The Electricity Company of Ghana (ECG) Board of Directors has announced that the company will not pay dividends to its sole shareholder for the year 2025. The decision was made at the 18th Annual General Meeting of the company in Accra on Thursday, July 30, 2026.
ECG's Financial Position Remains Challenging
Despite improved finances over the last year, the company did not break even to be able to pay a dividend. The Board Chairman, William Amuna, revealed that ECG's revenue grew by 16.2 percent to GH¢22,109 million in 2025, but liabilities resulted in a loss after tax of GH¢2,521.20 million.
The company's financial outcome for the year was a significant improvement on the GH¢8,255.80 million recorded in 2024. However, this was not enough to warrant a dividend payment to the sole shareholder, the state.
Implementing Reforms to Strengthen ECG's Financial Sustainability
The Board of Directors has acknowledged the need to restore the company's financial position and has supervised the implementation of government's proposed reforms. These reforms are already yielding results, and the board remains committed to implementing measures to strengthen ECG's long-term financial sustainability.
Mr. Amuna stated that the board is working with management and engaging government and regulatory stakeholders on a sustainable long-term financing framework for the distribution sector. The board has also endorsed a four-channel strategy for debt reduction, tariff full cost recovery, loss reduction, improved collections, and the growth of other income streams.
A Path Forward for ECG's Financial Recovery
The decision not to pay dividends for 2025 is a clear indication of the company's financial challenges. However, the implementation of government's proposed reforms and the endorsement of a four-channel strategy for debt reduction and financial sustainability provide a glimmer of hope for ECG's future.
The company's ability to implement these reforms and achieve long-term financial sustainability will be closely watched by stakeholders, including the Ministry of Finance, the State Interest Governance Authority (SIGA), and regulatory bodies such as the Public Utilities Regulatory Authority (PURC) and GRIDCo.
The road ahead will be challenging, but with the right strategies in place, ECG can work towards a more stable financial future.
Source: Joy Online
