VALCO struggles with US$400 million debt burden

The Volta Aluminium Company (VALCO) is facing a serious financial crisis, with debts of about US$400 million, according to the Ghana Integrated Aluminium Development Corporation (GIADEC).

The biggest share of the debt is owed to power suppliers. VALCO owes between US$200 million and US$300 million to the Volta River Authority (VRA) and the Ghana Grid Company (GRIDCo).

It also owes about US$15 million to suppliers of raw materials such as alumina, petroleum coke and fluorides, while local suppliers are owed around US$1 million.

The Chief Executive Officer of GIADEC, Reindorf Twumasi Ankrah, has said VALCO cannot clear its debts unless the company returns to profitability.

“VALCO’s debt has reached a level that cannot be repaid through its current operations. The company needs fresh capital and modern technology to become profitable again,” he said.

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The financial challenges have worsened following several equipment failures that have reduced production.

Since June this year [2026], VALCO has lost more than 25 percent of its operating capacity due to ageing machinery. Monthly aluminium production has fallen by about half, while the quality of the metal produced has also dropped below industry standards.

The fall in production has made it difficult for the company to supply customers and generate enough revenue to service its debts.

“When production drops, revenue also falls. That makes it even harder for the company to meet its financial obligations and invest in maintenance,” Ankrah explained.

Estimates by officials indicate that restoring the lost production capacity will require several million dollars in the short term.

They say about US$351 million will be needed to fully operate two production lines, while another US$239 million will be required to modernise three idle production lines.

Further investment will also be needed to upgrade other key parts of the plant.

Ankrah said the government’s decision is to bring in a strategic investor to inject capital into the company, not to sell VALCO.

“This is an investment to revive VALCO, not a sale of the company. Government has also directed that workers’ jobs should be protected during the process,” he said.

He warned that without fresh investment, VALCO’s financial problems could worsen and threaten the future of Ghana’s aluminium industry.

The plan to bring in a strategic investor has, however, been opposed by some VALCO workers and the Industrial and Commercial Workers’ Union (ICU-Ghana), who fear it could lead to the privatisation of the company.

ANAS/MA

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