Forex volatility ECG’s biggest headache, says former MD
Former Managing Director of the Electricity Company of Ghana, Samuel Dubik Mahama, has pinpointed foreign exchange instability as the single greatest operational challenge confronting the power utility, arguing that the currency mismatch at the heart of ECG’s business model has long undermined its financial planning and sustainability.
Speaking on JoyNews’ Newsfile on Saturday, May 16, he explained that ECG finds itself in a structurally difficult position — purchasing power in foreign currency while collecting revenues predominantly in cedis. The resulting exposure to exchange rate fluctuations, he said, makes it virtually impossible to forecast costs and revenues with any meaningful accuracy.
“ECG’s biggest problem is forex. It buys power in a different currency. You go to work in the morning, by evening your whole day is messed up because your accounting didn’t balance,” he said.
Against that backdrop, he welcomed recent signs of relative stability in the foreign exchange market as a positive development for the sector, noting that a more predictable currency environment gives ECG a better chance of aligning its costs and revenues and building toward long-term financial health.
“For me, looking at some of these indicators, I’m going to say yes, we are in a good place. The money will add up and there will be enough stability for the company to grow. So, for me, I will say Kudos. Let us see where we go from here,” he added.
The former MD also urged against viewing the power sector’s difficulties through a partisan lens, stressing that the challenges and reforms spanning Ghana’s electricity industry represent a continuum of work carried forward by successive administrations over time.
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