Ghana’s state-owned enterprises risk derailing national finances, the World Bank warns.
Without urgent reform, the Electricity Company of Ghana (ECG) will face a $2.2 billion funding gap by late 2025. This shortfall could spiral to $9 billion by 2026.
Robert Taliercio, World Bank Country Director for Ghana, Sierra Leone, and Liberia, sounded the alarm at the Ghana Economic Update launch. ECG struggles with tariffs failing to cover costs, distribution losses, and mounting forex pressures. Despite the government’s Energy Sector Recovery Program, ECG added new debts to power producers in 2024.
“Every year, the government must provide significant financial support,” Taliercio noted. The crisis extends beyond energy. Ghana Cocoa Board (COCOBOD) faces instability despite high global cocoa prices. Weak production, supplier debts, and costly non-core activities deepen fiscal risks.
Taliercio urged stronger oversight to prevent these SOEs from crowding out critical infrastructure and social spending. Without action, he warned, Ghana’s economic stability hangs in the balance.
Source: newsghana.com.gh
