Dr. Cassiel Ato Baah Forson, Ghana’s Finance Minister, expressed concern over the increasing financial losses of State-Owned Enterprises (SOEs). Key companies such as ECG and Ghana Cocoa Board reported significant deficits from 2021 to 2023. Urgent action is needed to tackle these issues and ensure the sustainability of these vital entities.
Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, has raised concerns regarding the escalating financial losses experienced by several State-Owned Enterprises (SOEs) in recent years. During a meeting with SOE Chief Executive Officers, he provided detailed financial data spanning from 2021 to 2023, underscoring the ongoing fiscal challenges faced by key national entities.
The Electricity Company of Ghana (ECG) has been notably impacted by consecutive losses over a three-year period, reporting a staggering GHS1.46 billion loss in 2021, which escalated to GHS8 billion in 2022, before slightly decreasing to GHS5.96 billion in 2023. Furthermore, the Ghana Grid Company (GRIDCo) faced a loss of GHS93.5 million in 2022, followed by an additional GHS8.6 million loss in 2023.
In a surprising revelation, GIHOC Distilleries, operating within a seemingly profitable sector, reported losses of GHS25.1 million in 2022, which slightly increased to GHS25.5 million in 2023. Moreover, the Graphic Communication Group, a significant media organization, encountered financial issues, with losses rising from GHS3 million in 2021 to GHS15.1 million in 2023.
The most considerable losses were registered by the Ghana Cocoa Board, the leading agricultural institution, which reported a deficit of GHS2.4 billion in 2021, escalating to GHS3.8 billion in 2022. Dr. Forson remarked, “These losses paint a concerning picture of the financial health of our state-owned enterprises.” He emphasized the urgency of addressing these challenges to secure the sustainability and growth of these crucial organizations, which play a vital role in the economy.
The article highlights the significant financial losses incurred by Ghana’s State-Owned Enterprises, specifically citing the Electricity Company of Ghana, Ghana Grid Company, GIHOC Distilleries, Graphic Communication Group, and Ghana Cocoa Board. The Finance Minister’s call for immediate action underscores the importance of addressing these issues to ensure the long-term viability of institutions that are critical to the nation’s economy.
Original Source: www.gbcghanaonline.com
