Ghana’s state-owned enterprises (SOEs) recorded double-digit revenue growth in 2024 but closed the year with deeper net losses, underscoring the fiscal risks posed by inefficient entities despite pockets of operational recovery.
The 2024 State Ownership Report (SOR), released by the State Interests and Governance Authority (SIGA), showed SOE revenues rising 28.3% to GH¢133.68 billion, driven by gains in the energy and financial services sectors. Operating performance also improved, with profits before interest and tax rebounding to GH¢1.57 billion from GH¢376.9 million a year earlier.
But ballooning finance costs, amounting to GH¢9.39 billion, eroded those gains, pushing the sector into a net loss of GH¢9.67 billion, wider than the GH¢7.14 billion deficit recorded in 2023. Total liabilities surged 24.2% to GH¢281.94 billion, with the Electricity Company of Ghana (ECG) alone accounting for GH¢71 billion.
Mixed Performance Across State Entities
The report, the ninth of its kind and the fourth under SIGA’s oversight, assessed 152 specified entities, including 54 SOEs, 30 joint ventures, and 68 other state entities (OSEs). While some entities strengthened operations, persistent underperformance among others continues to weigh on the state balance sheet.
Five SOEs, including Tema Oil Refinery, Ghana Water Company, and Ghana Cylinder Manufacturing, have posted consecutive losses since 2020. By contrast, nine entities such as Ghana Ports and Harbours Authority, Bui Power Authority, and Ghana National Gas Company remained consistently profitable.
JVCs (Joint Venture Companies) showed stronger resilience, swinging from a GH¢1.33 billion loss in 2023 to GH¢1.51 billion in profit in 2024, with minority-owned JVCs contributing a record GH¢1.03 billion in dividends. SOEs cut their net deficit by nearly 70%, but the sector remains under strain from the Bank of Ghana’s negative equity position.
Reforms and Risks
The report highlighted ongoing fiscal vulnerabilities, with public debt rising to GH¢726.7 billion, or 61.8% of GDP after restructuring. Despite GDP growth of 5.7% and a 56% rebound on the Ghana Stock Exchange, interest costs and state guarantees remain a drag.
SIGA called for strict adherence to financial reporting timelines and deeper reforms under the IMF-supported Post-COVID-19 Programme for Economic Growth. Recent policy steps, including a new State Ownership Policy, a corporate governance code, and divestments of defunct entities, are intended to improve accountability and efficiency.
Still, climate-related disclosures and gender representation remain weak. Only 27 SOEs reported on climate-smart initiatives, while female representation in executive management and boards lags the new affirmative action law’s 30% threshold.
Acting SIGA Director-General Prof. Michael Kpessa-Whyte said the report is meant to provide “data-driven insights to inform dialogue around the future of state-owned enterprises, ensuring they fulfil their potential as catalysts for economic growth and public service.”
“The task ahead is immensely difficult, given the dismal nature of the 2024 performance,” Finance Minister Cassiel Ato Forson said, warning that SOEs must become “an attractive value proposition to Ghanaians as their shareholders.”
With mounting liabilities and rising costs threatening to offset revenue gains, Ghana’s state ownership model faces a defining moment. Restoring SOEs to profitability and ensuring consistent dividend flows will be key to reducing fiscal risks and unlocking long-term value.
