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Global Risk Report Ghana's energy pricing considered riskiest in the world

Polled on a range of 28 risks, the WEF’s multi-stakeholder community of experts drawn from the public sector, business, civil society and academia,urged businesses opening in Ghana to plan appropriately for the difficulties of  energy provision and pricing .

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ECG Prepaid Meters play

ECG Prepaid Meters

The World Economic Forum, through its Global Risk Report 2016 Survey has identified unstable prices of energy as the biggest threat to business operating in Ghana.

Polled on a range of 28 risks, the WEF’s multi-stakeholder community of experts drawn from the public sector, business, civil society and academia,urged businesses opening in Ghana to plan appropriately for the difficulties of  energy provision and pricing .

Ghana's energy risks to businesses was placed highest in that risk category than anywhere else in the world, and the energy risk in general is considered the fifth most impactful business risk across the world.

                                 Read MoreECG New electricity tariffs effective Monday, Feb 1

Fluctuations in energy price are expected to put economic pressure on industries, especially those that are highly dependent on energy and their consumers.

The cost of electricity in Ghana topped the business community’s concerns in the last quarter of 2015, along with its huge unavailability at the time, according to the Association of Ghana Industries (AGI) business barometer.

Ghana’s drift from hydro powered generation to thermal energy, following low inflows into the Akosombo dam, came along with several hints of tariff hikes until parliament passed the Energy Sector Levies Act in December 2015, resulting in increments of 29 and 27 per cent in the ex-pump prices of petrol and diesel, and 59.2 per cent in the electricity tariff for domestic purposes.

The increment led to protests by organised labour and is believed to have been the main driver of inflation from 17.7 per cent to 19 per cent in January 2016.

The energy price risk in Ghana is followed in close succession by the risks from unemployment, debt and fiscal crises, unmanageable inflation, and the failure of urban planning and its attendant social, environmental and health challenges.

The risk perceived to be the sixth biggest is the failure of critical infrastructure, followed by cyber attacks, water crises, data fraud and theft, and the failure of national governance.

In sub-Saharan Africa, the most prominent risk identified to doing business is the failure of national governance.

For Europe and the world at large however, the experts see large-scale involuntary migration as the biggest emerging problem.

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