Will the Anchor Hold? An Overview of the Financial Performance of the Electricity Company of Ghana (ECG) from 2009 to 2012

Abstract

Ghana has been plagued with Power Crisis for the past three years. In the mix of discussions on the energy challenges that Ghana has been confronted with over the years is the level of efficiency of its sole electricity distribution organisation; the Electricity Company of Ghana Limited (ECG). Whiles some experts have called for the contracting of the management of the ECG in order to make it much more efficient and profitable, others have advised that the company should be totally privatised. Proponents of the latter stance argue that this would enable the ECG run more efficiently and attract the necessary investments which would employ efficient technologies in the distribution of power for industry and households. This feat is necessary especially considering that Ghana has committed to universal access to electricity in year 2020. This paper focuses on analysing the financial performance of the Electricity Company of Ghana from 2009 to 2012 by the use of financial ratios. In nutshell, results from the ratios are used to advise on the best ways to make the ECG an efficient organisation in delivering on its core mandate to the citizenry of Ghana.