness of made-in-Ghana goods.

He, however, urged Ghanaians to be patriotic and patronise locally manufactured goods.

While agreeing to a suggestion that some locally manufactured goods were poor in quality and packaging, as well as more expensive as compared to imported goods, Mr Ofori stressed, “But that is not to close our eyes on patronising locally manufactured goods.”

Reduce fuel prices 
Although global price of crude oil has reduced by more than 50 per cent, fuel prices have seen a 10 per cent decrease locally.

That, Mr Aboagye said, was detrimental to business because the 10 per cent was not sufficient.

“Companies would have ideally turned to fuel to power their operations, but as it is right now, even fuel is expensive. It is time they look at the situation and reduce the price.”

“This is not just a call from the private sector, big businesses or SMEs, it is a call for all sectors so that we can produce, create jobs and increase our GDP,” he said. 

When contacted, the President of the Association of Ghana Industries (AGI), Mr James Asare Adjei, said the association would hold a seminar on the energy situation and issue a press statement later this week.