Ghana Water revenue mobilisation below 50% of potential – MD

The Managing Director of Ghana Water Limited (GWL), Adam Mutawakilu, has revealed that the company is currently generating less than 50% of the potential revenue it could be earning. Mr Mutawakilu, who appeared before Parliament’s Public Accounts Committee on Tuesday, October 13, emphasized the importance of improving revenue collection to make the company financially sustainable and reduce its reliance on government funding.

During his testimony, Mr Mutawakilu highlighted revenue mobilisation as a top priority, alongside balancing the company's financial position and managing foreign exchange losses from loan repayments. He stated that the company is working tirelessly to enhance its revenue collection system, with a particular focus on replacing commercial meters.

However, the exercise to replace commercial meters has exposed significant gaps in the company's database. According to Mr Mutawakilu's estimates, for every hundred commercial meters, there are 62 meters not recorded in the database. This discovery has raised concerns about the need for the company to improve its records and revenue collection processes to maximize its earnings.

Despite the challenges, Mr Mutawakilu expressed optimism that the company can become financially self-sustaining by 2027. He believes that the ongoing measures will enable Ghana Water Limited to achieve a financial position independent of government funding by the end of the next year. However, he stressed that government support would be necessary to address the legacy loans on the company's balance sheet.

To improve its financial position and strengthen its capacity to attract investment, Mr Mutawakilu proposed converting legacy loans that have largely been repaid into equity. This step, he believes, would help manage foreign exchange losses and contribute to the company's overall financial stability.