Ghana’s 2024 State Ownership Report, released by the State Interests and Governance Authority (SIGA) has spotlighted a worrying trend: five state-owned enterprises (SOEs) have posted losses every year from 2020 through 2024.
The Ghana Cylinder Manufacturing Company (GCMC), GNPA Ltd, Ghana Water Company Ltd (GWCL), Graphic Communications Group Ltd (GCGL), and Tema Oil Refinery (TOR) were all flagged as “persistent fiscal risks,” with their combined deficits undermining public finances and service delivery.
Sector-wide, SOEs reported revenues rising in 2024, but still recorded a net loss of GH¢9.67 billion, up from GH¢7.14 billion in 2023. SIGA cited high finance costs, mounting debt, and entrenched inefficiencies as the main culprits.
At the portfolio level, liabilities have climbed to about GH¢281.94 billion against total assets of GH¢395.2 billion, with the Electricity Company of Ghana alone holding GH¢71 billion in liabilities.
Meanwhile, analysts warn that, this imbalance threatens to spill into energy tariffs, water pricing, and broader fiscal stability.
Why the Losses Persist
TOR continues to be the biggest drain, with average annual losses estimated near GH¢793 million since 2019 and debt now topping US$517 million.
GWCL faces heavy costs from illegal mining pollution and non-revenue water, while GCGL’s print-first business model struggles to adapt to the digital age.
Further, GCMC has been absorbed by Ghana Gas after years of weak demand and losses, and GNPA’s unclear mandate leaves it straddling commercial and policy functions without clarity or capital.
What Needs to Change
SIGA points to the new State Ownership Policy and Corporate Governance Code, adopted in 2024, as steps forward. But experts stress that enforcement is key: without binding performance contracts, hard budget constraints, and transparent consequence management, losses will continue.
Reform proposals include debt restructuring at TOR and GWCL, cost-reflective tariffs for utilities, digital pivots at GCGL, industrial policy alignment for GCMC, and mandate clarity for GNPA.
Crucially, analysts urge government to fund social obligations directly through the budget, rather than leaving SOEs to absorb them.
Why It Matters
These persistent losses do more than dent balance sheets. They fuel arrears and bailouts that ultimately burden taxpayers, while undermining trust in essential services such as water supply and energy.
Importantly, chronic underperformance also signals risk to private investors, raising Ghana’s cost of capital.
The Bottom Line
Ghana has written the rules for better SOE governance, but the financial results show the gap between policy and practice.
Until mandates are clarified, budgets hardened, and accountability enforced, the state’s most troubled enterprises will continue to weigh heavily on public finances.
