The Integrated Social Development Center (ISODEC) and the Africa Water Justice Network (AWJN) have opposed the Ghana Water Company Limited’s (GWCL) proposal to increase water tariffs by 280 percent.

They warned that such a move could jeopardise access and affordability for millions of Ghanaians.

In a joint statement issued on September 10, 2025, the two organisations said the proposed hike, justified by GWCL on grounds of rising treatment costs due to illegal mining and pollution, fails to address the root causes of the company’s financial troubles.

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“We acknowledge the grave challenge that galamsey poses to Ghana’s water resources, but we strongly caution against using tariff increments as the sole remedy to what is, in fact, a systemic, multifaceted crisis,” the statement noted.

“Water is a right, and it is within this context that we are very much concerned about its impact on access and affordability in particular,” the statement added.

The groups pointed out that GWCL’s non-revenue water (NRW) treated water lost through leakages, theft, poor metering, and weak data management — has risen sharply from 39.1 percent in 2020 to 49.9 percent in 2024, far exceeding global benchmarks.

“High-performing utilities in developing countries keep NRW at 23 percent, while North America and Europe maintain rates as low as 13–15 percent. Ghana’s figures are two to three times higher than international best practice, representing billions of litres of treated water lost annually. Until this is addressed, tariff hikes alone will not solve GWCL’s financial woes,” ISODEC and AWJN stressed.

They also cited the Teshie Desalination Plant as a drain on GWCL’s coffers, describing it as a “white elephant” that costs the company US\$1.4 million monthly in capacity charges, alongside high electricity costs and unsustainable dollar-indexed payments.

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“The long-term financial solvency of GWCL cannot be ensured while burdens such as this persist. Government must renegotiate or terminate the exploitative desalination contract,” the statement urged.

The groups further condemned political interference and questionable contracts, pointing to a recent GH¢1.3 million monthly internet service deal linked to a former security chief as an example of resources being diverted away from service delivery.

“Opaque, non-competitive procurement arrangements and political interference expose GWCL to financial losses, and citizens should not be made to pay for this,” the statement said.

ISODEC and AWJN also rejected GWCL’s reliance on sachet and tanker water prices as a basis for tariff hikes, calling it “highly misleading.”

“Ghanaians resort to sachet and tanker water precisely because GWCL has failed to provide reliable, safe, and accessible tap water. It is therefore untenable for GWCL to use its own service failures as grounds to demand a higher tariff,” they argued.

While acknowledging the destruction caused by illegal mining, the groups insisted that galamsey should be treated as a national security emergency requiring decisive government action rather than shifting the cost to citizens.

Among their recommendations, the two organisations called for urgent efforts to reduce non-revenue water, renegotiation of the desalination contract, establishment of a Water Solidarity Fund financed by a 2.5 percent levy on oil and mining revenues, stronger procurement processes, and a people-centered regulatory approach that prioritises the right to water.

“The crisis facing GWCL and urban water management cannot be reduced to a tariff issue. To approve a 280 percent tariff, increase without first addressing structural inefficiencies, exploitative contracts, and the national security threat of galamsey would be grossly unjust and a betrayal of the public trust,” ISODEC and AWJN added.

They urged the Public Utilities Regulatory Commission (PURC) to reject GWCL’s request in its current form and instead spearhead reforms that holistically tackle the underlying issues undermining water service delivery in Ghana.

Read the full statement below :

ISODEC and the Africa Water Justice Network respond to GWCL’s proposed 280% water tariff hike

The Integrated Social Development Center (ISODEC) and the Africa Water Justice Network (AWJN) have observed with deep concern the recent proposal by the Ghana Water Company Limited (GWCL) seeking a record 280% increment in water tariffs, citing the rising cost of treatment due to galamsey and other sources of pollution.

While we acknowledge the grave challenge that illegal mining poses to Ghana’s water resources, we strongly caution against using tariff increments as the sole remedy to what is, in fact, a systemic, multifaceted crisis. The PURC, in exercising its regulatory duty, must not allow public anxiety about galamsey to be used to overshadow other equally critical issues undermining GWCL’s financial and operational situation. We see water as a right, and it is within this context that we are very much concerned about its impact on access and affordability in particular.

