Ghana’s Finance Minister Dr. Cassiel Ato Baah Forson has reported that state-owned enterprises are facing severe financial deficits, with the Electricity Company of Ghana leading in losses. Other entities, including GRIDCo, GIHOC Distilleries, and the Ghana Cocoa Board, also show concerning financial performance. Immediate attention is needed to address this trend and safeguard the economy.
Ghana’s state-owned enterprises (SOEs) are experiencing increasing financial challenges, as highlighted by Finance Minister Dr. Cassiel Ato Baah Forson during a meeting with the CEOs of these entities. He provided alarming data from 2021 to 2023, illustrating the significant financial deficits faced by key national institutions.
The Electricity Company of Ghana (ECG) is a notable example, reporting consecutive losses over three years. The company faced a loss of GHS1.46 billion in 2021, escalating to GHS8 billion in 2022, and reducing slightly to GHS5.96 billion in 2023. In addition to ECG, the Ghana Grid Company (GRIDCo) was mentioned, with losses amounting to GHS93.5 million in 2022 and GHS8.6 million in 2023.
Surprisingly, GIHOC Distilleries, operating within a profitable sector, reported losses of GHS25.1 million in 2022 and GHS25.5 million in 2023. Furthermore, the Graphic Communication Group, a prominent media organization, encountered financial hardships, recording losses of GHS3 million in 2021, GHS4.4 million in 2022, and escalating to GHS15.1 million in 2023.
The greatest financial downfall was witnessed by the Ghana Cocoa Board, which registered a staggering GHS2.4 billion deficit in 2021, followed by a substantial GHS3.8 billion loss in 2022. Dr. Forson warned that these losses reflect a troubling situation regarding the financial stability of SOEs and emphasized the necessity to engage with these issues to safeguard their sustainability and contribution to Ghana’s economy.
The persistent financial losses experienced by Ghana’s state-owned enterprises highlight a critical situation that must be addressed. The statistics reveal significant deficits in prominent companies, including the Electricity Company of Ghana, Ghana Grid Company, GIHOC Distilleries, Graphic Communication Group, and Ghana Cocoa Board. Hence, prompt action is essential to ensure these institutions can recover and continue to play a vital role in the national economy.
Original Source: www.gbcghanaonline.com
