Ghana’s State-Owned Enterprises: Addressing Financial Losses

Ghana’s Finance Minister has expressed concerns regarding severe financial losses among State-Owned Enterprises from 2021 to 2023. The Electricity Company of Ghana, Ghana Grid Company, GIHOC Distilleries, Graphic Communication Group, and Ghana Cocoa Board reported significant deficits, indicating a pressing need for intervention to sustain these vital institutions.

Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, has raised concerns about the significant losses reported by various State-Owned Enterprises (SOEs) in recent years. During a meeting with SOE Chief Executive Officers, he highlighted financial data from 2021 to 2023, emphasizing the alarming trend of financial instability within key national institutions.

The Electricity Company of Ghana (ECG) was noted for its continuous losses, which escalated dramatically. In 2021, the company recorded a loss of GHS1.46 billion, which rose to GHS8 billion in 2022, before decreasing to GHS5.96 billion in 2023. Additional losses were reported by the Ghana Grid Company (GRIDCo), suffering a loss of GHS93.5 million in 2022, followed by GHS8.6 million in 2023.

Surprisingly, GIHOC Distilleries, operating in an industry perceived as profitable, reported losses of GHS25.1 million in 2022 and GHS25.5 million in 2023. Similarly, the Graphic Communication Group experienced financial challenges, posting losses of GHS3 million in 2021, GHS4.4 million in 2022, and a sharp rise to GHS15.1 million in 2023.

The most substantial loss was recorded by the Ghana Cocoa Board, which is the country’s largest agricultural institution, incurring a GHS2.4 billion deficit in 2021 and an astonishing GHS3.8 billion loss in 2022. Dr. Forson expressed that these losses reflect a troubling situation regarding the financial health of SOEs, asserting the necessity to address these issues for the sustainability and growth of these integral entities that significantly impact the economy.

In summary, recent reports reveal that Ghana’s State-Owned Enterprises are grappling with severe financial losses, as highlighted by Finance Minister Dr. Cassiel Ato Baah Forson. Key SOEs, including ECG, GRIDCo, and GIHOC Distilleries, showcased considerable deficits over the past three years. The situation necessitates urgent intervention to ensure the sustainability of these enterprises, which play a crucial role in the nation’s economy.

Original Source: www.gbcghanaonline.com