Key issues needing attention

Non-Revenue Water (NRW) on the Rise
GWCL’s non-revenue water has shot up from 39.1% in 2020 to 49.9% in 2024, well above the benchmark of 43% for Ghana and 23% for developing countries. Globally, high-performing utilities in developing countries keep NRW at 23%, while North America and Europe maintain rates as low as 13–15%. Ghana’s figures are two to three times higher than international best practice, representing billions of litres of treated water lost annually through leakages, theft, poor metering, and weak data management. Until this is addressed, tariff hikes alone will not solve GWCL’s financial woes.

The Teshie Desalination Plant Burden

The Teshie Desal white elephant continues to drain GWCL’s coffers. Under the current contract, GWCL pays a monthly capacity charge of US$1.4 million to the private operator, in addition to GHS 3 million in electricity bills per month (2017 figures). Water purchased from the plant costs GWCL GHS 6.50 per cubic metre, yet it is sold to the public at a PURC-approved tariff of just GHS 1.50. Payments are made in US dollars but indexed to Ghanaian inflation, compounding exchange losses. This lopsided agreement places an unbearable financial burden on GWCL that tariff hikes cannot sustainably cover.

Political interference and questionable contracts

Another major challenge undermining the finances of GWCL is politically linked contracts and procurements that drain resources away from service delivery. A recent example is the GHC 1.3 million monthly internet services to GWCL linked to the former Director-General of the National Signals Bureau. The case highlights how opaque, non-competitive procurement arrangements and political interference expose GWCL to financial losses, and citizens should not be made to pay for this. Such practices weaken and compound the company’s already precarious finances.

Misuse of sachet and tanker prices as benchmarks

GWCL’s attempt in its request to PURC, to justify tariff increase by comparing its tariffs with sachet water, bottled water, and tanker service prices is highly misleading. Ghanaians resort to sachet and tanker water precisely because GWCL has failed to provide reliable, safe, and accessible tap water for many communities. It is therefore untenable for GWCL to use its own service failures as grounds to demand a higher tariff.

Galamsey is a national security threat

The devastation caused by illegal mining is real, but the solution lies not in tariff adjustments. Galamsey must be treated as a national security emergency requiring decisive government intervention. Citizens cannot be made to pay for the state’s failure to curb an existential threat to our rivers and ecosystems.

Our recommendations

1.Strengthen efficiency before tariff adjustments

Government and PURC must assist GWCL to bring NRW rates closer to international benchmarks. This requires urgent investment in pipeline rehabilitation, metering, data systems, and anti-theft enforcement.

2. Resolve the Teshie Desalination contract

The government must renegotiate or terminate the exploitative desalination contract that is crippling GWCL’s finances. Long-term financial solvency of the GWCL cannot be ensured while burdens such as this persist.

3. Establish a water solidarity fund

We call for a 2.5% compensatory special levy on oil and mining revenues to be dedicated to the water sector, similar to the GETFund for education and the health sector’s NHIL. Those profiting from extractive industries must bear part of the cost of safeguarding water and its provision.


4. Increase democratic oversight and strengthen procurement processes
GWCL’s procurement processes must be restructured to ensure full transparency, open competitive bidding, and parliamentary oversight for high-value contracts, thereby preventing political interference and safeguarding public resources.

5. Prioritise citizens’ right to water

The PURC must note importantly that it regulates not on behalf of “customers” in a commercial sense, but on behalf of people and rightsholders whose human right to water must be protected above all commercial considerations.
Conclusion

The crisis facing GWCL and urban water management cannot be reduced to a tariff issue. To approve a 280% tariff increase without first addressing structural inefficiencies, exploitative contracts, and the national security threat of galamsey would be grossly unjust and a betrayal of the public trust.

We therefore urge the PURC to reject GWCL’s tariff request in its current form and instead lead a process to holistically tackle the internal and external factors undermining water service delivery in Ghana.

Issued by:

The Integrated Social Development Center (ISODEC)
The Africa Water Justice Network (AWJN)

JKB/VPO

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