Bussiness
Government yet to fully settle Covid-19 relief to ECG, but pays ¢16.76bn of total indebtedness
Government is yet to fully settled electricity subsidies granted as COVID-19 relief to the Electricity Company of Ghana.
This is captured in a report by the power distribution firm submitted to the Public Utilities and Regulatory Commission (PURC) for consideration to increase electricity tariff.
ECG however expects the government to continue to honour its debt obligations to keep the company afloat.
It therefore expressed worry that subsidies expected to be paid by the government on behalf of customers are always in arrears, thereby negatively affecting the financial health of the company.
Government’s indebtedness to ECG in the last recent few years had however gone down to ¢4.2 billion.
Governments indebtedness to ECG in the last few years were ¢1.015 billion, ¢1.375 and ¢1.840 billion in 2019, 2020 and 2021 respectively.
The components of government bills are MDAs, GWCL, Subsidies, Streetlight shortfall, Utility Relief granted to all customers from July 2016 to June 2019 and Covid-19 Relief.
Government settles ECG 16.76bn of its indebtedness
Between 2019 and 2021, government paid ECG ¢16.76 billion as its indebtedness.
The various government payments, the report said, were reconciled with stakeholders in the electricity value chain and applied to reduce government indebtedness.
In 2019, government paid a total amount of ¢4.592 billion out of which an amount of 1.840 billion was paid to fuel suppliers and ¢2.751 billion to Independent Power Producers (IPPs).
In 2020, government paid a total amount of ¢5.925 billion, out of which an amount of ¢1.597 billion was paid to fuel suppliers and ¢4.328 billion to IPPs.
In 2021, government paid a total amount of ¢6.243 billion, out of which an amount of 1.230 billion was paid to fuel suppliers and ¢5.013 billion to IPPs.
Importantly, the total amount paid by government under this arrangement was more than government’s indebtedness.
“The total amount paid by government under this arrangement was more than Government’s indebtedness and the balance was treated accordingly as other government equity”.
Source: www.myjoyonline.com
Bussiness
Charterhouse announces the Business Elevate Series with launch of ‘The Gastro Feastival’
Charterhouse, Ghana’s leading event management and audiovisual production company, is marking its 25th anniversary of delivering top-tier events with the introduction of an exciting new initiative: The Business Elevate Series.
This innovative series is designed to shine a spotlight on key economic sectors through a series of dynamic B2B and B2C events, including industry conferences, seminars, and exhibitions.
Kicking off the series is The Gastro Feastival, a groundbreaking annual food industry festival that will showcase Ghana’s rich and diverse food ecosystem and agribusinesses from production to consumption.
The launch event will take place on Friday, March 7, 2025, from 4:00 PM to 6:00 PM at the Grand Arena (Accra International Conference Centre).
This landmark event will bring together food industry stakeholders, enthusiasts, experts, and organizations to highlight the food industry’s critical role in Ghana’s socio-economic development and culture.
It will also promote food security, digital innovation, women’s empowerment, youth employment in agribusiness, and sustainable practices.
The Business Elevate Series is a game-changing initiative designed to foster growth and transformation across multiple sectors. With Charterhouse’s deep expertise in organizing impactful meetings, the series aims to unlock investment opportunities, drive innovation, and catalyze social and economic change.
The Gastro Feastival will address six major pillars that drive industry transformation: Investment Opportunities; Job Creation; Innovation, Technology, and Digitization; Youth Involvement (entrepreneurship and career opportunities); Women’s Involvement; Environmental and Social Governance (ESG); Export Opportunities
The event will also establish a Resource Bank, spotlighting key growth opportunities and ensuring the effective allocation of resources to transform Ghana’s food industry.
The Gastro Feastival is a Charterhouse initiative, with Kosmos Innovation Centre as the technical partner.
Bussiness
Ghana’s GDP shows economy is fast recovering despite DDEP – Finance Ministry
Ghana’s Gross Domestic Product (GDP) indicates a rapid economic recovery despite global challenges and ongoing debt restructuring, according to the Ministry of Finance (MoF).
The Ministry in a statement today indicated that latest data from the Ghana Statistical Service (GSS), cumulative economic growth for the second quarter (Q2) of 2024 reached 6.9%, a notable increase from the 4.7% recorded in the first quarter of 2024.
The MoF statement further noted that, “The economy’s robust recovery is in response to the macroeconomic stability and growth interventions that government is pursuing under our IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG).”
According to them, the overall real GDP growth for the first half of 2024 rebounded strongly, with year-on-year GDP growth averaging 5.8% for the period, significantly higher than the 2.9% recorded in the same period in 2023.
By Edem Mensah-Tsotorme
Read full statement below
