The Chronicle has taken note of the sudden and astronomical increase in property rates within the Central Business District (CBD) of Accra. According to our investigations, property owners who were previously paying between GH¢1,000 to GH¢2,000 annually are now being slapped with figures ranging between GH¢10,000 to GH¢20,000.
The Accra Metropolitan Assembly (AMA) has sought to justify this sharp adjustment on the grounds that rates have been ridiculously low for too long, and that the time has come for a major upward review. While we do not dismiss the principle that property rates should reflect the true value of land and location, the manner in which this increment has been rolled out is deeply troubling.
First and foremost, it is grossly unfair to impose such drastic increases without prior notice or stakeholder consultation. Businesses were not given the courtesy of advance warning, nor the opportunity to plan for these unexpected costs. In any serious democracy, major adjustments of this nature are preceded by dialogue, public engagement and a phased approach. The AMA’s unilateral action not only undermines trust but also smacks of insensitivity toward the economic hardships already confronting ordinary Ghanaians.
We must remind the AMA that businesses in the CBD are already grappling with soaring utility bills, high inflation, rising cost of credit and dwindling consumer spending power. Many small shop owners are barely staying afloat, struggling each day to balance their books in an unforgiving economic climate. To suddenly increase their property rates by tenfold or more is nothing short of a death sentence for many of these businesses. Inevitably, the added burden to the property owners will be passed onto shop owners and finally the consumers, worsening the already unbearable cost of living.
The Chronicle is not against progressive reforms that will allow city authorities to mobilise the revenue they need for development. Indeed, property rates remain an important source of internally generated funds for local governments. However, reform must be anchored in fairness, gradualism and accountability. Gradual incremental increases could have been introduced over a period of years, instead of the colossal increasewe are witnessing. We hope the businesses do not collapse under the weight of this sudden financial shock.
The AMA must also bear in mind that if the businesses close down under this heavy taxes, there would be no shops for them to earn their internally generated funds.
Indeed, there must be a visible link between the rates being charged and the quality of services provided by the AMA. If property owners are being asked to pay ten times more in property rates, then they should expect cleaner streets, better waste management, improved security and infrastructure upgrades within the CBD. Anything short of that would be exploitation.
In the light of these developments, The Chronicle calls on the AMA to immediately revisit this policy. A more reasonable path would be to suspend the new rates, engage with stakeholders, including traders’ associations and property owners and agree on a phased plan that balances the Assembly’s revenue needs with the survival of local businesses.
The economy is already fragile. To impose such harsh and sudden levies on the very enterprises that fuel the city’s commercial heartbeat is not only reckless but counter-productive. The AMA must listen, explain and adjust.
Anything less, risks strangling the very businesses that keep Accra alive.
