The depreciation of the Ghanaian Cedi has been blamed by Samuel Dubik Mahama, the Managing Director of the Electricity Company of Ghana (ECG), for over 80% of the company’s financial losses.
The Auditor General’s report states that state electricity distributors made 822 million cedis in profit in 2020. Nonetheless, it disclosed that in 2021, the ECG registered a deficit of GH¢1.9 billion.
In his Tuesday, February 13 statement before the Public Accounts Committee (PAC), Mr. Mahama clarified that the power distributor buys electricity in dollars and sells it in cedis.
“The forex losses alone for the year is something that we have to look at in terms of our business. Forex losses are what culminates in over 80 percent of the losses that you are seeing.”
“ECG sells electricity, so we will do our best to sell enough to reduce our commercial losses to the best of our ability to see how we can close that gap.”
