Audio By Carbonatix
The Managing Director of Ghana Water Limited, Adam Mutawakilu, says the company is unable to finance major infrastructure projects due to severe financial constraints, limiting its ability to improve water production and transmission across the country.
Speaking on the JoyFM Super Morning Show on Tuesday, February 17, Mr Mutawakilu said Ghana Water Limited lacks the financial capacity to raise capital independently and must rely largely on central government support.
“As we speak, Ghana Water cannot go to the bank to raise funds for major investment because of our financial position,” he stated.
He explained that the company’s financial records make it unattractive to commercial lenders, citing a debt-to-equity ratio of about 192%, which he said discourages banks from granting loans.
Mr Mutawakilu disclosed that the company has not been making profit in recent years, recording a loss of GH¢4.8 billion in 2023 and GH¢3.1 billion in 2024.
According to him, although Ghana Water Limited generates about GH¢1.8 billion to GH¢2 billion in annual revenue, the funds are insufficient to cover operational costs, staff salaries, and major infrastructure investment.
He revealed that replacing old transmission pipelines alone would require about $356 million, equivalent to more than GH¢3.5 billion, a cost he described as beyond the company’s current financial capacity.
Mr Mutawakilu said the financial challenges partly explain delays in upgrading infrastructure and expanding water production, stressing the need for sustained government intervention to support the sector.
He noted that increasing demand for water and growing population pressures require significant investment to ensure reliable supply nationwide.
His comments come amid growing national discussions about water security, infrastructure financing, and the sustainability of essential public services in Ghana.
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