Telecom firms seek government support to tackle rising power costs

Telecommunication companies are calling for specific government interventions to help manage the growing burden of electricity costs, which they say is limiting progress in the digital economy.

Moh Damush, Group CEO of Telecel, highlighted that high energy expenses remain one of the most serious operational hurdles for telecom providers, significantly influencing service pricing across Ghana and the wider African continent.

“The main challenge for the telecom sector in Africa is access to reliable power. This affects both customer pricing and operational costs,” Damush explained. “Unlike in Europe, where a single layer of power infrastructure is often enough, in Africa we are forced to build three layers of power systems to maintain stable connectivity. This raises capital investment needs at a time when companies are already facing difficulties due to frequent power outages.”

Speaking to Citi Business News’ Nii Larte Lartey during the 2025 Africa CEO Forum in Abidjan, Damush emphasized that unstable power supply contributes heavily to high data costs and restricts efforts to expand connectivity in underserved communities.

He proposed that one solution could be for governments to offer targeted support. “We’ve seen some efforts to attract investment, which benefits multiple sectors, including telecom. But more direct action, such as subsidizing electricity for power-intensive sectors like telecom, could lead to better service delivery without compromising state revenue,” he said.

The 2025 Africa CEO Forum has drawn thousands of top business leaders to explore investment strategies, support the implementation of the African Continental Free Trade Area (AfCFTA), and shape policies to boost private sector growth.

At the forum’s opening on Monday, May 12, 2025, Makhtar Diop, Managing Director of the International Finance Corporation (IFC), stressed the need for stronger private capital mobilization to address infrastructure and employment challenges across Africa.

The two-day event will conclude on Tuesday, May 13, with a major policy debate among candidates contesting for the presidency of the African Development Bank (AfDB), aiming to influence the continent’s future economic agenda.

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