President John Dramani Mahama has raised eyebrows over the poor financial performance of Ghana’s state-owned enterprises (SOEs), singling out GIHOC Distilleries for scrutiny despite the nation’s robust demand for alcoholic beverages.
Speaking at the 2025 May Day celebrations at Black Star Square in Accra, Mahama voiced his concern after a briefing with the State Interests and Governance Authority (SIGA) revealed that nearly all SOEs are operating at a loss. Of particular concern was GIHOC Distilleries, a company historically known for generating modest dividends to the state but now weighed down by debt.
“In a country where alcohol is consumed during celebrations, sorrow, and even during ordinary days, it’s difficult to understand how a liquor company like GIHOC is failing to turn a profit. When I was president, GIHOC was at least paying some dividends. Today, it’s in the red. How do you sell alcohol and still end up in debt?” Mahama quized.
The President’s remarks, delivered with a blend of humour and urgency, point to a deeper crisis within Ghana’s public sector enterprise ecosystem. Mahama described the situation as indicative of systemic inefficiencies and governance issues plaguing SOEs, many of which are now financial liabilities to the state.
Industry analysts note that GIHOC’s challenges may stem from outdated production systems, inefficient management, limited market innovation, and possible procurement or distribution inefficiencies despite a market environment that remains highly favourable for alcohol sales.
Mahama used the platform to call for a cultural and operational shift across all SOEs. He urged both management and workers to embrace a performance-driven mindset and work collaboratively toward turning these enterprises into sustainable, profitable entities.
“These institutions belong to all of us, and they must serve the public good. We need to treat them as strategic economic assets not political burdens,” he emphasized.
The President’s comments add momentum to calls for a comprehensive SOE reform strategy, including stronger oversight by SIGA, better corporate governance structures, and performance-based accountability. For companies like GIHOC, the message is clear: profitability must match product popularity or leadership changes and operational restructuring may follow.
Mahama’s push aligns with his broader agenda to restore fiscal discipline in public enterprises and re-establish them as pillars of national development. As Ghana grapples with economic challenges, the performance of SOEs like GIHOC will increasingly come under the microscope.
