Ghana’s state-owned enterprises (SOEs) recorded a combined net loss of GH¢8.8 billion in 2024, with the Electricity Company of Ghana (ECG) accounting for about 85 percent of the losses, the International Monetary Fund (IMF) has said.
The losses recorded by 10 SOEs were equivalent to about 1.0 percent of Ghana’s Gross Domestic Product (GDP) and represented more than 90 percent of total losses recorded by state-owned enterprises during the year.
ECG was the largest contributor, with its loss alone equivalent to about 0.7 percent of GDP.
Other major loss-making entities included the Volta River Authority (VRA), Ghana National Petroleum Corporation (GNPC), Ghana Cocoa Board (COCOBOD), Bui Power Authority, Ghana National Gas Company, Northern Electricity Distribution Company (NEDCO), Ghana Ports and Harbours Authority (GPHA), Consolidated Bank Ghana (CBG) and Ghana Grid Company (GRIDCo).
The IMF attributed much of the weak financial performance of SOEs to high financing costs and heavy debt burdens, which have increased pressure on companies and, ultimately, the public finances.
According to the Fund, SOEs incurred combined financing costs of GH¢9.4 billion in 2024, nearly six times their combined Earnings Before Interest and Tax (EBIT) of GH¢1.57 billion.
“Aggregate financing costs reached GH¢9.4 billion in 2024, nearly six times the Earnings before Interest and Tax of GH¢1.57 billion,” the IMF stated, citing data from the 2024 Auditor-General’s Report.
The Fund said the financing burden was concentrated among highly indebted entities, particularly Ghana Water Company Limited (GWCL), COCOBOD and companies operating in the energy sector.
It said the concentration of financial distress meant that government could make significant progress in reducing SOE-related losses by targeting reforms at a relatively small number of heavily indebted and underperforming entities.
Beyond debt, the IMF identified structural challenges affecting the commercial viability of some SOEs, including tariffs that do not fully cover operating costs, unfunded public-service obligations and difficult market conditions.
The Fund, however, noted that the financial challenges were not universal across all state-owned enterprises, with some entities continuing to perform relatively well.
It said the performance of the better-performing SOEs demonstrated that stronger commercial discipline, combined with supportive government policies, could improve the financial health and sustainability of state-owned companies.
