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

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