A RESEARCH conducted on the current electricity crisis, has revealed that the country is losing production hours worth about US$ 2.2 million per day.
This translates into US$ 57.2 million per month and US$ 686.4 million annually.
Dr. Charles Ackah, Senior Research Fellow and Head of the Economics Division at the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, who conducted the research disclosed this in Accra on Thursday during the Economy of Ghana Network (EGN) workshop.
The workshop, funded by the African Capacity Building Foundation (ACBF) was themed: “The Electricity Insecurity and its Impact on the Economy of Ghana”.
Dr. Ackah said a total of 1,250 micro and small firms were surveyed across all the 10 regions.
“However, in order to measure the economic effect of electricity shortage, our sample is limited only to firms that use electricity for service or production. This leaves us with 350 electricity dependent firms”, he said.
Dr. Ackah said 72 per cent indicated that electricity was a major constraint to their activities.
He said among businesses experiencing hardship, because of electricity issues, the proportion of businesses owning or sharing a generator were just 20 per cent.
“For the firms in our sample, we find that not having sufficient electricity lowers the firms’ annual sales by about 37 to 48 per cent. These figures translate to around two per cent of annual Gross Domestic Product (GDP) lost, due to the electricity crisis”, he said.
By Joseph Edu Archison and Jennifer Apprey