By: Sarah Baafi
Legal practitioner and communication analyst Zakaria Tanko Musah has described the upcoming reduction in utility tariffs as a positive step that could provide financial relief to businesses and households while boosting economic activity.
Speaking during a panel discussion on the GTV Breakfast Show, Musah Tanko said the decision to reduce electricity tariffs by 4.81 percent and water tariffs by 3.06 percent, effective April 1, could help ease the economic burden on consumers and support business growth.
According to him, lowering utility costs gives businesses extra disposable income which can be reinvested into their operations.
“If businesses spend less on utilities, that relief can go a long way. It gives them some extra disposable income that they can reinvest into their businesses, which could lead to reduced production costs and even create employment,” he explained.
Musah Tanko noted that the move comes at a time when many Ghanaians and businesses are grappling with economic pressures, adding that the tariff reduction could serve as a psychological and financial boost.
He, however, stressed that while businesses may benefit from the reduction in tariffs, they must not compromise on the quality of their products and services.
“Within the context of not sacrificing the quality of the product, quality must remain very important. At the end of the day, businesses must balance their margins while ensuring consumers feel their concerns are being addressed,” he said.
He further emphasized the importance of maintaining a fair balance between consumers and suppliers, noting that businesses must remain profitable to stay operational.
According to him, the government’s role in the process includes arbitration and regulation to ensure that both consumers and suppliers are protected while allowing market forces to operate.
“Consumers must feel their concerns are being taken care of, but we must also ensure suppliers do not go out of business because they need to make money as well,” he added.
The utility tariff reduction is expected to provide some relief to households and businesses while contributing to efforts aimed at stabilizing the economy.
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Source:
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