The Ghanaian Dream Is Becoming Too Expensive: The Urgent Need to Make Life Affordable

What is the value of a salary if it disappears before the month is half over? What does economic growth mean to a graduate who works full time yet still cannot afford to pay for a hostel, transport, reliable internet bundle and three decent meals a day? These are not isolated struggles. They are becoming the everyday reality of millions of Ghanaians.

We often judge the strength of an economy by figures announced at press conferences. For years, the national debate has centred on unemployment. That is understandable because thousands of young Ghanaians leave school each year without finding work. Yet unemployment is only one side of the struggle. Even those who have jobs are finding it increasingly difficult to keep up with the cost of living.

Imagine two young graduates. One earns GH¢3,000 a month while another earns GH¢4,000. At first glance, both appear to be doing well. But after paying rent, electricity, water, transportation, internet, food and loan repayments, very little remains. Their salaries may differ, but their financial stress is almost the same. This is why affordability matters.

Governments often celebrate economic indicators, but citizens experience the economy differently. They experience it every time they buy fuel, recharge data, pay utility bills or visit the market. A falling inflation rate means little to a mother whose grocery basket costs almost the same as it did months ago. Economic statistics are important, but kitchen tables tell their own story.

One area where government intervention can make an immediate difference is electricity. Electricity is no longer a luxury. It powers homes, hospitals, schools, barbering shops, cold stores, internet cafés, printing presses and thousands of small businesses. When electricity tariffs increase, businesses pass those costs on to consumers through higher prices.

Recently, the Public Utilities Regulatory Commission announced an increase of 3.49 percent in electricity tariffs and 0.85 percent in water tariffs after considering inflation, exchange rate movements and fuel costs.

While such adjustments may be necessary to keep utility providers operating, government should also ask a bigger question. How can essential services remain affordable for the average Ghanaian?

A reduction in electricity costs could transform countless households and businesses. A cold store owner would spend less on preserving food. A welder would charge customers less. Hairdressers and tailors could reduce operating costs. Small businesses would have more room to expand instead of spending much of their income on keeping the lights on.

Fuel is another powerful driver of the cost of living. When fuel prices rise, transport fares often increase. Once transport becomes expensive, almost everything else follows. Farmers spend more transporting produce to markets. Traders increase prices to recover transport costs. Delivery services charge more. Workers spend a larger share of their salaries simply getting to work.

A security guard earning GH¢2,000 each month. If transport consumes GH¢30 every working day, a significant portion of monthly income disappears before food, rent or family responsibilities are considered. If government policies could reduce fuel costs or cushion transport expenses, that worker would immediately feel the difference without receiving a salary increase.

Housing presents another challenge. Across Ghana, many graduates complete national service or secure their first job, yet still cannot afford to rent a single room in the cities where opportunities exist. Others remain with relatives for years, not because they lack ambition, but because housing costs have risen far faster than their incomes.

The burden is equally heavy for students. Hostel fees around universities continue to rise, forcing some students to live far from campus and spend additional money on transport. Others crowd into small rooms because they cannot afford better accommodation. Education becomes harder when a student is constantly worried about where to sleep.

Government cannot control every rent price, but it can influence the housing market. Faster land registration, lower construction costs, incentives for affordable housing developers and expanded public housing projects can increase supply and reduce pressure on tenants. Universities can also partner with private investors to build more student accommodation under regulated pricing agreements.

Internet access is another necessity that deserves serious policy attention. Twenty years ago, internet access was considered optional. Today it is essential for education, banking, job applications, business, communication and innovation. Students depend on online research. Entrepreneurs market products through social media. Freelancers earn income online.

Yet many Ghanaians spend a considerable amount each month purchasing mobile data. Lower taxes on digital services or policies that encourage greater competition within the telecommunications sector could reduce the financial burden while expanding digital inclusion.

Healthcare costs should also remain within reach of ordinary families. A parent should never postpone taking a sick child to hospital because consultation fees, laboratory tests or medicines have become unaffordable. Strengthening primary healthcare, improving the National Health Insurance Scheme and ensuring consistent medicine supplies would reduce the pressure on household finances while improving national productivity.

Education deserves similar attention. Parents continue to spend heavily on uniforms, books, transportation and accommodation even where tuition is subsidised. Every child who abandons school because of financial hardship represents lost national potential. Investments that reduce the hidden costs of education are investments in Ghana’s future workforce.

Critics may argue that reducing tariffs and supporting affordability will place pressure on government finances. Yes, that concern deserves consideration. However, affordability should not be viewed merely as expenditure. It should be seen as an investment. When businesses spend less on operating costs, they employ more workers. When households retain more disposable income, they purchase more goods and services. Increased economic activity eventually broadens the tax base.

Wasteful expenditure, revenue leakages and corruption consume resources that could instead ease the financial burden on millions of Ghanaians. Every cedi saved through efficient governance creates an opportunity to improve the lives of citizens.

The dream of many Ghanaians is remarkably simple. They are not asking government to make everyone wealthy overnight. A nation where electricity is reliable and affordable. Where water is accessible. Where transport does not consume half a worker’s income. Where students can study without worrying about hostel fees. Where internet access supports opportunity rather than creating another monthly burden.

A truly prosperous nation is not one where only the wealthy can live comfortably. It is one where the ordinary citizen feels that tomorrow will be a little easier than today.

Perhaps the greatest economic policy any government can pursue is not simply creating more jobs. It is creating a country where every salary, every pension and every small business income goes further.

Governments are often remembered for the projects they commission. Citizens remember something different. They remember whether life became easier or harder under their watch.

If Ghana truly wants to build a better future, affordability must become a national priority, because a better economy does not begin in boardrooms or conference halls. It begins in the homes of ordinary Ghanaians.