State-Owned Enterprises (SOEs) that fail to meet performance expectations may face comprehensive restructuring measures, as authorities intensify moves to eliminate inefficiencies within the sector.
Deputy Minister for Finance, Thomas Nyarko Ampem, said loss-making SOEs must improve or face restructuring, privatisation, or outright dissolution, stressing the need to “improve performance” under a renewed accountability framework.
Speaking on behalf of the Finance Minister, Dr.Cassiel Ato Forson, at a stakeholder meeting on SOEs and Specified Entities, Mr. Ampem indicated that the government’s economic stabilisation efforts have removed longstanding constraints, leaving entities “running out of excuses” for poor performance.
He aligned the directive with commitments by President John Dramani Mahama, emphasizing that the ongoing economic reset agenda will prioritise “efficiency and accountability,” with underperforming enterprises to be “reformed, merged, privatised, or shut down” where necessary.
The Deputy Minister pointed to improved macroeconomic conditions, including declining inflation, enhanced currency stability, and a reduction in the policy rate by the Bank of Ghana, as creating a more supportive environment for SOEs. These gains, he said, require entities to transition from “fiscal burdens” into contributors to national revenue.
However, he raised concerns about the persistent cost of inefficiencies, particularly in the energy sector, where the government has spent about $1.47 billion to address shortfalls. He cited the Electricity Company of Ghana as continuing to record losses, with nearly “40 percent of power” lost through technical and commercial challenges.
In the financial sector, the government’s interventions remain significant. Mr. Ampem disclosed that more than GH¢1 billion was injected in 2025 to recapitalise the National Investment Bank and Agricultural Development Bank, alongside moves to convert COCOBOD’s GH¢5.8 billion legacy debt into equity. These measures, he warned, pose “significant fiscal risks” if inefficiencies persist.
Despite the challenges, the Ministry acknowledged improved performance among some entities. Ghana Ports and Harbours Authority, Ghana Reinsurance Company Limited, and TDC Ghana Limited delivered a combined GH¢329.34 million in dividends in 2025, up sharply from GH¢28.7 million the previous year. Even so, Mr. Ampem stressed that “consistency in performance” remains a concern.
He further stressed the need for strict compliance with governance and reporting standards under the State Interests and Governance Authority, cautioning that non-compliant entities will face sanctions, while boards and management will be held accountable for lapses in oversight.
The meeting, attended by senior government officials including Vice President Jane Naana Opoku-Agyemang, focused on repositioning public enterprises to better support national development. The Finance Ministry maintained that SOEs must operate with “discipline, efficiency, and transparency,” or risk being dissolved as part of broader fiscal reforms.
