Ghana’s State-Owned Enterprises Experience Alarming Financial Losses

Dr. Cassiel Ato Baah Forson, Ghana’s Finance Minister, highlighted severe financial losses faced by several State-Owned Enterprises from 2021 to 2023. ECG, GRIDCo, GIHOC Distilleries, and the Ghana Cocoa Board reported staggering losses, raising concerns about the sustainability and future growth of these institutions. Dr. Forson’s remarks underscore the necessity for immediate action to address these financial struggles.

Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, has expressed deep concern regarding the increasing financial losses of several State-Owned Enterprises (SOEs). During a meeting with CEOs of these enterprises, he presented data spanning from 2021 to 2023, highlighting the ongoing financial difficulties faced by important national institutions.

The Electricity Company of Ghana (ECG) has shown a troubling trend, with losses escalating from GHS1.46 billion in 2021 to GHS8 billion in 2022, before modestly decreasing to GHS5.96 billion in 2023. Additionally, the Ghana Grid Company (GRIDCo) reported losses of GHS93.5 million in 2022 and GHS8.6 million in 2023, underscoring the financial strain on the power sector.

In the beverage industry, GIHOC Distilleries recorded losses of GHS25.1 million in 2022 and GHS25.5 million in 2023, despite operating in a lucrative market. Financial difficulties were also noted within the Graphic Communication Group, which experienced losses escalating from GHS3 million in 2021 to GHS15.1 million in 2023.

Furthermore, the Ghana Cocoa Board, the largest agricultural institution in the country, reported a staggering loss of GHS2.4 billion in 2021 and an increased deficit of GHS3.8 billion in 2022. Dr. Forson emphasized, “These losses paint a concerning picture of the financial health of our state-owned enterprises. It is essential that we address these issues to ensure the sustainability and growth of these vital institutions, which contribute significantly to the economy.”

The financial performance of Ghana’s State-Owned Enterprises has exhibited a troubling decline, with numerous organizations reporting significant losses from 2021 to 2023. Key players like ECG, GRIDCo, GIHOC Distilleries, and the Ghana Cocoa Board have all encountered substantial deficits, raising urgent concerns regarding the sustainability and operational viability of these critical economic entities. Addressing these challenges is imperative to foster growth and stability within the national economy.

Original Source: www.gbcghanaonline.com