Former Managing Director of the Electricity Company of Ghana, Samuel Dubik Mahama, has identified foreign exchange volatility as the biggest operational challenge facing the power utility, saying it continues to undermine planning, forecasting, and financial stability.

Speaking on JoyNews’ Newsfile on Saturday, May 16, he explained that ECG’s core difficulty stems from the fact that it purchases power in foreign currency while its revenues are largely in the local currency.

According to him, this mismatch exposes the company to constant exchange rate risks, making it difficult to properly account for costs and revenues over time.

"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 explained.

Mr Mahama said recent improvements in forex stability are therefore a positive development for the power sector, as they improve forecasting accuracy and allow better financial planning.

He added that with greater stability in the exchange rate environment, ECG is better positioned to ensure that revenues and costs align more predictably, which supports long-term sustainability.

“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 said.

He stressed that the power sector’s challenges should be seen as part of a continuum of reforms, where successive administrations contribute to gradual improvement.