AMMAN, Jordan — A beleaguered energy sector lacking in long-term strategy has led to high energy bills, which now threatens the viability of Jordan’s manufacturing businesses, according to critics. In the midst of their fight for survival, business owners along with industry experts are calling on the government to act before an already deteriorating sector suffers further blows.
Plagued by poor planning, over-commitment to energy generation and procurement, and a seeming reluctance to move away from a heavy reliance on fossil fuels, Jordan faces high energy costs that are crippling businesses and destroying their ability to compete with companies in neighboring countries.
As the biggest contributor to Jordan’s gross domestic product (24%), the industrial sector plays a crucial role when it comes to the stability of the kingdom’s economy. It provides the Treasury in excess of 1 billion Jordanian dinars ($1.4 billion) annually in direct or indirect taxes and employs more than 240,000 people across 18,000 industrial facilities countrywide — a significant contribution considering Jordan’s tough economic climate and its 18.7% unemployment rate.
Calls are being made for an overhaul of tariffs and the way in which renewable energy is utilized in order to better support its industrial sector.
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