President John Dramani Mahama has issued a strong warning to underperforming State-Owned Enterprises (SOEs) to drastically transform their operations or face severe actions.
The president says the era when underperforming SOEs were tolerated is over.
At a meeting with the Chief Executives of SOEs in Ghana, President Mahama declared that it is his decision that henceforth enterprises that consistently make losses will be merged, privatized, or shut down.
He stressed that his administration will no longer tolerate inefficiency in the management of public enterprises which has become a norm in the country.
“Loss-making SOEs will no longer be tolerated. They will be swiftly reformed. They will be merged, privatized, or shut down,” he stated firmly.
This warning came on the heels of alarming financial reports presented by Finance Minister Dr. Cassiel Ato Forson at the meeting. The minister revealed significant losses across key state enterprises, including the Electricity Company of Ghana (ECG), Ghana Cocoa Board (COCOBOD), and GIHOC Distilleries.
According to Dr. Forson, ECG recorded staggering losses of GHS1.46 billion in 2021, GHS8 billion in 2022, and GHS5.96 billion in 2023. Similarly, COCOBOD, Ghana’s cocoa regulatory body, posted GHS2.4 billion in losses in 2021 and GHS3.8 billion in 2022, making it the biggest loss-making SOE.
The most shocking revelation, according to the Minister of Finance, was the financial decline of GIHOC Distilleries, a state-owned alcohol producer, which recorded GHS25.1 million in losses in 2022 and GHS25.5 million in 2023.
“This one surprises me. Even the alcohol-making company is making losses,” Dr. Forson remarked.
Other loss-making entities include: Ghana Grid Company (GRIDCo) – GHS93.5 million in 2022, GHS8.6 million in 2023; Graphic Communications Group – GHS3 million loss in 2021, GHS4.4 million in 2022, GHS15.1 million in 2023.
With this abysmal performance, President Mahama says his government will no longer continue subsidizing enterprises that fail to generate profits. He emphasized that SOEs must be financially viable, competitive, and self-sustaining to ease pressure on Ghana’s economy.
The announcement signals a major shift in government policy, as underperforming SOEs now face a tough reality—either they turn their fortunes around or risk privatization or complete shutdown.
