Ghana Water Limited (GWL) currently collects less than 50% of the revenue it could potentially generate. Adam Mutawakilu, the Managing Director, disclosed this critical financial shortfall during an appearance before Parliament's Public Accounts Committee on Tuesday, October 13. This low revenue mobilisation significantly impacts the company's financial health and its reliance on government funding.
The primary reason for this revenue gap includes major deficiencies in GWL's customer database. Mr. Mutawakilu revealed that for every 100 commercial meters inspected, 62 were not recorded in the company's official system. This alarming discovery highlights widespread issues with billing accuracy and collection efficiency, directly contributing to the substantial loss of potential income for the state-owned enterprise.
This situation fits into a broader narrative of state-owned enterprises (SOEs) in Ghana struggling with financial viability and operational efficiency. Many SOEs depend heavily on government subventions, straining public finances. The State Interests and Governance Authority (SIGA) often reports on the performance of these entities, frequently highlighting challenges in revenue generation and profitability. For example, a SIGA report from 2025 indicated GWL had previously turned a GHS 3.06 billion loss into a GHS 635.23 million profit, suggesting past efforts to improve its financial standing.
Mr. Mutawakilu stated, "The first one is revenue. I believe that what we are raising now is less than 50% of what we should have raised." He added that management is working "round the clock to improve our revenue to be able to financially sustain us." He also called for the conversion of legacy loans, which have largely been repaid, into equity to improve GWL's balance sheet and attract future investment.
GWL aims to achieve financial self-sustainability by 2027, reducing its dependence on government support for projects. However, the company still requires government assistance to manage its existing legacy loans and foreign exchange losses from repayments. The success of the meter replacement programme and database reconciliation will be crucial indicators of GWL's progress towards financial independence and improved service delivery to Ghanaians.
The company's efforts to replace commercial meters are central to strengthening its revenue collection system. Addressing the database gaps and improving billing processes will be vital for GWL to meet its financial targets. This move could also reduce the burden on the national budget, freeing up funds for other critical public services. Investors and financial markets will closely watch GWL's ability to implement these reforms and demonstrate tangible improvements in its financial performance.