Government has approved a reduction in industrial development tariff by 26.5 per cent as part of measures to enhance economic growth in the industrial sector.
The reduction, according to President Nana Addo Dankwa Akufo-Addo at a media encounter on Wednesday, will enable small and medium scale enterprises (SMEs) improve their operations for economic development.
“A new rate of $6.50 per million British thermal unit against a previous rate of $8.84 per million British thermal unit has been approved and established to enhance industry competitiveness,” he said.
President Akufo-Addo highlighted some interventions made by his government to promote industrial growth ,which includes a 14 per cent reduction in electricity tariffs for non-residential users.
“Electricity supply is critical to the operation and success of industry, especially small and medium scale enterprises which provides the bulk of employment,” the president noted.
According to the president, not only is regular supply of electricity important, but its competitive rate also lessens the burden on industry and boosts competitiveness.
There has also been a review of 24 power purchase agreements which has led to the termination of 11 power deals and the rescheduling of 8 others to save government treasury.
“This has enabled us to save the government treasury of about $7 billion in excess capacity charges over a 13-year contract period.”
The president also said a 7- and 10-year Cedi-denominated bonds totaling GH¢4.7 billion have been issued to help improve liquidity of banks and the balanced sheets of state-owned enterprises in the energy sector.
According to President Akufo-Addo, gains from these bonds will be consolidated to ensure the flow of regular, affordable power in order to support the economic development of the country.
By Irene Amesimeku|3news.com|Ghana