Coping with the high cost of utility is still a major challenge for businesses as their profit margins continue to dwindle.
The Public Utilities and Regulatory Commission (PURC) in December 2015 approved an increase in the prices of electricity and water by 59.2 and 67.2 percent respectively.
The Commission however maintained the prices in its latest review for the first quarter of 2016.
Meanwhile some businesses in the real estate industry say they have adversely been affected by the development.
According to them, clients have been finding difficulty in meeting their rent obligations as profit margins have declined marginally.
The Chief Executive Officer of Broll Ghana, Kofi Ampong in an interview with Citi Business News also said the other prevailing economic conditions such as high taxes and interest rates have affected businesses in the real estate industry at least within the first quarter of 2016,
“The electricity hikes have affected tenancy greatly because tenants have to break even and pay for their rent and all. Food traffic at the various centres has gone down as compared to two to three years ago, all because of the current situation,
“The middle income have competing demands on their disposable income and so they do not buy from the large retail centres, likewise does the high earned group who also have a lot of demands to meet,” Kofi Ampong stated.
Kofi Ampong who was speaking at the sidelines of the company’s 10 years anniversary launch also appealed to the Ministry of Local Government to adequately resource the various Metropolitan, Municipal and District Assemblies (MMDAs), to enable them hire competent personnel and strengthen their supervisory role in the granting of building permits.
According to him, this will address the chaotic condition currently facing some major cities across the country.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana