Business

News

Entertainment

Sports

Africa

TV

Country

Webbers

Lifestyle

SIL

Cedi depreciation causes ECG to record over GH¢8bn losses in 2023 – Dr. Kwabena Donkor

Dr Kwabena Donkor 704x424 Ezgif.png Dr. Kwabena Donkor, MP for Pru East

Mon, 21 Oct 2024 Source: The High Street Journal

The depreciation of the Ghanaian cedi is severely impacting the Electricity Company of Ghana (ECG) operations, contributing to significant financial losses.

In 2023, out of ECG’s over GH¢10 billion in losses, GH¢8.3 billion was due to net exchange rate losses. This is because while ECG's revenue is primarily in cedis, a substantial portion of its expenses, such as payments to the VRA and independent power producers, is dollar-denominated.

Dr. Kwabena Donkor, MP for Pru East, attributes this partly to macroeconomic mismanagement, alongside ECG’s internal inefficiencies, including low revenue collection.

Read full article

Source: The High Street Journal