Ghana’s Finance Minister highlights severe financial losses among state-owned enterprises from 2021 to 2023. Notable losses include ECG’s GHS8 billion loss in 2022 and GHS3.8 billion from the Ghana Cocoa Board in 2022. Interventions are crucial for sustaining these vital institutions that impact the national economy.
Ghana’s state-owned enterprises (SOEs) are grappling with significant financial losses over recent years, as expressed by Finance Minister Dr. Cassiel Ato Baah Forson. In a meeting attended by SOE Chief Executive Officers, Dr. Forson disclosed alarming figures from 2021 to 2023, underscoring the deteriorating financial performance of key national enterprises.
The Electricity Company of Ghana (ECG) dominated the discussion, having recorded substantial consecutive losses: GHS1.46 billion in 2021, escalating to GHS8 billion in 2022, and slightly decreasing to GHS5.96 billion in 2023. Additionally, the Ghana Grid Company (GRIDCo) reported losses of GHS93.5 million in 2022 and further losses of GHS8.6 million in 2023.
The GIHOC Distilleries, operating within a profitable sector, surprisingly faced losses of GHS25.1 million in 2022 and GHS25.5 million in 2023. Furthermore, the Graphic Communication Group experienced financial challenges as well, with losses escalating from GHS3 million in 2021 to GHS4.4 million in 2022, and reaching GHS15.1 million in 2023.
The most significant loss was recorded by the Ghana Cocoa Board, which suffered a GHS2.4 billion deficit in 2021, followed by an even more staggering GHS3.8 billion loss in 2022. Dr. Forson emphasized the urgent need to rectify these financial issues to secure the sustainability and economic contributions of these essential institutions.
The financial struggles faced by Ghana’s state-owned enterprises depict a critical need for intervention and sustainable management solutions. With substantial losses across various sectors, including electricity distribution, distilleries, media, and agriculture, addressing these challenges is crucial for the stability and growth of Ghana’s economy. The Minister’s call to action seeks to reinforce the importance of restructuring and strategic planning to ensure the longevity and profitability of these enterprises.
Original Source: www.gbcghanaonline.com
