- GNCCI Pushes Renewable Energy Adoption to Ease Industrial Cost Pressures
The Ghana National Chamber of Commerce and Industry is seeking to reduce the share of energy costs in business operations to about 20 per cent, as part of a broader effort to improve industrial competitiveness, lower production expenses and support Ghana’s long-term manufacturing growth agenda. The initiative comes at a time when high electricity tariffs continue to weigh heavily on businesses across the country, with manufacturers among the hardest hit.
According to the Chamber, energy currently accounts for between 30 and 40 per cent of operating costs for many Ghanaian firms, a level significantly above what is recorded in competing industrial economies.
Speaking on the sidelines of the launch of the Chamber’s new Energy and Climate Desk, established in partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit, Chief Executive Officer of GNCCI, Mark Badu-Aboagye, said Ghana’s energy pricing structure continues to undermine productivity and weaken the competitiveness of local industries.
“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,” he said.
The widening cost gap, industry players argue, has made local production increasingly expensive, eroding profit margins and limiting the ability of domestic firms to compete effectively in both regional and international markets.
For manufacturers, energy is not a marginal cost. It is a core input that affects pricing, output, exports, employment and investment decisions. When electricity costs are high, firms either pass the burden to consumers, absorb the hit through lower margins, or scale back expansion plans.
Mr Badu-Aboagye said the Chamber’s medium-term objective is to bring energy expenditure for businesses closer to 20 per cent through efficiency improvements, renewable energy adoption and expanded access to alternative energy financing.
“What we are seeking to do is to drastically reduce it to close to 20 per cent. It might not be overnight. It is a process,” he noted.
The newly established Energy and Climate Desk is expected to provide businesses with energy audits, technical advisory services, capacity-building programmes and support in securing financing for renewable energy investments, particularly solar energy systems.
The Chamber believes Ghana’s solar potential offers a commercially viable pathway for businesses seeking to reduce dependence on conventional grid power and cushion themselves against rising utility costs.
For many firms, however, the challenge is not only willingness to adopt renewable energy. It is access to affordable financing, technical guidance and credible service providers. The Energy and Climate Desk is therefore expected to play an advisory and facilitation role, helping companies understand their energy usage, identify waste, and assess the commercial case for cleaner alternatives.
The initiative also aligns with Ghana’s broader climate and industrialisation agenda, including ambitions under the African Continental Free Trade Area framework, where competitiveness in production costs is increasingly seen as critical for export growth and regional trade expansion.
If Ghanaian firms are to compete across African markets, energy pricing will remain central. Lower production costs could improve local manufacturing capacity, make exports more competitive and support the country’s ambition to become a stronger industrial and trade hub.
Component Manager for Sustainable Energy for Climate Protection at GIZ, Raymond Ahiadorme, said lower energy costs could unlock broader economic gains through increased profitability, business expansion and job creation.
He added that improved energy efficiency and greater renewable energy adoption would also support Ghana’s long-term climate ambition of achieving net-zero emissions by 2070.
The launch of the Energy and Climate Desk therefore places energy efficiency at the centre of Ghana’s business competitiveness debate.
For industry, the message is straightforward: without cheaper and more reliable energy, local firms will struggle to compete with producers in economies where power costs are significantly lower.
For policymakers, the issue is equally clear. Ghana’s industrial growth ambitions will depend not only on tax incentives, trade access and investment promotion, but also on whether businesses can produce at costs that allow them to survive and scale.
The Chamber’s target of reducing energy costs to about 20 per cent may not be achieved immediately. But it signals a growing recognition that energy has become one of the defining constraints on Ghanaian enterprise.
In the long run, the country’s manufacturing competitiveness may depend on how quickly businesses, regulators and development partners can turn energy efficiency and renewable power from policy ambition into commercial reality.
