The Ghana Chamber of Commerce is worried recently announced utility tariff increases would have an adverse effect on business operations or even lead to the collapse of some businesses in the country.

The President of Ghana Chamber of Commerce and Industry, Seth Adjei Baah, told Joy Business the utility tariff adjustments which is expected to take effect from October 1 will raise the cost of doing business even higher.

"Every now and then the cost of doing business is going high and high and it would be difficult to compete with even foreign imported products. If we don't take care [businesses] might be throwing in the towel and also resort to import and distribution which would not help because it will not create the needed employment that will keep our youth in work", he said.

The Public Utilities and Regulatory Commission (PURC) on Wednesday announced a 52% and 78.9% increase in water and electricity tariffs respectively.

PURC argues that the upward adjustments will assist the utility service providers to undertake critical investment to ensure the availability of adequate and reliable water and electricity supply.

But the Chamber commerce is not impressed with that explanation.

"Over the years, these explanations [given by the PURC] have been given but we still don't have the best of services", Mr Adjei-Baah said.

The Chamber of Commerce and Industry President believes government can reduce the cost of borrowing to mitigate the effect of the utility tariff and tax hikes business have been burdened with in the country.

He said government should use mediums such as the venture capital to support the private sector businesses in agriculture, agro processing, and export-related products.